Featured

🔺More than an Education System, Misallocation of Human Capital, Top-Down/Bottoms-Up Disconnect between Human Allocation/Tools Provided vs. Needed & Build-Up of Student Debt

The education system is so much more than merely an education system. In fact, it serves many different purposes. For example, in the early years, the education system acts as the parents when the parents are not present (especially in broken households - even more important). The education system also serves as an allocator of … Continue reading 🔺More than an Education System, Misallocation of Human Capital, Top-Down/Bottoms-Up Disconnect between Human Allocation/Tools Provided vs. Needed & Build-Up of Student Debt →

Featured

🔺 Pace of Hyper-Globalization as Analog for Automation, Forced Displacement, Social Safety Net, and Job Placement/Transitions

I read an article by Paul Krugman describing the impacts of hyper-globalization and how that impact is largely behind us meaning continued globalization is unlikely to have the same impact as it did before in terms of seeing industries completely vanish in the United States. This suggests that from an S-Curve function perspective globalization is … Continue reading 🔺 Pace of Hyper-Globalization as Analog for Automation, Forced Displacement, Social Safety Net, and Job Placement/Transitions →

Featured

🔺 The Interchangeable Relationship Between Crytpocurrency Conversion and Investment Value/Perception while Delineating Speculation

In general, cryptocurrencies and blockchain have certain features such as transparency, encryption, safe contracts, built-in trust protocol, etc. that are quite favorable which can increase efficiency, reduce layered costs, etc. That being said, there are some things that should be understood about cryptocurrencies: 1. Mining cryptos is extremely energy intensive - this limits the expansion … Continue reading 🔺 The Interchangeable Relationship Between Crytpocurrency Conversion and Investment Value/Perception while Delineating Speculation →

Featured

🔺The 3 Ways To Extract Money from/7 Key Fundamentals of the Property Markets and Underpinnings of 2007-2008 Housing Crisis

In its simplest form, there are only three fundamental ways to extract money from the property markets: 1. Sell, 2. Rent, or 3. Borrowing against the Equity. Those fundamentals are largely driven by seven key fundamentals: 1. Demographics, 2. Household Formation Rates, 3. Rising Incomes, 4. Zoning Policies, 5. Immigration, 6. Foreign Capital and 7. … Continue reading 🔺The 3 Ways To Extract Money from/7 Key Fundamentals of the Property Markets and Underpinnings of 2007-2008 Housing Crisis →

Featured

🔺Market Structure Asymmetry, Information Flows/Asymmetries, Sell-Side Catch-22’s and How this Limits Current Valuation Models

Market Structure:The underlying structure of the stock market is asymmetrical in nature and structured in such a way that there is more of an upward bias as it is easier to buy a stock than it is to short-sell a stock. This is on purpose and largely due to two factors 1). The fundamental role … Continue reading 🔺Market Structure Asymmetry, Information Flows/Asymmetries, Sell-Side Catch-22’s and How this Limits Current Valuation Models →

Featured

🔺Why of Course! However, there is a Catch……..22

Anybody who has ever had to make a decision (basically everyone on the planet) will eventually encounter the insidious Catch-22. What is this Catch-22 you speak of? Glad you asked. Well, let's refer to our trusted friend Webster: Catch-22 (noun) - A dilemma or difficult circumstance from which there is no escape because of mutually … Continue reading 🔺Why of Course! However, there is a Catch……..22 →

Featured

🔺A 50% Gain Doesn’t Equate to Breaking-Even on a 50% Loss

One of the most important and often forgotton concepts is the percentage relationship between gains and losses. Why is it so important? Because the relationship is non-linear. Therefore, required gains to break-even grow exponentially as losses increase in percentage terms. For example, if you bought a stock that is priced at $10 and it goes … Continue reading 🔺A 50% Gain Doesn’t Equate to Breaking-Even on a 50% Loss →

Featured

🔺Businesses are Innovations in and of Themselves and Job Creators

The basic underpinnings of the economic model are such that businesses start off small as a simple idea and, if successful, grow to typically become larger, incorporated businesses that are either private or public in nature with the residual benefit accruing to the owners (not necessarily the founders.) Moreover, at various stages of development when … Continue reading 🔺Businesses are Innovations in and of Themselves and Job Creators →

Featured

🔺A Biological Approach to Finance and Economics

Nature is an extraordinarily great teacher to learn from. However, all to often, it seems humans view themselves as separate and distinct from nature rather than realize we are a part of nature, causing us to not discern its lessons. There are many models from nature and biology that can be applied to finance, although … Continue reading 🔺A Biological Approach to Finance and Economics →

