They say there’s always a bull market somewhere and a chart on doom commentary has surely been up and to the right. Perhaps it’s been the joint decline in the equity and crypto markets. NVDA is down 10% in November and Bitcoin is down almost twice that. Perhaps it’s been that there wasn’t a hard and fast enough of a catalyst to point to…no trade war, Powell presser, CPI surprise or earnings shortfall. These would have at least left us with plausible drivers, satisfying our need for markets to make sense. But when price operates as the only fundamental, sell-offs in asset prices take on much greater meaning.

If there’s one idea that best captures my own curiosity about markets it lies in studying our presence in them. And here’s where the Soros theory of reflexivity is so relevant, especially to modern day risk-taking. Reflexivity is a brilliant concept and price is central to it. Price is surely an outcome that results from changes in economic data, corporate profits and adjustments in the stance of monetary policy. Today, price is more properly thought of as a driver of wealth, which in turn, allows it to drive investment behavior and also narratives. In the process, it can actually shape fundamentals.

Through this lens, I share some of my recent thinking on the risk structure of the equity and crypto markets. I hope you find this interesting and useful. I wish you a wonderful, relaxing and highly caloric Thanksgiving holiday.