It’s a philosophy book masquerading as a FIRE book but Extreme Early Retirement calls what you’re addressing “the renaissance man”. He’s one who understands both Ace and the markets. Add it to the queue for the right time.
I was born to a single mom in her mid-20s so I had to develop a lot more self-reliance as a result; I love to cook and make things from scratch. But it wasn't until I found a dead deer in my backyard that I realized how helpless I really was (calling the local gaming and wildlife office confronted me with a tough sounding woman who asked me "can't you just drag it to the roadside for our people to pick it up?" which was not a realistic option for me). So yeah, I like your idea of us all being short this OTM put, but I don't follow the short straddle analogy. I guess if you are a salaried employee you are short a straddle or strangle defined by your income (ie. the more you make the wider the strike difference?). Does that mean entrepreneurs are not short a straddle but long a risk reversal?
Anyway, in terms of the shift from defined benefit to defined contribution, I have always found it interesting that the shift occurred almost at the same time that we saw a shift in Fed policy which implicitly targeted the stock market and also a shift in politics, where the moves in the stock market were now on the political agenda. Of course economic policy has always been on the political agenda, but this shift from economy to market, while the two are very different, seems to have something to do with the increase in equity ownership amongst voters that happened with the shift to DC.
It’s a philosophy book masquerading as a FIRE book but Extreme Early Retirement calls what you’re addressing “the renaissance man”. He’s one who understands both Ace and the markets. Add it to the queue for the right time.
I was born to a single mom in her mid-20s so I had to develop a lot more self-reliance as a result; I love to cook and make things from scratch. But it wasn't until I found a dead deer in my backyard that I realized how helpless I really was (calling the local gaming and wildlife office confronted me with a tough sounding woman who asked me "can't you just drag it to the roadside for our people to pick it up?" which was not a realistic option for me). So yeah, I like your idea of us all being short this OTM put, but I don't follow the short straddle analogy. I guess if you are a salaried employee you are short a straddle or strangle defined by your income (ie. the more you make the wider the strike difference?). Does that mean entrepreneurs are not short a straddle but long a risk reversal?
Anyway, in terms of the shift from defined benefit to defined contribution, I have always found it interesting that the shift occurred almost at the same time that we saw a shift in Fed policy which implicitly targeted the stock market and also a shift in politics, where the moves in the stock market were now on the political agenda. Of course economic policy has always been on the political agenda, but this shift from economy to market, while the two are very different, seems to have something to do with the increase in equity ownership amongst voters that happened with the shift to DC.