17.12.2020 - Studies

Watch out for the “lemon market”

by Marius Kleinheyer


The honourable financial merchant presupposes a functioning social order. Players in the financial market must invest in a common understanding of the game that is upstream of the rules.

Any market for trust goods can become a "lemon market" and thus, in the worst case, destroy itself. That is why trust is the most important resource for providers of high-quality products. In financial consulting, this requires the honourable financial merchant. This model only works under the premise of a social order that allows for it. This requires investments on the part of the players in the common understanding of the game that precedes the rules.

This study is available in German only. 

Legal notice

The information contained and opinions expressed in this document reflect the views of the author at the time of publication and are subject to change without prior notice. Forward-looking statements reflect the judgement and future expectations of the author. The opinions and expectations found in this document may differ from estimations found in other documents of Flossbach von Storch AG. The above information is provided for informational purposes only and without any obligation, whether contractual or otherwise. This document does not constitute an offer to sell, purchase or subscribe to securities or other assets. The information and estimates contained herein do not constitute investment advice or any other form of recommendation. All information has been compiled with care. However, no guarantee is given as to the accuracy and completeness of information and no liability is accepted. Past performance is not a reliable indicator of future performance. All authorial rights and other rights, titles and claims (including copyrights, brands, patents, intellectual property rights and other rights) to, for and from all the information in this publication are subject, without restriction, to the applicable provisions and property rights of the registered owners. You do not acquire any rights to the contents. Copyright for contents created and published by Flossbach von Storch AG remains solely with Flossbach von Storch AG. Such content may not be reproduced or used in full or in part without the written approval of Flossbach von Storch AG.

Reprinting or making the content publicly available – in particular by including it in third-party websites – together with reproduction on data storage devices of any kind requires the prior written consent of Flossbach von Storch AG.

© 2021 Flossbach von Storch. All rights reserved.