The hottest Financial Markets Substack posts right now

And their main takeaways
Category
Top Finance Topics
Clouded Judgement β€’ 13 implied HN points β€’ 25 Oct 24
  1. Venture capitalists are changing how they work with founders. Instead of focusing on big wins together, some are now just trying to make quick money from management fees.
  2. Founders should be careful about raising too much money too early. Getting larger sums from investors can often come with higher valuations, which can hurt the business long-term.
  3. It's important for founders to know how many other companies their investors are supporting. If an investor has too many companies, they might not have enough time to help yours succeed.
Alex's Personal Blog β€’ 32 implied HN points β€’ 14 Oct 24
  1. Venture capitalists are struggling to turn their investments into cash returns. This means they are having a tough time selling their stakes in companies for a profit.
  2. There has been a significant drop in the number of venture-backed company exits. The amount of money made from these exits is now much lower than it was in previous years.
  3. The slow pace of returns is affecting the number of active venture funds. Many funds have stopped working or reduced in size because of the less promising investment environment.
The Informationist β€’ 1257 implied HN points β€’ 26 Mar 23
  1. BTFP is a program by the Fed to provide liquidity to underfunded banks facing large customer withdrawals.
  2. Banks can borrow against securities like U.S. Treasuries with no haircut and at a low cost.
  3. BTFP offers a sweetheart deal to banks, providing liquidity without stigma of borrowing from the Discount Window.
Get a weekly roundup of the best Substack posts, by hacker news affinity:
Daily Chartbook β€’ 262 implied HN points β€’ 27 Feb 24
  1. Daily Chartbook #389 is a paid post on substack with 30 charts to catch up on the day.
  2. The content is exclusive to paid subscribers, offering in-depth insights for those interested.
  3. Readers can sign in if they are already paid subscribers or choose to subscribe to access the content.
Newcomer β€’ 255 implied HN points β€’ 26 Jan 24
  1. The traditional link between public markets and IPO sentiment is weakening.
  2. Successful tech startups have alternative options to going public, like selling to private equity buyers.
  3. Uncertainty, like the U.S. presidential election in 2024, could affect the IPO market.
Concoda β€’ 653 implied HN points β€’ 27 May 23
  1. Monetary leaders are implementing new tools to prevent instability in the bond market and stimulate risk assets without central bank assistance.
  2. Regulatory constraints have hindered major liquidity providers in the Treasury market, leading to the need for Treasury buyback programs to enhance liquidity.
  3. The U.S. Treasury is set to conduct buyback programs in 2024 to manage cash, boost liquidity, and potentially lower expenses and yields in the secondary Treasury market.
Erdmann Housing Tracker β€’ 210 implied HN points β€’ 26 Dec 23
  1. The private securitization market dominated housing finance from 2004 to 2007 before collapsing.
  2. The Great Recession didn't follow the expected pattern in Atlanta, with unique housing price changes.
  3. The Global Financial Crisis was self-imposed due to a retraction in money and credit, not the predicted factors.
Brad DeLong's Grasping Reality β€’ 130 implied HN points β€’ 11 Feb 24
  1. The graph shows a decline in global real interest rates over 800 years, challenging the idea of 'secular stagnation'.
  2. Interest rates' evolution over history raises questions about the relationship between the rate of profit, societal changes, and financial market dynamics.
  3. Factors like technological progress, income growth, and human behaviors impact the slope of the real intertemporal price system, affecting interest rates.
The Greek Analyst β€’ 199 implied HN points β€’ 20 Nov 23
  1. The Greek stock market is performing well, with significant gains and various positive capital market developments like IPOs and investments.
  2. Greece's stock market offers appealing valuations compared to other European markets, making it an attractive investment opportunity.
  3. There is a resurgence of interest in Greek stocks, with increasing institutional support, positive outlook, and initiatives to boost market participation, indicating a potential trend for growth.
Japan Economy Watch β€’ 319 implied HN points β€’ 20 Dec 22
  1. Market pressure forced the Bank of Japan to increase the maximum rate of 10-year Japan Government Bonds
  2. BOJ Governor Kuroda believes the rate hike was a technical measure, not a start of tightening monetary policy
  3. The outcome will be shaped by factors like BOJ's bond purchases, impact of interest rate rises on businesses, value of the yen, and course of inflation
Concepts of Finance 🧠 β€’ 199 implied HN points β€’ 01 Jun 23
  1. Hedge funds are private investment funds managed by professionals who use different strategies to earn high returns for wealthy investors. They're not open to everyone, and there's less regulation.
  2. Hedge funds can use strategies like long and short selling to profit from market changes. Long selling means buying with the hope the price will go up, while short selling means selling borrowed assets to profit if prices drop.
  3. Many people dislike hedge fund managers due to a lack of transparency and the perception that they profit during tough times for others. Plus, it's tough for regular folks to invest in hedge funds as they often have high minimum requirements.
Japan Economy Watch β€’ 179 implied HN points β€’ 18 Jan 23
  1. The Bank of Japan decided to maintain its monetary policy which initially impacted the currency exchange rate and bond yields.
  2. An editorial in the Wall Street Journal referenced writings by Richard Katz concerning the BOJ policy, shedding light on the ongoing discussions.
