Blog Posts

Investing in Africa can be a lucrative opportunity for investors looking to diversify their portfolios. The continent boasts abundant natural resources, a growing middle class, and a youthful population, creating a favorable investment climate for foreign investors. However, investing in Africa comes with unique challenges, including political and foreign exchange risks that require careful consideration. […]

The price of anything is the money and credit spent on it divided by the quantity. So while there are many strategic approaches to trading the markets, such as value, momentum, etc., what it ultimately boils down to is who is buying and selling, in what quantities, and for what reasons. It’s buying and selling […]

If you have $100k in cash or are wondering what to do with $100k in the bank, in this article, we cover a balanced approach to what to do with this kind of money. Assuming you have no debt, an emergency fund of 3-6 months of living expenses, and are already maxing out your retirement […]

A Synthetic Put is a trading strategy that allows an investor to mimic the payoff of a put option using a combination of stock and options. How to Create a Synthetic Put Specifically, a Synthetic Put involves: Short selling a stock, and simultaneously Buying a call option on that same stock with an in-the-money (ITM) […]

The Marshall-Lerner condition is a fundamental concept in international economics. It relates to the price elasticity of imports and exports. The condition states that a currency devaluation will only improve a country’s trade balance if the sum of the price elasticities of imports and exports is greater than one.   Key Takeaways – Marshall-Lerner Condition […]

Ergodicity Economics is a relatively new field of study that challenges traditional economic theories. It offers a new perspective on how individuals make decisions under uncertainty while considering time dynamics. At its core, it emphasizes the importance of time and the dynamics of individual experiences in economic decision-making.   Key Takeaways – Ergodicity Economics Ergodicity […]

Semimartingales are mathematical objects that arise in the study of stochastic processes. They play a role in the theory of stochastic integration, particularly in the context of Ito calculus. In finance, semimartingales are used for modeling asset prices and understanding their dynamics.   Key Takeaways – Semimartingales in Finance Semimartingales are versatile stochastic processes used […]

The Brownian model of financial markets is a mathematical model used to describe the random motion of asset prices. It is based on the Brownian motion concept, which was originally observed in the erratic movement of pollen particles in water. In the context of financial markets, this model helps in understanding the nature of asset […]

Stochastic calculus is a branch of mathematics that deals with systems that evolve over time in a perpetual, probabilistic way. It is particularly useful in modeling situations where outcomes are influenced by random, non-deterministic factors. Financial markets, with their inherent degree of unpredictability, are a prime example of such systems.   Key Takeaways – Stochastic […]

Kinetic exchange models are a tool for understanding the complex dynamics of financial markets. These models, rooted in the kinetic theory of statistical physics, offer a unique econo-physical perspective on the movement of money, credit, and assets within a market. By leveraging the principles of statistical physics, financial researchers and analysts can gain a deeper […]