Matt Levine’s Money Stuff: Hedge Funds Need to Know the Weather (Correct)

Weather traders

The nicest thing you can say about the financial industry is that it lavishly rewards correct understanding of the world. If you know a thing, and other people do not know it, financial markets provide an efficient and fairly general way to turn your knowledge into large amounts of money. You don’t have to go out and make some product with your knowledge, building a factory and hiring marketers and getting it into stores. You can push some buttons on a computer and turn your knowledge pretty directly into money.

It seems to me that this creates nice incentive ...