The three blind spots of savvy investors when it comes to risk management and five actionable tips to address them.
Traditionally, ergodicity is defined as a binary property. This definition, useful in theoretical matters, is useless for decision-making in the real world, as almost all real-world processes are non-ergodic.
Here, I introduce the concept of ergodicity as a non-binary property and suggest a few real-world applications.
Note: I discuss this topic in greater detail and in a less-technical manner in my book, “Ergodicity: how irreversible outcomes affect long-term performance in work, investing, relationships, sport, and beyond, 3rd edition” (ebook, paperback, hardcover).