Mar 19, 2018

The Weltschmerz of geometric returns

This difference [basically the difference between arithmetic and geometric returns over long time frames] is sometimes called the “spurious drift”, but at the London Mathematical Laboratory (LML) we call it the “Weltschmerz” because it is the difference between the many worlds of our dreams and fantasies, and the one cruel reality that the passage of time imposes on us.

From Lecture Notes ergodiceconomics.com p29.

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