Showtime’s Billions: Realistic or Ridiculous
Although characters from Showtime’s series Billions may be in-part inspired by real people such as former hedge fund manager Steve Cohen and former US Attorneys Preet Bharara and Eliot Spitzer, how real is the show? Click to view print version.
November 15, 2022
Inflation in Focus: CPI, PCE & PPI
With the highest inflation in decades, gauges of price changes have become a center of economic focus. The Consumer Price Index, the Personal Consumption Expenditures price index, and the Producer Price Index are common measures of inflation. However, the measure that may be cited most often is not the one preferred by the Federal Reserve. Click to view print version.
November 02, 2022
Bitcoin Correlations: Crypto Tethered to Stocks
Bitcoin was intended to exist outside of the financial system and to end inflation. Therefore, it might be quite ironic that it is moving in lockstep with stocks, plummeting in the midst of soaring consumer prices and vulnerable to monetary moves by the Fed. Click link to view print version with charts and resources.
October 19, 2022
Exchange Traded Funds: Features of Diversified Passive Indexing
Exchange traded funds, often called ETFs or index funds, offer the diversification that once was only available through mutual funds, yet they have the cost-effectiveness of a passive buy and hold strategy. These key features can make ETFs a good choice for long-term retirement investors. Click for print version.
October 03, 2022
Hedge Fund Effect: Why Many Avoid Investing
Around half of Americans don’t participate in a retirement investment plan. Part of the reasons why many aren’t invested may have to do with what we call the hedge fund effect. Click to view written edition.
September 20, 2022
Recession Possible: But Not Here Yet
Recently, many media pundits have claimed that a recession is imminent, if not already present in the US. Historically high interest rate hikes by the Fed, accompanied by two consecutive quarters of declining gross domestic product has stoked recession fears, possibly causing some to sound the alarm prematurely.
September 07, 2022
Bitcoin & Inflation: Missing Links in Satoshi’s Vision
A computer programmer with no known economic or finance credentials, Satoshi Nakamoto believed bitcoin would end inflation. He emphasized bitcoin’s scarcity as an escape from currency devaluation caused by central governments increasing the money supply. However, Satoshi’s inflation views, recorded in hundreds of forum posts and emails, may reveal a vision largely built on economic misconceptions. Click for print version.
August 17, 2022
Kevin Bacon’s YOLO: Money Movies - Quicksilver (1986)
Our “Money Movies” series explores how film portrayals may be far from what can be expected from a typical finance professional. Often, finance professionals are depicted as unethical, insider-info trading pump-and-dumpers. Quicksilver (1986) starring Kevin Bacon, is an outlier in that the stock trader is portrayed as a hero, rather than a scoundrel. However, the actual trading actions shown in the movie may present Bacon’s character as more of a reckless, irresponsible speculator.
August 03, 2022
Relentless Inflation: Excess Stimulus or Suppressed Supply
It seems many have taken for granted that pandemic stimulus spending is the prime suspect for causing painful price increases. Despite the widely known mantra of eminent economist Milton Friedman, who said inflation is always related to money supply, researchers have been unable to find a relation since the 1990s. Other than the fact that no direct relationship between money supply and inflation has been found for decades, assessing stimulus details and the timing of inflation may also suggest pandemic aid is not the culprit. Read at: Relentless Inflation: Excess Stimulus or Suppressed Supply – Aesop Advisor
July 20, 2022
Time In the Market: Not Timing the Market
Stocks are firmly in bear market territory so far in 2022, having dipped more than 20% from their previous peak. Though losses in the last 6 months are painful, downturns are common and may provide opportunities for long term investors. For the average retirement investor, buckling up for the long haul may be a better choice than reacting to market moves by trying to jump in and out of tops and bottoms.
July 06, 2022
Bitcoin Beginnings: Satoshi’s Self-Fulfilling Prophecy
Even as crypto marketplaces adopt more regulation and consumer protections, it remains important to evaluate what crypto assets are actually worth. The writings of bitcoin’s creator, Satoshi Nakamoto, along with a community of cryptographers over a two year period may provide insights into why some believe the value of crypto will rise “to the moon”.
June 14, 2022
Finance Profession Titles: Grasping a Fragmented Field
With a myriad of sometimes overlapping roles, it can be tough to piece together a clear view of the finance industry. We highlight a few types of finance professionals. Despite being a focus of movies and media, perhaps the most familiar finance professional may be the least used by average investors. Click to read.
June 01, 2022
Index, Exchange, or Both: Understanding Stock Quotes
Pundits throw around multiple terms when talking stocks. We break down what they mean by Dow, S&P 500, and Nasdaq. We’ll explore how they are alike, and how they are different. Surprisingly, perhaps the most used term may be one of the least useful.
May 16, 2022
Stocks & Jellybeans: Law of Large Numbers
In this edition, we talk about liquidity and investor disagreement.
May 03, 2022
Crypto Markets: Low Regulation High Risk
April 20 edition of Markets Demystified by Aesop Advisor LLC - "Crypto Markets: Low Regulation High Risk"
April 20, 2022
Yield Curvature: Bond Rate Barometer
In this edition of Markets Demystified, we talk about the bond rate yield curve and how it often predicts upcoming recessions.
April 05, 2022
What Will Replace Income In Retirement: Stocks, Pension, or Other
In this edition of Markets Demystified, we talk about how stocks can be a good investment option compared to other assets for those who need to fill income gaps in retirement left by Social Security or pensions.
September 15, 2021
Stock Pricing Power: Makers and Takers
In this edition, we talk about how larger orders influence prices while smaller orders are price takers.
September 01, 2021
Trading Versus Investing: Risk, Reason, Time
In this edition of Markets Demystified, we talk about differences between stock trading and investing.
August 18, 2021
Money Movies: Finance Professionals in Popular Culture
In this edition of Markets Demystified, we talk about how finance professionals are often portrayed in films.
August 05, 2021
401k or IRA: Employer and Individual Retirement Accounts
In this edition of Markets Demystified, we talk about differences between employer and individual retirement accounts, and when it might be a good choice to use one or both.
July 21, 2021
Wealth, Income, or Preservation: Why Invest?
In this edition of Markets Demystified, we talk about different reasons for having investments.
July 07, 2021
Gambling Versus Investing: When to Hold and When to Fold
In this edition, we talk about differences between gambling and investing.
June 16, 2021
Inflation, Fed, Stocks: Shutdown Shake-Ups Shift to Roaring Comeback Concerns
In this edition, we talk about how inflation, the Federal Reserve, and the stock market all intertwine.
June 02, 2021
Aesop: What's In a Name
In this first edition, we thought it might be fun to talk about why we chose Aesop as the name for our firm.
May 19, 2021