Perth Leadership Institute - Economics and finance http://perthleadership.org/easyblog/categories/economics-and-finance Sun, 19 Nov 2017 23:56:17 +0000 Joomla! - Open Source Content Management en-gb Can behavioral economics restore Alpha? http://perthleadership.org/easyblog/entry/can-behavioral-economics-restore-alpha http://perthleadership.org/easyblog/entry/can-behavioral-economics-restore-alpha
Did you notice that Richard Thaler just received the Nobel for behavioral economics? He’s the third; the first was Daniel Kahneman in 2002, the second Robert Shiller in 2013. Hmm, it took 15 years for the second and third prize to be awarded. Is that why economics globally is in such a mess? Why we still can’t predict recessions, the valuation of c...]]>
etedprince@perthleadership.org (etedprince) Economics and finance Sat, 28 Oct 2017 13:24:46 +0000
Does streaming music reduce productivity? http://perthleadership.org/easyblog/entry/does-streaming-music-reduce-productivity http://perthleadership.org/easyblog/entry/does-streaming-music-reduce-productivity
Well, whadya know? US worker productivity growth rose sluggishly in the last quarter (at 0.9%). So what? This is kind of boring stuff after my usual posts on quantum brains, love force-fields and the like. What could possibly be of existential interest here? Productivity growth is usually said to be caused by eye-glazingly boring phenomena such as ...]]>
etedprince@perthleadership.org (etedprince) Economics and finance Sat, 26 Aug 2017 13:16:04 +0000
Bitcoin meets behavioral finance – what happens next? http://perthleadership.org/easyblog/entry/bitcoin-meets-behavioral-finance-what-happens-next http://perthleadership.org/easyblog/entry/bitcoin-meets-behavioral-finance-what-happens-next

So now Bitcoin has split between two camps , the miners and the rest. That gives us a bit of insight into the psychodynamics of the Bitcoin community. Can we figure out more of them? How about a behavioral finance analysis? To wit, what are the cognitive biases of the Bitcoin crowd? That is, both the rational and the irrational ones, more of the la...]]>
etedprince@perthleadership.org (etedprince) Economics and finance Sat, 12 Aug 2017 12:57:35 +0000
What’s wrong with quant approaches? http://perthleadership.org/easyblog/entry/what-s-wrong-with-quant-approaches http://perthleadership.org/easyblog/entry/what-s-wrong-with-quant-approaches
You know the old story: when a celebrity gets to be Time Person of the Year, it’s time to short them. Obama received the honor twice, in 2008 and 2012 and look where that got him! Trump was Time Person of the Year 2016 so look out! In the same vein I notice that the Wall Street Journal now has a new and separate section on quants. Does that mean th...]]>
etedprince@perthleadership.org (etedprince) Economics and finance Sat, 03 Jun 2017 16:21:41 +0000
Are dynasties the future of democracy? http://perthleadership.org/easyblog/entry/are-dynasties-the-future-of-democracy http://perthleadership.org/easyblog/entry/are-dynasties-the-future-of-democracy
So I know I don’t have to remind you that we have a family running the US of A. Let’s say that it continues, with or without a gap between other family members also getting into the saddle. That’s what a dynasty is, in both cases. And this is hardly new. In modern times we’ve had the Kennedys, the Bushes and the Clintons. The Roosevelts before that...]]>
etedprince@perthleadership.org (etedprince) Leadership Sat, 06 May 2017 14:44:04 +0000
Quantum economics – can 2 (or more) minds be entangled? http://perthleadership.org/easyblog/entry/quantum-economics-can-2-or-more-minds-be-entangled http://perthleadership.org/easyblog/entry/quantum-economics-can-2-or-more-minds-be-entangled
I just read “ The Undoing Project” by Michael Lewis . You remember him? The author of Moneyball , the best-selling book about a new way to win at baseball. “The Undoing Project: is about the emergence of behavioral economics and behavioral finance. It focuses on the two key figures in the drama, Amos Tversky and Daniel Kahneman and the incredibly f...]]>
etedprince@perthleadership.org (etedprince) Economics and finance Sat, 25 Feb 2017 14:15:35 +0000
Can refugees be the key to a new and vibrant immigration policy? http://perthleadership.org/easyblog/entry/can-refugees-be-the-key-to-a-new-and-vibrant-immigration-policy http://perthleadership.org/easyblog/entry/can-refugees-be-the-key-to-a-new-and-vibrant-immigration-policy
I think the debate about immigration is missing something really big. The biggest thing we should be worried about is the vitality and energy of our country. If we get that right everything else falls into place. I was just watching a documentary about Japan and the ongoing depopulation there. With more and more seniors as a proportion of the popul...]]>
