Blog Posts

With all the ups and downs of markets, the key consideration behind any asset comes down to whether it makes money and whether it represents a yield commensurate with what you need and what risks you’re taking on in order to achieve it. In this article, we’ll look at various types of cash flowing assets […]

Financial markets are heavily influenced by tax policies. These policies can determine the flow of money and credit, investment choices, and how companies are valued. We discuss how tax policy can shape financial markets.   Key Takeaways – Impact of Tax Policy on Markets Direct Influence on Corporate Profitability: Tax policies, especially corporate tax rates, […]

GLD, known as SPDR Gold Shares, is the world’s most popular gold ETF. It revolves around holding physical gold bullion in trust for its shareholders. This arrangement implies that purchasing a share of GLD equates to buying a minuscule portion of the total gold held by the trust.   Key Takeaways – How Does GLD […]

Abstract algebra, a fundamental branch of mathematics, is used in various aspects of finance and markets. Its application spans from risk management strategies to the optimization of trading algorithms. We look into the key concepts and applications of abstract algebra in finance.   Key Takeaways – Abstract Algebra in Finance & Markets Symmetry and Efficiency […]

Linear algebra, a branch of mathematics, is used in various financial applications. It provides a structured way to solve systems of linear equations, a common problem in finance.   Key Takeaways – Linear Algebra in Finance & Markets Risk and Return Modeling Linear algebra is used to quantify risk and optimize returns in portfolios through […]

Forward testing – often referred to as paper trading, walk-forward testing, stress testing, or forward simulation, depending on the context – is a process in trading and investing. Unlike backtesting, which evaluates strategies using historical data, forward testing in a paper trading context applies trading rules to current market conditions to predict future performance. This […]

Tail Risk Parity is a trading or investment strategy designed to address the asymmetrical risks inherent in financial markets. It extends the concept of risk parity, which emphasizes an equal distribution of risk across various asset classes, by specifically focusing on mitigating the impact of extreme market movements or “tail risks.” These tail events, though […]

Maslowian Portfolio Theory is a conceptual framework in finance that integrates psychological elements into investment strategy. It’s inspired by Abraham Maslow’s hierarchy of needs, a psychological theory that categorizes human needs into a pyramid, from basic survival needs like food, water, and shelter to self-actualization (achieving your aspirations).   Key Takeaways – Maslowian Portfolio Theory […]

Stochastic Portfolio Theory (SPT) is a mathematical framework used to analyze and manage portfolios of assets in probabilistic terms. It extends the classical Markowitz portfolio theory by incorporating the randomness inherent in financial markets.   Key Takeaways – Stochastic Portfolio Theory & Chance-Constrained Portfolio Selection Stochastic Portfolio Theory (SPT) focuses on understanding and exploiting patterns […]

Behavioral Portfolio Theory (BPT) is based on a newer understanding of how traders and investors construct portfolios based on psychological factors. This theory deviates from traditional models by emphasizing the influence of cognitive biases and emotions in trading and investment decisions.   Key Takeaways – Behavioral Portfolio Theory Multiple Goals Behavioral Portfolio Theory posits that […]