About this episode
Markowitz, a titan of finance who won the 1990 Nobel prize in economics, died last month. He showed, in a mathematically rigorous way, that diversification could bring higher returns without higher risk. Alex Scaggs joins Ethan to explain how Markowitz’s work led to a way of thinking that has become ubiquitous in modern finance (and that has spawned legions of haters). Also, we go short economic forecasting and long Beyonce. Links: - Read Alex Scaggs’s Markowitz obit in the FT . For a free 90-day trial to the Unhedged newsletter go to: https://www.ft.com/unhedgedoffer Follow Ethan Wu ( @ethanywu ) and Katie Martin ( @katie_martin_fx ) on Twitter. You can email Ethan at ethan.wu@ft.com . Read a transcript of this episode on FT.com Hosted on Acast. See acast.com/privacy for more information.