Back in 2013, the term unicorn was coined to describe private technology companies that were valued at over $1 billion. At that time there were only 36 unicorns, but today that number has increased by almost 400% with 142 unicorns collectively worth over half a trillion dollars.
It is in the midst of economic and financial market turmoil that investors typical make their biggest mistakes, so by preparing ahead of time for those environments we can mitigate the risk of the regret-driven decisions that would cause major setbacks to our clients’ long-term objectives.
For those of you who have been working with us for any amount of time you know that philosophy, process and discipline are extremely important to how we manage money. We firmly believe that there is no silver bullet when it comes to investing.
Because so much emphasis is put on how to make money rather than how to keep the money you make, a lot of people fall prey to the rat race of working their entire lives but never feeling a sense of freedom to pursue their dreams and desires.
Roughly eight years ago the subprime mortgage lending crisis began unfolding here in the US, eventually leading to the global financial crisis and multiple years of economic hardship. Today the auto industry appears to be repeating these same sins of the past.
Last week Elon Musk announced a new autopilot feature for the Tesla model S. This type of intersection between man and machine is not new, but when it comes to automation, the normal human tendency is to resist the change based on a certain level of distrust that the machine will not be able to properly execute the task at hand.
We have often argued that chaos theory has a lot to teach us about global economics. The seemingly infinite confluence of factors all intersecting in the economic space time continuum make it very difficult to decipher what current data means for the future.
Over the past several years, no sector in the US stock market has been hotter than US Biotechnology companies. Yet one tweet by one very influential person erased billions of dollars of shareholder value in a single day.
Babe Ruth's career batting average was .342 implying that roughly two-thirds of his at bats resulted in an out, yet for every 10 at bats he gained roughly 7 bases. Trend following investment strategies exhibit this same effect in that they have relatively low batting averages but a very high expected slugging percentage.
Decisions under uncertainty can be mapped out in order to optimize each decision based on the probability of different outcomes. In today’s post, we will walk through a brief example on decision theory and show how it relates to investing.
We are now entering a new phase of the Fed cycle. After nearly seven years of zero percent interest rates we are finally on the precipice of an interest rate increase. In light of this, we thought now would be a good time to dig into what all this rate hike talk really means.
Unfortunately our education system and spendthrift society do a very poor job emphasizing the importance of saving at a young age in order to harness the full potential of what Albert Einstein considered to be the 8th wonder of the world. In this week’s Insight we will unpack the miracle of compound interest to hopefully encourage our readers to save early and often.