We have a finite supply of fossil fuel and economic models don’t take that into account. Oops.
Incorrect assumptions in models of reality can lead to big problems in the real world. This article is eye-opening on a topic that no one else is thinking about. I can’t think of a more important reason to use an adaptive, systematic investment process. A lot of things could put us into a ditch—things we don’t necessarily see coming from a long way off—but a systematic model just keeps adapting to what is actually happening in real time. It allows tactical adjustment as conditions change.
