…and here is some good news…

  Adding further value to our conversation on The Market eQuation we introduce the concept of the: RISKed RETURN on MARKET (RdROM) today on 11.11.11. RISKed RETURN on MARKET adds a counter balance to the Efficient Market Hypothesis and Rational Market Theory, Black Scholes and CAPM, amongst others. More detail to follow in due course... theMarketSoul ©2011

Do we value everything and understand nothing?

On reflection, the ‘mechanism’ established to rescue or save the Euro is indicative of the fact that we still understand very little and can control and short-circuit systems to some extent, yet we think we value everything. Inflation, and dare we state it openly, serious inflation of double-digit proportions must now surely be back on … Continue reading Do we value everything and understand nothing?

Get your calculators out

Yesterday the Independent Commission on Banking (Vickers Commission) published its long anticipated, yet low in surprises report on Banking Reform in the UK. See: Rather than rehash the analysis already performed, we only have two items to add at this stage: Get your calculators out, or at least keep the Quants busy, because unravelling and … Continue reading Get your calculators out

A cynical swipe at the ‘Consumer end’ of the money (value) chain

Today’s short opinion piece revolves around the recent rail fare increases announced in the UK. It strikes us as a very cynical way of rewarding behaviour and policies implemented by previous governments and parliaments to now go and increase the ‘tax’ on rail commuters when the switching policy from road to rail has meant that … Continue reading A cynical swipe at the ‘Consumer end’ of the money (value) chain

US Treasuries – An FX or a market call?

So it has finally happened. After threatening for months that a credit rating down grade was probable for the USA, Standard & Poor's finally took the 'big step' on Friday 5 August, after the major markets closed. So what next? In our article 'US Treasuries - Are the markets really that bothered?' published on 30 July 2011, … Continue reading US Treasuries – An FX or a market call?

A Storm in a ‘Tea’ cup

Never resist the temptation to start a discussion with a pun. In our previous article we highlighted the ‘battle royal’ on Capitol Hill to get a proposal agreed to address the possibility of a US Treasury default, whether actual or technical on or after 2 August 2011. So the Republicans could not muster together enough … Continue reading A Storm in a ‘Tea’ cup

Risk Management Ideas

Risk has as one of its essential elements TRUST as a foundation. Trust on the other hand has many other factors that interplay and interact on it. Markets are created when there are needs that are not immediately met from you local environment and therefore scarcity exists.  Market participants step in to fill this 'needs' … Continue reading Risk Management Ideas

An Aggregated Challenge

Conspiracy theories! Today we express an opinion on the phenomenon of ‘governmental’ economic landscape shaping. Interference whether actively pursued or via involuntary actions promotes our heightened sense of concern by the effects that the aggregation of supply and therefore the encouragement, either directly or indirectly of oligopolistic and monopolistic market structures, is having on the … Continue reading An Aggregated Challenge

Commentary on newly proposed UK Financial Regulation

Commentary on the new powers and tools of the Bank of England as announced by George Osborne during his first Mansion House address

The Cost of a ‘Licence to Operate’

Reputation Risk and damage mitigation must be some of the watch words and the top priorities at BP at the moment. So how are they faring in the management this agenda item? What ‘price’ or cost must we attach to a ‘licence to operate’? It is interesting to observe behaviours of Chief Executives under the … Continue reading The Cost of a ‘Licence to Operate’

Does Law inform or enforce culture?

If ‘the Law’ is the codification of cultural norms and practices, does the Law then not inform culture? Policy, social malice and engineering of social outcomes bend these laws into legislative blunt instruments designed to enforce cultural behavioural changes on a grand scale, trouncing the common law of good judgment, neighbourly relations and common sense … Continue reading Does Law inform or enforce culture?

The Sustainability Gene

The CBI published a report entitled "The shape of business - the next ten years" in late 2009.   The authors identified 5 key drivers affecting the business environment, namely:   1.  Changing finance and capital conditions, 2.  The decline of trust in business and markets, 3.  A less benign macroeconomic environment, 4.  Social and … Continue reading The Sustainability Gene

The Markets do not need certainty

There has again been a short period of drift and volatility in 'The Markets' recently. And yet again we have heard the old refrain: "Markets hate uncertainty". This we assert is yet again a misused turn of phrase. It is not uncertainty that markets hate, because inherent within market processes and market operations is the … Continue reading The Markets do not need certainty

The “Harsh” Market

It is true.  This is not a playground, kinder-garden experience... As we don’t live a purely Command and Control or 100% Free Market environment we have to constantly adjust our actions and interactions with the market around us based on factors such as: Geography Jurisdiction and cultural norms Experiences Sophistication levels Access points Openness There … Continue reading The “Harsh” Market

theMarketSoul ©1999 – 2010 Ventures an opinion on the ‘Economics of Taxation’

[All names and references to places in this post has been changed, so as to protect the innocent bystanders]   Cracking down on ‘Tax Havens’ became a stated objective of the G20 last year during one of the meetings held during 2009. Lets us keep the argument very simple and divide the world into two … Continue reading theMarketSoul ©1999 – 2010 Ventures an opinion on the ‘Economics of Taxation’

Increased Friction Costs

We start today’s article with a cry for a return to common sense and a reduction in the unnecessary Friction Cost in the economic system (especially here in Britain). Friction Cost, in economic terms is defined as: The implicit and explicit costs associated with market transactions. The total cost, both direct and indirect, of a transaction after commissions, interest … Continue reading Increased Friction Costs

The trouble with Innovation – Part 4

Risk!  This will be the main theme of this part of the series we are investigating.  As highlighted in part 3 Risk Management and Sustainability are key factors to consider in unleashing Innovation and creativity in the organisation’s life cycle.   However, in the word life-cycle we already have a clue as to the inevitability … Continue reading The trouble with Innovation – Part 4