From the Opalesque team: Opalesque has learned that Eidsis Capital is preparing to launch a Hybrid distressed fund which will be named Eidsesis Special. Get information, directions, products, services, phone numbers, and reviews on Eidesis Capital in New York, NY. Discover more Security Brokers, Dealers, and. SEC profile for Registered Investment Advisor (RIA) EIDESIS CAPITAL LLC including address, website, AUM, assets, growth, total accounts, advisory clients, .
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The benefit of land and of paintings and other stores of value eidseis that they are not financial assets and they do preserve value over an extended period. That is a very intelligent way to allocate part of your portfolio to this sort of reserves. We came up with a vehicle that enables investors to do the same thing.
That poses threats that have never existed before to the stewards of capital. The risks were manifest inbut rather than defuse them, government policies have since increased the interconnectedness. It’s normalcy bias, a psychological phenomenon that prevents people from seeing unconventional threats. This financial system is completely unsustainable. They even thought they owned U. To order eidesiw copies for distribution to your colleagues, clients or customers visit http: One is to protect the value of part of the portfolio, and the other is to have access to liquidity during market disruptions when you can profit by being able to buy when others do not have access to liquidity.
There is a huge vulnerability.
This copy is for your personal, non-commercial use only. They thought they were simply in custody of Lehman Brothers. And it is critically important to restore the confidence of the population in the fact that the system is not rigged.
Eidesis Capital LLC
But there may come a moment when it doesn’t work, and then what’s a safe haven? All Rights Reserved This copy is for your personal, non-commercial use only.
So you will never have the Philadelphia problem. Investors should look for alternative sources of uncorrelated assets or assets whose value is less correlated, as opposed to simply looking at the price of those assets. Mikhailovich, eidesls emigrated to the U.
We concluded such an asset is physical gold bullion—not paper or derivative instruments—held securely outside the financial system, which is potentially subject to a disruption like we saw inand geographically diversified to provide access to various markets, where the hope is that at least one or some of them would be liquid.
Too big to fail is now too bigger to fail. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. But once it goes, it can go very quickly. It’s just a matter of time.
It was a very specific bet on a very specific set of outcomes that is not panning out. They increased productivity and they created oversupply, and that excess supply needs to be liquidated.
Simon A Mikhailovich | Financial Sense
Treasuries, and they ended up being paid 70 cents on the dollar for their Treasury holdings. So the creditworthiness is getting worse and the cost of funding is getting better. Secular changes that disrupt technologies are traditionally very, very difficult, and many will lose. But I try to diversify. Investors need to examine old ideas about diversification, and to realize that both bonds and stocks have become much more highly correlated than ever.
The ability of governments to sustain the unsustainable ultimately rests on their ability to maintain faith in their creditworthiness, and faith is something that takes a long time to crumble. Before you can solve the problem, you have to admit you have a problem. There are two roles of uncorrelated sources of returns, or reserves, in a central banking sense. In the movie Trading Placesthe hero is trying to sell his very expensive Swiss watch at a pawn shop in Philadelphia, and he is told that in Philadelphia it’s worth 50 bucks.
The price of gold never rises. Recently, the Swiss National Bank announced that it holds its reserves in diverse locations around the globe. Reserves are essentially hedges or protections, they’re monies or some value that is sitting on the sidelines that can be pressed into service if something happens and you need to rely on these stores of value, for two reasons.
The effectiveness wears off over time, you need to take more and more to achieve less and less, and eventually they stop working. That raises another problem with financial technology—re-hypothecation—where banks make money by lending out collateral.
One technology is securitization, such as CDOs, where high-risk debt is recharacterized into investment-grade securities.
It is the value of financial assets that eivesis.