Why Invest So Little In Property?

The Questor column in the Telegraph outlines how property is “the best income asset”. Yet they allocate only a small portion of their model portfolio in income producing property and companies that own it.

Why?

Without being willing to pay to peek behind the paywall I can only guess. But there is good economic reason.

Which is that we all invest far too much in property already. That thing you’re living in? That’s an investment. Perhaps it shouldn’t be, the world might well be better if it were the mere consumption good it should be – and used to be.…

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How Addis Ababa Should Profit From The New River Development Project

Addis Ababa, in Ethiopia, is committing to cleaning up two of the riversides that flow through the city. That might be good, that might be bad – it depends upon how much is to be spent on cleaning up how much. There is actually an optimal level of pollution, or the inverse cleanliness, for a level of economic development. However, there is the one and only correct manner of collecting the benefits of this being done, through land value taxation:

The Addis Ababa, the capital of Ethiopia, on Thursday launches a 29 billion birr (about $1.028 billion) project that aims to develop and rehabilitate two river streams of the city.

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Brexit Is Reducing UK Domestic Investment And Foreign

This paper isn’t perfect, there’re a number of estimations in it. But it seems correct enough over the general range of answers. The most important of which is that Brexit is causing British firms to invest more in the EU, while also EU firms invest less in the UK. Not that we’d really think that all too much of a surprise, it’s uncertainty which reduces investment. The EU’s policy structure is going to remain static past March 29, the UK’s not.

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Retail Investors Do Actually Know Stuff – Especially About Small Companies

The general theoretic view of investment is that maybe, just maybe, those big investors at the big funds know what they’re doing. But that the retail investors are doing worse than just throwing darts at the board. This appears to be not quite so. The reason being that it assumes that those big investors are in fact large and knowledgeable to be researching everything. Yet this isn’t true, smaller companies have near no formal research resources devoted to them.

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High GDP Growth With Low Business Investment Is A Good Thing, An Efficiency

The UK economy seems to be growing reasonably, the best for a couple of years at least. It’s also growing rather better than the eurozone, although obviously not as fast as all national components within that average. So, what’s wrong with what is going on? Leave it to The Guardian to get the point wrong:

The UK economy accelerated to its fastest quarterly growth rate in almost two years over the summer but economists warned that with Brexit uncertainties curbing spending, the performance would soon decline.

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Many Theories Are Right About – Because There Are Many Reasons For – Investing

There are myriad theories concerning the hows and whys of peoples’ investing. It’s extraordinarily difficult to narrow it all down to one or two dominant theories. That is, we can’t really find a theory, can’t sort through the evidence to prove there is the one or perhaps two. The reason may well be because there isn’t one. There are many reasons and whys, hows, people invest. Thus we can find support for many different theories. Not because it’s all indeterminate but because there are those many different reasons and hows.

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Project Fear Update

In June 2018 we were treated to a display of partisan journalism that was not extraordinary.

What is extraordinary is that it happens every month and no-one mentions it.

You heard that Airbus were planning to pull out of the UK after Brexit, but didn’t see anything much about JCB investing here.

In fact, Airbus merely said that under certain circumstances, one day, they can imagine a scenario where some investment would need to go elsewhere.…

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Catalyst Capital – Oh, How Short Term Private Equity Is

We all know, because we’re told so all the time, that capitalism is just so short term, markets won’t support long term investment, therefore government must be doing this. True, the actual argument about which form of capitalism is short term changes. It used to be that public companies would be better, because private companies were only interested in enriching the family shareholders, while the public companies gained much more oversight. In more recent years we’ve been told that public companies are short term because investors just care about the next earnings announcements.…

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