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Ergodicity Simply Explained (Nassim Taleb's Favourite Concept)

The Incerto Podcast

CHAPTER

The Absorbing Barrier of Financial Markets

Nesim toleb: Financial markets are non agotic because of human behaviour. Path dependency matters measur ing individuals trajectory over time. A person who made 80 million dollars in their financial career can, in one day, lose more money than even that they ever made. It's within the realm of possibility - there is a giant absorbing barrier which ruins the ogoric theory of financial markets.

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