If you’re like me, you’ve been put off from digging deeper into DeFi by the terrible signal-to-noise ratio of anything crypto-related on the interwebs. That’s why I found this DeFi primer (using Maker DAO as a specific example) by ET contributor and banking analyst Marc Rubinstein to be so fantastic.

Recent major media stories that feel to us like they’re part of a larger narrative campaign.
Recent major media stories that feel to us like they’re part of a larger narrative campaign.

Recent major media stories that feel to us like they’re part of a larger narrative campaign.
Modeling Common Knowledge by analyzing Missionary statements and their reverberations works. Except when it doesn’t.
What do you get when you give a Raccoon billions of dollars AND invisibility from regulators? Collusion and insider trading.
Most of us are under the impression that a protracted conflict within China will increase national unity. Not this time.
Recent Notes
Algorithmic Complexes, Alpha Male Brains, and Winnie the Pooh (by Silly Rabbit)
Massively complex complexes of algorithms, AI vs. human performance, the Alpha male brain switch and explaining vs. understanding.
Where’s the Punch Bowl?
On episode 23 of the Epsilon Theory podcast, we’ve assembled the all-star team — Jeremy Radcliffe (Salient’s President), Rusty Guinn (Salient’s EVP of Asset Management), Neville Crawley (Founder & CEO of Engram Labs) and of course, Dr. Ben Hunt — to discuss whether we are at the inflection point when the proverbial punch bowl is taken away, and, as investors, what we do now.
Gradually and Then Suddenly
The question isn’t whether the barge of monetary policy has turned around and embarked on a tightening course — it has — the question is how fast that barge is going to move AND whether or not the market pays more attention to the actual barge movements than what the barge captain says.
One Model to Learn Them All and AI Is/Isn’t Taking Over the World (by Silly Rabbit)
One model to learn them all, semantic scholars, AI is/isn’t taking over the world, and autonomous learning investment strategies.
The Goldfinch in Winter
Part 2 of Ben’s Notes from the Field series, in which he considers the question: what can a bird teach us about value investing? To everything there is a season.
Notes From the Field
What does farming have to do with investing? Quite a lot, actually. In this first of a series that takes on a life of its own, Ben discusses bees and bonds, eggs and ETFs, and more.
Whom Fortune Favors: Things that Matter #1, Pt. 1
Of all the decisions you make as an investor, how much risk you take outweighs all of them. It is more important than costs, more important than diversification, more important than picking the right stock / fund / investment.
Post-Fed Follow-Up
A quick post-Fed follow-up to “Tell My Horse”, the best-received Epsilon Theory note to date (thank you!). I’ll jump right into what I’ve got to say, without the usual 20 pages of movie quotes and the like. Well, I’ve got one quote above, because I can’t help myself. They’re the lyrics to the best break-up song ever, and they’re what Janet Yellen was singing to the market on Wednesday.
AI & Video Games, Tricky Chatbots and More… (by Silly Rabbit)
AI and video games, tricky chatbots, the quantum age has officially arrived, and your high dimensional brain.
Does It Fly, Really?
On episode 22 of the Epsilon Theory podcast, we’re in Las Vegas at the 2017 EQDerivatives conference. Both Dr. Ben Hunt and our guest, Devin Anderson, managing director in equity derivative sales at Deutsche Bank, were speakers at the event this year. In a nod to David McCullough’s 2015 book, The Wright Brothers, this episode explores whether the ubiquitous ideas floating around finance today actually have wings and can fly.
Long Short-Term Memory, Algorithms for Social Justice, and External Cognition (by Silly Rabbit)
DARPA funds a graph analytics processor, exploring long short-term memory networks, auditing black box predictive models, fast iteration and language from police body cameras.
The Summer Reading List (by Jeremy Radcliffe)
In which Jeremy Radcliffe recommends Bob Lefsetz, Scott Galloway, Scott Belsky,Tim Urban and the gang at Hoisington.
Tell My Horse
So yeah, I’m overweight and I need to get more sleep. I’m not happy about the market, and I’m anxious about living up to my obligations to my partners and clients. But I wake up every morning thinking independent thoughts about idiosyncratic risks. I’ve got a Tribe. I’m nobody’s horse. And that’s about as good as it gets here in the Hollow Market.
Chili P is My Signature: Things that Don’t Matter #5
The second moral license from a wise emphasis on passive investing is spending inordinate amounts of time on tilts, trades and tactical ideas that will never influence our portfolio results.
Quantum Supremacy, Correlating Unemployment, and Buddhists with Attitude (by Silly Rabbit)
What web searches correlate to unemployment, verbal and nonverbal behaviors, and methodologies with a fragility problem.
Complex Systems, Multiscale Information and Strange Loops (by Silly Rabbit)
Complex systems, machine learning software creating machine learning software, one-shot imitation and the power of the platform.
She Screams, He Kidnaps (by Silly Rabbit)
Proximity of verbs to gender, wiki-memory, fool me once (and twice), and a veritable zoo of machine learning techniques.
And They Did Live by Watchfires: Things that Don’t Matter #4
For the bored (read: profitable) investor, the bias to action is a constant threat. As we become more passive in our strategies, the moral license to ‘do something’ is exaggerated, and must be curtailed.
Mo’ Compute Mo’ Problems (by Silly Rabbit)
On hard problems, lazy XKCD references, the myth of superhuman AI, and valley grammar.
Westworld
If political parties in Western democracies were stocks, we’d be talking today about the structural bear market that has gripped that sector. Show me any country that’s had an election in the past 24 months, and I’ll show you at least one formerly big-time status quo political party that has been crushed.