The hottest Assets Substack posts right now

And their main takeaways
Category
Top Finance Topics

Could the USD Hyperinflate?

The Informationist • 1592 implied HN points • 07 May 23
💰 Finance Inflation Markets Currency Investments Assets
  1. Hyperinflation is when a currency loses value rapidly due to extreme inflation.
  2. Some currencies have hyperinflated in the past, like those of Yugoslavia, Zimbabwe, and Hungary.
  3. While there is a chance the USD could hyperinflate, it is likely one of the last currencies to do so and owning hard assets can help protect against hyperinflation.
Get a weekly roundup of the best Substack posts, by hacker news affinity:

Are TIPS and I-Bonds Good Investments?

The Informationist • 963 implied HN points • 28 May 23
💰 Finance Investments Bonds Inflation Government Assets
  1. TIPS are Treasury Inflation-Protected Securities that protect investors from inflation by adjusting principal based on changes in CPI.
  2. I-Bonds are similar to TIPS in protecting from inflation, but have fixed rates and are not tradable in the secondary market.
  3. Both TIPS and I-Bonds are highly dependent on CPI for pricing and may not offer positive real rates of return in the real world.

Simple Portfolios

Market Sentiment • 923 implied HN points • 16 Jul 23
💰 Finance Investing Portfolios Diversification Assets Funds
  1. Steve Edmundson's successful investment strategy was to do as little as possible, keeping costs low and not trying to beat the market.
  2. Investing doesn't have to be complicated - simple portfolios like the 60/40, Cockroach, and 3-Fund portfolios can be the foundation for long-term success.
  3. Ray Dalio's All Weather Portfolio aims to perform well over time without predictions, with an asset allocation of 55% bonds, 30% stocks, and 15% commodities.

The Hidden Bank Panic

The Dollar Endgame • 259 implied HN points • 12 Mar 24
💰 Finance Banking Economy Regulations Capital Assets
  1. Institutions are requesting the Fed to exclude Treasuries from their leverage ratios post the Bank Term Funding Program, which is causing concern within the financial industry.
  2. Capital requirements in banks are crucial for preventing insolvency, with risk-based and leverage ratios being the two main types of requirements.
  3. Leverage ratios do not consider the risk levels of assets and require banks to maintain a specific ratio of capital to assets, helping ensure financial stability.

Liquidation.

News Items • 216 implied HN points • 29 Jan 24
💰 Finance Companies Economy Assets Bankruptcy
  1. China Evergrande Group received a liquidation order from a Hong Kong court, amid its massive debt of over $300 billion.
  2. The liquidation process will involve attempting to seize control of Evergrande's assets outside China, including Hong Kong-listed subsidiaries.
  3. The outcome of the liquidation will be a test of Hong Kong court's legal reach and the handling of asset sales in a struggling industry.

Real World Assets: Growing Pains

DeFi Education • 359 implied HN points • 30 Aug 23
🔮 Crypto Blockchain Finance Assets Technology Investment
  1. Real World Assets (RWAs) aim to integrate physical items like homes and cars into blockchain technology for easy transaction documentation. This can make buying or selling things more transparent and straightforward.
  2. The concept of RWAs is part of a larger vision for a future where all assets can be managed using digital systems. This could revolutionize how we handle ownership and exchanges.
  3. There are challenges in making RWAs a reality, indicating that while the idea is promising, there are still many hurdles to overcome before it can be widely adopted.

Making Bonds in DeFi

DeFi Education • 439 implied HN points • 05 Jul 23
🔮 Crypto DeFi Blockchain Investments Regulation Assets
  1. DeFi often feels disconnected from the real world because it primarily uses digital tokens within its own systems. To bridge this gap, there's a push to connect real-world assets to DeFi, called RWAs.
  2. New funds like SuperState aim to provide stable, low-risk investments linked to U.S. government securities, making it easier for crypto users to access traditional financial products.
  3. Regulatory issues and market trust are key challenges for DeFi and RWAs. For DeFi to grow, there needs to be better cooperation with existing legal systems and traditional finance to foster a true merge of both worlds.

