In this episode I talk with Dr. Damian Handzy. In theepisode we talk about physics, finance and how the two disciplines are intertwined. We talk about how Damian became interested in science and math as a child, how he became interested in physics as an undergraduate in University of Pennsylvania, Damian’s PhD thesis in experimental nuclear physics, pivoting from nuclear physics to finance, financial risk and how behavioral economicsaffects the markets and the economy. Towards the end we discuss complex systems and the difficulty in generalizing complex systems such as the financial markets. I hope you enjoy!

Damian’s PhD Thesis: https://d.lib.msu.edu/etd/29876

ARTICLES:

Young’s Double Split Experiment Explanation from KhanAcademy: https://www.youtube.com/watch?v=Pk6s2OlKzKQ

DOE Explains...The Strong Force: https://www.energy.gov/science/doe-explainsthe-strong-force

Discovery of the electron and nucleus from Khan Academy: https://www.khanacademy.org/science/class-9-chemistry/a/discovery-of-the-electron-and-nucleus

What is a Credit Rating? from S&P Global: https://www.spglobal.com/ratings/en/credit-ratings/about/understanding-credit-ratings

An Econometric Model of Serial Correlation and Illiquidityin Hedge Fund Returns by Andrew Lo, Mila Getmansky and Igor Makarov: https://ideas.repec.org/p/mit/sloanp/1838.html

Credit Spread: What It Means for Bonds and Options Strategyfrom Investopedia: https://www.investopedia.com/terms/c/creditspread.asp

Understanding Value at Risk (VaR): Explanation andCalculation Methods from Investopedia: https://www.investopedia.com/articles/04/092904.asp

Black-Scholes Model: What It Is, How It Works, and OptionsFormula from Investopedia: https://www.investopedia.com/terms/b/blackscholes.asp

Is the Flurry of Circular AI Deals a Win-Win—or Sign of aBubble? from the Wall Street Journal: https://www.wsj.com/tech/ai/is-the-flurry-of-circular-ai-deals-a-win-winor-sign-of-a-bubble-8a2d70c5

BOOKS:

Skin in the Game by Nassim Nicholas Taleb

Flash Boys: A Wall Street Revolt by Michael Lewis

Scale: The Universal Laws of Growth, Innovation,Sustainability, and the Pace of Life in Organisms, Cities, Economies, andCompanies by Geoffrey West

The Mind of the Market: Compassionate Apes, CompetitiveHumans, and Other Tales from Evolutionary Economics by Michael Shermer

Against the Gods: The Remarkable Story of Risk by Peter L.Bernstein

The Origin of Wealth by Eric Beinhocker

The Black Swan by Nassim Nicholas Taleb

Thinking, Fast and Slow by Daniel Kahneman

How to Decide: Simple Tools for Making Better Choices byAnnie Duke

CONNECT:

LinkedIn:https://www.linkedin.com/in/adrian-dolinay-frm-96a289106/

GitHub: https://github.com/ad17171717 X:https://twitter.com/DolinayG

Odysee: https://odysee.com/@adriandolinay:0

Medium: https://medium.com/@adriandolinay

PODCAST:

Apple Podcasts: https://podcasts.apple.com/podcast/id1765996824

Audible: https://www.audible.com/pd/B0DC73S9SN

iHeart Radio: https://iheart.com/podcast/202676097/

Spotify:https://open.spotify.com/show/60dPNJbDPaPw7ru8g5btxV

|-Video Chapters-|

0:00 – Intro
1:41 – The beginning of Damian’s interest in STEM
5:14 – Damian shifting from pre-med to physics and math
9:31 – Studying nuclear physics
11:09 – Summer research internship at Indiana University Bloomington
14:18 – Choosing Michigan State over MIT for a PhD
16:29 – How nuclear was perceived in the late 20th century
19:37 – Damian’s Experimental Nuclear Physics PhD thesis
34:19 – The importance of fundamental STEM research
38:56 – Damian’s pivot from nuclear physics to finance
41:36 – Defining risk in finance
56:21 – Working in the finance industry during the Great Financial Crisis of2008-09
1:02:36 – The origins of the Black Scholes Merton Model
1:08:06 – Potential financial risks in 2025 and beyond
1:26:35 – Damian’s advice to aspiring financiers and physicists
1:32:53 – Book Recommendations
1:37:00 – Conclusion

Physics and Finance with Damian Handzy - #18