Tuesday 29 January 2013

There are no free lunches


If you get higher interest rates, that is because you are investing on higher risk assets. And you need to assume those risks - you are getting higher compensation because of that, remember? If those assets default and don't pay back, you need to assume your losses. I know it is is grim and might seem cruel (it is, actually), but that is why you should strive to manage balanced portfolios.

EFTA's Court (I had no idea it still existed!) rule just highlights and presses on the sentence - there really aren't free lunches. Higher return, mean higher risk. If not... why shouldn't we all be doing that?


Sunday 20 January 2013

There we go again


Over the past 3 years, I am always asking the same 2 questions to Portuguese politicians:

- When do they start seriously cutting public expenses?

- What is their strategic plan for growth?

I would just like to state that, as any of these questions has been so answered so far, I will keep on hammering them. Sorry...

Thursday 3 January 2013

Kirchner's flight?


Argentina is financially broke. Only the ones who have limited contact with the country don't realize it. The social instability (limited and contained looting in a couple of specific incidents are the most recent examples), galloping inflation, capital flows limitations, power shortages, unstable power of law show it clearly. And the crescent rhetoric concerning the Falkland is just another clear example of it - because it again (like in 1982) seems like a Government trying to shift internal attentions from economic problems to sovereign ones. 

Argentina doesn't deserve this. It is not broken as a nation. Argentinians are incredibly proud, hard-working and resourceful. They have governing issues (they have had so for many, many years, probably since the beginning of the XX century, like my country), but I am sure they will be able to overcome them. And I really hope so - because I love the country, the nation and have high expectations of it.