Perspectives
How can funds earn more than the people who invest in them?
July, 2017
Investors are taught that markets are unpredictable, that past performance is no guide to the future! Why then is past performance used by the average investor when making fund selection decisions? The following example is rather old, but holds true today and provides an insight into why the Tacit thought process steers clear of forecasts. […]
If only we all had better memories
July, 2017
Georges Santayana once wrote that that those “who fail to remember the past are condemned to repeat it.” Many writers and financial commentators from J K Galbraith to Charles Kindleburger and Warren Buffett have noted how short the financial memory can be. Investors routinely ignore historic lessons surrounding leverage, financial complexity, sales over profits, clicks […]
Tacit investment management hires Stephens
July, 2017
Tacit Investment Management has hired experienced wealth manager Leigh Stephens to strengthen relationships within its growing adviser business. Stephens, who has thirty years’ experience in wealth management, with senior roles at Saunderson House, Close Brothers and Deutsche Bank, will take the role of Head of Strategic Relationships. Tacit founding Director Roy Swain said: “We know […]
Brexit and prosperity
July, 2017
Michael Caine, the famous British actor, made a rare excursion into the political economy of Brexit recently with his dramatic assertion that he “Would rather be a poor master than a rich servant.” No prizes for guessing which side of the debate he is on but it’s interesting that that he captured the popular British […]
The downside of lower prices
July, 2017
Everyone is familiar with the concept of monopoly but a word which is increasingly common in the financial press but is less well known is the related idea of monopsony. Monopoly is loosely defined as the “exclusive possession or control of a service or good.” Monopsony is defined as a “market situation where there is […]
Is the US in decline?
June, 2017
Is America in decline? A lot of ink is spilled in the press talking about America’s relative decline and the coming China century. Whilst there can be no doubt that China will play an increasingly important role on the world stage, people tend to forget that China has demographic and debt problems of its own […]
The astonishing rise of renewable energy
June, 2017
A few months ago on a drive through Extremadura, one of the team came across a plain that was covered in mirrors focussing sunlight onto a network of pipes running along the centre of each mirror. The technology essentially uses sunlight to turn salt into a molten liquid that heats water to generate steam that […]
A lost decade?
June, 2017
Like most clichés, “an Englishman’s home is his castle” contains the grain of an important truth. For most people, the family home represents the largest financial asset and therefore the largest store of wealth they will ever own. Arguably the British fetish for property owning is one reason for Britain’s relative industrial decline; we have […]
Braced for volatility
June, 2017
Our focus is on assets and not politics. The election result leaves a lot to be desired. Whether you are left leaning or right, a hung parliament creates uncertainty. After the Brexit vote and Donald Trump being elected in the US, nothing should really surprise us. The key point for us is how this plays […]