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   Investment Thoughts - Beyond Finance

Diagnosing the System for Markets
In his books Stafford Beer presents a new way of looking at organisational structures; some of the terms and concepts could be applied in a financial markets context; here a few examples:

 

 

Viable

able to maintain a separate existence

 

Self-Reference

property of a system that contains all the levels below it

 

Homeostatis

stability of a system's internal environment, despite the system's having to cope with an unpredictable environment

 

Invariant

a factor in a complicated situation that is unaffected by all the changes surrounding it

 

Variety

a measure of complexity: the number of possible states of a system

 

The Law of Requisite Variety

only variety can absorb variety (Ashby's Law)

 

Attenuator

a device that reduces variety

 

Amplifier

a device that increases variety

 

Transducer

encodes or decodes a message whenever it crosses a system boundary - and therefore needs a different mode of expression

 

Oscillation

failing to settle down in homeostatic equilibrium, a dynamic system over-corrects itself continuously

 

Diagnosing the System for Organizations - Stafford Beer - John Wiley & Sons-

 

 

Investments Office-Ronald Weber

05.03.2007


 

Themes

 

Asia

Bonds

Bubbles and Crashes

Business Cycles
Central Banks

China

Commodities
Contrarian

Corporates

Creative Destruction
Credit Crunch

Currencies

Current Account

Deflation
Depression 

Equity
Europe
Financial Crisis
Fiscal Policy

Germany

Gloom and Doom
Gold

Government Debt

Historical Patterns

Household Debt
Inflation

Interest Rates

Japan

Market Timing

Misperceptions

Monetary Policy
Oil
Panics
Permabears
PIIGS
Predictions

Productivity
Real Estate

Seasonality

Sovereign Bonds
Systemic Risk

Switzerland

Tail Risk

Technology

Tipping Point
Trade Balance

U.S.A.
Uncertainty

Valuations

Yield