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About
The Angry Analyst is written by Martin Fluck. A specialist in equity analysis, he has a background in economics, currency trading, and fund management; and holds an MSc in Finance from the London Business School. A former columnist for Dow Jones Newswires, he has previously reported on capital markets and investment strategy for Breakingviews, AFX Newswires, Thomson Investment Management News. His day job is writing about investment strategy in the fund management industry. Contact: mart@theangryanalyst.com
You can also follow The Angry Analyst on Twitter @TheAngryAnalyst.
Philosophy
It is not just our politicians who are burying their heads in the sand, but also the financial services industry. It’s easier to follow the herd than be wrong alone, which is why many fund managers and analysts rarely stick their necks out. Instead, it is safer to impose a politically – or rather economically – correct view of the world on themselves.
But in these interesting times, with financial bogeymen like sovereign defaults and banking sector insolvency waking up from their decades long slumber, investors and fund managers are having to look at the bigger picture and ask themselves where the next domino will fall.
Conventional modern portfolio theory and risk models have been found wanting, and financial repression is forcing pension funds into holding risky government bonds. The unintended consequence of regulators trying to manage risk in the system has been to herd investors into over-priced assets and to starve equity markets of risk capital.
Equity markets are increasingly being driven by black box traders and index investment, sending correlations of risk assets to all time highs. Hedging your risk has never been harder. Play chicken with the latest asset bubble, by all means. Just don’t say that “no-one saw it coming” when the next bubble bursts.
What the smart money is always looking for is information and analysis that hasn’t been priced into the market yet. That is why the Angry Analyst is skeptical at its core.
Martin Fluck, May 2012