Tail Risk Hedging | Nassim Taleb, The Fed, Macro 'Investing', Faith Based Alpha & Antifragility
Pirates of Finance
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The Effects of the Risk Free Rate on Portfolio Allocations
The study doesn't consider that if every household and institution in the world cut their equity allocation from 70 to 50. Then it would change the risk premium because you would see equities fall off a cliff as everyone sells them in preference for rates. The second money starts to move in theory you would be finding some other equilibrium. So it's a little silly about this study as it doesn't consider the second order effects which are if everyone's running into the risk free rate. It's going to drive the riskfree rate lower right T bills lower. If everyone's selling their equities it's going to driving the risk premium up in equities in theory that you could earn because no one wants
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