How it Feels to Live in a Current Account Surplus / Deficit Economy

The June 30 Quarterly Report from Platinum Asset Management’s European Fund contains some great insights and here’s an excerpt that I find particularly interesting. “Consider for a moment our own experience, as Australians, participating in this economy over the last thirty-odd years: We have enjoyed a period of unprecedented economic stability. We have not experienced … More How it Feels to Live in a Current Account Surplus / Deficit Economy

A Mental Model of Financial Euphoria

The book A Short History of Financial Euphoria by John Kenneth Galbraith provides a succinct description of the common denominators of financial euphoria, illustrated beautifully with actual euphoric episodes through the ages. The following are some key points to help us recognise such speculative episodes: Uniformly in all financial euphoria there is the thought that … More A Mental Model of Financial Euphoria

Quality Financial Journalism: A List

The book Rich Dad, Poor Dad by Robert Kiyosaki is probably the worst book of the personal-finance genre I have ever read, containing numerous bad advice and generally encouraging hubris instead of prudence in financial decision-making (in the name of entrepreneurism). I did, however, pick up one useful lesson from it: In finance, you need to … More Quality Financial Journalism: A List