Nonlinear thinking in a linear market

[vc_empty_space]“The saddest aspect of life right now is that science gathers knowledge faster than society gathers wisdom,” wrote science fiction writer Isaac Asimov—a thought that rings true today as policymakers struggle to catch up with what’s occurring in the world.

In respect to both the pandemic and its economic and market impact, we are dealing with a situation that is nonlinear. The coronavirus pandemic has been growing at a tremendous pace, and the resulting movement of economic realities is mostly without precedent.

It is difficult for humans, who tend to be linear thinking, to adapt. But if we can think in a nonlinear way, I believe we can find investment opportunities.

READ: Nonlinear thinking in a linear market

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Why private credit pain will bring long-term gain

Over the past decade, private credit has become an important component of many asset owner portfolios, but a perception of the asset class as risky – or, in some isolated cases, fraudulent – means it is still treated with suspicion by some commentators and investors. A “little bit of a shakeout” might help.

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