“LEARNING TO LOVE VOLATILITY” (November 17, 2012)

Thus The Wall Street Journal today. “In a world that constantly throws big, unexpected events our way, we must learn to benefit from disorder,” explains the newspaper. I rarely look at the names associated with newspaper articles, but this time I did look. Intuition, I guess. And it was Nassim Nicholas Taleb, of all people. I was pleased, but I was also puzzled. Although the harbinger of statistical outliers is very to my liking, his argument sounds hollow today. Just look at his own argument about the world that “constantly” throws funny stuff our way. Once black swans are everywhere around us, what remains of black swans? Black swans squared? Pace Taleb, but we need more statistical wonders at this juncture.