Season Investments



The Babe Ruth Effect

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

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.

What is a Rate Hike Anyway?

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.

8th Wonder of the World

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.

Weathering The Storm

There has been a lot of talk lately about the intensifying El Nino and what it could mean for the upcoming winter season. But as for us, our attention has been more focused on the violent storm that has already hit land, the one that has been moving through financial markets during the month of August.