Regulation

Most individuals recognize the need for some regulations.  However, the key question is, at what point do regulations stop providing a path to an orderly arrangement for community cooperation and become the sand that brings the machinery to a halt?

In order to be truly useful, regulations are likely to be the most beneficial when they are clear, concise and broadly acceptable.

Of course, regulations are viewed differently across the political spectrum and can be used to support certain interests at the expense of others.

Investors should consider regulatory implications when formulating a portfolio strategy.

In thinking about regulation, the following may be useful.

  • Pythagoras’ theorem – 24 words.
  • The Lord’s Prayer – 66 words.
  • Archimedes’ Principle – 67 words.
  • The 10 Commandments – 179 words
  • The Gettysburg Address – 286 words.
  • The Declaration of Independence – 1,300 words.
  • The US Constitution, with all 27 Amendments – 7,818 words.
  • EU regulations governing the sale of cabbage- 26,911 words.

Draw you own conclusions.

All comments and suggestions are welcome.

Walter J. Kirchberger, CFA®