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Finance Investment Strategy Portfolio Management

The Law of All or Nothing

Introduction In probability theory, the Kolmogorov’s zero–one law, named in honour of Andrey Nikolaevich Kolmogorov (yeah, I couldn’t pronounce that either), specifies that a certain type of event, called a tail event, will either almost surely happen or almost surely not happen; that is, the probability of such an event occurring is zero or one. The significance of this law is more pronounced in […]

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Economy

Attention Economics

Introduction We each have only 24 hours in the day.  What we choose to do during these 24 hours and where we choose to allocate our attention during this time will increasingly determine who we become and the quality of our lives. Now we’ve all heard some version or the other of this “quote” in our […]

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Economy

Hyperinflation

What would you do if you had a 100 billion dollars? Hold your horses. Forgot to mention those 100 billion dollars would be Zimbabwe dollars. The country has been spiralling in hyperinflation for a long time now. Since the year 2000, the prices have only been shooting upwards and onwards at a crazy rate. As […]

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Finance Investment Strategy Portfolio Management

Statistical Arbitrage

What is Statistical Arbitrage? This is one of the strategies employed by Hedge Funds and High Frequency Traders, wherein they profit from mispricings in the market. The core idea being, prices of financial securities revert to their long-term historical average value over time (mean-reversion). To shed more light, let’s quickly walk through the mechanics of […]

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Finance Fixed Income

Fixed Income Part II

Guest Post by Vrushank Setty Key ideas discussed As we have discussed the basic terminologies of what Fixed Income instruments are in the previous post, lets dive deeper and understand the following concepts in this post: What is a Yield Curve? What are the common shapes a Yield Curve can take on? What is a […]

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Economy Long-Form Article Series

Emergence of China in the New World Order

INTRODUCTION There’s been a lot of discussions about the emergence of a new system where a duopoly might exist in terms of Economic Supremacy between America and China. Some discussions even suggest we might see a future where China might supersede America in terms of Military, Technology and Economic power. While China’s meteoric rise to […]

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Finance Portfolio Management

Portfolio Management Theories

Setting the context: In this article, let’s delve into the history of Portfolio Management. We will explore the different theories which etched their mark in the domain of portfolio management. Theory 1 – Dow Theory Charles Dow the ex-editor of the Wall Street Journal, presented his theory on the influences on Stock Market movements. His […]

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Finance Investment Strategy

Sustainability & Investing

Setting the Context: With the rise of collective awareness of the importance of sustainability in our social, corporate and economic actions, Environmental, Social & Corporate Governance (ESG) based Investing has amassed vast popularity. This concept is definitely not a new one and the thought of being more “environmentally-friendly” or “consciousness” has prevailed for decades, however, […]

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Books Finance

Mastering the Market Cycle by Howard Marks

Setting the context: Howard Marks is a legendary billionaire investor and has received acclamations for his memos by Warren Buffet himself. He is the Co-Founder and Co-Chairman of Oak Tree Capital Management and has about 50 years of investing experience under his belt. Through his books “Mastering the Market Cycle” and “The Most Important Thing”, […]

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Economy

Monetary Policy Introduced

Setting the Context: In this week’s article, we shall go over “What Monetary Policy exactly means? What are the types of monetary policies at the bay of the Central Bank? What are the challenges that arise in implementing them successfully? Then finally, a mini snapshot is presented on India’s policy response to the pandemic. What […]