Trading Blog

The biggest problem for investors is the reality that asset returns will be very low going forward. There will be lower-than-normal returns with greater-than-normal risks relative to the placid environment traders have recently experienced. This is a problem given what the returns on assets will need to be to meet our future obligations. For example, […]

Regardless of one’s thoughts on politics, the outcome of the November 2020 US election – particularly that of the presidency – will have a material impact on asset prices. When we talked about the big three market equilibriums that economies and assets are always continually battling for – (1) economic capacity utilization being neither too […]

Some day trading simulator products on the market combine demo trading with the upside of being granted your own trading capital if you are able to profit while managing risk at the same time within their system. If you want to learn how to trade, or do have experience but want to try a new […]

Countries must decide whether to manage their currency policy in a way that’s best for their country, whether that means keeping a fixed exchange rate, a free float, or possibly by joining a currency bloc if they have that option available to them (effectively a peg in itself). For reasons that were covered more in […]

When I talk about real estate – and how to calculate cash flow in real estate specifically – I’m getting slightly sidetracked from the idea of day trading, or trading over short intervals. But I’m also a firm proponent of having multiple diverse streams of income. This includes trading short-term (i.e., day trading), medium intervals […]

Having multiple revenue streams is important – whether that’s trading shorter timeframes (i.e., day trading), medium and long timeframes (i.e., swing trading and/or buy and hold), or investing in more illiquid assets. With respect to the latter, this can include real estate, one of the oldest and most proven forms of building wealth. Today we’re […]

In a previous article, we covered how a US dollar devaluation would impact various asset classes. Here, we’re going to discuss how a devaluation in the yuan (also known as the renminbi, CNY, or RMB) would influence asset prices. Since currency movements are always in relation to each other, we’ll discuss a yuan devaluation as […]

A US dollar devaluation would have an impact on movements in other asset classes. As of late 2019, currency volatility is among the lowest it’s ever been with central banks currently supportive of markets, helping to dampen volatility.   Here’s the G-7 FX 1-month volatility index: (Source: Refinitiv data stream)   However, when interest rates become […]

It is very likely that currency policy will take on a much bigger role in the next recession. As the ‘trade war‘ associated with the export and import flows between countries plays out, most notably between the US and China, a ‘currency war’ is likely to be one of the next big macro themes as […]

The US stock market recently made new highs. Recession fears caused by inverted yield curves are overblown. While an inverted yield curve has been a strong statistical correlate to a recession over the past five business cycles in the US, it doesn’t get at the underlying reasons for them. In reserve currency countries, recessions typically […]