Posts tagged 'Value'

Bubble watch: growth is good

Double double, toil and trouble…

Morgan Stanley’s US quant team has an eye on the market cauldron, and the simmering has a late nineties feel to it: Read more

Stock-taking the economy

In the summer, FT Alphaville attended a retreat organised by fin-tech investor Sean Park, who heads up the venture firm Anthemis. The event introduced us to a number of Anthemis’ portfolio and partner companies, all of whom were somehow connected to disruptive trends in finance.

Among them was a company called TrōvRead more

The art of myth-making

The classic car market is bubbling, which has got FT Alphaville wondering about what really goes into determining the value of rare objects. More specifically why certain objects, despite their ability to be cheaply reproduced, retain value regardless.

In this post, we consider the roles of narrative and myth in value creation.

We’ll start with the argument that a powerful enough narrative or myth can turn even abundant commodities into stores of value in their own right. Read more

A classic car bubble?

Wonkblog and Reuters draw our attention to a potential bubble arising in classic cars.

Both cite research from Knight Frank’s Q2, 2013, luxury investment index.

As KF’s research noted:

Continued price growth in the classic car sector and an upturn in the performance of investment-grade wines helped to boost the value of KFLII by 7% in the 12 months to the end of June 2013. This matches the increase in the value of residential property in prime central London over the same period and is in stark contrast to the 23% fall in the price of gold since June 2012. The FTSE 100 index of UK listed equities performed slightly better, rising by 12%. Over a 10-year period, however, KFLII (+174%), has significantly outperformed the FTSE 100 (+55%), although gold still remains the top mainstream-asset performer (+273%).

 Read more

Prepare to be assimilated

Felix Salmon at Reuters has a thoughtful response to our post on the value of unique and how it may come unstuck due to the dawn of perfect copying processes.

It raises some interesting points, but largely argues that perfect copies will not disrupt the value of the original market, providing that authenticity can continue to be assured. Indeed, Salmon suggests art will likely go down the route of the music industry, where value has increasingly become attached to the live performances of musicians and artists. Read more

Money as a passion, not a standard

Are money and value, much like time, a function of relativity rather than a definable and quantifiable substance?

A while ago, we made the case that relativity was an under-appreciated factor in determining monetary value. We further argued that fixed exchange regimes, especially ones based on inflexible commodities such as gold, were particularly vulnerable to the warping effects of relativity. Read more