If you don’t know the story on LUNA’s death spiral, you can read about it here, here, or here. In this note, I give you my thoughts and takeaways now that LUNA is dead. Takeaway #1: Yield and risk are always correlated, and it’s nonlinear The first chart today shows risk vs. return for the major asset classes and bitcoin since 2010. Note the log scale and how the line of best fit is almost perfect. {chart} Here is what it looks like in bond land: {chart} High yield means high risk. Super high yield means exponentially higher risk. This is an immutable law of finance. If you want a 20% return in a 0% world, you are ... (full story)