47 min

When Investors Become Gamblers -- And Why It's Happening Now The Contrarian Investor Podcast

    • Inversiones

This episode brought to you by the Connecticut Economic Literacy Initiative. The get this podcast without ads or announcements, and a week before regular subscribers, sign up for the premium service through our Substack or Supercast. William L. Silber, author of the book ‘The Power of Nothing to Lose: The Hail Mary Effect in Politics, War, and Business,’ joins the podcast to discuss his thesis that individuals, including investors, can become reckless gamblers if they have nothing to lose.
Silber has a career dating back to 1966 in academia and Wall Street. His comments are pertinent in the present day of cryptocurrencies, the ‘retailization’ of options trading, NFTs, and meme stocks, among others. So is his recommendation (not investment advice) to reduce risk exposure.
Content Highlights When people have downside protection and limitless losses, “they tend to become reckless and almost gamblers” (3:48)
Rogue traders and the skewed payoff that makes them go rogue (14:41);
What to make of the present day and investors’ collective risk appetite, especially regarding meme stocks? (17:32);
Background on the guest (24:55);
A valuable lesson learned at Odyssey Partners in the 1980s: what’s an exit strategy? (27:47);
Is this a time for investors to reduce risks and sell stocks? (30:26);
Precious metals and their place in a modern portfolio (36:52);
More Information on the Guest Website: WilliamLSilber.com;
Wikipedia;
Places to buy the book;
LinkedIn.

This episode brought to you by the Connecticut Economic Literacy Initiative. The get this podcast without ads or announcements, and a week before regular subscribers, sign up for the premium service through our Substack or Supercast. William L. Silber, author of the book ‘The Power of Nothing to Lose: The Hail Mary Effect in Politics, War, and Business,’ joins the podcast to discuss his thesis that individuals, including investors, can become reckless gamblers if they have nothing to lose.
Silber has a career dating back to 1966 in academia and Wall Street. His comments are pertinent in the present day of cryptocurrencies, the ‘retailization’ of options trading, NFTs, and meme stocks, among others. So is his recommendation (not investment advice) to reduce risk exposure.
Content Highlights When people have downside protection and limitless losses, “they tend to become reckless and almost gamblers” (3:48)
Rogue traders and the skewed payoff that makes them go rogue (14:41);
What to make of the present day and investors’ collective risk appetite, especially regarding meme stocks? (17:32);
Background on the guest (24:55);
A valuable lesson learned at Odyssey Partners in the 1980s: what’s an exit strategy? (27:47);
Is this a time for investors to reduce risks and sell stocks? (30:26);
Precious metals and their place in a modern portfolio (36:52);
More Information on the Guest Website: WilliamLSilber.com;
Wikipedia;
Places to buy the book;
LinkedIn.

47 min