In his long awaited review of the functioning of the UK equity market, published two weeks ago, Prof John Kay highlighted the short termism and lack of engagement displayed by many professional investors towards their holdings of corporate equity. As could be expected from such a source, his points were elegantly and forcefully argued, even if his recommendations for redress have not found universal favour.
Author: Jonathan Davis
Author, columnist and investment professional.
Future Returns: Rob Arnott Interview
Rob Arnott, the chairman of Research Affiliates, is one of the most articulate and interesting market analysts in the States, and someone whose ideas and
Secrets Of Keynes’ Winning Ways Revealed
The latest academic research into the performance of John Maynard Keynes as an investor adds some important detail to a story that has long fascinated – and inspired – stock market historians and professionals. It is well known that the most famous economist of his day made a fortune for King’s College, Cambridge, where he was the Bursar for more than 20 years, by buying and selling stocks for the college’s endowment and speculating happily in stocks and commodities on his own account.
Some Blunt Truth from the Central Banks
Expectations for progress in solving the problems of the eurozone have fallen so far that even the smallest signs of progress are liable to be greeted more rapturously and invested with much more significance than they deserve. Last Friday’s patched up deal to allow Spain and Italy to funnel bailout funds directly to their banks is one such small measure coming after 19 largely abortive summit meetings. Europe’s divided political leadership may soon discover that their efforts to fix their flawed single currency project are merely a sideshow to the much bigger issues facing the world economy in the aftermath of the global financial crisis.
Time to End the Big Lie That’s Crippling Europe
Having lavished some praise on Paul Krugman some time ago for the clarity of his explanation of how and why the economics profession missed the onset of the global credit crisis in 2007-08, it pains me to say that his latest book, which he was in London promoting last week, is also an excellent read. Nobody who reads End This Depression Now! can fail to understand his prescription for avoiding what he fears is a deepening – but eminently avoidable – economic slump around the world. Whether it adds up to an effective policy prescription is another matter.
Some Euros Are More Equal Than Others
Are your European assets Greek euros, or Spanish euros, or Finnish euros, or German euros? The defining feature of a single currency is that no one asks that question. They do not distinguish Massachusetts dollars from Californian dollars and they do not – yet – ask whether the pounds they hold are Scottish or English.
Jonathan Davis 