Blog Posts

Asset allocation and diversification might be related concepts in finance, trading, and investing, but there are slightly different. Asset allocation refers to the process of dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash. The asset allocation process takes into account the investor’s goals, risk tolerance, and investment horizon. Diversification […]

A US dollar devaluation would have an impact on movements in other asset classes. Currency volatility picked up with more inflation risk in 2022.       Post-2008, we’ve mostly been in a low interest rate world. However, when interest rates become so low to the point where they can’t be lowered any more, and […]

Real exchange rates (RER) refer to the rate of exchange between two currencies that is the product of the nominal exchange rate (the dollar cost of a euro, for example) and the ratio of prices between the two countries. When we talk about “real” in finance terms, it typically translates as something that is inflation-adjusted. For […]

What is the function of IMF? The International Monetary Fund (IMF) is an international organization that aims to promote global economic growth and stability. It does this by providing financial assistance to countries in need, and by working with member countries to improve their economic policies. IMF assistance helps countries avoid or resolve economic crises, […]

An asset is a resource that is owned or controlled by an individual, company, or government with the expectation that it will provide economic benefit. Companies generate revenue from their assets, so they represent the foundation of the valuations of the company that underlies stock prices. Assets can also typically be exchanged or sold. Common […]

What does the SPAC acronym mean? SPAC is short for a Special Purpose Acquisition Company, also known as a “blank check” company. Here we explain the analytics and meaning of SPAC in investing terms. A SPAC is essentially large pool of cash, which is listed on a public exchange with the sole purpose of completing […]

Your personal savings rate and consistency in saving is the number one reason why people succeed in their trading and investing endeavors. If you don’t save anything, you won’t have anything to work with. To show why, let’s look at a simple example of someone routinely, without fail, putting $1,000 into the market each month, […]

Eurodollars are deposits of US dollars in foreign banks, or in the foreign branches of American banks. The eurodollar market is the global market for these deposits. There is no one eurodollar market. Instead, eurodollars are traded in a number of different markets, including London, Frankfurt, and Zurich. In addition, eurodollars can be traded in […]

With cryptocurrency’s popularity, there’s natural speculation over just how popular it can get. Can cryptocurrency become a type of global currency that could complement or even substitute for sovereign currencies? We believe it’s unlikely for a couple reasons, but first let’s look at the nuts and bolts of cryptocurrency and go from there. Cryptocurrency as […]

Equity swaps are derivative contracts that allow two parties to trade equity exposure in a way that suits their needs. The most common type of equity swap is the equity total return swap, which allows one party to receive the total return from an equity index or basket of stocks, while the other party pays […]