Blog Posts

A sovereign wealth fund (SWF) is a state-owned investment fund that is composed of financial assets such as stocks, bonds, and real estate. These funds are typically funded by a country’s foreign exchange reserves, which are made up of currency, gold, and other financial assets that a country has acquired through trade or other means. […]

Trading requires more than just technical expertise. It involves a clear and well-structured framework to guide every decision.  Here we look at a 4-step trading framework that begins with defining your goals, continues with formulating a strategy, moves into executing a precise process, and involves mastering the necessary psychology to see through it.  Each component […]

The Rule of 72 is a simple way to determine how long it will take for an investment or price level to double, given a fixed annual rate of return. The rule states that the number of years required to double your money is approximately equal to 72 divided by the annual expected return, expressed […]

Purchasing Power Parity (PPP) is a lens through which we can understand the real value of money across borders. Imagine walking into a bakery in Tokyo and buying a loaf of bread for ¥500, then doing the same in New York for $5. At first glance, comparing these prices seems pointless. But PPP asks: How […]

Trading financial markets involves high stakes, rapid decisions with incomplete information, and outcomes that can rarely be known ahead of time — all of which can fuel anxiety.  This emotional response isn’t a sign of weakness but a natural reaction to risk. Trading, like flying a plane, is highly risky without skill and preparation. But […]

Currency valuations are heavily determined by yield differentials. They shape the dynamics of foreign exchange (forex) markets, capital flows, and trader decisions. This article looks at yield differentials as a currency valuation driver, looking at their mechanisms, implications, and nuances in markets.   Key Takeaways – Currency Valuations vs. Yield Differentials Yield Differentials Drive Currency […]

The relationship between stocks and bonds is commonly referenced when it comes to portfolio diversification.  Historically, the interaction between these two asset classes has fluctuated, influenced by the market environment, monetary policy, economic cycles, and sentiment.  Stocks and bonds can be diversifying, but aren’t inherently diversifying. We look into the concept of stocks-bonds correlation, its historical context, […]

Understanding what different asset classes are expected to return over the medium term (5-10 years) can help investors and traders make informed decisions, balance risk, and achieve their particular financial goals.  Let’s look into the expected returns for various asset classes, the nuances of their performance, and the factors driving those returns.   Returns of […]

Buy-write funds – often synonymous with covered call funds – have gained popularity among income-focused investors.  These funds combine equity investment with an options strategy to enhance income, a strategy of which we’ve written about here.  In this article, we’ll look deeper into buy-write funds, how they work, their advantages and risks, and review some […]

Controlling emotions in day trading is very important for achieving consistent success. Traders can have all the personal talent, but if their emotions aren’t steady, that can ruin everything. We all have our own dispositions. Some of us are more stoic and some of us are more excitable. Traits can help us and hurt us […]