Don't Be Normal

[bob]

Two articles I came across in the course of other reading today that I thought might interest the community. Forgive me if these are dupes of links already posted.

Both are interesting for their own reasons, but what prompts me to post them together is that both demand the use of power-law distributions for managing risk.

(1) From the former general counsel of LTCM, who's in a very interesting line of business now:
http://www.zerohedge.com/sites/default/files/Rickards Interview.pdf

(2) From (who else?) Taleb, with his Quant Finance Orthodoxy flamethrower turned even higher than usual. Very poorly copy-edited, but topical and with an interesting historical perspective:
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1012075&rec=1&srcabs=1411741

 

[IlyaKEightSix]

Read Taleb's diatribes before. He's just playing with semantics. Yes, Ed Thorp was using black scholes before it was called that because he was making money with it (and therefore DIDN'T publish). So what? Had Thorp published, Taleb would have been flaming him too.

As for the first article, reading it now. Fascinating.

 

[IlyaKEightSix]

Finished reading the first article. Fantastic read.

 

[Dibbs]

Finished reading the first article. Fantastic read.

Yeah, very interesting.

 

[Joy Pathak]

@ Taleb's Paper

The editing IS horrible.

But interesting.