Ten golden rules of investing September 20, 2012 The efficient market hypothesis is nonsense. Markets are driven by humans, humans are irrational, thus markets are irrational. Occasionally, something happens and investors panic. You should take advantage of these instances, not join the stampede (or, if you are going to rush for the exit, be the first.) Think of a 20 per cent fall [...]
Are there signs that mergers and acquisitions activity might rise over the coming months? September 20, 2012 YES Alexis de Rosnay There have been tentative signs that the mergers and acquisitions (M&A) market has picked up over the last few weeks. The key ingredients for a sustained pick up in M&A is the performance of the equity markets in general – it is no coincidence that the bumper years for transactions have [...]
Rapid Responses September 20, 2012 Clegg’s apology [Re: How one ticking economic timebomb is being slowly defused, yesterday] Nick Clegg’s apology wasn’t just confused. It’s another step in the quiet unravelling of the coalition. You can see how Clegg and David Cameron are slowly beginning to reposition their parties in preparation for the next election. Whether either will still be [...]
How I plan to apply the lessons of business to running government September 19, 2012 DESPITE the progress made in cutting the deficit, this country is facing one of its most difficult economic situations. But my experience tells me that it is at these moments that you can generate the best results. It would be a wasted opportunity if we didn’t use it to make fundamental changes to the way [...]
Romney’s absurd 47 per cent gaffe risks alienating his own core voters September 19, 2012 MONDAY was touted by Mitt Romney’s campaign as a “re-launch” day, an opportunity for the candidate and his proxies to engage voters with specifics about what his presidency would entail. By Tuesday morning, however, rather than resembling a fresh start, it looked like more of a relapse. The decision by the website Mother Jones to [...]
Ten golden rules of investing September 19, 2012 The worst reason in the world to buy something is because somebody else did. This is essentially what you would be doing if you allowed your portfolio to mimic the benchmark index. A company’s weighting in the index tells you only what has happened in the past, not what will happen in the future. Furthermore, [...]
Should the Bank of England be able to adjust bank capital ratios to match economic health? September 19, 2012 YES David B Smith There are two main reasons why granting the Bank of England the power to impose capital ratios may prove helpful – macroeconomic and prudential. The essential macroeconomic aim of monetary policy should be to maintain a smooth and steady growth of broad money. It’s difficult to do this with the traditional [...]
Rapid Responses September 19, 2012 National defence [Re: Could a BAE-EADS merger prove a danger to national interests?, yesterday] This merger raises questions that have yet to receive adequate answers. There are obvious implications to losing the strategic totem that has been BAE: its work is closely related to UK national defence, and we should not risk it without careful [...]
A humanities education is the best preparation for a life of leadership September 18, 2012 THERE will always be a need for higher education to produce the experts essential to advanced economies. Scientists, engineers, doctors and lawyers are indispensable, and universities will always train them because there will always be the resources for training them. However, there is a curious blindness to the equally great need in our complex societies [...]
The iPhone5 may be boosting GDP by even more than JP Morgan predict September 18, 2012 APPLE’S iPhone5 has already smashed sales records. More than 2m online orders were placed on the first day that consumers could make purchases over the web. So it’s little wonder that JP Morgan has estimated that iPhone5 sales could add as much as 0.5 per cent to American GDP. These numbers have attracted criticism. After [...]