SHANE OUCHI I do what I love and fake the rest…
Debt Ceiling: What is it?
Have you ever owned a credit card? They usually give you a credit limit, right? Well, say your credit limit is $1000. We would state that your debt allowance (or leverage) is $1000 for that “one-leg” of debt based upon your financial situation. Now, imagine you go in for a mortgage loan, and a bank [...]
A Shift Toward Specialization: Higher Transaction Costs Due to Free Speech
Truthfully, I think being politically correct is wrong. Plain wrong. But not because I don’t want to call Asians, “Asians” instead of “Orientals” or whether to say “Blacks” vs “African Americans”, but because of transaction costs that are established by actions such as too many people mistaking social miscues and slangs as derogatory actions. Furthermore, [...]
A Trader’s Advantage Using Hereditary Habits
Unlike the movie “Seven” that portrays the seven deadly sins: anger, greed, sloth, pride, lust, envy and gluttony, version of the movie would have probably been about 60 mins shorter…And in my version, they wouldn’t be called deadly sins as much as they would be called…er…habits. Hereditary habits. Only 3 of the 7 above… Fear, [...]
Religious Edicts Dictate Ethical Business Practices
Religion has been an important entity in developing the social, political and cultural guidelines throughout most of anthropological history. Before there were skyscrapers, banking systems and online trading platforms, there were men, women and children sacrificing articles of food & possession to appease the god(s) that watched over them. And although, through time and space, [...]
Karma of Stocks: Reversion to the Mean or Deterministic?
If you’ve ever invested in stocks, you’ve probably heard the term “reversion to the mean” thrown around like a pigskin on the beach. However, what you might not understand is the forethought that goes into drawing such a conclusion. For centuries, scientist, mathematicians, philosophers, and now, traders, have been trying to discern determinism vs statistical [...]
Practice vs Theory: Account for Model Error In Your Investments
If you recall the article about transaction costs, you will remember that we compared the intangible and tangible costs associated with analyzing any decision. However, these costs, however accurate they may be, are still theoretical. In theory, we can estimate opportunity cost or even calculate out taxable income, but these estimates (and even the actuals [...]