Practical Wisdom

The other day someone sent in an email complaining about recent feedback from other readers on my blog as extraneous. They missed the point. I welcome input. I relish the opportunity to have other people say something in a different way or offer their experience. We all learn from each other! It’s also helpful to see, from my perspective, so many people around the world arriving at similar conclusions. That said, here is good feedback from a reader at a well known bank offering practical wisdom:

“Michael, I simply could not put away your book the other night and was hoping it wouldn’t end. I read vast amounts of technical books and material for my job and passion — volatility management — and was relieved that such a simple concept could be so enjoyable. I am a trained statistician, quant, and former Air Force war-gamer who has seen a lot of cracked bell curves over the years. Any time thinking-humans have direct influence in probabilistic outcomes, traditional statistics crumbles. XXX, my former employer, is right when he states that real assets must converge to replacement value. Yet, in the spirit of Keynes, price momentum remains a priced risk factor when markets behave irrationally longer than most investors remain solvent.”
All the Best,
XXX, CFA
Credit Suisse VOLARIS

I bolded his line above that struck me. Simple and to the point.