Malt Liquidity

Malt Liquidity explores the intricacies of financial markets, trading strategies, and the impact of liquidity across various sectors. It delves into personal experiences, historical and theoretical analysis of finance, market dynamics, and the philosophical aspects of investing, providing insights into risk management, market behavior, and the legal frameworks surrounding trading activities.

Financial Markets Trading Strategies Market Liquidity Investing Philosophies Risk Management Legal and Regulatory Frameworks Personal Finance Economic Theory Market Dynamics Technology and Finance

The hottest Substack posts of Malt Liquidity

And their main takeaways

Lawyers, Coins and Money

5 implied HN points • 12 Oct 23
💰 Finance Cryptocurrency Trading Legal Court Proceedings Fraud
  1. During the trial of Sam Bankman-Fried and Alameda Research, evidence pointed towards potential fraud and mismanagement of funds, shifting the focus from trading competence to potential fraudulent activities.
  2. The testimony of key witnesses, Gary Wang and Caroline Ellison, revealed damning details about the misuse of customer funds, false financial statements, and manipulation within the organization.
  3. The trial shed light on the complex dynamics involving a hypercompetent coder, a junior trader, and a manipulative leader, emphasizing the need for accountability and transparency in the financial sector.

Critique of Pure Liquidity

10 implied HN points • 04 Dec 22
  1. Liquidity refers to the ease of buying or selling an asset, and can be applied broadly across various fields.
  2. In decision-making, it's important to consider liquidity's impact on theoretical values and realistic transactions.
  3. Decisions can be categorized into flooding (broad approach) and pinpointing (focused approach) based on how liquidity issues are addressed.

Tell Me Why (That Move Ain't Nothin but a Mistake)

8 implied HN points • 06 Feb 23
  1. It's difficult to assign a definitive reason to every stock move.
  2. Causality must be proven in a court of law for securities lawsuits.
  3. Sometimes stock movements may not make sense, like when Amazon's stock rose post-acquisition announcement.
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Malt Liquidity 72

8 implied HN points • 02 Dec 22
  1. Investing is driven by valuation based on future cash flow and market impact.
  2. Understanding catalysts like earnings can guide event-based trading decisions.
  3. Market behaviour can be influenced by factors like uncertainty in future cash flows and bid strength.

An Arbitrary Walk down Wall Street

3 implied HN points • 30 Aug 23
💰 Finance Markets ETFs Regulation Bitcoin Investing
  1. Good ideas in finance can quickly become mainstream and lose their original value.
  2. ETFs have changed the investment landscape by offering exposure to a wide range of assets with ease.
  3. The SEC's regulation decisions on financial products like Bitcoin ETFs can seem arbitrary and impact market dynamics.

The Malt Vault – Best of Malt Liquidity

6 implied HN points • 19 Nov 22
  1. The Weekend Edition includes a collection of popular posts for new and existing subscribers.
  2. Posts cover a wide range of topics in finance, from liquidity theory to market practices.
  3. Malt Liquidity is reader-supported and offers free and paid subscriptions for access to new content.

Malt Liquidity 67

5 implied HN points • 18 Nov 22
  1. The market reflects a company's future prospects based on its debt levels.
  2. Crypto trading volume is expected to be low due to recent industry turmoil.
  3. In a liquidity crisis, a company might have the assets to pay but not the short-term cash flow.

Malt Liquidity 55

8 implied HN points • 30 Dec 21
  1. Equities market may be losing momentum with reduced trading excitement
  2. Market dynamics show a push-and-pull effect in stock valuation influenced by institutions and individuals
  3. Chinese speculation regulations could impact the future of cryptocurrencies like BTC and ETH

Ven Reads

10 implied HN points • 15 Feb 21
  1. Ven shares categorized lists of finance nonfiction, business nonfiction, and other types of reading materials.
  2. The lists include book recommendations, newsletters, blog posts, satire and humor pieces, and even finance-related papers.
  3. Ven mentions that the lists are always a work in progress and will be updated over time.

