Portfolio logic shifts investment from long-term commitment to scattered short-term securitization.
Evidence
Portfolio theory moves us out of a linear logic of investment, which implies the steady securing of profit from long-term investment in certain concerns, towards a more chaotic and scattered pattern, which sees profit generated by overlapping, inter-referential, and even contradictory short-term investments as part of an overall portfolio and an overall strategy guided by the principle of securitization (see Chapter 3). — Max Haiven, Cultures of Financialization, 449
Categorization
- DEFINE: Defines the shift from linear investment logic to portfolio/securitization logic — core to financialization theory.
- XREF: Directly connects to the stated reading purpose: the mechanism by which finance colonizes imagination begins at the investor-subjectivity level, precursor to deWaard’s cultural argument. — connects to: Financialized valuation imposes short-termism and disconnects decisions from material production. — Ève Chiapello, Financialisation of Valuation, 41; Financialization shifts firm investment from core business toward finance, weakening workers’ claims on revenue. — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 54; Financialization shifts markets from calculation to speculation, destroying predictability — Wendy Brown, Undoing the Demos: Neoliberalism’s…, 742 (+2 more)
Broader Connections
- Financialization shifts markets from calculation to speculation, destroying predictability
#complicates(0.82) — Wendy Brown, Undoing the Demos, 742 - Post-crisis lending shifted from securitized bank credit to shadow-bank portfolio lenders valuing future prospects
#expands(0.80) — Paul Langley, Assets and Assetization in…, 31 - Assetization constitutes a distinct logic of investment irreducible to speculation or rentiership
#complicates(0.75) — Paul Langley, Assets and Assetization in…, 27