The hottest Assets Substack posts right now

And their main takeaways
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Top Finance Topics

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.
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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.

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.

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.

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.

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 $153 billion power leak

Becoming Noble • 358 implied HN points • 16 Mar 23
💰 Finance Investments Assets Bankruptcy
  1. When betting against the system, bet big to secure assets - lessons from the SVB collapse.
  2. Question ownership and control of your assets. Be prepared for unanticipated vulnerabilities in the system.
  3. In financial dealings, always think ahead and consider the risks. Act like the system might fail and prepare for it.

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.

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.

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.

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.

Is Gold heading towards $2,500?

Global Markets Investor • 0 implied HN points • 17 Jan 24
💰 Finance Investing Gold Interest Rates Economy Assets
  1. Owning gold can be beneficial during uncertain economic and geopolitical times as well as when interest rates are low - except during liquidity crises.
  2. The relationship between gold prices and the real 10-year yield is important to monitor, as high real interest rates may make holding gold more expensive.
  3. In 2024, the potential scenarios for gold's price include a base case where rates go down, a bullish case with significant rate cuts, and a bearish case with stubborn inflation.

On the Importance of Mental Models in Investing

Equal Ventures • 0 implied HN points • 14 Dec 23
💰 Finance Investing Mental models Venture Assets Decision-making
  1. Venture investing can be unstructured with limited data, requiring investors to develop independent conviction in opportunities.
  2. Successful investors use mental models to structure thoughts and make better decisions, developing a unique approach based on a latticework of models.
  3. Leveraging mental models inspired by seasoned investors can significantly impact professional growth and decision-making, creating structure in the chaotic venture environment.

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.