The (Working) Theory of Weird Markets

Andrew Walker introduces his "theory of weird markets," suggesting that traditional investment strategies are becoming less effective due to increased competition from quantitative models, AI, and pod shops. To outperform, smaller investors must focus on "weird" or unique situations, or N of 1s, that lack market parallels and historical data. He illustrates the increasing competitiveness across different fields using the Rubik's Cube, where solving times have drastically decreased due to dedicated practice and evolving strategies. Walker also points to examples like the Elon Musk-Twitter deal and the power demands of AI as potential areas for finding alpha. He seeks feedback on his theory, particularly regarding specific market examples.