Why I am a Trader and Investor and Why You Might Wanna be One Too
|No, it's not because of the Ferrari|
The super rich and usBelow are two videos from the BBC documentary "The Super Rich and Us". It clearly illustrates and explains the polarization of wealth distribution in our current society. Here is a catchy quote from the documentary:
But actually we seem to be heading for a society where there are only haves not and haves yachts. At some point in video two the Black-Scholes formula is mentioned as a revolutionary model that promoted taking risks as it could accurately predict future risks. My personal opinion on the Black-Scholes model is that is does not predict risks correctly as it uses normal distributions to model risk and neglects the long tail of risks (and opportunity) as I see it in the real world. If you wanna know more about this subject, then I suggest you read any of Nassim Nicolas Taleb's books on randomness and the Black Swan event. It are actually the long tail events, the events that most likely cannot (ever) be accounted for in any risk model, that sting us. And when they sting, the huge risk turns into losses and is actually deflected on the poor / non-rich as they are simply unable to do anything about it or are simply unknowing. An example of this are the huge bail outs of banks in 2008 paid for with taxpayers money.
There are the haves, the haves not and the haves yachts!
Please enjoy the videos and let them be an inspiration to actively manage your money and wealth, however small it might be right now. I believe you either grow it, or you will become enslaved to the 1%.