Budget airlines: not quite so budget

I’ve recently been looking at booking a skiing trip. Firstly, I need to find a resort to ski in, and then I need to arrange how I’m going to get there. As I’m not that long out of university, I’ll be looking to travel as cheaply as possible! Naturally a budget airline fits the bill….

Diseconomies of scale

It is often assumed that small schemes (those less than £500m) will always struggle, due to their limited resources, to compete performance wise with their bigger counterparts. Recently published research by Goldman Sachs Asset Management has shown that the big difference in performance (given the fall in interest rates) is due to whether a scheme…

The path to knowledge

The result of the recent EU referendum wasn’t what I’d been expecting, nor was it what I’d hoped for. Judging by the rhetoric coming from both sides, a lot of people are profoundly uncomfortable with ideas they disagree with. So how can we make the best of it?

The challenges of trial and error

I had the idea for this post at the start of my holiday a couple of weeks ago – the week leading up to the referendum – so, given the events that unfolded following the June 23rd vote, this blog, inspired by the packing of a car, may seem a little inconsequential. However, I think…

Do you trust your Banker?

How many of you reading this would trust a banker?  In recent years it’s been a closely fought battle between bankers and politicians in terms of who the public trusts less. A seemingly never-ending list of scandals has meant that both groups have suffered a hardening of opinion against them. The upcoming referendum on EU…

Boiling Frog Syndrome

An investment paradigm? It is a well-established characteristic of the lovable, tailless amphibian – the frog – that it struggles to detect subtle changes in the temperature of the water in which it resides. If you place a frog into a pot of boiling water  (not something that we would encourage!), it will instinctively jump…

Applying basic derivatives pricing to Brexit

Brexit is one of the big issues in the UK today and emotions are running high on both sides of the debate.  This week, HM Treasury released their Brexit analysis, attempting to place a monetary value on the cost of Britain leaving the EU.  The analysis has been pounced on by both the “Bremainers” and…

Low and Slow

One of my favourite restaurants – “Pitt Cue Co” – opens its doors again next week after a bit of an absence.  I’m pretty excited: it’s now only 10 minutes from the office, it’s a bigger restaurant and they are taking bookings when before it was walk in only (queues frequently ran to over 2 hours…

How useful are probabilities?

From Portfolio Institutional: Every defined benefit pension scheme has an eighty percent chance of being fully funded ten years from now. Exactly eighty percent. Prove me wrong. That sounds ridiculous, but over the time horizons involved, there is no way of calculating that probability that can be shown to be any more accurate. So are…