Anatomy of a Narrative

DeFi Education • 739 implied HN points • 04 Oct 22
🔮 Crypto Investing Assets Narratives Market Analysis Decentralization
  1. Storytelling is really important in investing. It can help make a company seem more valuable even if the numbers don't add up.
  2. People often make quick decisions based on emotions rather than cold hard facts. This means understanding the narrative behind an investment is key.
  3. It's important to balance narrative and data when investing. Too much focus on one can lead you to miss opportunities or take on more risk.

RWA Deep Dive: Centrifuge

DeFi Education • 1079 implied HN points • 07 Apr 22
🔮 Crypto Blockchain Assets Lending DeFi Finance
  1. Centrifuge connects real-world assets to blockchains. It helps digital assets become loans using real things like invoices.
  2. The main product, Tinlake, helps create lending markets based on tokenized assets. This makes it easier for businesses to get financing.
  3. Centrifuge is part of a growing trend to bring traditional finance and blockchain together. This could change how we think about loans and investments.

Alternative Assets Explained

Concepts of Finance 🧠 • 279 implied HN points • 22 Jun 23
💰 Finance Investing Assets Financial Education Market Trends Wealth Management
  1. Alternative assets are investments that aren't traditional stocks or bonds. They can include things like real estate, collectibles, and even parking lots, giving you many options to consider.
  2. Many people think only the rich can invest in alternative assets, but that's not true. There are plenty of investment opportunities available for regular investors too.
  3. Investing in alternative assets can be risky, but it also offers a chance to diversify and potentially earn good returns. It's important to research and understand what you're getting into.

Stablecoins: Reinventing Dollars

DeFi Education • 919 implied HN points • 10 Dec 21
🔮 Crypto Stablecoins DeFi Finance Blockchain Assets
  1. Stablecoins are a type of cryptocurrency that is usually backed by another asset, like the US dollar. They help make trading easier and allow people to transfer money quickly and cheaply.
  2. There are different types of stablecoins, like centralized ones (USDT and USDC) that are backed by fiat currency, and decentralized ones (DAI) that use overcollateralization to maintain their value. Each type has its pros and cons.
  3. Stablecoins play an important role in the crypto world and traditional finance. There is lots of interest in creating better decentralized stablecoins, as they could improve the overall system and reduce reliance on centralized finance.

Demystifying Liquidity

DeFi Education • 659 implied HN points • 01 Mar 22
🔮 Crypto DeFi Liquidity Assets Trading Economics
  1. Liquidity means how easily you can buy or sell something without changing its price too much. Cash is the most liquid because it can be used right away.
  2. In crypto, anyone can provide liquidity by pooling two assets for others to trade against. This is not something you can do in regular finance.
  3. Measuring liquidity is important because it helps understand how quickly you can make transactions. If an asset has low liquidity, selling it can be harder and may hurt the price.

Curve Part 2 - Valuation and Q&A

DeFi Education • 839 implied HN points • 09 Aug 21
🔮 Crypto Valuation Analysis Investing Assets Market Trends
  1. Understanding the valuation of CRV is important for making informed investment decisions. It helps you see how valuable this asset could be based on different factors.
  2. The content emphasizes that what is shared is not a definitive valuation or recommendation. It's meant to be a guide for your own assessment.
  3. Engaging with the valuation framework allows individuals to grasp the potential for value accumulation and how to interpret it. This enhances your ability to analyze the asset effectively.

Alternative Investments #4 - Farmland

Concepts of Finance 🧠 • 99 implied HN points • 09 Aug 23
💰 Finance Investing Assets Markets Wealth Economics
  1. Investing in farmland can be done in many ways, not just by owning a farm. There are various options available for those who want to invest in this stable asset.
  2. Farmland offers a unique opportunity because it has the potential for solid returns and can be less volatile compared to other investments.
  3. While investing in farmland has its benefits, there are also risks involved that investors should be aware of before getting started.

