Blog Posts

HODL typically refers to holding onto your bitcoin or cryptocurrency rather than selling it. The term was first coined on a Bitcointalk forum in 2013 by a user who goes by the name GameKyuubi. It was first used as HODLING, which was an inadvertent misspelling of “HOLDING”. It has also commonly come to stand for […]

Over time, real returns (i.e., inflation-adjusted returns) are what matter for your portfolio, not nominal returns. The wealth that we have is not how much money we have. It’s the buying power of that money. For example, if the inflation rate is 5 percent and an asset you hold simply stayed steady all things considered, […]

We’re in a zero interest rate world, which is the most important theme currently governing financial markets and has big implications for portfolio construction. By extension, this means we’re in a period where the forward returns of financial assets will be low across the board. While this support is necessary, it makes markets susceptible to […]

With more geopolitical conflict there are more calls for the US to increase oil production. How can the US increase oil production? Besides shale, it can easily take more than two years for an oil production company to make a final investment decision and start production. Many have used the argument that higher prices will […]

A late-cycle economy is characterized by higher inflation, low unemployment, speculation, and eventually rising market volatility. Late-cycle economies have different market behavior than in other parts of the cycle. The labor market follows the business cycle – usually with a lag. And central bankers, who have the biggest lever on liquidity in an economy (in addition […]

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 […]