Investing 101

Simple ways to achieve financial tranquility. A few weeks ago, I wrote a Twitter thread on ways one can generate income streams. To expand on this topic, I want to share notes on how to approach basic principles of investing. Note: this essay is aimed for people just starting in their investing journey. Savings Perhaps…

Non-Linear Thinking

Last 12 months have been relentless. We heard from every news outlet about the unprecedented nature of macro events. In some capacity this was true, but in others, not so much. One thing is true: this was the first time we experienced the last 102 years in 12 months.  Here’s a brief timeline of what…

Unsystematic Risk

Everyone is seeking alpha. Daily. Every hour. Even on weekends.  For those unfamiliar, “alpha” is a term in finance that is designed to track additional returns on top of whatever benchmark was established for your portfolio. We all seek alpha in different areas of life. You paid $10 for a movie ticket and expected a…

Is Inflation On The Horizon?

The Federal Reserve Bank has printed ~25% of all USDs ever printed in just the last 15 months. Almost $9 trillion has been printed. As investors, all of us have experienced asset price inflation; equity valuations that are sky high with no connection to fundamental analysis or real business performance.  Yes, technically, the price of…

Is commission-free retail trading net-positive or net-negative?

Technology drives speculation in public markets. Removal of barriers amplify speculative behavior. Commissions were that barrier in retail trading.  A long time ago, back in 2019 to be exact, several electronic brokers jumped on the train of “commission-free” trades. Robinhood’s primary customer acquisition tactic since inception was commission-free trading. And then all online brokers joined…

Seeking Silence

Silence provides an empty page for us to doodle. It gives an artist an opportunity to compose in their mind before they produce the song. An attorney her opportunity to argue before winning the case. A surgeon her vision before performing the surgery. An athlete her play before hitting the game winning shot. And so…

U.S. E-commerce Q3 2020

U.S. Census Bureau of the Department of Commerce shared their latest update on e-commerce. In a nutshell, Q3 2020 metrics are: US retail sales: $1,468.9 billion (+12% QoQ) US e-commerce: $209.5 billion (-1% QoQ) E-commerce as a % of total retail sales: 14.3% E-comm YoY growth, however, from Q3 2019 to Q3 2020 is +36.7%.…

Is The Phillips Curve Dead?

The Phillips Curve shows an inverse relationship between inflation and unemployment. Graphically, it’s a simple representation and a heuristic model between two most critical areas of focus of the central bank.  Reflecting on current monetary policy, one can argue that Phillips Curve is dead. With extreme measures of quantitative easing (QE), near zero interest rates,…