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Britain’s vote to leave the EU triggered a 3.6% drop in the S&P 500 and an almost 50% spike in volatility. Perhaps more surprising than the result was how little risk of Brexit seemed priced into stocks, heading into the vote. Which reminded me of Thaler’s work on Homo Economicus vs. Homo Sapiens, that people don't always make rational choices based on rational expectations.
While the financial world was glued to the situation in Britain, I spent the week in beautiful Vail with some wickedly smart investors at the VALUEx 2016 Investor Conference hosted by Vitaliy Katsenelson. Past presentations at this amazing conference can be found here.
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