Reminiscences Of A Young & Naïve Financier

The purpose of this newsletter is to keep my mind fresh (and hopefully others) on topics within finance, statistics and the investing universe.

The hottest Substack posts of Reminiscences Of A Young & Naïve Financier

And their main takeaways

Managing My Portfolio Beta

19 implied HN points • 08 Apr 23

💰 Finance Investing Portfolio Management Risk management Financial Markets

Consider switching to cash if you believe the market is overvalued, and buy assets back during market drawdowns.
Understand and manage your portfolio's beta, which measures its sensitivity to the market.
Use futures contracts on market indexes to hedge your portfolio and adjust its beta during volatile times.

The Wild Nature of Correlations

19 implied HN points • 28 Feb 23

💰 Finance Investing Correlations Market Analysis Asset allocation Financial Modeling

Correlations vary widely over different time intervals, affecting asset allocation decisions.
Shorter time intervals show smaller correlations, while longer intervals have greater variability.
Conservative estimates of correlations using consistent shorter intervals may be more reliable for projecting into the future.

Asking ChatGPT to visualize the benefits of Diversification

19 implied HN points • 04 Feb 23

Only one third of the world population is considered financially literate.
Diversification reduces portfolio volatility by spreading investments across multiple stocks.
Simulating scenarios can visually highlight the benefits of diversification in investing.

The Real Rate ChatGPT Rap Edition

19 implied HN points • 29 Jan 23

Real rate is a payment for delaying consumption, saving, or investing.
Real rate is influenced by expectations, wealth, income levels, and the business cycle.
Factors like economic expansion, consumer spending, and business volatility impact the real rate.

How I am using ChatGPT when reading about finance or anything really

0 implied HN points • 29 Jan 23

Using ChatGPT to separate fact from opinion in finance articles
ChatGPT helps understand an author's bias or perspective
Utilizing ChatGPT as a second pair of eyes while learning

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The "Digital Financial Nomad"

0 implied HN points • 11 Aug 21

The digital world has changed with the internet and Covid, opening up remote work opportunities globally.
Digital financial nomads will earn income digitally from various sources worldwide and need tools to manage both work and travel.
Creating a budget and using financial and travel apps will help digital financial nomads achieve their future goals.

Investing for Young Artists

0 implied HN points • 20 Aug 21

Investing is simple, spending can be risky. Live below your means.
Open a ROTH IRA account and contribute regularly, even a small amount helps.
Invest in diversified stock market ETFs, don't check your account daily, and aim for long-term growth.

How to build an optimal portfolio?

0 implied HN points • 21 Feb 23

💰 Finance Investing Portfolio Management Diversification Asset Classes Risk management

Risk and return are interconnected in investing - higher risk typically means higher expected return.
Diversification is key to building an optimal portfolio - uncorrelated assets help to reduce risk while maintaining returns.
Asset classes like Gold, even with historically low returns, can play a vital role in a diversified portfolio due to their uncorrelated benefits.