Economic Skepticism and Market Dynamics

David is widely regarded for his deep understanding of risk and for delivering his insights in a highly engaging and entertaining manner.

He dedicates his time to analysing sources of risk and developing strategies designed to mitigate their impact. His approach involves embracing convexity—purchasing pockets of inexpensive volatility as a form of insurance against adverse outcomes in uncertain environments.

When should investors adopt this strategy? According to David, the answer is simple: always—just like insuring a house.

David holds strong and often contrarian views that challenge the foundational assumptions of Modern Portfolio Theory, which he refers to as "Sharpe World." In his view, this framework wrongly equates risk with volatility.

He brings these ideas to life through vivid anecdotes and illustrative examples that highlight the risks investors unknowingly take in markets shaped by Sharpe World principles and operated by what he calls "Rational Accounting Man."