Blog Posts

Real options are a concept in finance that extends the framework of financial options to investments and projects. This methodology evaluates the flexibility and choices available to management in investment projects. It’s a strategic tool for decision-making under uncertainty.   Key Takeaways – Real Options Real options provide a framework for valuing investment opportunities using […]

The Fisher Separation Theorem, formulated by Irving Fisher, is a fundamental principle in economics and finance. It delineates the relationship between investment decisions and consumption preferences, irrespective of market conditions and personal bias.   Key Takeaways – Fisher Separation Theorem Separates investment decisions from consumption preferences. Asserts that investment choices are driven by profit maximization. […]

Real analysis – a branch of mathematical analysis dealing with real numbers and real-valued functions – also has applications in finance and markets. Its application extends to assessing risk, pricing options, evaluating trends, and building algorithmic models.   Key Takeaways – Real Analysis in Finance & Markets Real analysis deals with the rigorous study of […]

Sports as an investment – particularly in leagues like US basketball, baseball, football, hockey, and European soccer – is a unique and increasingly popular opportunity for private investors and investment firms. The attractiveness of this investment avenue lies in several factors:   Key Takeaways – Sports Teams as an Investment Diversification Investing in sports teams […]

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 […]