Don't let the title scare you. This Mental Model from Calculus is extremely powerful in understanding the Drivers for Valuation and Risk for ALL Financial Assets across the Capital Structure.
A wealth of information and more importantly "mental models" you are proving here for free. Thank you Michael
Can gold be modeled by adding in a new variable - say "dread of the world falling apart"? I am not sure it applies to BTC/Crypto since they have been advertised as inflation hedges from the beginning of their existence but Gold has been around forever and always has had a non-zero "currency at the time" value. Feels like there should be a way to model it.
Calculus is the secret to the universe! It is the special sauce that gives anything of substance its flavor.
Thanks for posting this for all of us. Really appreciate it. So educational even though much of the advanced math is beyond me.
I’m saving up for a full subscription next year if at all possible.