#18 / The Great Rotation

The Wall Street Journal is talking about the "Great Rotation," per an article in the January 14, 2013 edition, and in articles appearing subsequently. The phrase refers to the movement of money from bonds to stocks, as investors begin to believe, once again, in the "upside of equities."

I like to keep abreast of what The Wall Street Journal has to say, but if you want some good advice about finance, I'd direct you to The Intellectual Origins of the Global Financial Crisis. This book, edited by Roger Berkowitz and Taun N. Toay, was inspired by the thinking of Hannah Arendt. I have mentioned the book before. In fact, more than once. 

The "rotation" metaphor would seem to suggest that our world (and the world of finance is definitely part of "our" world) operates on the basis of laws like those that steer the planets. Not so. Our financial system is subject to human direction. Those gaming the system, for their profit, want us to think that there is some inevitability we can predict, so we will put our money to work for them.

Check out The Intellectual Origins of the Global Financial Crisis. Then think about investments.

Image Credit:
http://www.familyofficereview.com/family-balance-sheet/investments/article/630/-great-rotation-from-bonds-into-equities-marks-the-new-year-says-merrill-lynch