Perspectives

Tacit Thought Light Bulb Icon

Why it pays to get advice

August, 2018

Remember pension mis-selling? Of course you do. How about bond washing and boiler room scams? Or PPI and Libor fixing? The sad fact is that the list of recent financial and investment scandals is damning. So you’d think the chances of more coming to light would be slim. But you’d be wrong. Two key financial […]

Tacit Thought Light Bulb Icon

Remember the power of three

August, 2018

When the markets rise we get annoyed if we haven’t forecast it. Equally when it falls all of us at Tacit Investment Management get mad that we ever invested in the first place. It’s a phenomenon known as ‘the psychology of missing out.’ It’s our human fear of being left behind. And of course it […]

Tacit Thought Light Bulb Icon

Is Value Investing Dead?

August, 2018

One principle of value investing has always been mean reversion. If you buy something for less than its worth, eventually the market will notice and push the price up. The key question of course is how do you measure ‘worth’. In 1934 when Benjamin Graham wrote Security Analysis, his definition of worth was based on […]

Tacit Thought Light Bulb Icon

Brexit, high finance and Ayia Napa

July, 2018

Despite the ongoing drama surrounding Brexit and the resignations over what kind of arrangement politicians believe we want, let’s not forget, nothing’s happened yet. The UK remains a member of the EU and all the associated ‘acquis’ legalities still apply. This includes facilitating trade in goods and services, harmonised pharma, rights to work and a […]

Tacit Thought Light Bulb Icon

Making the Right Decision

July, 2018

Decisions, decisions. It’s a daily dilemma. Whether you’re saving lives or livelihoods, you want to get it right. In our world we’re under orders from The Chartered Institute for Securities and Investment to undertake and I quote: “continuous professional development.” The CISI rightly expects us to maintain our skills and capacity to practice in our […]

Tacit Thought Light Bulb Icon

World Cup Predictions

July, 2018

To the man with a hammer, any problem looks like a nail. And to use this tool to solve every challenge makes the outcome as uncertain as a football penalty shoot-out. In trying to predict the results of the World Cup, analysts at some reputable firms have been busy with their large data sets and […]

Tacit Thought Light Bulb Icon

The Price of Growth

July, 2018

We’ve mentioned before that at Tacit Investment Management we don’t have a quantitative edge.  This doesn’t mean we don’t use quantitative data in making decisions. An understanding of quantitative data in the context of history can provide very useful insights. Most people compare the market today to the Dot-com bubble in 1999/2000 because they both […]

Tacit Thought Light Bulb Icon

Good Active Management

June, 2018

Some call it “the gentleman’s game.” Others say it reflects life itself. Whatever your view, the sport of cricket paints a picture of a typical English summer. In its Test Match format, you have unlimited overs. A batsman can take time to score runs and isn’t penalised for not hitting the ball. Good decision making […]

Tacit Thought Light Bulb Icon

Trump, trade and unintended consequences

June, 2018

The US, under Donald Trump, is turning protectionist. And the President’s plan to restrict imports will see the country’s external balance of trade deficit as evidence of “a war that is easy to win.” Here at Tacit we believe that, like most of his policymaking, it’s his “base” that will largely bear the costs. According […]

Tacit Thought Light Bulb Icon

Investigative Investing

June, 2018

Investing is both a science and an art. To be a successful investor, you need to have an edge. This can be quantitative, qualitative or behavioural. In general terms a quantitative edge is measurement and today that also means the use of complex computer models to process data. Qualitative is harder to measure but includes […]