Economy Education

Intro to Deflation

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Inflation (the increase in prices and decrease in purchasing power; how much a dollar is worth) is widely known to be the scourge of savers, retirees, and workers, notorious for obliterating savings and piling up debt. But inflation’s lesser-known cousin poses an even greater risk to economies: deflation. Today, we’ll take a look at deflation […]

Education Investing Stocks

A Beginner’s Guide to Value Investing: EV/EBITDA Ratio

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One of the most famous ratios used by value investors is the EV/EBITDA ratio, or the Enterprise Value to Earnings Before Interest, Tax, Depreciation, and Amortization ratio. Value investors use it to evaluate a company. The EV/EBITDA ratio is used with or instead of the P/E ratio. Let’s break down this ratio into two parts: […]

Education Investing Personal Finance Tech

Intro to Automated Money Management

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Over the past decade, technology and automation have disrupted many industries, from automotives to manufacturing. Recently, it has made its presence known in the wealth management industry, with the rise of automated money management. Allow me to introduce automated money management (AMM), an industry on the cutting edge of financial planning and the future. AMM […]

Education Investing

Intro to Behavioral Finance

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I predict that in the not-too-distant future, the term “behavioral finance” will be correctly viewed as a redundant phrase. What other kind of finance is there? Richard Thaler, Founding Father of Behavioral Finance Investors often make irrational choices when managing their portfolio investments. Such choices are fueled by an array of fears that the human […]

Economy Education Investing

Intro to Game Theory

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What do going to the movies, chess, rock-paper-scissors, football, and international trade have in common? The answer is game theory. What many people may view as normal occurrences may in fact be part of an intricate web of decision-making from many people. Most people associate game theory with the Prisoner’s dilemma or the Nash equilibrium. […]

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Economy Education

Financial Crisis Breakdown Part Two: The Collapse of the Market

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After the introduction of subprime mortgage-backed securities, investors were throwing their money into the U.S. housing market and housing prices began to rise. The newly relaxed lending regulations and low interest rates drove housing prices higher, making the MBS and CDO seem like even better investments. They figured that even if the borrower defaulted on […]