In this episode of the Systematic Investor Series, Niels and I dive into a dynamic discussion on managing uncertainty in financial markets. From geopolitical tensions influencing the ruble’s collapse to the critical interplay of trend-following models in chaotic environments.

I share my perspective on leveraging ensemble models, inspired by weather forecasting, to capture and adapt to non-linear price movements. We delve into how these models enable trend followers to thrive in unpredictable market regimes by maximizing exposure to outliers while maintaining risk mitigation. We also discuss the hidden risks in financial systems, drawing parallels with natural phenomena like avalanches and earthquakes, and emphasizing the importance of convexity in portfolio design.

The episode explores larger themes, including the rising global fertility crisis, underscoring how adaptive thinking and systemic awareness are key to navigating challenges in both life and markets.

Whether you’re curious about the latest trends in global markets, exploring innovative risk management strategies, or simply seeking to understand how adaptive systems shape our world, this episode offers something valuable for every listener.

Tune in to discover how embracing uncertainty and adaptability can transform your approach to investing.

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Don’t miss out on actionable insights that prepare you for the unknown!