Alternative Investment Guide #1 - Art

Concepts of Finance 🧠 • 99 implied HN points • 25 Jun 23
💰 Finance Investing Assets Market Analysis Risk management Valuation
  1. Art investing can be a lucrative opportunity, with some estimates showing returns of around 9% to 14%.
  2. The art market is large and valued at over $1.5 trillion, but it can be tricky for newcomers due to its complexity and the influence of wealthy insiders.
  3. There are more ways than ever to start investing in art, including art funds and fractional ownership, making it accessible for beginners.

Deconstructing Rollups

Cryptocurrency and Friends • 58 implied HN points • 15 Mar 23
🔮 Crypto Rollups Security Assets Developers
  1. Development community is focused on defining a rollup through the lens of a validating bridge.
  2. Care must be taken with rollup projects to avoid constraining their capabilities, like Optimism's experience with OVM V1.0.
  3. Rollups should prioritize building rules enforced by a community first, and then focus on a validating bridge.

Shadow Puppets

The Last Bear Standing • 144 implied HN points • 07 Apr 23
💰 Finance Wealth Assets Stock Market
  1. Households in the United States have a large majority of their net worth in non-cash assets like stocks and real estate, with cash and bank deposits making up a small portion.
  2. Non-cash asset values are extrapolated based on a small percentage that are traded for cash, similar to estimating the total length of a football field by measuring a small unit.
  3. The financial system's implied market value of non-cash assets is ultimately based on a small portion of cash-for-asset exchanges, emphasizing the importance of understanding how cash moves.

The Only Deep Value Left In This Bloated Circus Of A Market

QTR’s Fringe Finance • 25 implied HN points • 05 Mar 24
💰 Finance Investing Market Analysis Assets Stocks
  1. The market is experiencing unprecedented distortions due to the belief that printing money can solve problems.
  2. Certain asset classes that were once unloved are now performing well, showing potential for future outperformance.
  3. There is an asset class currently facing market disapproval that could also potentially outperform in the future.

The Death of First Republic?

Apricitas Economics • 57 implied HN points • 29 Apr 23
💰 Finance Banking Deposits Assets Federal Reserve Financial Institutions
  1. First Republic is facing a financial crisis and potential FDIC takeover due to significant uninsured deposit withdrawals.
  2. The bank's investments in long-duration assets like real estate loans have suffered as interest rates rose.
  3. The broader US banking system remains stressed with decreasing deposits and increased borrowing, impacted by the inverted yield curve and changing depositor dynamics.

What Killed Signature Bank?

Apricitas Economics • 39 implied HN points • 01 Apr 23
💰 Finance Banking Crypto Regulation Assets Risk
  1. Signature Bank faced a severe bank run due to rapid withdrawal of deposits, leading to its collapse.
  2. The bank's heavy reliance on uninsured deposits, especially from crypto-related sources, contributed to its downfall.
  3. Regulators stepped in to prevent further financial contagion, highlighting the need for managing risks of fast-paced bank runs.

Buying the Dip

reedmolbak • 2 HN points • 05 Mar 24
💰 Finance Investing Assets Market Analysis Risk management Financial Modeling
  1. Buying the dip strategy involves waiting for an asset price to drop below a specific threshold before purchasing it, but simulation data shows that this strategy is usually less effective than buying regularly.
  2. When dealing with volatile assets, buying the dip can be beneficial if the asset underperforms in the median case but significantly overperforms occasionally, providing exposure without heavy losses.
  3. For stable assets or normal investors, buying regularly is usually the best strategy as it requires less effort and is generally more effective than trying to time the market by waiting for price dips.

Lightning Network financial statements

bolt.observer • 0 implied HN points • 23 Mar 23
💰 Finance Accounting Assets Equity Standardization
  1. Financial reporting provides valuable insights for businesses and helps external stakeholders make informed decisions.
  2. The balance sheet is a key financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific time.
  3. In the Lightning Network, node operations are currently 100% equity-based, but in the future, liabilities such as capital borrowing/lending may emerge.