Blog Posts

Cash flow matching, also known as “dedication” or “immunization,” is a strategy used by investors to align future cash inflows with anticipated cash outflows. This is often used to manage liquidity and interest rate risk, especially in managing pension funds, insurance companies, and other financial institutions, and minimize risks associated with asset-liability mismatches. This method […]

Option pinning is a phenomenon in the options market where the price of an underlying asset tends to gravitate toward the strike price of a large, near-the-money option with a short time to expiration. This process occurs due to the dynamic hedging activities of market participants, particularly market makers. In this article, we’ll look at […]

Asset-liability mismatches (ALMs) occur when the financial characteristics of an entity’s assets do not align with those of its liabilities. These mismatches can lead to substantial financial risks, including liquidity crises, currency risks, and interest rate risks. It can pose a problem for traders as well. Often, market participants and businesses are not aware of […]

When it comes to investing, few names carry as much weight as Warren Buffett, the chairman and CEO of Berkshire Hathaway and one of the world’s most successful investors. Over the decades, Buffett has developed a highly effective investment approach that has made him one of the world’s most successful people by conventional measures. What […]

Investing in real estate is appealing for many, offering the potential for equity-like returns and diversification in one’s investment portfolio. However, purchasing physical property is not the only way to participate in the real estate market. Not to mention that doing that can be expensive to get started and leave oneself highly concentrated in one […]

The notion of adopting a single, global currency has been a subject of numerous debates and discussions. It’s an idea that, on the surface, appears to offer many benefits, such as eliminating exchange rate risks and facilitating global trade. However, the reality of implementing such a system (beyond a limited economic sphere) is impractical. This […]

The Scott Burns Couch Potato Portfolio is a simple, easy-to-understand investment strategy that has gained popularity among investors looking for a hands-off approach to growing their wealth. This portfolio was developed by financial columnist Scott Burns, who recognized the need for a simple investment method that required minimal effort and expertise. In this article, we […]

The Gone Fishing Portfolio (GFP) offers a straightforward approach to asset allocation, making it an attractive option for those looking to build a diversified and relatively low-maintenance investment portfolio. This portfolio strategy consists of 65% stocks, 30% fixed income, and 5% commodities. In this article, we look into the allocation strategy, advantages, and disadvantages of […]

Many strategies and approaches exist to help investors achieve their financial goals. One such strategy that has gained popularity among long-term investors is the Paul Merriman Ultimate Buy and Hold Strategy. This strategy, developed by financial expert and author Paul Merriman, emphasizes the importance of diversification and buy-and-hold investing to achieve long-term growth. In this […]

The Yale Portfolio, pioneered by the late endowment fund manager David Swensen, has gained attention and admiration for its unique investment strategy and long-term outperformance. As the Chief Investment Officer of Yale University’s Endowment, Swensen helped popularize the endowment investing approach to other market participants (e.g., hedge funds, traders), reshaping traditional approaches and creating a […]