Categories
Economy

Different Economic Schools of Thought

In this week’s article, I am going to walk you through 3 Economic schools of thought, namely, Laissez-Faire Economics, Neoclassical Economics and Keynesian Economics. So, let’s jump right to it! Laissez–faire Economics What is Laissez–faire Economics? According to the “Laissez-faire” economic school of thought, the economy works best when the government does not intervene in […]

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Behavioral Finance Finance Long-Form Article Series

History is not the Future

Setting the Context In this week’s article, we explore a plethora of topics, from “End of History Illusion” to “Pluralist Ignorance Effect”, concept of “Alternative Histories” and other such fluff from interdisciplinary domains, pivotal for investors to be cognisant about in the world of Finance. This particular read is tilted towards Behavioural Economics, Human Psychology, […]

Categories
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 […]

Categories
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 […]

Categories
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 […]

Categories
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 […]

Categories
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 […]

Categories
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 […]

Categories
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, […]