Briefing 009
Institutionalized Delusion
7 min read
Your Portfolio's Horoscope: An Award for Pretending "Factors" Predict the Future
Factor investing is astrology in a lab coat.
The Magic Show
The financial world is one enormous, overpaid magic show. We are not geniuses; we are purveyors of extremely complicated hope.
Nothing embodies this institutionalized delusion more perfectly than factor investing — the elaborate process of building a $50 million regression model to prove you should have just bought cheap stocks.
This briefing is theory. Your file is evidence. The forensic audit takes four minutes and returns your σ verdict — where your money anxiety actually lives, and what it costs you.
OPEN YOUR FILE — 4-MIN AUDIT