Nassim Nicholas Taleb, Distinguished Scientific Advisor, Universa speaks with Bloomberg’s Tom Keene at Bloomberg Invest New York 2013.
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Universa’s Taleb on Inflation, Global Financial Markets, & Crypto
Universa Investments, a pioneering investment firm, has recently made headlines with its co-founder Nassim Nicholas Taleb commenting on inflation, global financial markets, and the role of cryptocurrency in today’s economy. Known for his expertise in risk management, Taleb’s insights provide valuable perspectives on these crucial economic topics.
Firstly, Taleb has been vocal about his concerns regarding inflation. As central banks around the world continue to inject large amounts of liquidity into the system, many fear that this could lead to rising prices and erode the purchasing power of currencies. Taleb believes that inflating away debt can have negative consequences, especially for the average investor. In a recent interview, he stated, “Inflation is a form of taxation that disproportionately affects the poor and the middle class by eroding the value of their savings.”
Taleb also emphasizes the importance of understanding global financial markets. With his background in statistical analysis and risk management, he recognizes the complex interconnectedness of today’s financial landscape. He warns against relying solely on traditional financial models and advocates for a more robust and resilient approach to risk management. Taleb asserts that it is crucial for investors to be able to navigate and protect themselves from potential market shocks caused by unforeseen events or black swans.
In this context, Taleb also touches upon the role of cryptocurrency. Universa Investments has been actively involved in the blockchain industry, aiming to leverage technology to create a more secure and efficient financial system. Taleb believes that cryptocurrencies have the potential to disrupt and transform traditional financial markets by providing decentralized and resilient alternatives. He argues that blockchain technology can enhance transparency, reduce counterparty risk, and bring more accountability to the financial sector.
However, Taleb also emphasizes the need for caution in the cryptocurrency market. He warns against blindly following trends and speculating on highly volatile assets. In a recent tweet, he stated, “Be sceptical about future of cryptocurrencies with their hyper-volatility and geeky gimmicks; only solid strategy: buying government debt in CDS (credit default swap) format.”
Taleb’s viewpoints on inflation, global financial markets, and cryptocurrency are thought-provoking, offering a different perspective from mainstream financial experts. His insights highlight the importance of understanding risk and adopting a more resilient approach in today’s ever-changing economic landscape. As the world continues to grapple with economic uncertainty, Taleb’s expertise continues to provide valuable insights for investors and financial professionals alike.
He's a dumb person's idea of a smart parson.
No one got COVID wrong more than this crypto-Nazi
Naseem doesn't seem to think that Bitcoin has a future. I lay out a different case below. I do read his books and I appreciate his thinking but everybody is wrong now and again, even the smartest guys in the room. If you invest your time into some Bitcoin and blockchain education, you will change your position too, as any realist would.
A few things I will share; the fact that he grouped Bitcoin with other cryptos…reveals a seriously erroneous categorisation. Yes Bitcoin is speculative, yes it's complex, yes it evokes some fears (it's new and still in its toddler years, it's mysterious, it's technically complex,it's popular with younger generations whom are getting their Bitcoin education from everything not mainstream media e.g. Bloomberg). New kid on the block issues. Yes other cryptocurrency assets and businesses have been horribly exploited or directly involed in Madoff-style fraud (e.g. Sam Bankman, some outlaws in Asia, badguy American companies hedging your cryptocurreny irresponsibly,etc. (Bitcoin itself, btw, has yet to be unilaterally hacked). I posit these exploits will continue until non-statist rules are institutionalized (emphazise "non-statist" the opposite of libertarian btw). Also, yes the FED could replace Bitcoin (but only if it was engineered in the exact same fashion as Bitcoin, i. e. algorithmically fixed supply and encrypted (+ trusted) to resist monetary gerrymandering). But that's not the business the "Fed" is in…right?!… they will never create fixed supply's of money, remember that. At best they or a similar institution could sponsor a market subsititute.
And this is also why Bitcoin is not a tumor, another major miscategorization. It's actually the product of a diseased monetary system (a takaway from this very video!). Nobody (in power) wants to take the medicine! Bitcoin specifically as engineered, is the dose-of -wellness, an antidote of said diseased monetary system. This doesn't make it a cult for petes sake. This is soundness! (also, Yoga is not a cult haha, so naughty Mr. Taleb, please refer to Vedas on the Yoga topic).
Back to Bictoin. You dont have to like or accept what triggered the birth of Bitcoin, thats ok, and it could definitely die someway, but let's be honest and more clear on what Bitcoin is. But yes, Bitcoins quality's do present risks and maybe even fat-tail-ones, but relative to the other "asset classes", and all of the well documented intervention and manipulation institutionalized into those things (fat tail risks/ the topic of this very youtbue video, wow! ), the risk of not winning with Bitcoin is less, much less, in my humble opinion (including certain other blockchain assets). Bitcoin could or will become corrupted too, someday, seems like that's the nature of imperfect things in general, but I suggest it would be by the not-so-invisible hand of Adam Smith if your following me here.
