Innovation in financial products made it easy for investors to take various advantages — exposure to desired asset classes, risk mitigation & management, hedging or speculation…all these could be made possible.
The next step should be to create instruments based on the behavioural traits of human beings. Maybe an option that gives payoffs linked to a set of investment decisions that are easy to predict in good or bad times.
Sure shot way to earn riskless profits!
History does not repeat itself in the same form, but the human response is carved in stone.
Boom and bust cycles will continue unabated—fully disguised but our defence systems have not been upgraded. It may work to an extent, but a fast-changing world requires more insights and learnings from the past.
Maybe we need our own real-life Jonas and Martha to break the loop!
Since relying on us is futile.