Algorithms in the financial world

Modern societies are characterized by digitalization, through which a vast amount of data can be obtained and processed. The Latin word digital (digitus = finger) is still used in medicine as well as in colloquial language to refer to the finger. In EDP, however, it means gradually, broken down into individual steps. This is in contrast to analog (smooth, continuous). In a digital clock, the…


The dilemma of health versus economy

The emergency phase of the COVID 19 pandemic is slowly coming to an end. No government was prepared for it, and too many failed in the initial assessment but did what they could afterwards. In the current second phase, however, any mistakes will not be easy to excuse. The authorities must better identify the risk factors and take specific countermeasures. These must be explained to the people at…


Careful share purchase, negligent sale

The old stock market saying “cut your losses and let your profits run” is also understandable to the layman and needs to be proven neither empirically nor theoretically. Nevertheless, stock portfolio managers have difficulties in following this guiding principle and its implementation is inadequate. These conclusions of the book “selling fast and buying slow“, published in…


The game with the fire of debt

Debt is part of the economy, like its counterpart assets and the trade in physical goods. The credit system made a major contribution to the fact that economic development has been consistently positive since industrialisation and society has been able to benefit from it. Whereas the balance of debt/credit had remained more or less in equilibrium until the 20th century, it is now worryingly…