Choosing Risk over Uncertainty
As U.S. citizens approach election day, let's hope a voting majority sees the merits of risk over uncertainty. Citing Frank H. Knight (1921) and "his classic distinction between risk and uncertainty"... ...risk applies to random outcomes that investors can model with known probabilities, while uncertainty applies to random outcomes with unknown probabilities. An investor is typically willing to confront risk but may be paralyzed in the face of extreme uncertainty. Source: James Rickards, The Death of Money