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Reconciling varieties of investment of attention: a periodic table?


Investing Attention Essential to Viable Growth (Part #7)

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Standard classification of investments? It could be asserted that people are variously encouraged to "invest" in a wide variety of "things". However this variety can be usefully recognized to be relatively incoherent and susceptible to every form of terminological confusion -- encouraging every form of abuse. The phenomena of "investment fraud" and "mis-selling" can be understood in far more general terms -- incorporating processes otherwise framed as legitimate puffery and misleading advertising.

It is understandable that confusion regarding the complexity of derivatives and the associated mis-selling was creatively elaborated, if inadvertently, to be beyond the immediate comprehension of potential customers, regulators or legislators (with the complicity of academics and the media).

It is therefore useful to ask why it is that there is no recognizable pattern of "investment opportunities" -- understood as the allocution of attention as a resource. This might be inspired by the:

Periodic table as a metaphor: The periodic table can perhaps be used as the most suggestive example, as argued and elaborated with respect to a Functional Classification in an Integrative Matrix of Human Preoccupations (1982). This approach was developed further (Periodic Pattern of Human Knowing: implication of the Periodic Table as metaphor of elementary order, 2009; Periodic Pattern of Human Life: the Periodic Table as a metaphor of lifelong learning, 2009; Tuning a Periodic Table of Religions, Epistemologies and Spirituality -- including the sciences and other belief systems, 2007).

Of particular interest is the sense in which the variety of "ways of investing attention" can be understood as "ways of knowing". As with the periodic ordering of the chemical elements, unfruitful simplistic orderings can be challenged from the mathematical perspective of Denis H. Rouvray and colleagues (The Mathematics of the Periodic Table, 2005), as separately discussed (Towards a Periodic Table of Ways of Knowing -- in the light of metaphors of mathematics, 2009). As noted there, of particular interest is then the design of such a framework -- understood here as a guide to possibilities of investing attention.

Design criteria for a comprehensive classification scheme: Moving beyond the confusion of the variety of investments (as discussed above), criteria for such a design might then include:

  • a degree of simplicity to facilitate comprehension
  • a degree of complexity to encompass more complex and subtle forms
  • a degree of symmetry to facilitate memorability
  • a capacity to encompass forms of attention which might otherwise be considered incompatible (and susceptible to being "designed out")
  • suggestive of various directions of development, potentially anticipating more sophisticated/subtle forms of attention (perhaps as a consequence of learning, experience or maturity)

Use of the periodic table as an example, with the mathematics of its order, is a valuable indicator of the challenge of any form of financial or economic modelling in relation to types of investment. Beyond the confusing terminology indicated above, such models are obliged to identify formally the parameters distinguishing those types. The current difficulty is that such models are either relatively specialized, or relatively incomprehensible, or both -- in a period in which investors and regulators have need of a general framework which is both comprehensible and comprehensive.

Somewhat paradoxically, the capacity to encompass the investment of attention in "non-financial" activity could be recognized as a vital means of associating those who do not have financial resources to invest as conventionally understood. They are however appropriately understood to be part of the larger attention economy.

Typologies engendered by theories of investment? In seeking to benefit from the mathematically significant pattern offered by the periodic table, it is useful to ask whether any theory of investment could be expected to engender a periodic table of investments. Ironically any such equivalence suggest a degree of significance to conventional chemical terminology: financial bond (ionic bond?), shares (covalent bond?), mutual fund (?), etc.

Other possibilities might emerge from a systematic approach to investment (see Johan E. Eklund, Theories of Investment: a theoretical review with empirical applications, Swedish Entrepreneurship Forum, 2013). However, despite its focus on "applications", the latter does not indicate how distinct instruments and forms of investment emerge. This contrasts with the case of chemical elements in which the mathematics must necessarily clarify the emergence of distinct elements -- as might be expected in the case of theoretical biology with respect to the emergence of species.

The point is made more clearly by Jaime F. Zender (Optimal Financial Instruments, Journal of Finance, 46, 1991, 5) noting that:

... a great deal of attention has been focused on the problem of determining the optimal capital structure of the firm... The majority of the existing literature takes the form of the allowable financial instruments as given... We argue here, however, that the characterization of the standard instruments used in much of the literature has been incomplete and that the incentives of decision makers within the form cannot be completely understood until the problem is addressed from a more basic level than is typically done.

If an "occupation", as classified within the International Standard Classification of Occupations, can be understood as a form of investment (of attention, at least), to what extent does any "theory of occupation" predict the existence of occupations inadequately recognized by extant classifications? The mindset inhibiting such recognition can be considered a factor in obscuring employment opportunities, as separately discussed (12 Mindsets Ensuring Disappearance of Employment Opportunities: towards a systemic reframing of the job culture, 2012). Again of relevance is any insight such a theory and classification might offer in order to distinguish between a potentially "interesting" occupation and one readily perceived as "boring".

Current financial market use of the periodic table metaphor: In comparison with chemical elements again, a fundamental issue is the manner in which positive and negative interplay in the pattern of elements engendered. There is clearly a degree of equivalence to profit and loss and their incorporation in debt and equity. Should more be expected of the theory of financial instruments? How might such theory help to distinguish viable modalities for investing attention? What insights might such theory offer regarding any sense of risk, yield and growth in a given period?

