An FDV threeway: Swinging in Saudi Arabia…plus Our UK Election Special…plus the latest release from DJ Dr Fish

Swinging in Saudi Arabia ARAMCO officially listed yesterday.  The Saudi owned company is the world’s largest oil producer, world’s largest company … the world’s largest many things.  It has played a political role, a diplomatic role and a world economic role for many years as the ‘Swing Producer’ in the oil markets.  Swing producers have […]

Crypto just joined the establishment and sunk the Fed

Many traders and portfolio managers began their careers on the Cash desk. This is a place where you can learn the markets without getting into too much trouble. Cash is variously defined as fixed income securities with maturities ranging from 91 days for the most secure portfolios out to 397 days for portfolios with slightly […]

Beware: Libra threatens to stabilise the World’s monetary system!

“We have security concerns with this initiative ” is every IT department’s Ace of trump’s for effectively stopping any project in its tracks. No board of directors will dare challenge said “security concerns ” since their personal liability is too great to risk it. Those of us old enough to remember the Y2K soap opera […]

CB Libre

The Cuba Libre (Rum and Coke) became the symbol of Cuban independence during the Spanish-American war.  What will symbolise the take-no-prisoners war about to erupt between Facebook and the world’s Central Banks over Libra? I recently attended a meeting of senior Central Bank and Academic researchers in Singapore. The discussion quickly focused on the effectiveness […]

Money v mischief in the Australian election

There is less than 2 hours until voting finishes in the Australian federal election. My money v mischief theory is difficult to determine a winner. The Labor party is a clear leader in the money category, promising everybody everything…but my suspicion is that mischief will decide this election… The current global trend is to protest […]

Sino-US Trade War: Won in translation?

“The diplomatic cable from Beijing arrived in Washington late on Friday night, with systematic edits to a nearly 150-page draft trade agreement that would blow up months of negotiations between the world’s two largest economies… …Changing any law in China requires a unique set of processes that can’t be navigated quickly, said a Chinese official […]

Private is now the New New-Private not the Newish Public

The recent transition of a slew of high profile tech companies from private to publicly listed corporations has reinstated the valuation premium that public companies hold over private ones. Spotify, Lyft, Pinterest, Zoom and soon to be listed Uber clearly show that public markets still dominate private ones when it comes to valuation. The Private-is-the-New-Public […]

The speech

Last Thursday evening, First Degree hosted a Launch Party for our manager platform. Everyone was having such a pleasant time that we decided against puncturing the enjoyment with a boring speech… …for those of you who are curious about what I would have said, here it is! Do you like what you read? Then subscribe […]

Walls

The Great Wall of China took several thousand years to build and was primarily a method for stopping Mongolian invaders from expanding into China. As a piece of military technology it dominated all-comers however it was rendered entirely useless with the advent of the flying machine. The 20th Century was not a good one for […]

Private v Public is the new Active v Passive …plus Our US Election Prediction Special

One of the early contributions of Modern Finance was questioning the wisdom of active investment management. The empirical evidence indicated that active managers underperform passive strategies.  While a finer analysis of the data subsequently demonstrated that some active managers are able to consistently outperform static benchmarks, the general principle that passive outperforms active remains, particularly […]