Yeah, basically the only scenario I see is cans of beans becoming very cheap in terms of ammunition for unethical reasons.
I think it is the correct way to view the markets once you add risk management. If the probabilities of getting those returns for A and B were the same (and the distributions were shaped the same), you indeed missed out greatly.
Agreed—I’m making the assumption that such comparisons are made retrospectively instead of prospectively, and thus are implicitly ignoring risk.
the only scenario I see is cans of beans becoming very cheap in terms of ammunition for unethical reasons.
Unethical even in the Zombie Apocalypse scenario? X-)
But sure, if the entire financial system {im|ex}plodes, your shorts aren’t going to do you any good and so we finally achieve symmetry—everyone is fucked.
I’m making the assumption that such comparisons are made retrospectively instead of prospectively
It is still the right way even retrospectively if you think in probability distributions. And, of course, anything “ignoring risk” is automatically the wrong way to think about the markets :-)
Yeah, basically the only scenario I see is cans of beans becoming very cheap in terms of ammunition for unethical reasons.
Agreed—I’m making the assumption that such comparisons are made retrospectively instead of prospectively, and thus are implicitly ignoring risk.
Unethical even in the Zombie Apocalypse scenario? X-)
But sure, if the entire financial system {im|ex}plodes, your shorts aren’t going to do you any good and so we finally achieve symmetry—everyone is fucked.
It is still the right way even retrospectively if you think in probability distributions. And, of course, anything “ignoring risk” is automatically the wrong way to think about the markets :-)