“Counting on the Fed to perpetually float returns is a mug’s game”

When looking at the current health of world stock markets, it is critical that we bear in mind the structural paradigm in which we observe: the only reason the financial system remains in place and markets are “healthy” is the vast amounts of government and central bank support.   The title to this post comes from Richard Fisher President of the Federal Reserve Bank of Dallas:  He also makes the following comments: Continue reading

Metaphysics and the contrarian play

It is a line of thought that I am keen to develop: that is the belief in a reality that usurps fear and greed, an existence that underpins the stability of the financial system and that exists irrespective of our emotions.  I think there has been a firm metaphysical foundation to investment and hence support to contrarian and value biased views, but that at certain points this has often only been through fortuitous outcomes.  Continue reading