As I progress through my Master of Finance program, I’ve been continually bamboozled as to why Tradfi equates volatility with risk, even if that volatility is to the upside.
But then it clicked for me — many investors are highly levered and can’t afford the downward volatility without being wiped out.
Avoiding leverage is almost heretical in the current financial paradigm (why *wouldn’t* you long assets and short devaluing dollars?), but doing so allows investors to be anti-fragile — that is, to become strengthened from the volatility.
Volatility isn’t risk; it’s opportunity.
#bitcoin
Blake / ₿lake
npub172…kaz2l
2024-09-03 15:52:25
Author Public Key
npub17299xmlwlxqv455ysf7pys3kl8jpez28galckr60phldvjpdcwvskkaz2lPublished at
2024-09-03 15:52:25Event JSON
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"content": "As I progress through my Master of Finance program, I’ve been continually bamboozled as to why Tradfi equates volatility with risk, even if that volatility is to the upside.\n\nBut then it clicked for me — many investors are highly levered and can’t afford the downward volatility without being wiped out. \n\nAvoiding leverage is almost heretical in the current financial paradigm (why *wouldn’t* you long assets and short devaluing dollars?), but doing so allows investors to be anti-fragile — that is, to become strengthened from the volatility. \n\nVolatility isn’t risk; it’s opportunity. \n#bitcoin",
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}