I asked a trader friend what he made of the repeated use of the word “temporary” by Trump officials. He laughed: “Temporary compared to what?” Fair point. Washington manages the narrative but the market manages the shortage. And it is the shortage that ultimately moves the price of diesel. Chevron CEO made a similar point…

A PhD in finance corners you in a meeting and asks what I think of the efficient frontier and mean-variance optimization. Fair question. My honest answer is that the theory has earned its keep. It gave the industry a common language and a useful starting point. The problem starts when people begin treating the model…