The classic definition of ‘money’ has three features: (1) a medium of exchange; (2) a store of value; and (3) a unit of account. ‘Sound money’ is simply a medium of exchange, backed by an asset with an intrinsic value and not liable to sudden appreciation or depreciation. Money is not a risk asset. It […]
Speaking realistically, are we likely to live in a cashless society in the future, or is this wishful thinking? If Sweden is anything to go by, then we will. There, some 85 to 90 per cent of all payment transactions are made electronically. The Swedes do not like using cash, but across Europe attitudes vary […]
You may be familiar with the term “Bitcoin”, without understanding its use or the overall concept of “blockchain” or “cryptocurrencies”. A “blockchain” is a digitised, decentralised public ledger. It includes all “cryptocurrency” transactions – namely, all transactions done in digital or virtual currencies (that use cryptography to make them secure). Currently, blockchain technology is used […]
The oil that lubricates the wheels of investment management. Consider this: Inhabitants of a small community before the wheel was invented carried heavy goods on their backs. Then came the wheel and, from then on, their goods could be efficiently moved on a cart, and not on their backs. As with all economic productivity, cause […]
It’s not return on my money that I’m interested in, it’s return of my money. Mark Twain, 1835-1910 The arrival of the first mutual fund into the marketplace in March of 1924 revolutionised the way we invest money in the stock market, although mutual funds became prolific only years later, when adopted by institutions in […]
Why money managers fail to achieve the market rate of return and why costs matter. When the facts change, I change my mind. What do you do, sir? John Maynard Keynes All of us want the best possible return on our money. This may take the form of savings, investments, life assurance endowments, pensions, or […]
As Europe braces itself for a year of political uncertainty, the single market currency is again coming in the spotlight. As Europeans look towards summer vacations, venturing outside the eurozone could be expensive. The market has not yet priced in a Le Pen victory or an Italian referendum on membership of the EU. Following on […]
I recall my first night in Vietnam, sipping a large whisky on the terrace of a hotel which had seen better times. A relic of French colonial rule, it was now the only hotel in Saigon with a barman. It was September 1974. The few journalists that remained in the city and a handful of […]
As in the biblical wedding feast in Cana in the Galilee, 2016 saved its best until last. An alchemy of vitriol served up during the race for the White House, proved unpalatable to some 30 million Americans. To the rest appetising. For many the election result was a victory of truth over deception, a witness […]
The key for the wealthy to stay wealthy is to eliminate the surprises. Jeremy Blatch considers how this may be achieved. New found Wealth There are several ways to come into money and as we are graphically reminded by the tabloid newspapers the route to instant riches is probably illicit? But is it? It may […]
