The Great Rotation: Investing Carcinization

I encountered a new meme recently about how everything eventually evolves into crabs – a phenomenon called carcinization. A 2017 research paper showed that at least five different crustaceans species via convergent evolution turned into crab-like forms – you know – hard shells, pincers, flat and short bodies…

I also read recently that investors em masse have been moving money out of bonds and putting them into stocks.

What am I getting at? Am I saying we’re turning into crabs or that stocks are… crabby??

No, no, no. Both cases are just showing how environments shape the beings within. Also, don’t worry about turning into a crab, it’s only a phenomenon found in crustaceans.

In cases of carcinization, crustaceans with lobsterlike tails or pleon, eventually get it shortened, flattened, and tucked underneath its belly. The body also get shorter and wider enabling superior mobility in crawling, swimming, and burrowing.

Today, financial climate has interest rates at an all time low. This also means that bond rates are absurdly low as well leaving very little reasons for investors to continue to leave their money there.

So while it just “makes sense” to adapt to the happenings of the environment, we must remember that we are not crustaceans. And the financial market is not the ocean.

Make sure that you are adapting to the current market conditions and move your money where it most makes sense. But keep an eye out for the changing tide because one day it will come.

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