Archive for the ‘Wall Street’ Category

Gross to Janus - Wait, What?!?!

Gross to Janus – Wait, What?!?!

By The Banker | Blog Posts, Investing, Wall Street

This makes zero sense. PIMCO founder Bill Gross will join Janus Funds? If you founded and built the largest bond fund company in the world, If your name is synonymous with that company, If you are the rockstariest rockstar of bond managers (if such a thing can exist), Why would you ever quit that firm [&hellip

Book Review: A Random Walk Down Wall Street

Book Review: A Random Walk Down Wall Street

By The Banker | Book Reviews, How Not To Invest, Investing, Personal Finance, Wall Street

First published forty years ago, A Random Walk Down Wall Street by Burton G. Malkiel is one of those books – much like Benjamin Graham’s The Intelligent Investor – more referred to than actually read. Malkiel’s central thesis – that equity markets are so efficient at pricing stocks relative to their risk that the vast majority of [&hellip

The Giffen Good Concept Applied To Investments

The Giffen Good Concept Applied To Investments

By The Banker | Blog Posts, How Not To Invest, Investing, Personal Finance, Wall Street

Editor’s Note: A version of this post appeared in the San Antonio Express News “So…Money” column. The only “C” I got in college was in Intermediate Macroeconomics, but I remember one economics term that I really loved — the “Giffen Good.” With ordinary, rational, economic behavior, we expect that when prices go up, people buy [&hellip

Options Part III - Delta Hedging

Options Part III – Delta Hedging

By The Banker | Blog Posts, How Not To Invest, Investing, Wall Street

Please see related posts Options Trading Part I – NFW Edition Options Trading Part II – The Currency of Options Trading   For the next little bit I’ll use a specific made-up example, of a fictional pet insurance company[1] with ticker symbol PAWS.[2] Let’s say PAWS shares trade at $100 per share, and I am [&hellip

Options Trading Part II - The 'Currency' of Options

Options Trading Part II – The ‘Currency’ of Options

By The Banker | Blog Posts, How Not To Invest, Investing, Wall Street

Please see related introductory Post: Options Trading Part I – NFW Edition How Wall Street thinks about options trading Non-professionals who engage in options typically do not understand the ‘currency’ in which they’re trading. By ‘currency’, I don’t mean option-users remain unaware of their US dollars. I mean that professional options traders use a mathematical valuation [&hellip