Lily Francus and Jesse Livermore — Understanding Financial Bubbles (EP.91)

Lily Francus is a risk theorist and a quantitative researcher at Moody’s. She is also the author of the ‘Midnight on the Market Momentum’ newsletter. Find Lily on her Twitter at https://twitter.com/nope_its_lily and read her newsletter at https://nopeitslily.substack.com

Jesse Livermore is an OSAM research partner and a recurring guest at Infinite Loops. You can connect with him on Twitter at https://twitter.com/Jesse_Livermore and read more about his work at http://www.philosophicaleconomics.com/

Show notes:

• Why all the recent focus on bubbles?
  
• How the era you grow up in shapes your investment philosophy
  
• Intrinsic and Extrinsic value
  
• How leverage impacts pricing
  
• What is a bubble? And how to identify if you’re in one
  
• Role of uncertainty in arbitraging
  
• What makes a bubble pop
  
• How bubbles set a new floor price
  
• Do we have enough short sellers?
  
• Time arbitrage
  
• Information arbitrage in a hyper-connected world
  
• Are we currently in a financial bubble?
  
• Implications of pseudonymity
  
• Is there a free will?