It is therefore very surprising to note the extent to which the financial community has long been inspired by the periodic table of chemical elements, as illustrated by the following:

It is also appropriate to note the use of that metaphor in caricature and satire (Periodic Table of Finance Bloggers and the Periodic Table of Wall Street Criminal Elements). Although more or less inspired by the table of chemical elements, the manner in which "periodic" is interpreted with respect to annual returns on investment may embody a time dimension -- even cyclicity -- which is far less evident in the case of the chemical elements (although potentially fundamental to any deeper understanding of that pattern).

Design of a periodic table of attention investment: With the focus here on attention as a resource, to what extent would a more general theoretical framework encompass those forms of investment beyond those subject to definition as financial instruments -- namely the alternatives to "alternative investments" as noted above?

Reduced to a tabular pattern in this way, with its value as a familiar mnemonic framework, of concern is how investment distinguished by its quantitative attributes (as in the financial case) is related to the investment of attention having more qualitative characteristics. There is however some irony to distinctions made in investing:

  • "metals" as a class -- given the manner these are distinguished in the periodic table of elements.
  • some assets qualified as "toxic" investments -- reminiscent of an attribute of certain chemical elements
  • some investments as "hot" -- potentially reminiscent of radioactive elements

The concern here is to recognize that there is a challenge to the design of such a "table". The many alternative configurations creatively explored with respect to ordering the chemical elements (see gallery) -- still understood to be a work-in-progress -- are an indication that non-tabular possibilities may remain to be discovered. Using the standard table for purposes of discussion, several design issues can be highlighted.

Periodic table of chemical elements
Adaptation (from Wikipedia, with removal of
some elements and addition of a legend		 Periodic trends (reproduced from Wikipedia,
corresponding to table on left)
Periodic table of chemical elements Periodic tends corresponding to table of chemical elements

As in the left-hand image above, some variants of the periodic table have zones coloured to indicate the characteristics of elements (as with the the shading in the investment variants cited earlier). Might that be expected of a periodic table of attention investment? Are the periodic trends in the right-hand image indicative of the coherence desirable in any adaptation to attention?

Possible design metaphors for a periodical table of investing attention
(using the pattern of periodic table of chemical elements)
Design metaphor A:
intangible above / tangible below
debt on left / equity on right 		Design metaphor B:
intangible below / tangible above
equity on left / debt on right
Possible design metaphors for a periodical table of investing attention Possible design metaphors for a periodical table of investing attention

The design schematics indicated above are merely proposed as indicative of ways of thinking about the design challenge when it encompasses attention more generally. Related points of interest which might influence such a design could include:

  • a deeper understanding of the debt/equity polarity as it relates to investing attention, perhaps taking account of nuances offered by other languages. French, for example, makes a distinction between obligations (bonds) and actions (shares)
  • the more general implications of return on investment of attention (in a given period) -- otherwise understood in relation to interest, dividend and yield. Through encompassing investment of attention more generally, without the restriction to a quantitative return, the delicate question of how a relationship (for example) yields a "return on investment" calls for careful consideration -- given sensitivity to expectations in that regard
  • a deeper sense of the role of time and cyclicity in the investment of attention. This is partly sensed through the cycles in any relationship, especially those of a long-term nature. However, also of relevance is the nature of investment in a short-term relationship and what it may yield. With financial investment relatively explicit in recognizing that it is an investment in time (futures market, etc), is this sense recognized to a greater degree when the pattern of investment encompasses subtler forms of investment of attention? The classical Chinese proverb is relevant: If you are planning for a year, sow rice; if you are planning for a decade, plant trees; if you are planning for a lifetime, educate people. (currently reflected in world ranking of educational environments)
  • in the case of chemical elements, portions of the table have elements with unusual properties, variously valued (radioactive, toxic, precious). As applied to attention, it is to be anticipated that unusual forms of attention might be recognized, perhaps concentration, flow, charisma, eidetic memory, etc
  • more obviously, the chemical elements are distinguished (in some presentations of the table) as being solid, liquid or gaseous as normally encountered. It is curious to note the extent to which related terms have been adopted as metaphors with respect to the financial markets, most notably with respect to "liquidity" and the "solidity" of an investment (implying low risk). With respect to attention more generally, the liquidity and gaseous nature of opinion ("winds of change" etc) are consistent with such use of metaphor -- and possibly to be fruitfully related to illusions (as with those characteristic of a misty context). This might be extended to the recognition of the more fiery, explosive nature of incidents and happenings, tending to influence investment decisions (as with a "hot" opportunity).
  • more complex forms of the table of chemical elements distinguish any associated isotopes (Table of nuclides; Table of nuclides -- segmented, narrow) -- with indication of their half-life (List of radioactive isotopes by half-life). This is suggestive of a way of framing any time-related investment of attention or its deficit, as in attention deficit hyperactivity disorder
  • as a periodic table, the general form is suggestive mnemonically of a weave (warp/weft) and of a raft (usefully understood as a form of cognitive life raft, vital to survival)

The more general interpretation of the "asset classes" inviting attention and investment -- and tentatively associated with the design of a periodic table -- first calls for deeper consideration of the psychological and cognitive processes of investing attention. In this speculative exercise, it might be supposed that they would be discovered to be intimately related to classes or sets of values -- the values to which people are attentive (beyond financial wealth).

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