Blog Posts

Auction Market Theory (AMT) provides one perspective on how financial markets operate, essentially functioning as giant auction houses. The continual interaction of buying and selling pressure determines price movements. This approach, when applied in financial markets, considers every bid as an attempt to buy and every offer as an attempt to sell.   Key Takeaways […]

The US Housing Bubble and the subsequent Financial Crisis of 2007-08 was a period characterized by a drop in housing prices and other assets, which subsequently led to a severe global economic recession that threatened to become a depression with interest rates hitting zero. The crisis was the worst financial disaster since the Great Depression […]

The Dot-Com Bubble, which took place from 1995 to 2001, is often used as a textbook example of a speculative bubble. A speculative bubble occurs when the price of an asset, in this case tech stocks, significantly surpasses their intrinsic value. The era was marked by a rapid rise in equity markets fueled by investments […]

In the late 1990s, the Asian Financial Crisis swept through several East Asian nations, causing an economic downturn that was felt globally. The crisis began in Thailand in 1997 with the collapse of the Thai baht, following the decision by the government to unpeg the currency from the US dollar. It then rapidly spread to […]

The financial world was shaken on October 19, 1987, a day that is infamously known as Black Monday. The largest one-day percentage drop in the history of the Dow Jones Industrial Average occurred, shedding 22.6% of its value in a single day. This day marked a significant event in financial history, drawing global attention to […]

The Savings and Loan (S&L) crisis of the 1980s and early 1990s is a period of widespread banking failures in the US. It was a disaster that led to the failure of nearly a third of the 3,234 savings and loan associations in the United States between 1986 and 1995.   Failures of all Institutions […]

The energy crisis of 1979 was a pivotal event in global economic history. With repercussions that reverberated across continents, the crisis highlighted the world’s heavy reliance on fossil fuels, specifically oil, and underscored the need for diverse and sustainable energy sources. For traders, it underscored how inflation impacts traditional investments like stocks and bonds, which […]

In trading and investing, hedging is a common strategy employed to manage risks and reduce potential losses. What stops people from hedging their portfolios? A big part of it is simply the cost. Among various hedging techniques, self-financing strategies are about as close to ideal as getting what you want without having to pay significantly […]

The 1973 Oil Crisis is a significant event in world economic history. It was a time when global energy systems and economic structures faced a major disruption, which had long-lasting effects. To understand the lessons that the crisis presents for traders and modern investment portfolios, we first need to look into the causes and impacts […]

The CANSLIM trading method is a popular investment strategy that combines fundamental and technical analysis. Created by William J. O’Neil, the method is a formula to identify potential high-performing stocks before they make significant price advances. As an acronym, CANSLIM stands for seven key components that O’Neil believed to be common characteristics of the most […]