Portfolio +30% YTD, 2.3x the market since inception. This week showed how quickly sentiment swings from optimism to panic. But in markets and in life, there’s profit in thinking beyond the binary.
Sentiment swings are often the biggest tell for what comes next in marqets. Once everyone agrees on the narrative, reality usualy starts to diverge. The portfolios that outperform are the ones that can handle greyness instead of all or nothing positions. Your point about thinking beyond binary really resonates with how succesful traders operate over longer time horizons.
It's interesting how you connected market swings to the broader idea of all-or-nothing thinking clouding judgement in markets and in life. Do you think this binary approach is becoming more prevelant in other complex systems too?
Sentiment swings are often the biggest tell for what comes next in marqets. Once everyone agrees on the narrative, reality usualy starts to diverge. The portfolios that outperform are the ones that can handle greyness instead of all or nothing positions. Your point about thinking beyond binary really resonates with how succesful traders operate over longer time horizons.
It's interesting how you connected market swings to the broader idea of all-or-nothing thinking clouding judgement in markets and in life. Do you think this binary approach is becoming more prevelant in other complex systems too?
Yes. I think so. Just look at politics. Not just in the US but everywhere from South America to Europe. And that spills over to policy.