CDT Capital Management Explains Commonsense Violations With the Help of Apple (AAPL) Stock

CDT Capital Management, an investment management company, released its annual investor letter. A copy of the letter can be downloaded here. CDT’s quantitative risk framework aims to assess whether the stock market is operating rationally. The letter highlighted a potential “commonsense crisis,” suggesting that investors may be making irrational decisions. The letter discussed on “commonsense violations”. The investors’ analysis indicates that the probability of losses is above average,...