The summer has been full of twisters

One of the movies of the summer was Twisters, a sequel nobody expected, to the 1996 movie. We went as a family to watch the movie the night before our summer holiday.  It tells the story of tornado hunters competing to find the biggest tornados and, in the climax (spoiler alert), use chemicals to absorb water and defuse a massive tornado about to level a small town.

It has been that kind of summer, with highs and lows.  Alcaraz winning the French Open and Wimbledon only to lose easily at the US Open.  The emotion of Djokovic claiming Olympic gold only to also fizzle out at the US Open.  The gut-wrenching heartbreak of Kadeena Cox falling on the first bend of her singles final at the Paralympics, followed by the joy of retaining the mixed team sprint alongside Jaco Van Gass and Jody Cundy.  On the podium they struck the iconic pose of Turkish sharpshooter Yusuf Dikeç.

Medals and wealth: Uncovering the unspoken narrative behind Olympic success

The Olympics and Paralympics have been epic. Paris a beautiful host, which embraced the games once they started. However, the Olympics offer more than a tally of medals; they reflect a nation's vitality and its values. The stories of triumph and defeat, reveal insights into a country's economic strength, strategic investments, and societal health. There is a correlation between a nation's wealth and Olympic success, with countries like the US, China, and Japan excelling. India at the moment underperforms so it will be interesting to see if this corrects in the coming years.

Access to sports, healthcare and education, the pillars of a thriving society, pave the way for athletic excellence. It begs the question: Should sports be a universal right, fostering benefits such as physical well-being, mental resilience, and discipline? Or should elite sports be treated as high-stakes investments – reserved for those who can afford the cost of participation – or investment prioritized according to likely medal success.

In Norway, sports participation is made possible by accessible facilities and state-supported coaching, contributing to a society that values physical activity and inclusivity. Contrast this with the United States, where the privatization of youth sports has turned sports into a multibillion-dollar enterprise, with access restricted to those with the means to pay.

August market madness

Moving on from the Olympics, markets experienced their own twister on 5 August.  I am not sure we fully understand what happened.  The VIX index, which measures market risk and investor sentiment based on options (albeit an imperfect sample), spiked dramatically.  The Japanese stock market climbed to an all-time high only to endure its biggest one-day crash.  The S&P 500 dropped 3%, its worst day since September 2022. 

There were some triggers, such as the strength of the yen, a rate hike in Japan, and a US jobs report which impacted sentiment on the health of US economy.  However, this resulted in commodity prices, forex markets and technology shares all being impacted.  The twister was (seemingly) short-lived with the S&P 500 making a swift comeback, the MSCI World Index seeing significant gains and the TOPIX recovering most of its losses.  However this week we have seen once again convulsions in markets with softer jobs data coming out of the US. Technology shares again have been impacted as fears return of a recession and questions as to whether the Fed needs to be reduce rates more aggressively.

More integrated markets, greater leverage and algorithmic trading are amplifying market signals.  During periods of lower liquidity or illiquidity there is a greater chance of accidents.  How resilient markets are and the ability of shock absorbers to work in periods of volatility is something that policy makers are playing close attention to.

Rethinking achievement: The role of intangibles in business prosperity

The Olympics and Paralympics can at times focus too much on medal counts.  Yet watching both, what I find most interesting and valuable is the individual stories of the athletes.  In both sports and business, there is an unspoken narrative that runs much deeper than the visible accolades.

In the pursuit of gold, the intrinsic values of sports – discipline, health, teamwork – are sometimes overshadowed. Similarly, in business, tangible KPIs and financial milestones, are easier to prioritize over less quantifiable measures. These elements, though less quantifiable, contribute to a truly resilient business. It is the loyalty of a long-standing client, the breakthrough idea from a dedicated team member, and the reputation we build within our communities.

Thank you for taking the time to read these reflections. If you enjoyed the blog, please like it and share it.