What I’m Reading

Conspiracy Theories and the People Who Believe Them edited by Joseph E. Uscinski (Oxford: Oxford University Press, 2018). My PhD case study Aum Shinrikyo was deeply influenced by anti-Semitic and power elite conspiracy theories, some from far right and evangelical Christian sources. Uscinski’s collection is a useful guide to the current political and sociological debates about conspiracy theories and their priming effects for extremist worldviews that may lead to political violence.

The Unrules: Man, Machines, and the Quest to Master Markets by Igor Tulchinsky (Hoboken, NJ: John Wiley & Sons, 2018). In the eighties and nineties, Russian mathematicians and physicists came to Wall Street. Tulchinsky was one of them. His asset management firm WorldQuant adopted many aspects of neoliberal capitalism, from competitive tournaments to traders as independent contractors. This memoir is a quant’s view of how to deal with contemporary information.

The Pac-Man Principle: A User’s Guide to Capitalism by Alex Wade (Zero Books, 2018). Here’s my interpretation of Pac-Man ludology and neoliberal capitalism: (i) the maze represents the situational environment; (ii) the Pac-Man character engages in consumption (or, capital accumulation); (iii) the power pills represent momentary escalation dominance over the four ghosts; and (iv) the maze exits represent the fetish of false escapes. Other video-games may lead to different interpretations of neoliberal capitalism’s political economy.

RentierCap

I’ve started a model portfolio that I will watch as 2018 unfolds:

 

  • AUMF – IShares Edge MSCI Australia Multifactor ETF (factsheet).
  • BAF – Blue Sky Alternatives Access Fund (shareholder site).
  • BLA – Blue Sky Alternative Investments Limited (shareholder site).
  • IHVV – IShares S&P 500 AUD Hedged ETF (factsheet).
  • IHWL – IShares Core MSCI World All Cap (AUD Hedged) ETF (factsheet).

 

The initial impetus for this emerged from reading S.M. Amadae, David Graeber, David Harvey, Michael Hudson, David Michael Kotz, Philip Mirowski, and James Rickards about neoliberal capitalism. These authors converged on the FIRE sector (finance, insurance, and real estate) as a socio-economic elite that would continue to charge debt and economic rents, as rentiers.

 

Current and former colleagues have looked to innovations like the sharing economy as a way to deal with growing economic inequality. I came to different conclusions: I spent six years learning how hedge funds and proprietary trading works. The topics ranged from macro plays (Kondratieff winter) and fund flows (Richard D. Wyckoff’s influence on technical analysis) to using global markets to hedge against home bias, and the success of momentum-value combined strategies.

 

I’ve dubbed the model portfolio RentierCap as it benefits from the FIRE sector. The model portfolio aims to accumulate wealth over a longer period of time than a catalyst-based intraday strategy. It uses Smart Beta and Exchange Traded Funds. I’ve selected BlackRock ETFs (in a nod to the Adam Curtis documentary HyperNormalisation), although State Street SPDRs and Vanguard ETFs could be used, and may have lower expense ratios and management fees.