Posts by: jordan

Safe as Houses?

“Australian house prices will fall 40%” said Steven Keen. So confident in his prediction – was the economist from Western Sydney –he agreed to a bet. The opponent? An interest rate strategist from Macquarie, named Rory Robertson. The stakes? An unaided walk from Parliament House to the summit of Mt Kosciusko. It was September 2008. Lehman Brothers had just failed and the world was at panic stations. Australian house prices would dip 5.5 percent, but then begin their decade-long march…

Field of Cryptos

…Bitcoin, Blockchain, Ripple, Ethereum! Is this the world’s worst scrabble game, or has everything just changed? It’s been nearly six months since my last newsletter – a long time between drinks, as they say. Enough time to sit back, observe and enjoy the severe gyrations of a digital gold rush. Crypto-currency is the name of the game and everyone seems to be taking part. Stories abound of hackers rummaging through garbage – in search of lost hard drives full of…

How to Succeed as a Retail Investor

What follows is the final edition of my four-part look at active vs. passive. In it, I offer a broad how-to guide for the average retail investor. Including some timeless wisdom from the investment greats. This is not financial advice, but an outline of some basic concepts and ideas that may ignite your own due diligence.  The Magic of Compounding “I think the desire to get rich fast is pretty dangerous. My own system was to get rich slow… …if you…

A Wealth Management Playbook

There is no such thing as one superior investment strategy – neither active nor passive. But, this begs the question: how, then, should an investor to choose between them? In short, it depends on your circle of competency. Up now is part three of a four-part dissertation on active vs. passive. In it, I outline a framework for choosing an investment method that is best suited to your needs and abilities. It begins with a brief survey of asset classes,…

Are Index Funds Creating a Bubble?

A seismic shift of capital - from active to passive - has eviscerated financial markets. The trend is no more obvious than in a widespread uptake of Exchange Traded Funds (ETF). The topic for consideration is whether ETFs make financial markets more or less efficient. Do they improve our ability to access market returns, or encourage undue risky behaviour? Perhaps, even, a new financial bubble? To jump to the punch line, ETFs are less a cause of irrational exuberance, than a…

A Dynamic Theory of Financial Markets

How often have you asked yourself: is it worth me holding onto these Telstra shares my parents gave me? Is there a better option to earning such a paltry return on my savings? Does anyone know a good fund manager? Or what the hell are people talking about when they refer to “index funds” and “ETFs”? These questions are not only common, but reflect a deeper tension in wealth management. Whether you should be an active or passive manager of…

Common Money

A 21st Century Roadmap for Competition in Currency In 1976, Professor F.A. Hayek – the 20th Century’s preeminent classical liberal – published a groundbreaking proposal for the denationalization of money. Under the auspices of the Institute of Economic Affairs, Hayek’s monograph called for financial institutions to be afforded the freedom to issue their own competing private currencies. Forty years on, the policy initiative remains off the political agenda. This essay seeks to restate and revitalize the case for competition in…

Welcome to The Archive

This Archive is an amalgamation of my thoughts, research and ideas - my effort to understand new and complex subjects. In the pursuit of knowledge we inherently become readers of great authors and students of history’s great teachers. But in order to truly master their work, we must also become authors and teachers in our own right. As Mortimer Adler said, “the person who says he knows what he thinks, but cannot express it, usually does not know what he…