Ergodicity economics

We have mentioned the concept when talking about how we operate when profiling the investment options we might recommend you, or advise against, but we did not dive into the theory.

For the sake of transparency, and for those of you who are curious enough, here we share with you a pointer to the terrific notes by Prof Ole Peters (https://twitter.com/ole_b_peters), where he re-develops economic theory from scratch: namely starting with the axiom that individuals optimize what happens to them over time, not what happens to them on average in a collection of parallel worlds.
He does a fantastic job in terms of clarity, we think… and we hope you will appreciate how his work changes everything about the way we talk of finance, and investments. Afterall, insurances had never used the math that economy used to discuss investments, and for a good reason 😉

https://ergodicityeconomics.com/lecture-notes/


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