The hottest Investor behavior Substack posts right now

Investors might have assumed that U.S. tech companies would always lead in AI, but that dominance isn't guaranteed. New challenges can always arise from competitors.
The rapid drop in Nvidia's market value shows how volatile the tech sector can be, especially with hype around AI. A sudden selloff can happen, and it can be surprising.
There's a perception that other countries, like China, are not idle when it comes to AI development. Many talented developers worldwide are working hard, so competition is always increasing.

Venture capital supports unsustainable models to achieve scale, like with tech giants Apple, Google, and Amazon.
Companies like Uber and Airbnb, initially fueled by VC funding, now face challenges as they struggle with profitability.
VC funding has fueled a culture of excessive capital consumption, leading to concerns about sustainability and the future of innovation.

Equity basics involve understanding ownership in public companies through shares and their value
Market multiples like PE ratios help gauge stock valuations based on earnings
The 'Magnificent Seven' tech stocks have seen huge growth, but caution is advised as multiples expand and history shows similar patterns

The recent bank collapses were not purely due to social media activity, but had underlying issues for years.
The goal of a bank run is to be first, not to attract attention.
Retail depositors have a minimal impact in bank runs compared to institutional ones.

Recognize the need for making many difficult decisions in a complex market environment.
Less value in pinpointing specific turning points, focus on themes like subsidized trading and speculative disclosure.
Study historical market structures and player behavior to learn from past financial bubbles and avoid repeating mistakes.

Get a weekly roundup of the best Substack posts, by hacker news affinity:

Interest rates impact venture market activity significantly
Changes in interest rates affect deal flow, valuations, and funding levels
Understanding the impact of interest rates is crucial for navigating the venture market

All assets are considered illiquid, meaning they can't always be sold quickly at their current price without costs involved. This changes how we understand and measure the value of assets.
Illiquidity varies between different asset classes, like real estate being less liquid compared to stocks and bonds. Some stocks are also more liquid based on their size and price.
Investors care about liquidity because it affects asset prices and returns. Illiquid assets tend to have lower prices and higher expected returns, especially during market crises.

Every business should have a clear goal for decision making. Traditionally, that goal is to make the company as valuable as possible, often by focusing on boosting stock prices.
Behavioral finance points out that investors can act irrationally, which means stock prices might not always reflect a company's true value. Managers should be cautious about making decisions solely based on stock price reactions.
It's essential for managers to aim for long-term value but also pay attention to market feedback. They can adjust their decisions to better connect with investors while still working towards the company's overall success.

The efficient market hypothesis claims that markets are generally accurate in pricing assets, meaning it’s tough for investors to consistently beat the market. Some people believe this idea is not entirely true.
There are criticisms of the notion that financial leaders fully trusted the efficient market hypothesis. Many academics recognized market inefficiencies long before the crisis and warned about issues like asset bubbles.
The idea that the financial crisis is largely due to the efficient market theory overlooks other factors. Issues like poor regulations, the creation of complex financial products, and incentive structures also played significant roles.

New metrics help track Bitcoin and Ethereum flows to and from exchanges. This data can show how much people are buying or selling and help understand the market.
There has been an increase in miners sending Bitcoin to exchanges recently. This could be due to them wanting to secure profits before changes in Bitcoin rewards.
Crypto.com is gaining a larger share of the Bitcoin market lately. By looking at trading volumes and flow data, we can tell if market activity is genuine or just fake trades.

In a market crisis, it's easy to lose perspective and panic. It's important to step back, assess the damage, and remember your long-term gains.
Market drops can happen for different reasons, including fear, fundamentals like rising interest rates, or a reassessment of risk. Understanding the cause can help guide your decisions.
Having a solid investment philosophy is key. Stick to your beliefs about investing, especially during turbulent times, and make decisions that align with your core principles.