Perspectives

Tacit Thought Light Bulb Icon

End of an Era

November, 2017

Last week Mark Carney, Governor of the Bank of England, brought the curtain down on the decade long policy of ultra-easy interest rate policy. The 0.25% increase in UK base rate was the first increase since the Global Financial crisis sent interest rates to historic lows across the developed world and introduced the public to […]

Tacit Thought Light Bulb Icon

Getting Back to Work

November, 2017

One of the drivers behind Keyne’s monumental “General Theory of Employment. Interest and Money” was his incomprehension at the failure of the economy to provide work for the many idle hands of the time who wanted to find work. There was, after all, no shortage of work to do. Amongst many other things, the book […]

Tacit Thought Light Bulb Icon

Political Stability: Lessons from the East

October, 2017

In recent notes we have highlighted the growing disparity between the improvement in the economic landscape visible globally and the discontent of voters expressed in elections and political campaigns across the developed world: Trump, Brexit, Catalonia and the Lombardia to name but a few. We see this political turmoil as the key risk to continued […]

Tacit wins prestigious award

October, 2017

Tacit Investment Management has been announced as “Best Small Firm” in the 2017 Citywire Wealth Manager Investment Performance Awards. It was also shortlisted in the “Aggressive Portfolio” category.  The awards were held in association with Asset Risk Consultants (ARC), which offers an independent assessment of the portfolio returns of individual wealth management firms to provide benchmarks […]

Tacit Thought Light Bulb Icon

Nominal V. Real Returns

October, 2017

Whilst most investors await a rise in the UK interest rate later this year, we continue to be amazed by the focus on this nominal rate in an environment where inflation is running at over 3% as we cannot see its relevance to an investor. Since the late 1970s we have become accustomed to nominal […]

Tacit Thought Light Bulb Icon

Goodbye to Wolfgang Schauble

October, 2017

Wolfgang Schauble, the current German Finance Minister, will shortly leave his post to take up his new role of speaker of the German Bundestag. Although he is probably unknown to the average man in the street, he has been possibly the most influential and damaging politician in Europe throughout the course of the Eurozone crisis. […]

Tacit Thought Light Bulb Icon

Focus on cashflows rather than politics

October, 2017

How should we quantify risk when investing; is it the risk of losing money? Or, maybe the risk of not achieving our financial goals? Or the risk of preserving our buying power over the longer term in the case of a pension? The reality is that risk exists only in the future and it is […]

Tacit Thought Light Bulb Icon

Focus on cashflows rather than politics

October, 2017

How should we quantify risk when investing; is it the risk of losing money? Or, maybe the risk of not achieving our financial goals? Or the risk of preserving our buying power over the longer term in the case of a pension? The reality is that risk exists only in the future and it is […]

Tacit Thought Light Bulb Icon

Overdiversification is a Risk

September, 2017

Imagine you are a school teacher. You are looking for a new job and there are two alternatives. The first involves a small school – there are 20 pupils. It isn’t an easy job. You will be responsible for keeping a very close eye on the children, analysing their every move every day and hoping […]

Tacit Thought Light Bulb Icon

Cyclical upswing, but what of the structural headwinds?

September, 2017

We held our quarterly investment conference this week where we discuss some of the key economic issues that we believe are driving global markets. The baseline is reasonably positive in that momentum in the world economy appears to be, if anything, strengthening. Lead indicators, business surveys and institutional research all point to continued expansion. At […]