The Best of 2021 I Experienced

6 implied HN points • 05 Jan 22
  1. Road trips can offer unique and memorable experiences
  2. Exploring local cuisine on the road can lead to unexpected culinary delights
  3. Listening to music on road trips can enhance the experience

Malt Liquidity 59

5 implied HN points • 18 Apr 22
  1. Elon Musk's purchase of Twitter shares shows a shift in tech luminary investments.
  2. Twitter, despite its issues, has a unique narrative control over powerful individuals.
  3. Betting on mergers involves considering the implied probability of the deal.

The Norton Juster Experience

8 implied HN points • 19 Mar 21
  1. Learning widens the universe of things you may question.
  2. Keeping your mind active is crucial for mental well-being.
  3. Question things and search for nuance to stay informed.

Trading Day 3

8 implied HN points • 15 Mar 21
  1. Observing and learning is key in new environments
  2. Market fluctuations are natural, and trading can capitalize on them
  3. Professions can reveal themselves through subtle clues

Malt Liquidity 50

6 implied HN points • 07 Oct 21
  1. Small sizing gives an edge in markets by minimizing price impact.
  2. Market makers often fill orders at bid-ask midpoint, benefiting traders.
  3. Be cautious with crypto trading on platforms like Robinhood due to opacity and potential manipulation risks.

The Trader's Inherent Vice

1 implied HN point • 30 Oct 23
💰 Finance Trading Quantitative finance Risk management
  1. Every good trader should want to bet more, despite the risks involved.
  2. Rogue traders in finance can operate as a 'fourth-wall break' showing the gambling aspect behind the industry.
  3. In a highly automated trading environment, even small unauthorized changes to models can have significant financial impacts.

Malt Liquidity 51

5 implied HN points • 13 Oct 21
  1. Restaurants need to buy ads to recover from losses during 2020.
  2. China's crackdown on financial institutions could impact debt liquidity.
  3. Deutsche Bank scandals and index fund improprieties continue in finance.

Malt Liquidity 49

5 implied HN points • 29 Sep 21
  1. China is tightening control over its currency market to curb speculation
  2. US college endowments see significant gains thanks to speculative investments
  3. China's Belt and Road Initiative has led to hidden debts in lower and middle-income countries

Malt Liquidity 45

5 implied HN points • 30 Aug 21
  1. The value of watches and NFTs can't be just in their practical use.
  2. Retail traders often prioritize price prints over market depth.
  3. Scarcity drives value in NFTs and other assets, leading to market manipulation.

The Balkanization of College Football

1 implied HN point • 23 Sep 23
🎾 Sports College Football NCAA Playoffs Sports culture
  1. The lifespan of college football coaches is short, mirroring the trend of rapid success and replacement.
  2. College football revenue has more than tripled since 2003, with a focus on plowing money into massive football programs.
  3. The college football system underwent changes with the BCS, playoffs, and player transfers, leading to a focus on revenue over traditional aspects of the sport.

Malt Liquidity 41

6 implied HN points • 31 Mar 21
  1. Leverage can lead to financial blowups in trading
  2. Goldman and Morgan Stanley made strategic moves in Archegos liquidation
  3. Credit Suisse faced significant losses in the Archegos situation

Liquidity 101

6 implied HN points • 12 Mar 21
  1. Liquidity in trading is crucial for determining asset prices.
  2. Two types of liquidity in stocks: trading volume and order book size.
  3. Market manipulation can occur by exploiting liquidity imbalances.

Everybody Hates Gary

1 implied HN point • 12 Sep 23
💰 Finance Securities Regulation Market structure Compliance
  1. Defining a fair market is complex and involves intricate operations and risk mitigation strategies.
  2. The SEC's role encompasses protecting investors, maintaining market fairness, and facilitating capital formation.
  3. Increased SEC regulations may unintentionally benefit large players, making it crucial to close loopholes accessible only to wealthy investors.

