Episode 277: Musings With French Physicists About Advanced Modelling And Comparing Small Cap Funds

<p>In this episode we answer emails from MyContactInfo and Stanley.  We discuss a podcast interview of Professor Jean-Phillipe Bouchaud about methods of analyzing complex systems and financial markets and compare investments in small cap blend and small cap value funds.<br/><br/>Links:<br/><br/>Rick Bookstaber podcast interview of  Professor Jean-Phillipe Bouchaud:  <a href='https://sites.libsyn.com/451521/the-science-of-risk'>Seeking Risk: The Fab Rick Show: The Science of Risk (libsyn.com)</a><br/><br/>The Origin of Wealth book:  <a href='https://www.amazon.com/Origin-Wealth-Remaking-Economics-Business/dp/1422121038/ref=sr_1_1?adgrpid=1337007495837958&amp;hvadid=83563162909699&amp;hvbmt=be&amp;hvdev=c&amp;hvlocphy=91064&amp;hvnetw=o&amp;hvqmt=e&amp;hvtargid=kwd-83563858202742%3Aloc-190&amp;hydadcr=22536_10435302&amp;keywords=origins+of+wealth&amp;qid=1689808883&amp;s=books&amp;sr=1-1'>Amazon.com: The Origin of Wealth: The Radical Remaking of Economics and What it Means for Business and Society: 9781422121030: Beinhocker, Eric D.: Books</a><br/><br/>Random Matrix Analysis:  <a href='https://en.wikipedia.org/wiki/Random_matrix'>Random matrix - Wikipedia</a><br/><br/>Dragon Kings Article:  <a href='https://en.wikipedia.org/wiki/Dragon_king_theory'>Dragon king theory - Wikipedia</a><br/><br/>Portfolio Visualizer Analysis of Small Cap Blend vs. Small Cap Value:  <a href='https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&amp;mode=1&amp;timePeriod=2&amp;startYear=1972&amp;firstMonth=1&amp;endYear=2023&amp;lastMonth=12&amp;calendarAligned=true&amp;includeYTD=false&amp;initialAmount=10000&amp;annualOperation=0&amp;annualAdjustment=0&amp;inflationAdjusted=true&amp;annualPercentage=0.0&amp;frequency=4&amp;rebalanceType=1&amp;absoluteDeviation=5.0&amp;relativeDeviation=25.0&amp;leverageType=0&amp;leverageRatio=0.0&amp;debtAmount=0&amp;debtInterest=0.0&amp;maintenanceMargin=25.0&amp;leveragedBenchmark=false&amp;portfolioNames=false&amp;portfolioName1=Portfolio+1&amp;portfolioName2=Portfolio+2&amp;portf