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AI, atm, is a perfect distillation of financial platitudes from ~10 years ago. FWIW, bonds are no longer a hedge against equity unless they’re based against pr
by calmbonsai 2mo ago
AI, atm, is a perfect distillation of financial platitudes from ~10 years ago.
FWIW, bonds are no longer a hedge against equity unless they’re based against private equity and private equity is both more expensive and more performant than ever.
- oezi 2mo agoYes, the preference for bonds seems deeply ingrained. Have you found a way to steer LLMs away from old school allocation (bonds, gold, cash)?
- FabHK 2mo agoThat's because you get (particularly initially) quite some reduction of risk with little loss of expected return. Diversification (incl. across asset classes) is the only free lunch in finance. If you want to argue that bonds and stocks have become more correlated, sure, but we do not know what hits us next.
- calmbonsai 2mo agoI have not. I've also noticed that despite changes in regulation in the U.S., a whole variety of P.E. strategies are completely ignored by LLMs.