aeonflux-3D
  • Home Page
  • About us
    • What we do
    • Aeon FLux cosa facciamo
  • Services
    • Gold Service
  • News
  • Tokens
    • Token Gold Plus ITA
    • Token Gold Plus – EN
    • White Paper Aeon Flux Gold PLUS
    • White Paper Big Taurus CLUB
    • White Paper Aeon Flux Gold 100
  • Contact
  • Client Area
  • en_GBEnglish
    • fr_FRFrench
    • pt_BRPortuguese
    • ru_RURussian
    • zh_CNChinese
    • arArabic
    • es_ESSpanish
  • Home Page
  • About us
    • Aeon FLux cosa facciamo
    • What we do
  • Tokens
    • White Paper Aeon Flux Gold Plus
    • White Paper Aeon Flux Gold 100
    • White Paper Big Taurus CLUB
  • Our services
  • Our clients
  • Contact
CMC100-Report (48/2020):
December 1, 2020
Why Bitcoin Price Is Itching To Hit The All Time High
December 1, 2020
Show all

Uncertainty and Risk — How to deal with them

Published by Aeon Flux on December 1, 2020
Categories
  • News
Tags

Recently, I read the book called ‘The End of Alchemy: Money, Banking, and the Future of the Global Economy’ by Mervyn King who makes some great points about how our financial system is based on Alchemy (Banks creating money out of thin air) and deeply flawed in the way it’s incentivising individuals working in it. Great book, a bit dry here and there.That put aside, one point that really stuck with me is how the behaviour of households is explained by the notion of uncertainty. Surely, having sat through economy classes in uni, I knew that in economic theory individuals assess future events by their probability and their potential impact on their well-being, or the so-called “utility.” Therefore, they always do what’s rationally best: to optimize that “utility.”To give an example, let’s say that despite great news about vaccine efficiencies, you’re very certain that we won’t get around further time of social distancing and staying at home. Therefore, you believe that shares of tech companies will continue rising in value, and might use the dip they’ve experienced to buy even more. *Do not take this as investment advice btw.Unfortunately, it is not that easy to assess each possible outcome as some things about the future, we simply do not know. Could our ancestors possibly have known, that one day we would produce energy from solar panels or trash the planet with plastic? Certainly not. What they had an idea about was the risk of drowning when swimming through a river and the dangers of wild animals.While some confuse risk and uncertainty, certain factors are differentiating them and understanding both can help in decision making. So let’s start with risk.RiskAccording to the Cambridge dictionary risk is “the possibility of something bad happening.” When it comes to trading and investing, risk is…

Share
0
Aeon Flux
Aeon Flux

Related posts

November 12, 2021

The quest of STABLECOINS — The way of all stable crypto things


Read more
November 12, 2021

Fueled by Latest Inflation Figures, Bitcoin Jumps to a New All-time High


Read more
November 12, 2021

Will Positive Earnings Surprises Continue To Support Markets?


Read more

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Discover opportunity

  • Home Page
  • About us
    • What we do
    • Aeon FLux cosa facciamo
  • Services
    • Gold Service
  • News
  • Tokens
    • Token Gold Plus ITA
    • Token Gold Plus – EN
    • White Paper Aeon Flux Gold PLUS
    • White Paper Big Taurus CLUB
    • White Paper Aeon Flux Gold 100
  • Contact
  • Client Area
  • en_GBEnglish
    • fr_FRFrench
    • pt_BRPortuguese
    • ru_RURussian
    • zh_CNChinese
    • arArabic
    • es_ESSpanish
© 2022 Aeon Flux OU Harju maakond, Tallinn, Lasnamäe linnaosa, Lõõtsa tn 5, 11415- Cn° 16301206 -VAT N° EE102424021 - EMTAK code 46901 - Duns N° 686889151
.
All Rights Reserved.
Powered by IWG Web Agency
Privacy PolicyCookie Policy