“William Bernstein on Deep Risk, Shallow Risk, and Investing for the Long-Term,” by Larry Frank, Sr., betterfinancialeducation.com, Aug. 24, 2022. And if you’re the kind of person who can solve differential equations or do continuous time calculus as easily as most people brush their teeth, and you ignore the Shakespeare half of investing, you’re going to get portfolio insurance, you’re going to get long-term capital management. And we’re seeing that, for example, in artificial intelligence stocks, stocks that have a connection with ChatGPT. Number one is because you are taking a massive inflation risk with a fixed annuity, which has a nominal payout. Bernstein: Yeah, I think that’s basically it.

Source: Economic Times July 11, 2023 17:22 UTC