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Rekenthaler Report

Why Most Stocks are Losers

The math of diversification.

Erm, Go What?
A colleague sent me a Bloomberg article cheekily entitled, "Everything We've Learned About Modern Economic Theory Is Wrong." The provocateur profiled in the article, a physicist named Ole Peters, attacks one of economists' favorite tools, the expected utility hypothesis, with the claim that the technique mistakenly assumes something called "ergodicity."