And the Oscar for "getting it" WAY before most of us, goes to >>>
Seth Klarman, the chief executive and portfolio manager of the Baupost Group, a hedge fund. In his 2020 letter to investors, he wrote, “The idea of persistent low rates has wormed its way into everything: investor thinking, market forecasts, inflation expectations, valuation models, leverage ratios, debt ratings, affordability metrics, housing prices and corporate behavior.” He went on to say that “by truncating downside volatility, forestalling business failures and postponing the day of reckoning, such policies have persuaded investors that risk has gone into hibernation or simply vanished.”
Many, if not most, people are oblivious to (or in denial of) esoteric topics such as monetary and fiscal policy, market volatility, bank failures, etc. This is why so many people get blindsided by these types of (black swan) events. We don't know what we don't know, and if you are someone who refuses to pay attention because you "don't want to be negative," the odds of you getting blindsided are very high.
And the Oscar for "getting it" WAY before most of us, goes to >>>
Seth Klarman, the chief executive and portfolio manager of the Baupost Group, a hedge fund. In his 2020 letter to investors, he wrote, “The idea of persistent low rates has wormed its way into everything: investor thinking, market forecasts, inflation expectations, valuation models, leverage ratios, debt ratings, affordability metrics, housing prices and corporate behavior.” He went on to say that “by truncating downside volatility, forestalling business failures and postponing the day of reckoning, such policies have persuaded investors that risk has gone into hibernation or simply vanished.”
Source: https://www.nytimes.com/2023/03/18/opinion/svb-banks-change.html
Many, if not most, people are oblivious to (or in denial of) esoteric topics such as monetary and fiscal policy, market volatility, bank failures, etc. This is why so many people get blindsided by these types of (black swan) events. We don't know what we don't know, and if you are someone who refuses to pay attention because you "don't want to be negative," the odds of you getting blindsided are very high.