etedprince@perthleadership.org (etedprince) Economics and finance Fri, 10 Feb 2017 23:58:16 +0000
Are celebrities better venture investors than the professionals? http://perthleadership.org/easyblog/entry/are-celebrities-better-venture-investors-than-the-professionals http://perthleadership.org/easyblog/entry/are-celebrities-better-venture-investors-than-the-professionals
We Americans are obsessed by celebrities. Many of them have lots of moolah. So I’m sure you took notice of the recent announcements that Leonardo DiCaprio has joined a Boston VC firm . Maybe you also happened to notice another recent announcement that Kobe Bryant had launched a $100 MM VC fund, with one Jeff Stibel . This is just the tip of the ice...]]>
etedprince@perthleadership.org (etedprince) Entrepreneurship Tue, 27 Dec 2016 11:30:56 +0000
Can we unify traditional and behavioral economics? http://perthleadership.org/easyblog/entry/can-we-unify-traditional-and-behavioral-economics http://perthleadership.org/easyblog/entry/can-we-unify-traditional-and-behavioral-economics
So active investing is dead. Even the investment literati have finally figured that one out even though the writing has been on the wall for quite some time. I’ve been heralding the issue (“ An Inconvenient Truth - Alpha Financial Styles Beget Ginormous Returns ” and “ Less Algebra More Fudge Brownie - What Will Managed Investing 2.0 Look Like ?”)....]]>
etedprince@perthleadership.org (etedprince) Economics and finance Sat, 29 Oct 2016 12:31:35 +0000
ECB Should Push Issue of Refugee Bonds to Turbocharge EU Growth! http://perthleadership.org/easyblog/entry/ecb-should-issue-refugee-bonds-to-turbocharge-eu-growth http://perthleadership.org/easyblog/entry/ecb-should-issue-refugee-bonds-to-turbocharge-eu-growth
Useless factoid for the day: the European Central Bank (ECB) recently let it be known that it will likely start buying equities as part of its radical approach to quantitative easing . Apparently there aren’t enough bonds around for it to be able to buy. Mario Draghi, its head, really meant it when he said the ECB will take all steps to jumpstart e...]]>
etedprince@perthleadership.org (etedprince) Economics and finance Sat, 17 Sep 2016 12:57:59 +0000
How do negative interest rates impact leadership and risk globally? http://perthleadership.org/easyblog/entry/how-do-negative-interest-rates-impact-leadership-and-risk-globally http://perthleadership.org/easyblog/entry/how-do-negative-interest-rates-impact-leadership-and-risk-globally
It just came out that the Bank of Ireland and RBS bank have introduced negative interest rates on large deposits. Germany and Japan both have banks with negative interest rates, as well as some of the Scandinavians. That’s got to qualify as a megatrend. It looks like negative interest rates are spreading fast. We are in uncharted territory. Likely ...]]>
etedprince@perthleadership.org (etedprince) Economics and finance Sat, 20 Aug 2016 21:08:09 +0000
Should we deliberately slow down innovation? http://perthleadership.org/easyblog/entry/should-we-deliberately-slow-down-innovation http://perthleadership.org/easyblog/entry/should-we-deliberately-slow-down-innovation
Did you notice that Alvin Toffler, author of “Future Shock ” just passed away? His book was published in 1970. That was well before the Internet, Twitter, Facebook and even photocopiers and hand-held electronic calculators. Think what he would say today? Clearly the pace of change has accelerated dramatically since Toffler alerted us to the problem...]]>
etedprince@perthleadership.org (etedprince) Innovation and innovators Fri, 15 Jul 2016 22:53:08 +0000
BREXITed - UK Gain, EU Pain http://perthleadership.org/easyblog/entry/brexited-uk-gain-eu-pain http://perthleadership.org/easyblog/entry/brexited-uk-gain-eu-pain
So ok the UK is out. The pundits tell us that was a really bad move by the Brits. I beg to differ. Actually I think that BEXIT is going to lead to the British economy experiencing its biggest growth spurt in a century. It’s the EU we need to be worried about. How so? Leaving the EU is going to result in an epochal rollback of regulations in England...]]>
etedprince@perthleadership.org (etedprince) Economics and finance Tue, 28 Jun 2016 19:02:12 +0000
Would Trump be a Billionaire without his Inheritance? http://perthleadership.org/easyblog/entry/would-trump-be-a-billionaire-without-his-inheritance http://perthleadership.org/easyblog/entry/would-trump-be-a-billionaire-without-his-inheritance
