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The Freak Out Factor in Market Dynamics
There's a great line from Buffett where he says, if you can't afford to lose 50 percent in the markets, you shouldn't be in the markets. I don't know how people would react if all of a sudden the S&P was back at 1999 levels. Then this freak out factor is really what drives a lot of market dynamics. The sooner we can start modeling those dynamics more explicitly, the sooner we'll have more realistic theories about how markets move.