Apple’s revenues are falling. A tiny, tiny part is thanks to me. Why? I used to buy a new Apple device every six months, but no more.
The financial markets did not have a good 2018 as the media kept on reminding us:
The riskiest year in human history was 1962. The year of the Cuban missile crisis, the closest we ever came to a nuclear war. The mother of all tail events, where all prices go to zero. Volatility that year was average — 16.5%
How can market risk be average when tail risk is at its highest?
Perceived risk is risk predicted by models and actual risk is the fundamental underlying risk. We measure perceived risk and care about actual risk. Unfortunately, those two are negatively correlated.
© All rights reserved, Jon Danielsson, 2019