Peter Gallagher

Bril­liant sum­mary of the inter­ac­tion between dif­fer­ing pref­er­ences and judge­ments in error.

“Wher­ever there is uncer­tainty, mar­ket prices reflect the beliefs of those who are more than aver­agely san­guine. The result is a reserve of illu­sory value, con­stantly depleted by events and replen­ished by fresh uncer­tain­ties. That is why mar­kets dis­play a sys­tem­atic propen­sity to boom and bust.” Extract from FT.com—It may be a Rem­brandt to you, but mar­kets can beg to differ