This being the first post of Comandante accionista, I might as well start by explaining what I’m here for, and probably also important, why I’m here.
Back when I was in college, the 2008 great depression crushed peripheral Europe, although some were more crushed than others (I’m looking to you Iceland, you sneaky brave fishers). I’ll kill the mistery from the start: I’m portuguese.
In my beautiful country, economics got whacked with unemployment soaring ever higher and consequently the deficit puncturing our finances. In engineering, this process is described as a feedback and although in engineering this is useful in many applications where one wants the output to influence the input, in a country’s economics it can rather easily turn into an ant mill. You know how it goes, Mr Cláudio has lost his 21 years factory job and is ill-prepared to find another, so social security activates the social net that he was taxed for, causing greater expenses from the state which is also seeing its revenue falling, because Mr Cláudio is no longer being taxed for his work. This difference in state’s revenue and expense leads to a deficit and the country is forced to finance it by borrowing from the markets, which in this particular crisis demanded higher coupons for the perceived risk of lending to peripheral Europe. How does it end? Well, taxes are raised while trying to not exceed the breaking point of unemployment and a lot of self-commiseration takes control of the population.
So, this is where I, Comandante accionista, come from. I know, I was supposed to explain what and why I’m starting this blog. Well, having felt the burden of a financially wounded country, I began studying finance, its maze of reports, pundits, junk bonds, REITS and what not. The financial world is an immensely curious labyrinth of pompous designations and unchecked greed, and it is also the greatest show of human psychology.
There was an article in Forbes that claimed that monkeys could beat the market. Well, let’s see about that.