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Why is it So Easy to Beat Wall Street Expectations?

Last Friday was one of the best days for capital markets in recent years and especially so for those holding some tech stocks, which gained the most. The Nasdaq 100 rose by almost 3%, led by technology juggernauts, such as Amazon, Google, Microsoft, and Intel. All of them beat the “Street Expectation,” which is a term used to describe the average estimate for a company’s quarterly revenues, earnings, and other important financial data that a public company has to report

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A Bubble with no one to blame

This is how a bubble with no address looks like. A new article by The Economist focuses on a less spoken aspect of the recent potential bubble in the stock market – Unlike previous bubbles, all assets are expensive today. People cannot place their money in reasonably prices financial vehicles, because none of them is. We keep hearing about the run of the stock market, but real estate and fixed income markets have had great runs as well, and solid

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What if NBA teams were stocks?

The NBA season has just started, which made me want to try to combine two of my favorite things—sports and capital markets. The NBA has 30 teams, and guess who also has 30 something? The Dow Jones. They both have tradition. While the NBA league was founded in New York in 1946, the Dow Jones had been founded 50 years before, also in New York. What’s more interesting is that they both have a relatively steady list of teams/stocks. The

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What’s the difference between stocks and poker?

When I first entered the stock market, I used to think I could beat it. I thought I could pick the best stocks and see the value of my account increasing every day, and this same feeling affects most people in the market. This is also what happens to most people at a poker table. Sometimes you just need to lose some money to get rid of your arrogance. The problem is that by listening to news from the stock

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How the gig economy would affect women?

Independent work is on the rise. Using data from the 2016 Global Independent Work Survey, McKinsey says that independent workforce is projected to grow from 68 million to 129 million in the US alone. And a study by Randstad US, an HR service and staffing firm, finds that 70% of workers and 68% of employers believe that a majority of the workforce will be employed in an agile capacity by 2025. Within this so-called ‘gig economy’ women are on track to be

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The Challenges of a Country with no Immigrants – The Story of Japan

Some good friends of mine are currently traveling in Japan. And they are doing what most people are doing in Japan – having fun, eating, instagraming and enjoying this amazing country. Japan used to be a far and expensive destination, and while the distance has not changed dramatically, the Country became much more accessible lately and the flights’ prices to Japan are much lower than they used to be. Also, Tokyo, which was considered once the most expensive city in

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The Power of Passive Investing

At the start of 2008, Warren Buffet made a million-dollar bet with the CEO of money management firm Protégé Partners. He bet on an index fund that invests in the S&P 500, while Protégé bet it could pick five “funds of funds” that would perform better. His side Warren Buffet’s thesis that the best thing a young man could do was to put his money in an ETF tracking the S&P 500 and just forget about the money. The compounding

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Financial Bubble

What is a financial bubble? How does it evolve? How can we protect ourselves from a bubble? I will try to answer these questions in this post, as this subject is always relevant but somewhat more relevant today when some assets are being traded near all-time high levels. A financial bubble (or economic bubble) happens when the price (e.g., market value) of an asset greatly exceeds its fundamental value, which is the value according to standard economic methods of valuation,

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Follow the Money (and the Millennials)

Once there were Baby Boomers and Gen x’s, and they lived happily. They had brands they really liked along with their favorite beers, cereals, and department stores. They also had their particular way of consuming—looking for a specific physical location, buying lots of things they didn’t necessarily need, and essentially really liking certain products. Then came the millennials, who are less of a brick-and-mortar kind of people. Millennials want to buy everything online. They want everything delivered to them very quickly,

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The Eighth Wonder

Compunding

Lacking financial literacy, many people are unaware of what might be the most important factor for increasing your own capital. It’s a term that Albert Einstein referred to as “the greatest mathematical discovery of all time” (and Albert Einstein knew something about math) and “the eighth wonder of the world.” If there is anything you need to know about finance, it’s Compound Interest (Compounding). But compounding is not just math or finance. It’s a more profound idea than it may seem

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