Malt Liquidity 28

6 implied HN points • 01 Feb 21
  1. Robinhood faced financial strain due to high volatility in trading, especially with GME.
  2. Delay in stock trade settlement created cash flow issues for Robinhood.
  3. Robinhood's reliance on clients' trading volume for revenue posed risks during market turbulence.

Malt Liquidity 39

5 implied HN points • 16 Mar 21
  1. Legal disclaimers do not absolve responsibility for unlawful actions like stock manipulation.
  2. Promotion of stocks on platforms like Twitter can lead to legal trouble.
  3. Goldman Sachs shifts focus from risky financial products to retail services.

Malt Liquidity 37

5 implied HN points • 09 Mar 21
  1. Central banks' market behavior can influence investor actions
  2. Investor behavior may be driven by fear of devaluation rather than traditional market factors
  3. Market scenarios point to potential outcomes like runaway inflation or wealth transfers

Malt Liquidity 36

5 implied HN points • 04 Mar 21
  1. Value in investments can shift when traditional money loses its importance.
  2. Speculation in financial markets can reflect shifts in the perception of value.
  3. Crypto transactions can represent gains in clout relative to cash value.

Malt Liquidity 31

5 implied HN points • 11 Feb 21
  1. Cultural trends and behaviors can spread widely through coercion and network effects.
  2. People tend to follow similar topics and trends globally, influenced by various sources and mediums.
  3. The internet and social media platforms have a significant impact on shaping collective thoughts and behaviors.

Malt Liquidity 58

3 implied HN points • 21 Jan 22
  1. Retail investors are challenging the notion of 'smart money' vs 'dumb money'
  2. The Federal Reserve is considering a US digital currency, but its benefits are questionable
  3. The financial industry is adapting to new challenges like growth limitations and changing dynamics in cryptocurrency trading

Trading Day 4

3 implied HN points • 03 Jan 22
  1. The life of a trader can be unpredictable and challenging.
  2. Knowing when to step away and return capital is a difficult decision.
  3. Success in the financial world can be fleeting and maintaining reputation is tough.

Malt Liquidity 54

3 implied HN points • 16 Nov 21
  1. Malt Liquidity 54 discusses a lawsuit between JP Morgan and Tesla over warrant adjustments.
  2. Tesla's tweet about securing funding triggered a series of warrant repricings.
  3. Options trading can have complex consequences, like the need for hedging and potential legal disputes.

Malt Liquidity 53

3 implied HN points • 08 Nov 21
  1. Manufacturing large blocks of shares is complex
  2. Uber's pricing algorithm impacts customer perception
  3. Uber's profitability is questionable despite high valuation

Malt Liquidity 48

3 implied HN points • 27 Sep 21
  1. Retail traders are moving away from the stock market due to boredom and exhaustion from overstimulation.
  2. Institutional investors prioritize stable long-term yields over day-to-day fluctuations in the market.
  3. Trading volumes are dwindling as retail traders seek out volatility and reasons to continue trading.

Malt Liquidity 46

3 implied HN points • 07 Sep 21
  1. The criteria for stock inclusion in passive indexes like the S&P 500 can be arbitrary.
  2. China's handling of corporate defaults and debt issues is showing potential risks and transparency concerns.
  3. Effective regulation in China for issues like celebrity worship and data protection is impressively swift.

Infinite Liquidity 1

3 implied HN points • 31 Aug 21
  1. Jérôme met someone under a fake name and had a surprisingly deep conversation.
  2. Jérôme received a mysterious DVD that captivated him with a potential stock market prediction.
  3. The story ended with a mysterious letter suggesting completion of a task.

Malt Liquidity 40

3 implied HN points • 23 Mar 21
  1. Stonks go up regardless of numbers and rules
  2. Be cautious about unrealistic projections in investments
  3. Public ETF managers should act in the best interests of clients

Trading Day 2

3 implied HN points • 07 Mar 21
  1. Reflecting on life being consumed by charts and suits, where money is the only focus.
  2. Contemplating the lonely isolation of flying and the darkness of crashing thoughts.
  3. Debating the concept of privilege and the disconnect between wealth and happiness.