Selikt: My first experience in investingi was in 19 99. Manup losing about five thousand dollars on a stock called ion networks. And so mentally, i was on the of those who thought that things were excessive. But fundamentally, if you think of anything more complicated, like a discounted cash flow of a stock, there is no golden rule or natural law saying that micres of shoun be seven x price sales. Selikt: I'm devinly fish out of water here. It's interesting to reason about what fundamentals are. You know, there's obviously very simple casees like you could imagine. Let's say we do a three months duration of it.
Lily Francus is a risk theorist and a quantitative researcher at Moody’s. She is also the author of the ‘Midnight on the Market Momentum’ newsletter. Find Lily on her Twitter at https://twitter.com/nope_its_lily and read her newsletter at https://nopeitslily.substack.com Jesse Livermore is an OSAM research partner and a recurring guest at Infinite Loops. You can connect with him on Twitter at https://twitter.com/Jesse_Livermore and read more about his work at http://www.philosophicaleconomics.com/ Show notes:
- Why all the recent focus on bubbles?
- How the era you grow up in shapes your investment philosophy
- Intrinsic and Extrinsic value
- How leverage impacts pricing
- What is a bubble? And how to identify if you’re in one
- Role of uncertainty in arbitraging
- What makes a bubble pop
- How bubbles set a new floor price
- Do we have enough short sellers?
- Time arbitrage
- Information arbitrage in a hyper-connected world
- Are we currently in a financial bubble?
- Implications of pseudonymity
- Is there a free will?