A Thanksgiving Treat. Spot the similarities between the two graphs.
Graph 1, the well-being of a turkey across time:
Source: Attain Capital
Graph 2, the equity curve of our old friends at Long-Term Capital Management:
Source: Wikipedia
For turkeys and gamma sellers alike, everything seems fine until one day….
Keith Alexander Ashe
/ December 16, 2012This is one of my favorite charts. I think Nassim Taleb also references this in Fooled by Randomness.
thezikomoletter
/ December 18, 2012Agreed, I think he does. Don’t have my copy to hand, but I think he uses GW Bush as an example.