Ep. 405: Didier Sornette Interview with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
Michael Covel
4.6 • 732 Ratings
🗓️ 11 December 2015
⏱️ 52 minutes
🧾️ Download transcript
Summary
My guest today is Didier Sornette, the Professor on the Chair of Entrepreneurial Risks at Swiss Federal Institute of Technology Zurich. He is also a professor of the Swiss Finance Institute, associated with both the department of Physics and the department of Earth Sciences at ETH Zurich. He has worked on the King effect, a theory used to predict economic bubbles. Didier also set up the Financial Crisis Observatory in October of 2008. He brings an interesting perspective to financial crisis's, and bubbles.
The topic is market bubbles.
In this episode of Trend Following Radio we discuss:
- The adaptive market hypothesis
- Dragon Kings vs. Black Swans
- New economy syndrome
- Predictive markets
- Finite singularity
- Equilibrium of the world
Jump in!
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I'm MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I'm proud to have delivered 10+ million podcast listens since 2012. Investments, economics, psychology, politics, decision-making, human behavior, entrepreneurship and trend following are all passionately explored and debated on my show.
To start? I'd like to give you a great piece of advice you can use in your life and trading journey… cut your losses! You will find much more about that philosophy here: https://www.trendfollowing.com/trend/
You can watch a free video here: https://www.trendfollowing.com/video/
Can't get enough of this episode? You can choose from my thousand plus episodes here: https://www.trendfollowing.com/podcast
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Hope you enjoy my never-ending podcast conversation!
Transcript
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| 0:00.0 | This is Trend Following Radio, where great thinking comes alive. |
| 0:10.9 | Nobel Prize winners, legendary traders, bestselling authors, and the pros that know what drive us irrational human beings. |
| 0:20.7 | I am your host, Michael Covel. |
| 0:23.1 | Not filtered, raw, honest. |
| 0:26.4 | That's my passion. |
| 0:32.9 | I first saw my guest today on a great TED talk. |
| 0:39.2 | Not live, but I caught it online. |
| 0:46.9 | Didier Sonae is professor on the chair of entrepreneurial risks at E.T.H. Zurich. |
| 0:52.9 | He has worked on the King Effect, a theory used to predict economic bubbles. |
| 0:56.9 | He has also set up the financial crisis observatory. |
| 1:05.1 | Didier brings yet another perspective on one of my passions, economic bubbles. |
| 1:14.3 | He forces an alternative way to think about the unexpected, to think about what comes next. |
| 1:18.7 | He believes there's a way to see ahead. |
| 1:22.9 | I hope you enjoy this conversation with Didier-Sonae. Welcome to the question. What was the trigger moment in your life? When did it happen? What year? What was the moment that said, ah, my fascination, one of my fascinations, you've got a wide, wide academic career, but you do have this clear fascination with |
| 1:44.9 | economic bubbles. |
| 1:46.6 | How did that start? |
| 1:47.6 | What was the trigger moment that said, I'm going this direction? |
| 1:50.5 | It started with a fascination with understanding and predicting rupture, failures, crisis, |
| 1:59.2 | catastrophes, not in economics or finance, but I started with, actually, I remember, |
| 2:05.4 | it was a 1989. I got a contract. I was a successful recipient of a quite large grant from EADS, |
| 2:16.2 | which is the large European consortium building the ion space rocket. |
| 2:22.3 | They had this program asking for companies and universities to try to find a solution |
... |
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