Paolo Freire said, “Washing one’s hands of the conflict between the powerful and the powerless means to side with the powerful, not to be neutral.”
If the outcome of their conflict is not being affected by your existence, it can be said that you are neutral. If you disagree with me, I would be interested to hear what definition of “neutral” you are using.
Eliezer does a good job of explaining a mechanism by which two investments with negatively correlated returns can switch to having positively correlated returns. But he doesn’t do a good job of convincing me that a stock’s price has a tendency to go down when it has just gone up, and vice versa.
I can think of an argument against this position. It seems plausible that stock traders see the past movement of a stock as an indicator of it’s future movement. If a majority of traders share this belief, this will compel them to buy the stock from those who don’t, inflating it’s value and reinforcing the cycle. This would indicate that markets are inductive, which is the opposite of what the title suggests.