Inflation Replicator

No wonder people hunker down and avoid committing. The macro risk is gone; nobody is seriously worried about global nuclear conflagration. [1] We’re worried about comparatively micro risks, though: financial instability; the grinding risk of having more debt and fewer assets than the previous generations; the fear of relentless social atomization —... See more

This suggests a far more sophisticated understanding of “the risk/reward trade-off” and “the equity premium” than is generally accepted in the realm of modern portfolio theory, and, by extension, the EMH: Bonds are likely to get a lower return than stocks not because they are less “risky” (which in that context is even more questionably interpreted

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