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> if something that seems crazy continues to happen then the primary culprit is money I agree, but I’d get more specific; the primary culprit is usually over a
by didericis 4y ago
> if something that seems crazy continues to happen then the primary culprit is money
I agree, but I’d get more specific; the primary culprit is usually over abstraction and misallocation due to bad assumptions about value.
When used appropriately, money is a fantastic way to signal relative need and allocate resources in a decentralized way, and is one of the most powerful and sophisticated technologies we have.
When money is artificially easy to come by and leveraging is artificially low risk, that decreases price signal quality and leads to increasing levels of insanity.
- danuker 4y agoI agree! How do you allocate your portfolio?
- didericis 4y agoHaha, I don’t practice what I preach that well/don’t try to look for real value that actively. Majority of what I invest is in a couple different Vanguard index funds. I don’t have the time to do the proper research to pick well, so I just kind of hope the averages in the Vanguard picks work out favorably over time. I took a chance on crypto in 2019 that worked well, but that wasn’t a huge bet. I’m currently spinning up my own business, which I consider my main pie in the sky active investment. Depending on how that goes I might shift to more active investing later in life (am 30, single currently, and feel like the best path for active investment and hunting for real value right now is something I steer myself).
- drekipus 4y ago> the primary culprit is usually over abstraction and misallocation due to bad assumptions about value. I really wish this was more widely known. People really love to think "I know exactly what would solve every problem" while over abstracting and making bad assumptions about value all the time