Through this piece, I wanted to share some of my knowledge on inflation as a driver of asset returns, and its outlook. Driver of Returns: On a fundamental level, inflation affects the price of future consumption, and thus how we behave as consumers. If the price of something is expected to rise in the future,Continue reading “Driver of Returns: Inflation”
Author Archives: Jesus Osuna
Pre-COVID Slowdown
Context: I wanted to work on this piece in order to provide context for the economic slowdown that was occurring before COVID-19 ever occurred. While the virus and the subsequent shutdown of the US economy are why we had such a poor Q/Q Q2 GDP number (-32.9%!), it would be wrong to assume that thisContinue reading “Pre-COVID Slowdown”
Options: Cash Secured Put
Facts: You sell a put at a certain strike price, where you do not mind purchasing the security if it were to be exercised Similar to the buy-write, ideally you want to sell puts at high levels of volatility, in order to earn a higher premium “Cash-secured” = You will have the necessary cash inContinue reading “Options: Cash Secured Put”
The Implications of ZIRP in 2020
For clarification, ZIRP refers to a central bank’s policy of setting their short term interest rates at 0 to 25 basis points. It represents one of a central bank’s strongest tools to spur economic activity, and is reserved for extreme circumstances, e.g., The Great Depression, Great Recession, and this Coronavirus shutdown in 2020. For aContinue reading “The Implications of ZIRP in 2020”
Gold Moving Forward
Gold’s Basic Facts: Commodity Used as a holder for wealth Denominated in US Dollars ETF Ticker: GLD (SPDR Gold Trust) Beta of ~ 0 with the S&P 500, which means that it moves both up and down with the stock market. This is due to the fact that unlike stocks, gold is not necessarily tiedContinue reading “Gold Moving Forward”
Options: Buy-Write
So I recently began an investment challenge in a mentorship program I am in, and I wanted to share what it was about and how the strategy works. Facts: A buy-write strategy involves buying an equity, yet simultaneously selling a call against it A trader would employ this strategy when they are neutral to slightlyContinue reading “Options: Buy-Write”
1/22/20
https://www.blackrock.com/us/individual/investment-ideas/what-is-factor-investing/factor-commentary/andrews-angle/growth-is-not-the-opposite-of-value I became aware of Andrew Ang’s work when I recently listened to him in an interview with Barry Ritholtz on his podcast, Masters in Business (Bloomberg Opinion). I learned a lot about what factor investing is, and it is something I will explore more in depth soon. I then decided to read more ofContinue reading “1/22/20”
12/18/19
https://www.morningstar.com/articles/932740/how-to-become-a-duration-detective I was reading this article and I found it to be very insightful. Essentially, it illustrates how, unlike equities, you can’t just look at the % of Net Assets that bonds hold within a portfolio to understand its true weight/impact on returns. To get a much greater understanding you have to look at theContinue reading “12/18/19”
12/3/19
Post Link I read this blog post from Tony DeSpirito, a Managing Director at BlackRock, and found his insight to be fascinating. At the end of the day, fundamentals > … when looking at investing in equities for the long-term. We have to be willing to stomach some headlines and be true to our fundamentalContinue reading “12/3/19”
11/26/19
I was on LinkedIn and came across this post from PIMCO. It summarizes how their asset allocation will be altered, given the expected economic slowdown in the United States. Essentially, in times like this, they value higher quality securities and a more defensive position. Here is the link to the post: https://www.linkedin.com/posts/pimco_investing-markets-recession-activity-6605108132886786048-qxz7
