Markets Aren’t Efficient. Traders Can Help.

Sometimes words fail. Look at these Bloomberg charts.

Republicans are bearish inflation. Democrats are bullish. And the difference of opinion is HUGE.

Smart folks are represented in both lines of these charts. But a lot of them are wrong on inflation because political bias is either clouding their analysis or simply replacing it.

This has real world business implications.

Imagine a small bank whose main decision makers share the same political bias. How will this bias affect their lending habits and their pursuit of deposits?

Or consider a procurement team sourcing raw materials for a company with a sales book measured in years? Being wrong on inflation by 5% is a huge liability.

I’m sure you can think of your own examples in your business.

It’s a great reinforcement that even today, with democratized access to information, there is a place for traders and other market experts to create value for an organization.

There is such a thing as excellence in procurement, risk management, trading, etc. You can beat the average with the right team and the right process to make the most of your market exposure.

Markets are far from perfectly efficient. A first class team exploits the inefficiencies and adds margin to your bottom line.

Reach out if you want to talk about how you can build out or improve your risk management strategy.