  3. Richard Katz had a letter to the editor published in response to an op-ed about BOJ policy, showcasing differing opinions and contributing to the dialogue.
Dana Blankenhorn: Facing the Future β€’ 39 implied HN points β€’ 07 Feb 24
  1. The easy money era since 2008 has allowed individuals to rapidly amass wealth through financial maneuvering.
  2. Billionaires have a responsibility to the system that enabled their wealth, and disrespecting that system is unacceptable.
  3. Democracy is under threat due to the attitude of newly wealthy individuals who view themselves as superior beings.
Apricitas Economics β€’ 64 implied HN points β€’ 25 Mar 23
  1. Credit Suisse faced major financial issues over several years, with losses, leaked data, and fines leading to its demise.
  2. Swiss authorities forced Credit Suisse to merge with UBS to prevent a public collapse and global financial crisis.
  3. The fallout from Credit Suisse's fall includes impacts on European banks, market confidence, and central bank efforts to stabilize the financial system.
The Data Score β€’ 59 implied HN points β€’ 11 Apr 23
  1. The Alternative Data industry is currently facing challenges but has the potential for long-term success by emphasizing clear client outcomes and building network effects.
  2. Understanding the value clients gain from data insights is crucial, as insights drive decisions and financial outcomes.
  3. Creating network effects and aligning data teams with critical client outcomes are key factors for the Alternative Data industry to move towards sustained growth and productivity.
The Data Score β€’ 59 implied HN points β€’ 22 Jun 23
  1. Institutional investors need to find surprising insights in data but also be skeptical of them to ensure accuracy and avoid errors.
  2. When using alternative data to make predictions, it's crucial to verify if the insights answer the right questions and differ from the market consensus.
  3. Digging into the data through various methods like independent validation, error margin assessment, and data integrity checks is essential for investors to ensure the reliability of surprising insights.
Behavioral Value Investor β€’ 89 implied HN points β€’ 30 Apr 23
  1. Doubling down on investments can be risky, make sure to assess potential downsides.
  2. Even successful investors can make mistakes and suffer losses by doubling down.
  3. Before doubling down on an investment, consider factors like financial leverage, funding requirements, and management strength.
The Data Score β€’ 19 implied HN points β€’ 09 Jan 24
  1. It only takes one data point to disprove an investment thesis by testing for the counterfactual, which allows identifying data points that go against the thesis.
  2. A question-driven approach to investing focuses on formulating the right questions to deeply understand the investment landscape, prioritizing curiosity and critical thinking.
  3. Designing an investment thesis involves setting measurable outcomes, defining timeframes, identifying dependencies, establishing checkpoints, and being aware of the current valuation. It's crucial to recognize what's in the valuation already and how your views differ.
False Positive β€’ 19 implied HN points β€’ 21 Dec 23
  1. ACER, an EU agency, functions as supranational detectives to monitor energy markets in all member states and detect international manipulation.
  2. Energy market liberalization created opportunities for financial crimes like manipulation through financial contracts rather than actual energy trading.
  3. The EU is establishing AMLA to combat cross-border money laundering, introducing a supranational monitoring system to address weaknesses in the current national-level approach.
Malt Liquidity β€’ 8 implied HN points β€’ 14 Mar 24
  1. Food delivery companies like Doordash may struggle to sustain growth post-lockdowns, facing challenges with profitability and expanding their customer base.
  2. Central bank policies face challenges in balancing inflation control and market stability, leading to potential risks of speculative bubbles and volatility.
  3. Inflation can impact investment decisions, prompting individuals to seek ways to outpace the rate of return to counter its effects.
The Data Score β€’ 19 implied HN points β€’ 14 Jul 23
  1. The success of alternative rock band Nirvana in the 1990s can be seen as a tale of achieving product-market fit, blending novelty with familiarity, and capturing lightning in a bottle
  2. Just like how Nirvana and alternative rock made their way into the mainstream, alternative data companies need to craft unique, valuable products that merge novelty with familiarity to cater to a wider audience
  3. Challenges in adopting alternative data include aligning products with client needs, making data accessible, and building a narrative around data products to drive adoption and ensure impact
Reminiscences Of A Young & NaΓ―ve Financier β€’ 19 implied HN points β€’ 08 Apr 23
  1. Consider switching to cash if you believe the market is overvalued, and buy assets back during market drawdowns.
  2. Understand and manage your portfolio's beta, which measures its sensitivity to the market.
  3. Use futures contracts on market indexes to hedge your portfolio and adjust its beta during volatile times.
The Parlour β€’ 12 implied HN points β€’ 02 Aug 23
  1. The featured papers discussed in the newsletter are 'Displaced by Big Data,' 'Deep Learning for Corporate Bonds,' and 'Exploiting the dynamics of commodity futures curves.'
  2. The newsletter highlights research on whether new data diminishes the advantages of active fund managers with industry expertise.
  3. Readers are encouraged to subscribe for a 7-day free trial to access the full post archives.
RegAlert β€’ 0 implied HN points β€’ 30 Jan 24
  1. Financial institutions must provide transparent pricing in financial market transactions to avoid market manipulation.
  2. The Central Bank of Nigeria warns against underreporting transaction rates and using 'second cheques' as these practices will be sanctioned.
  3. Compliance with CBN rules and guidelines is crucial for a well-functioning and transparent financial market.