Based on what I know about Government, if they are smart and greedy, they will permit the new asset class to grow along good-old-boy rails, and once it reaches X trillions in market cap, the real plundering will begin, oops I meant.. taxation! will begin.
Please provide points that refute what I have shared here.
And now to end on a joke:
Nothing is certain in life but death and taxes unless you are Greek, then only death! -anonymous Greek
Uncle Joe and his crew's excessive spending, just like Obama's, is what causes the recession. The economy as a whole is beginning to sputter under the Trump administration, and the populace is dealing with the greatest cost of living in close to 40 years. This was not the case under the previous administration. Where should we invest our funds right now, in order to be better prepared for the future and a liquidity crisis? I can still grow by $102,000.
Canada “dumping” smoke on NY? made him sound really undistinguished , hard to listen to anything he had to say after that, go study a globe m8
"They were selling you funding"…"It resembles a Ponzi"
FINALLY, I'm glad someone with some credibility said it.
An angel strategy I've seen is to enter super early, sell the deal to someone else, then mostly exit on the (higher priced) next round.
All while the business is still deep in the red.
And the buyer on the 2nd round knows it's happening, but does it anyway to make sure they don't "miss out".
Then the end investor (pension funds, i.e. mom & pop) get hosed when the firm goes bust.
It's the shadiest shit I've ever seen.
The wisest thing that should be on everyone's mind currently should be to invest in different streams of income that doesn't depend on the govt. Especially with the current economic crisis around the world.>
The host needs a diet and exercise regimen change ASAP
His recommended strategy of buying options for protection is interesting. I believe AQR Capital put out a study that showed historically this is a losing strategy. Would love to hear how successful it is over time.
Interesting interview! So is he saying that inflation won’t take off but real estate and tech stocks related to AI are going to take a big tumble? Also, is this tumble in commercial real estate, or residential real estate, or both? Also he sounds not too keen on stocks in general. The take away I am getting is that an investor needs to move into the stocks that won’t take a tumble, but which stocks fall into that category? Definitely more questions raised than answers given!
Excellent summary!
Inflation?
Can’t watch this. Interviewer is a dick
2 of my All time Favorites in Finance ❤
What a brilliant mind
Taleb is a FRAUD.
He never talks about his failures such as his market making profits in the 80s or his Empirica fund blowing up even with 9/11 black swan event when he could have made so much money for clients.
Then he implies people are so dumb that they cannot tail-risk hedge therefore they must give their money to Universa Investments can, where he is an advisor.
16:51I HAVE INCURRED SO MUCH LOSSES TRADING ON MY OWN…I TRADE WELL ON DEMO BUT I THINK THE REAL MARKET IS MANIPULATED… CAN ANYONE HELP ME OUT OR AT LEAST TELL ME WHAT I'M DOING WRONG ?
In light of the impending recession and the fact that inflation is still far higher than the Fed's 2% target, several of the most prominent market analysts have been expressing their views on how terrible they believe the next downturn will be and how far stocks may have to fall. I need advice on what investments to make because I'm attempting to create a portfolio for my children that will at least be $850k in value.
Nassim Taleb is just amazing, he is way ahead of the curve
To say there are economic troubles and that crypto is a fad in the same day…….. ANYTHING is better than using government money.
In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not reliant on the government. This includes exploring opportunities in stocks, gold, silver, and digital currencies. Despite the challenging economic situation, it remains a favorable time to consider these investments.
these geezers still believe in money, infinite growth, shock capitalism and all sorts ridiculous value oriented systems.
They have no care nor concern about the biophysical limits of the earth, and even less than there are Limits To All Growth.
Trust Bloomberg, a vassal of late capitalism, to serve us with all such global crap!
"They didn't see inflation coming" lmao. Please. It's by design. Taleb knows it. Tom knows it. Everyone in the audience knows. Why put on this theatre?
There is always a sense of false wisdom looking backward. Near zero interest rates have produced thieves and investors. Low interest rates create low market dynamics and scrupulous money lenders. It's just a balancing act.
This conversation moved all over the place and was hard to follow. Tom Keen should not be chosen to interview with how much he interrupts and shifts direction.
Thanks for this knowledge.
Taleb understands cash flow and interest rates but not natural immunity & big Pharma/Govt corruption
In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not reliant on the government. This includes exploring opportunities in stocks, gold, silver, and digital currencies. Despite the challenging economic situation, it remains a favorable time to consider these investments.
Regarding crypto, they are not up to date… no one should be in there for making payments. Crypto is about the blockchain technology and it will have a tons of utilities using decentralized systems. Think about logistics, art, gaming industry, etc. Bitcoin has already evolved and folks are now starting to build on the bitcoin blockchain which is one if no the most secured and decentralized blockchain in the world.
He dislikes Bitcoin because it's too transparent and a cult. Unlike the current opaque cult of elites who enjoy a centralized monetary system. Time to buy more #bitcoin
Doesn’t seem he managed to stick to his fasting calendar
so stupid if he does not really understand bitcoin