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"you need to have a longer time horizon" roughly translates in my book in "Run for your lives !!".
For one, if you are a final saver... you rarely HAVE a time horizon, nor you need one. Incidentally that's proof of who wrote #MIFID.(/)
For one, if you are a final saver... you rarely HAVE a time horizon, nor you need one. Incidentally that's proof of who wrote #MIFID.(/)
MIFID questionnaires have a mandatory section on time horizon. Why that measure? because while for an individual saver that concept is basically meaningless, for those meant to be KEPT from pushing unnecessary risk onto savers it's daily bread.(/)
Banks indeed have time horizons and time preferences well and truly planted into their brains since they have a teeny weeny share capital, and finance their assets through the issuance of debt. They indeed try to match maturities across assets and liabilities. (/)
A mix of desperate need and marketing. It takes a willing suspension of disbelief to think that institutions the size of #Blackrock or #Vanguard actually manage money. To all practical purposes they are barges down a river, they depend on the current. (/)
As long as markets are reasonably favorable, that is not readily apparent. Amazingly, even events like 2022, with BOTH bonds and stocks falling more or less equally, are not a problem. That changes if one of two things happen:(/)
1. Bonds tank while equities lose small change:
2. For some reasons savers get rid of intermediaries and invest directly.
Both flavors of #MIFID work against 2. I won't even wonder if that's collateral damage or it was by design. (/)
2. For some reasons savers get rid of intermediaries and invest directly.
Both flavors of #MIFID work against 2. I won't even wonder if that's collateral damage or it was by design. (/)
THREAD: and that was one of the most idiotic statements ever uttered by him, unless he wrapped Friar Pacioli in copper coil inside s magnet in order to produce limitless electricity.
(1/11) @nglinsman @amlivemon @Halsrethink @bondstrategist @tyillc @mtmalinen @jeuasommenulle
(1/11) @nglinsman @amlivemon @Halsrethink @bondstrategist @tyillc @mtmalinen @jeuasommenulle
Politicians have mastered the art of "we tax X to invest in Y", egged on by #Thaler aficionados thinking that #Nudge is not lying, but it should be properly called by its name: Bulls**t. None of them ever bothered to unravel the intricacies to make that remotely true. (2/11)
That's because one of the principal functions of money is being FUNGIBLE: the bank note you hold in your hand has infinite potentialities, good and bad, up to its face value limit, irrespective of the way you earned it. It could be stolen or hard earned, it doesn't care.(3/11)
