Blog.
Theories, Diagnoses, and Actions
I miss my book Dictionary of Theories, which rests on a shelf at home. Years ago it sat, loved, on my bedside table. I enjoyed reading it, largely because it helped stretch my brain with quick summaries of theories from all sorts of disciplines, including those far outside the realms of economics and finance.
Respecting the Three C’s
Over my career, I’ve spoken and written quite a bit on the topics of complexity, connectedness, and change. Respect for these “three C’s” is something that our team at FIM Group regularly discusses as we analyze investments and manage portfolios. I recently circulated a report published by the World Economic Forum (WEF) in Davos, Switzerland, that includes Figure 1, showing major trends and five categories of risks (economic, environmental, societal, geopolitical, and technological) facing the global economy today.
Stein's Law
Herbert Stein, Chairman of the Council of Economic Advisers under the Nixon and Ford administrations, came up with a principle many years ago that has guided me over several decades of professional investing. Stein’s Law, as it is now known, is simply this: “If something cannot go on forever, it will stop.” In other words, unsustainable trends are unsustainable.