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

Real Estate and the Efficient Market Hypothesis

Real Estate and the Efficient Market Hypothesis

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

Editor’s Note: A version of this appeared in the San Antonio Express News. Dignowity Hill is a historic neighborhood in San Antonio balanced precariously – for the moment – on the cusp of hipsterism, about to fall into the ‘gentrified’ category. For anyone who has strongly held opinions about gentrification, let me assure you this post has [&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