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

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 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

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.

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 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.
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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 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.

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.

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 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 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 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.

Malt Liquidity 35

3 implied HN points • 01 Mar 21
  1. Customer retention may not always be a priority for businesses amid economic pressures.
  2. Zero interest rate policies (ZIRP) can have significant impacts on financial markets and business strategies.
  3. Cheap capital from ZIRP can lead to risky business practices, like depending on acquisitions for profitability.

Trading Day 1

3 implied HN points • 28 Feb 21
  1. In the trading world, making money is what matters most at the end of the day.
  2. Accuracy in timing is crucial, whether it's with a mechanical watch or in trading.
  3. Quick thinking and decision-making are essential in fast-paced trading environments.

Malt Liquidity 24

3 implied HN points • 22 Jan 21
  1. FNMA remains a government-controlled entity since 2008.
  2. Hedge funds bet on preferred shares of FNMA for profits.
  3. Hedge fund letters show challenges in a market influenced by retail traders.

Malt Liquidity 19

3 implied HN points • 13 Jan 21
  1. When commodity prices rise, it's usually due to supply decreasing or demand surpassing supply, artificially limited supply can also lead to price increases.
  2. Lobster's transformation from cheap peasant food to a premium product shows the impact of artificial scarcity and changing consumer tastes.
  3. Overpopularity of ETFs like ARKK can lead to issues with deploying capital effectively, causing overexposure to certain holdings and liquidity concerns.

Malt Liquidity 18

3 implied HN points • 12 Jan 21
  1. Trading returns might not be skill-dependent, but knowing when to de-risk is important.
  2. Companies like Zoom offering shares at a discount can indicate overvaluation.
  3. Hedge fund managers are shifting to ETF models for lower fees and public investment, impacting the industry.

Malt Liquidity 57

1 implied HN point • 10 Jan 22
  1. Stock prices reflect future cash flow expectations but can also be influenced by immediate entertainment value and clout.
  2. Fund managers avoid keeping unallocated dollars by investing in long-term growth assets.
  3. Market fluctuations may be driven by boredom and a desire for better uses of money than speculative investments.

Malt Liquidity 56

1 implied HN point • 04 Jan 22
  1. The market is flooded with cash and investors are making risky decisions due to excess liquidity.
  2. The real estate market is experiencing a frenzy with record mortgage lending fueled by inflation concerns and low interest rates.
  3. Hedge funds are struggling to outperform the S&P 500 with limited opportunities for value in a market dominated by a few key stocks.

Malt Liquidity 52

1 implied HN point • 19 Oct 21
  1. Shifting from fossil fuels poses economic challenges and compliance dilemmas worldwide.
  2. SEC scrutinizing retail broker-dealers for incentivizing users with gamification and trading incentives.
  3. Internalization of trades by companies like Citadel and Virtu supports retail trading frenzy theories on stocks like GME.

Infinite Liquidity 2

1 implied HN point • 06 Sep 21
  1. Venture capital landscape has evolved from funding risky ventures to investing in modern 'innovations'.
  2. Innovation is seen as changing the world to fit one's vision fueled by investment.
  3. Adapting to changing technology and society is necessary, exemplified by the realization of an electric car.

Malt Liquidity 34

1 implied HN point • 24 Feb 21
  1. Arturo Di Modica, sculptor of the Wall Street 'Charging Bull', passed away
  2. Adam Neumann to settle with SoftBank for a $500 million payout cut
  3. Retail investors make a comeback with stock market memes

Malt Liquidity 29

1 implied HN point • 02 Feb 21
  1. Some companies are repackaging concepts in the food industry, similar to the 'x app but for y' model.
  2. Chipotle's shift to drive-throughs highlights the importance of adapting old-school strategies in the digital age.
  3. Short selling is risky, especially with volatile stocks like GME, and using options can be a more strategic approach.

Malt Liquidity 25

1 implied HN point • 25 Jan 21
  1. A remarkable trade turned $50,000 into $25-30 million, staying open through GME surges.
  2. Considering AMC's rise due to high short interest and market mechanics for survival.
  3. Ripple's future in jeopardy due to SEC lawsuit, highlighting compliance challenges for public companies.

Malt Liquidity 21

1 implied HN point • 15 Jan 21
  1. Short squeeze is about demand manipulating liquidity to squeeze prices higher
  2. To successfully short a stock, traders need a catalyst and must be right about timing
  3. Coordination and volume are key in executing successful short squeezes

Malt Liquidity 20

1 implied HN point • 14 Jan 21
  1. Active ETFs can be like tradeable hedge funds with public knowledge of trades
  2. James Simons, considered one of the greatest traders, steps down from his fund
  3. GameStop's stock surge is driven by coordinated retail demand targeting short sellers

Malt Liquidity 16

1 implied HN point • 07 Jan 21
  1. The analysis discusses the potential delisting of Alibaba and the impact on options trading.
  2. The example of insurance fraud in Russia and Japan highlights unique fraudulent practices.
  3. Various financial news topics such as Fed stimulus plans and Roblox's valuation are briefly mentioned.