My Sunday Washington Post Business Section column is out. This morning, we look at travels and travails of the macro tourist.
That was the name of the online version; in print edition of the paper, it was Is your money subject to the travails of a macro tourist?.
Here’s an excerpt from the column:
“How’s your macro?
Not too good? Terrible? Unsure what that even means?
Let’s start here: Macro refers to the large geopolitical moments, and the natural and man-made disasters, that some investors track as potential market moving events. Large economic trends or reversals, diplomatic breakthroughs, political crises and even war are all macro events. Think: a tsunami that knocks out a Japanese nuclear power plant; the Arab Spring; the systemic failure of the credit markets in 2008-09; Russia’s annexation of Crimea. The ongoing Greek saga that has Europe on edge is all too macro.
Hanging on every twist and turn of the headlines are a group of folks we call “macro tourists.” They are a terrific source of chatter at any cocktail party — such as “Tsipras may have just doomed the Greeks for the next decade.”
Why does this matter to investors? For two reasons: First, macro tourists are everywhere; and second, they seem to be terrible stewards of your capital.”
I bet you can guess where I end up with this one . . .
The travels and travails of the macro tourist
Washington Post, July 19 2015