Ep. 941: Trend Following Perspectives with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Importance of Wildness in Economics
Economists have been dismissing all the attempts to introduce a little more wildness in the description of economic systems and financial markets. So actually wild is the reference to Mandelbrot. He has introduced fractals, he's introduced also the idea of distributions without second moment or distribution with infinite means. And so that's really what I was referring to when using the word wild. Now why is economics in general not able to capture these big swings? It's very strange because the models are constructed to be intrinsically stable.
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