My personal opinion on the world’s current affairs. Their possible impact consequences and ways to navigate this complex world.

Inflation and Purchasing Power

Different goods and service have different inflation ratesInflation usually refers to Consumer (or Producer) Price Index which is a broad-based measurement of inflation across goods and servicesInflation measures the increase in price of goods or services.If $1 could buy an apple last year and inflation was 50%. This year, the…

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Inflationary Assets

Previously, we have went into what is inflation and its causes.In this article, we will be going into the asset classes that perform in times of inflation. Cash is Trash Cash would always have 0% return. And especially in times of inflation, cash could be seen as having negative real return.Investors…

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Growth Stock & Interest Rate

Growth stocks are priced in with explosive growth expectationDue to discounting effect, future earnings are prone to changes in interest rate. When interest rate raise, these future cashflows would be heavily discountedGrowth stocks are highly dependent on their future earnings/cashflows.It is not rare to see that when companies release their earning report, that…

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COVID-19 Crash: Tail Hedge and the Convexity within IV

Put options are one of the main tools used in hedging against a black-swan event, a market crash with unpredictable cause and severe impact.The recent COVID-19 market crash where the SPY crashed 33% from 340 to 228 is an example of a black-swan event. Unpredictable with severe impact. Almost all…

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