Blog Posts

Quantum economics is an emerging research field that applies mathematical methods and ideas from quantum physics to the field of economics. It is motivated by the belief that economic processes such as financial transactions have much in common with quantum processes, and can be appropriately modeled using quantum formalism. It draws on techniques from the […]

In retirement planning, two primary types of pension plans dominate the landscape: Defined Benefit (DB) Defined Contribution (DC) Understanding the differences between these two is important for both employers and employees, as it impacts retirement security, investment risks, and financial planning.   Key Takeaways – Defined Benefit (DB) vs. Defined Contribution (DC) Plans DB plans […]

Discount rates and risk premiums are fundamental concepts in finance and investment. While related, they serve different purposes and have distinct implications. Understanding the differences and relationship between these two concepts is important for traders/investors, financial analysts, and anyone involved in the valuation of assets.   Key Takeaways – Discount Rates vs. Risk Premiums The […]

Financial derivatives come in many different types. Among the many instruments available, options are a popular choice for traders and investors. Options come in various flavors, with American, European, and Asian options being the most common. Here we look into the differences between these three types of options, exploring their characteristics, advantages, and potential drawbacks. […]

The relationship between: fiscal deficits bond issuance strategies (by the fiscal government to cover these deficits), and market dynamics… …has significant implications for bond yields, asset prices, and the broader economy.  Adjustments in these strategies can either support or strain liquidity in the market, influencing economic activity and trader/investor behavior. In fact, it can elongate […]

Tail risk hedging and tail risk protection strategies help mitigate the risk of substantial drawdowns in a portfolio. How do investors protect against these potential price falls? Whether it’s a rapid 20% loss in a month or a gradual decline over a year, the timing and duration of these drawdowns can drastically affect long-term gains. […]

Real estate is one of those investment asset classes that everyone has to do deal with. We always need somewhere to live. So that usually means renting or buying at some point. Real estate and housing is at a unique point stage currently because of the debt and money creation going on in developed markets. […]

Quantum mechanics, a fundamental theory in physics that describes the behavior of matter and energy on the smallest scales, has naturally been confined to science and technology. However, due to the probabilistic nature of both quantum mechanics and financial markets, quantum principles can also have applications in finance, investing, and trading. Below we look at […]

Game theory is a broad field that studies how people make decisions in strategic situations. We’ll define game theory concepts in the first section of this article. In the following section, we’ll look at these concepts’ potential application to finance, trading, and investing.   Key Takeaways – Game Theory: Applications in Trading & Investing Game […]

The Physics of Financial Markets is a relatively new discipline that approaches the financial world with the methods of physics – i.e., applying physics applications in finance, trading, and investing. It’s a type of creative process that involves leveraging concepts and methodologies from physics to describe, understand, and predict the behaviors of financial markets. It’s […]