Is this the elephant in the room? Trump's frequent allusions to his vast wealth and to how smart he is sounds awfully like the rich son who inherited it all but wants to convince everyone else – and himself – that really he did it all himself. So I thought I would do an analysis of this question. I think I’m well qualified to do that. For the past ...]]>
etedprince@perthleadership.org (etedprince) Economics and finance Sat, 18 Jun 2016 12:33:52 +0000
Space will be the New Driver of Global Economic Growth http://perthleadership.org/easyblog/entry/space-will-be-the-new-driver-of-global-economic-growth http://perthleadership.org/easyblog/entry/space-will-be-the-new-driver-of-global-economic-growth
So Yellen and the Fed just wimped out of raising interest rates, yet again again. What does that tell us? The world is in an economic funk. Nothing's working. China’s about to crash big-time so its role as a growth driver has definitely ended. The emerging markets are in an even worse pickle – Russia a total mess about to implode yet again, the Bra...]]>
etedprince@perthleadership.org (etedprince) Economics and finance Sat, 11 Jun 2016 23:20:32 +0000
An Inconvenient Truth - Alpha Financial Styles Beget Ginormous Returns http://perthleadership.org/easyblog/entry/an-inconvenient-truth-alpha-financial-styles-beget-ginormous-returns http://perthleadership.org/easyblog/entry/an-inconvenient-truth-alpha-financial-styles-beget-ginormous-returns
Apologies to Al Gore for another inconvenient truth. There’s been a lot of talk about alpha these days, but not just about investments. Trump, Putin - alpha is definitely in vogue. As in alpha male. Like Tarzan. Does that tell us something about the investing world? Yep it does. Check out my book The Three Financial Styles of Very Successful Leader...]]>
etedprince@perthleadership.org (etedprince) Economics and finance Sat, 04 Jun 2016 09:25:47 +0000
Could Genetically-Modified Humans Re-Ignite Global Growth? http://perthleadership.org/easyblog/entry/could-genetically-modified-humans-re-ignite-global-growth http://perthleadership.org/easyblog/entry/could-genetically-modified-humans-re-ignite-global-growth
I’m sure you’ve heard about the Vermont law that says that all foods that include genetically-modified ingredients must be disclosed on the label starting July 2016. Of course most of Europe doesn’t allow GM foods. China officially bans GM crops, although in fact the vast majority of them are in fact GM . So the movement to ban all GM foods is pret...]]>
etedprince@perthleadership.org (etedprince) Economics and finance Sat, 14 May 2016 13:09:33 +0000
Fast fashion for Wall Street? Spice up investing with synthetic sectors! http://perthleadership.org/easyblog/entry/fast-fashion-for-wall-street-spice-up-investing-with-synthetic-sectors http://perthleadership.org/easyblog/entry/fast-fashion-for-wall-street-spice-up-investing-with-synthetic-sectors
Are you into fashion? You’ve probably noticed that retailing icons like Banana Republic and The Gap are getting crushed by the fast fashion guys like Zara and H&M. I mean, who wants something that’s a week old anyhow? Hmm, tell that to the guys on Wall Street. The same old asset classes, the same old sectors. I was just reading an analyst repor...]]>
etedprince@perthleadership.org (etedprince) Economics and finance Sat, 07 May 2016 12:50:17 +0000
High Frequency Trading Trashed by Quantum Computers? http://perthleadership.org/easyblog/entry/high-frequency-trading-trashed-by-quantum-computers http://perthleadership.org/easyblog/entry/high-frequency-trading-trashed-by-quantum-computers
I’m sure you’ve all heard of high-frequency trading (HFT). We now realize that  HFT could actually bring down the stock market . As it is, HFT accounts for at least half of all the stock trading in the US. This isn’t to complain about HFT. It is what it is. Maybe it makes it hard for small investors. It’s certainly changed the nature of equity...]]>
etedprince@perthleadership.org (etedprince) Economics and finance Sat, 30 Apr 2016 13:37:35 +0000
We need the Interplanetary Monetary Fund now! http://perthleadership.org/easyblog/entry/we-need-the-interplanetary-monetary-fund-now http://perthleadership.org/easyblog/entry/we-need-the-interplanetary-monetary-fund-now
So finally SpaceX made it and soft-landed its booster rocket. An epochal achievement. And Bezos’ Blue Origin did much the same although on a lower orbit. So now the race is on. Next it will be the Russians, Chinese, Japanese, maybe even the North Koreans, God forbid. It’s now obvious that we have pretty much everything we need up there to keep body...]]>
etedprince@perthleadership.org (etedprince) Economics and finance Sat, 23 Apr 2016 12:15:13 +0000