Risk and Rare Events

Risk does not necessarily mean it will happen.  It means it has the probability to happen as a range of outcomes.  Because among those outcomes only one will materialize, people often forget and/or underestimate what might happen. We separate risk from uncertainty.  Uncertainty is measured by variance or standard deviation. …

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Pressure from the financial markets

Weeks ago when the EU debt crisis had started spreading, I had relatively tense arguments with my investing partner about the power of government(s) in coping with challenging situations in time of crisis.  The traditional stand point holds the power of governments in settling things under political power – including various …

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Simplify the EU debt crisis

I believe that the today’s EU debt crisis is somehow more difficult to invest if comparing to previous 2008 US financial crisis.  Don’t get me wrong, I didn’t invest around 2008, my first time of joining the market is 2009, and I don’t mean just simply looking at the chart …

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