Blog Posts

Currency Valuation Models: How Are Exchange Rates Determined?

Different traders have different ways of determining a currency’s fair value price. Clearly, different expectations and different motivations are what make a market. While many traders have their own decision rules and proprietary systems, there are currency valuation models and ways of looking at the currency markets that are the most common. We’ll cover the […]

Investing in a Zero Interest Rate Environment

The Covid-19 pandemic has accelerated a new paradigm in monetary and fiscal policy. This has implications for investing in a zero interest rate environment. For a brief refresher, there are three broad categories of monetary policy (which has been covered in other articles in more depth). i) Adjustment of short-term interest rates. Once you get […]

US-China Relations & Their Impact on Financial Markets

US-China relations is one of the big themes that will drive geopolitics, economies, and markets over the ensuing decades. Accordingly, it can be highly useful to look at the current dynamics even among traders who look out over shorter-term and medium-term time horizons. What the positions the US and China find themselves in currently and […]

The Internal War: Conflicts Within Countries & Impacts on Markets

How people act with each other is the most important determinant of domestic conditions. The internal war is ultimately the most consequential type of conflict the US and other countries face. Even with the importance of US-China relations and its impact on the markets – via trade, economics, capital and currency, technology, geopolitical, and military […]

Military War: Role in US-China Relations & Impact on Markets

Envisioning the next major military war and its impact on financial markets (and, of course, the world) is difficult, as the range of unknowns is so high. But one thing we should acknowledge is that it’s likely to be much more brutal than most would imagine. World War II was much more deadly than World […]

The Geopolitical War: Impact on Markets & US-China Relations

The geopolitical war occurring between the US and China is one of the many conflicts occurring between the two countries, including: i) trade and economic ii) capital (currency, debt, capital markets) iii) technology iv) geopolitical v) military As we’ve mentioned in other articles, understanding these various conflicts are important for traders and investors to understand. They involve the two largest […]

The Technology War: Impact on Markets & US-China Relations

The technology war is a particularly serious conflict within the scope of US-China relations. Both countries know that whoever is superior technologically will also be superior in most other ways. Whoever wins the technology war is also very likely to win the economic and military wars as well. For this reason, the technology war is […]

The Capital War’s Impact on Markets & Role in US-China Relations

US-China relations, and the capital war conflict within it, is and will be a big driver of markets going forward and is important to understand even for those with shorter-term trading orientations. The same things tend to happen over and over again for the same reasons historically. By studying what happened in other societies and […]

The Trade and Economic War Shaping US-China Relations

In our US-China relations overview article, we discussed that the two countries are entering a classic case of one power coming up to challenge an existing power. That’s naturally spilling over into “wars” or conflicts of various sorts. A trade and economic war is among them. In addition to the trade and economic war, we […]

SPAC: What Are ‘Blank Check’ Companies?

SPAC is short for a special purpose acquisition company, also known as a “blank check” company. A SPAC is essentially large pool of cash, which is listed on a public exchange with the sole purpose of completing an acquisition. It’s essentially a form of a backdoor IPO. SPACs are unique in that they have no […]

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