Featured

🔺A Businesses’ Greatest Costs are Intangible in Nature

When I think about the title "A Businesses' Greatest Costs are Intangible in Nature," I also think about Albert Einstein's saying, "Not Everything that Counts can be Counted and Not Everything that can be Counted Counts." Those things that cannot be counted are the intangibles. Hence, it is difficult to quantify intangible costs as many … Continue reading 🔺A Businesses’ Greatest Costs are Intangible in Nature →

Featured

🔺Interplay and Limitations Between Age Cohorts, Investment Needs, Search for Yield, and Institutional Confines

There is a unique interplay between the distribution of age cohorts, the investment needs of those age cohorts, the search for Yield, and corresponding institutional confines that limit the investment opportunity set. In general, a country wants to be in a situation where it has more people working vs. retiring and more births than deaths … Continue reading 🔺Interplay and Limitations Between Age Cohorts, Investment Needs, Search for Yield, and Institutional Confines →

Featured

🔺New Model: Impacts of Forced Displacement and Built-In Solution

A countries’ development is merely a spectrum. That developmental spectrum can follow the developmental stages of other countries or the developing country can leapfrog based on 1. Its understanding of how other countries developed; 2. Its own unique dynamics and/or 3. Technological advances. As countries become more developed, there is less of a need to … Continue reading 🔺New Model: Impacts of Forced Displacement and Built-In Solution →

Featured

🔺Putting Depreciation of the Yuan in Perspective and the Folly of Global Currency Depreciation

At the outset, it is important to understand the fallacy of composition regarding the depreciation of global currencies to gain an illusory export advantage. If a country weakens its currency, it will gain an export advantage, all else equal. However, nothing operates in a vacuum. When other countries depreciate their currencies to gain an export … Continue reading 🔺Putting Depreciation of the Yuan in Perspective and the Folly of Global Currency Depreciation →

🔺What is Democracy, Types of Democracies, Why All Governance Systems (8 Democracies, Monarchy, Authoritarianism, and No Governance) Require the Greatest Good for the Greatest Number (Utilitarian Principle), Democracy is Not Capitalism, & Democracy vs. Capitalism – Who Wins?

The definition of a democracy (noun) is: A system of government by the whole population or all of the eligible members of a state typically through elected representatives. Despite the defintion and constant repitition of the phrase democracy, it is important to be distinct and to state what type of democracy is being advocated as … Continue reading 🔺What is Democracy, Types of Democracies, Why All Governance Systems (8 Democracies, Monarchy, Authoritarianism, and No Governance) Require the Greatest Good for the Greatest Number (Utilitarian Principle), Democracy is Not Capitalism, & Democracy vs. Capitalism – Who Wins? →

🔺 “Caveat Emptor” Lacks Accountability and Serves No Purpose

If left to its own devices, the private sector can act in such a way so as to only benefit itself at the expense of others creating A Tragedy of the Commons - examples abound. Moreover, it is in the inherent interest of the private sector to advocate for laws, policies, and regulations that benefit … Continue reading 🔺 “Caveat Emptor” Lacks Accountability and Serves No Purpose →

🔺 The Scientific Method and Why Failure Does Not Exist – it is Simply Feedback

The scientific method is a process for solving problems. The typical scientific method is a 7-step iterative process consisting of: 1. Making an Observation, 2. Asking a Question, 3. Doing Background Research, 4. Forming a Hypothesis, 5. Conducting an Experiment, 6. Analyzing Results and Drawing a Conclusion and 7. Reporting/Sharing Results. If the results are … Continue reading 🔺 The Scientific Method and Why Failure Does Not Exist – it is Simply Feedback →

🔺All Investors Make Investments with the Expectation to Make Money – Otherwise they Wouldn’t Make the Investment in the First Place

All investors make investments with the underlying expectation to make money, otherwise, they would not make the investment in the first place. This is precisely why there should not be any delineation in style between value and growth investing as both styles fundamentally are being made with the expectation to make money. Quite simply, 1). … Continue reading 🔺All Investors Make Investments with the Expectation to Make Money – Otherwise they Wouldn’t Make the Investment in the First Place →

🔺Ineffectiveness of the United States Tax Cuts and Jobs Act (USTCJA)

(Note: Originally published 7/8/2018 @https://patreon.com/diamond1) In a general sense, the larger and more bloated a government becomes from a combination of reckless fiscal spending, unsound monetary policy, and oppressive laws, the more that government will have to increase taxes on citizens, goods/services, other countries, or financial markets. The United States Tax Cut and Jobs Act … Continue reading 🔺Ineffectiveness of the United States Tax Cuts and Jobs Act (USTCJA) →