Article about John Cochrane

On Dec 28, 9:40*am, HoUdino wrote:
It might be interesting to compare the ideas imbeded in the Black-
Scholes model with our current thermal prediction models. *I wonder if
John would comment if there is something worth persuing?

LT

Thanks for the plugs guys. We were all disappointed with the Bloomberg
article, but I guess everyone thinks they're a lot clearer and more
eloquent than what the reporter writes.

I haven't found a use for Black-Scholes in glider flying yet, but my
MacCready theory articles are straight translations from the classic
"optimal portfolio" theory. An investor goes through life with
occasional opportunities (thermals) of varying promise (strength) but
a constraint that wealth (altitude) must never be negative. As you can
see, if you just change the letters you've got the same problem.

John
BB