Epsilon Theory In Brief
Daily short-form pieces for those without the time (or attention span) for classic Epsilon Theory notes. Look out for regular features like the subscriber mailbag and guest contributions from within the Epsilon Theory network.
Second Foundation Partners is looking for a new member of the team to help us spearhead the development of technologies for narrative analysis.
Two weeks ago we were being told about the coronavirus outbreak. This week we are being told how we should think about it. Right or wrong, it is important to have clear eyes about this kind of fiat news.
Axioms to live by in baseball and in investing!
1) Outsiders to an organization can never know in real time what goes on inside it.
2) Human labors can never be gauged fully and dispositively in real time.
3) Chains are never stronger than their weakest links.
On MLK, Jr. Day, we present an excerpt from a powerful and under-read sermon about status delivered to the Ebenezer Baptist Church.
More from the world of universities-as-guilds and the weird war between the merely rich and ultra-rich.
There is a chart I’ve been thinking about a lot lately, and I want to tell you about it. Before I do, I also wanted to show it to you, along with a simple request: Tell me what you think that it is. Put it in the comments if you’re a subscriber. If you’re not, …
We’ve gotten a lot of responses and thoughts on By Our Own Petard, so we thought we would talk about some of them in another Mailbag feature.
ET contributor Demonetized creates his own koan in this very personal note.
Is morality socially constructed through a process where biological systems are socially conditioned to respond in particular ways to particular stimuli, or is morality an innate moral compass manifested in Kantian ethics?
Yes.
Negative rates create a cycle of addiction to even more negative rates in the future.
Why? Because captive buyers like pension funds require capital appreciation to make up for negative yield, so central banks must guarantee a commitment to still more negative yields.
New from ET contributor Pete Cecchini!
Every now and then we come across an article or blog post that’s directly relevant to what we’re trying to say on Epsilon Theory, but is too big and thoughtful to be carved up for a Mailbag note or Zeitgeist post.
Make / Protect / Teach is a Big Tent.
The NBA, Blizzard and others are in hot water after kowtowing to the Chinese government. America will have forgotten about both within weeks. But the awareness of just how long the CCP’s reach has become? That can’t be unseen.
ET contributor Demonetized channels his inner Paul Atreides to look at possible market futures – The Great Jihad, The Great Reset, and The Zombiefication of Everything.
Because at its core, “Dune” is all about narrative.
The asset management industry has been dying a slow death for decades, but never seems to, you know, die.
Why?
As Bill Simmons used to say, “yep, these are my readers.” He meant it as a joke after a silly email, and that’s how I’ve used it in the past, too. But no silly or funny emails today. Just clear eyes and full hearts. Because … you know … can’t lose.
Yes, these are OUR readers, and this is OUR Pack, and this is OUR platform for thought and action in service to that Pack.
Watch from a distance if you like. But when you’re ready … join us.
Wherever self-determination and resistance to the encroaching power of the state and oligarchical institutions find expression, there should our full hearts be also.
And our full voices.
There are some stories that we will want to believe no matter how much contrary evidence we find, and no matter how much we know that the story is bogus. And when these stories convey a sense of control? All bets are off.
“What you call love was invented by guys like me. To sell Nylons.”
Every missionary has his own version of the Don Draper quote.
Politician: What you call values were invented by guys like me. To win power.
Fancy Asset Manager: What you call ESG was invented by guys like me. To gather assets.
The Sell-Side: What you call a rotation trade was invented by guys like me. To earn commissions.
We all know we’re supposed to figure out who the patsy at the table is, but somehow everyone we see ends up being a straw man. Maybe fine in normal markets, but in periods of stress? If you don’t know who owns it, you don’t know anything.
Everyone is right about buybacks. They’re good. They’re fine. They’re ethical. Oh, and they’ll be gone, too, if the industry doesn’t realize that it’s playing a metagame and not a parliamentary debate.