If there is one thing the
financial markets love, it is an acronym. The boom years before
2007 spawned a dizzying tsunami of them largely in the
structured credit market where the
shortcomings of the
CDO squared or the
CPDO became all too apparent.
The financial crisis has
blown the opportunity for abbreviation wide open, given the
persistent problems across all asset classes. And where Goldman
Sachss Jim ONeill famously coined the term
Bric to denote the opportunity that existed in those four
countries, the geographically based acronym du jour was quickly
superseded by the eurozones
Piigs countries to be avoided rather than
However, in 2012, the
time for mincing words is over. Investors have been burned
pretty much everywhere in financial products, so a new acronym
has been created to define the only safe investments that are
left: silver, wine, art or gold. Otherwise known as Swag.
This should help no end in the restoration of the financial
markets long-lost reputation for professionalism.