Hi!
I'm posting on behalf of Janko (see below)
Contact: Tel:0176 3066 164 (Janko)
less-wrong-frankfurt@googlegroups.com
The meetup takes place in the apartment of the Frankfurt lesswrong core group. The exact adress can be found in our google group or by calling me.
After a long period without meetups and some discussions later we decided to start again and do it biweekly.
We decided to focus more on the core ideas of lesswrong by going through Eliezer's book Rationality: From AI to Zombies
The chapters will be an open discussion rather than a presentaion. I encourage you to have a look at a few of the linked posts beforehand. :-) Other topics are:
- short summaries of interesting books anyone of us had read
- Some games like Zendo)
hope to see you
Janko
The main thing that bothers me about the Boglehead program is the usual Goodhart's law deal: the more popular index funds become as a form of low-risk exposure to markets, the worse I'd expect them to perform as indices, and the less stable I'd expect them to be. I'm not sure what to actually do about this, though, or if it's even a problem worth worrying about.
I agree, and I think we can already observe the consequences: For example, since exchange traded funds have become more popular, their number increased from 276 to 3.906, and not all of them are passively managed any more. I don't know about the situation in the US, but in Germany, one of the largest direct banks incentivizes buying ETFs that are indexing risky underlying things (for example, one ETF follows the development of pension-funds in emerging markets). It does so by having lower trading costs for incentivized funds.
I think on a private level, one can still find index funds that are actually useful. On a global level, there are some worries that ETFs might contribute to a potential future crisis.