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Some highlights from Part 1 (Mandelbrot& #39;s mission statement + criticisms of modern finance)
Mandelbrot and Hudson& #39;s Intro and Mission Statement
Conventional market wisdom and modern finance hugely underestimate risk
The problem of discussing "causation" and prediction in economics
Technical Analysis is a confidence trick. It is "financial astrology"
The Efficient Market Hypothesis and Efficient Portfolio construction are both bunk.
Power Laws explained quickly
"Economics is faddish"
Endogenous vs Exogenous price movements (with an interesting aside on regulation)
The relativity of market time (very interesting concept to mull over - central to fractals/scaling)
The failures of economist predictions
Mandelbrot& #39;s Blindfolded Archer example against Gaussian assumptions
The Efficient Market Hypothesis& #39;s connection to Brownian Motion...and why it& #39;s wrong (again)
Markowitz and Efficient Portfolio Theory - still bunk
CAPM model rises (it still sucks tho)
The "beauty" of equilibrium - again most of economics is built on political nonsense
Some of the many broken assumptions of modern finance:
People are not rational (at least not in the way economists use the term)
People are not alike, and their different priorities can screw with price discovery
Price changes do not follow Brownian motion
Price changes are not statistically independent
Friedman was a dingus
The persistence of error in economics and the need for a true Copernican Revolution.
