Category: Investing
Market Efficiency (Efficient Market Hypothesis)
Efficient Market Hypothesis (EMH) is the hypothesis that securities trade at their fair value i.e. their prices reflect all currently known information. In this post, I’ll explain how we determine if a market is efficient or not, in a beginner-friendly manner. Basically, it’s a matter of how fast trading activity reflects new information in prices. …
The 4 Year Cycle – Bitcoin Price Prediction ๐
“The 4 Year Cycle” is one of the most important posts you’ll ever read. I mean it. People that understood the cyclical nature of the markets will never struggle financially. In this post, I’ll explain the single most relevant indicator for Bitcoin’s price and how I used it to build a position with full conviction. …
Index Investing & Index Funds – A Gentle Introduction
Index Investing represents an investment strategy which aims to track the performance of a market index. Not “picking winning stocks”, not “timing the market”, not “beating the market”. This strategy is synonymous with matching the market – at least the one you choose to match. Index Funds An index fund is a special type of an …
The Death of the Gold Standard – The Aftermath (Part 2)
In my previous post on this topic, I wrote about events in recent history that lead to the death of the gold standard. I’ll do a short recap and jump into the aftermath – what’s been going on after we went off the gold standard. The Gold Standard: Modern History These are the major events …
Stock Market Index โ Explanation and Examples
After publishing my post on ETFs I received many questions about how to approach picking one. Understanding stock market indices is crucial for this. In this post, I’ll cover what is an index and how to use one for your investment strategies. What is a Stock Market Index? Directly from Investopedia: A market index is …
Airdrops – The Real 0 to $100k Opportunity
An Airdrop represents a distribution of free crypto to users’ addresses. These distributions may be worth up to 6 figures and oftentimes require no financial investment. However, they’re rarely announced or guaranteed. As a veteran in the DeFi space and a recipient of over 100 airdrops, I want to shed some light on the process. …
CSPX vs VUSA vs IUSA – My Thoughts
A US ETF is usually the core of most investors’ portfolios. For Europeans, the questions of CSPX vs VUSA or VUSA vs IUSA often pop up. In this post, I’ll do my best to answer the trilemma and give my recommendation. CSPX Ticker symbols: CSPX, SXR8, CSP1; ISIN: IE00B5BMR087 CSPX (iShares Core S&P 500 UCITS …
Obstacles to Efficiency – Taxes, Price Controls, Trade Restrictions
Welcome to the third and last post of the Supply and Demand Series. The first two posts described the self-regulatiing nature of the free markets and their efficiency in maximizing revenue and benefit to society. In this post, I’ll talk about government intervention and regulation. Specifically, how government impositions make the markets less efficient by …
Bitcoin Block Reward Halving (Explanation & Price Impact)
The block reward halving is one of the key characteristics of Bitcoin. It’s extremely relevant both for ideologists and investors, so make sure to understand it. Introduction to Bitcoin Block Rewards All Bitcoin transactions are grouped into blocks, which are added to the blockchain through a process called mining. Each Bitcoin miner tries to be the fastest one to …
Why the Stock Market Always Goes Up?
You probably saw “the stock market” being portrayed as a “safe long-term” investment. But how is everyone so sure that the stock market will go up in the long run? Let me tell you my perspective. First of all, I’ve been investing for around a decade and made massive gains in multiple asset classes. The …
Cash vs Stocks in 30 Years
Cash or stocks – hoard or invest? This discussion comes up so often that an analysis post was due. While I don’t necessarily consider a 100% stock portfolio to be the best investing approach, it will definitely prove a point about assets outperforming cash over the long-term. Without further ado, let’s break down a case. …
Consumer and Producer Surplus & Deadweight Loss
This post is an extension to Supply and Demand – an Introduction, where we explained supply and demand curves, equilibrium price and quantity, and aggregate supply and demand. In this post we’ll understand what consumer surplus and producer surplus are. Reminder Here are the supply and demand curves for a certain good X. As we can see in the picture, the …
The Death of the Gold Standard – What Happened in 1971 (Part 1)
The gold standard is a monetary system where a country’s currency or paper money has a value directly linked to gold. Investopedia, What is the Gold Standard? Throughout a major part of human history, gold was the only globally recognized unit of account. And it still has that status, as every system/country/empire agrees on its …
Lump-Sum Strategy (Time in the Market Done Right)
A lump-sum payment describes a payment that happens once, at a particular time, as opposed to multiple smaller payments over time. If you accumulated a somewhat large amount of savings, you might wonder how to put them to work. At the end of the day, if you just dump them in the market, there are countless …
Supply and Demand – An Introduction
The law of supply and demand is something that’s often referenced, but rarely understood. Even people with formal education in economics that can explain how it affected certain situations in the past can’t really apply the knowledge to forecast the future. In other words: this post can make you psychic, practically. Enjoy this gentle introduction …