Blog Posts

Capital budgeting, also known as investment appraisal, is a fundamental aspect of corporate finance. It refers to the process by which a company plans and manages its long-term investments. A component of this process is valuation – understanding and quantifying the value of these investments.   Key Takeaways – Capital Budgeting Capital budgeting is a […]

Dividend policy refers to the guidelines a company uses to decide how much of its earnings it will pay out to shareholders in the form of dividends. Companies have a range of dividend policies to choose from, and the choice depends on a multitude of factors. The selection of a dividend policy has a significant […]

Capital structure refers to the composition of a firm’s funding sources. It is a blend of debt, equity, and hybrid securities used to finance a company’s operations and growth initiatives. Understanding capital structure is important for investors, traders, and business managers. It provides insights into a company’s risk profile, operational flexibility, and potential for future […]

Insurance is a form of risk management primarily used to protect against the risk of potential financial loss. There are various types of insurance available, providing coverage for a range of scenarios from personal injury to property damage. Insurance also exists in various forms in trading and investing contexts to protect against loss (e.g., options […]

The strategies and options available for retirement plans can be very different depending on the country. It’s important to understand how these plans vary in order to make informed decisions about retirement savings. Below we look into the retirement plans in the United States, as well as in Australia, Canada, Japan, New Zealand, and the […]

Economic and market forecasting is a fundamental tool for traders, investors, policymakers, and businesses to make informed decisions. Unlike “exact sciences,” forecasting in economics and markets is not about producing exact outcomes. Instead, it’s about defining a range of possible scenarios based on a range of variables. These variables, of which each often have a […]

The economic success or failure of a country is a complex issue. Productivity and structural reform play central roles in determining a nation’s economic progress, but factors such as cultural attitudes and economic inequalities also have substantial impacts. Let’s look at these factors and explore potential strategies for driving success in struggling economies.   Key […]

Economic growth is a fundamental aspect of a country’s prosperity and well-being. It allows for improved living standards, creates job opportunities, and fosters innovation. For traders and investors, economic growth – particularly changes in its discounted expectations – is one of the main drivers of asset prices at the broad asset class level (in addition […]

Emerging market equities are a popular option for traders and investors, given their higher potential. Known for its potential to offer higher returns compared to developed markets, the expected premium for investing in emerging versus developed equity markets is usually 1-3% per year. In other words, if you put your money in EM equities, over […]

China has experienced multiple cycles of its empire rising and declining – in what are known today as dynasties. By examining the political, social, and economic/financial underpinnings of these cycles, we can extract lessons for today’s investment landscape and global order. Chinese policymakers are also well-versed in their own history (and that of other ancient […]