The modern world has trained us to accept industrial substitutes as better than their predecessors, when they're actually just more convenient for the people selling them. Fresh eggs don't need refrigeration. ETFs weren't designed for retail investors. Central banks own 14 trillion dollars in assets based on a theory they've never tested in reverse. At some point, the gap between what we're told works and what actually works becomes a problem.
• We've mistaken industrial convenience for superiority. Fresh eggs have natural anti-bacterial properties and don't need refrigeration. But once you scrub them clean for mass production, they have to stay refrigerated. That industrial requirement became our baseline for what "good" looks like.
• The same logic applies to everything you're sold. ETFs exist because we demanded the ability to trade our portfolios minute-by-minute. They're marketed as giving us control, but their real benefit goes to market makers. We're told we're excellent macro investors. We're not being told the truth.
• Systems build on flawed foundations and nobody stops them. A beekeeper who leaves metal wires in a hive watches the bees build their entire structure around them, destroying the hive in the process. He knows it's happening and does nothing. Investors do the same thing with markets.
• Central banks believe they're in control, but they're trapped by their own logic. If quantitative easing worked on the way up through the portfolio rebalance channel, it works on the way down too. They've left the wires in the hive and can't admit it.
• The whole thing persists because enough people believe it works. Belief alone keeps these systems alive. When belief shifts, what was considered solid structure reveals itself as something else entirely.
The Why of Epsilon Theory
- Make more informed decisions as an investor and citizen.
- See through the nudges of Big Politics and Big Media.
- Become a better consumer of news.
- Maintain your autonomy of mind in a swarm of narratives.
- Join a community of more than 100,000 truth-seekers.
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DISCLOSURES
This commentary is being provided to you as general information only and should not be taken as investment advice. The opinions expressed in these materials represent the personal views of the author(s). It is not investment research or a research recommendation, as it does not constitute substantive research or analysis. Any action that you take as a result of information contained in this document is ultimately your responsibility. Epsilon Theory will not accept liability for any loss or damage, including without limitation to any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Consult your investment advisor before making any investment decisions. It must be noted, that no one can accurately predict the future of the market with certainty or guarantee future investment performance. Past performance is not a guarantee of future results.
Statements in this communication are forward-looking statements. The forward-looking statements and other views expressed herein are as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and there is no guarantee that any predictions will come to pass. The views expressed herein are subject to change at any time, due to numerous market and other factors. Epsilon Theory disclaims any obligation to update publicly or revise any forward-looking statements or views expressed herein. This information is neither an offer to sell nor a solicitation of any offer to buy any securities. This commentary has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Epsilon Theory recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives.
