by Javi Linares | 23/03/2025 09:00 AM | SIVBQ
🚨 Silicon Valley Bank failed due to a mismatch between its assets and liabilities, highlighting the critical difference between credit risk and duration risk.
📉 The bank invested heavily in long-duration U.S. Treasury bonds, which plummeted in value as the Federal Reserve aggressively raised interest rates.
🏦 This situation led to massive losses and insolvency as depositors withdrew their funds, demonstrating the dangers of ignoring duration risk in banking.
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by Javi Linares | 23/03/2025 09:00 AM | AAPL
📉 Apple's stock dilutions impact current shareholders by reducing the value of existing shares relative to the total number of shares.
💰 Financial asset prices often rise due to increased liquidity and monetary degradation, not necessarily due to improved fundamentals.
⚖️ The relationship between asset prices and monetary value is crucial; as the value of the currency decreases, asset prices tend to increase.
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by Javi Linares | 23/03/2025 09:00 AM | Blog
💰 Trade Republic offers a high-yield savings account, paying up to 2.53% TAE annually, directly passing on the interest rates paid by the Central Bank to banks.
📈 The platform provides a wide range of ETFs, enabling users to invest with minimal commissions, especially beneficial for long-term savings plans.
🛡️ By using Trade Republic, individuals can learn to save and invest securely, benefiting from the expertise of top managers without incurring excessive fees.
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by Javi Linares | 23/03/2025 09:00 AM | BTC
🚀 Bitcoin and gold serve as effective hedges against monetary inflation, which is the increase in asset prices due to money creation.
💰 Bitcoin is three times more sensitive to money creation than gold, making it a potentially stronger hedge in times of monetary expansion.
📉 While Bitcoin offers higher potential returns, it also comes with higher volatility, requiring a long-term investment perspective.
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by Javi Linares | 23/03/2025 09:00 AM | SPY
📈 Indexing to the S&P 500 through ETFs like SPY offers a diversified and self-rebalancing investment strategy.
📊 Very few active investors consistently outperform the S&P 500, making passive investment a viable option for many.
⏰ This approach eliminates the need for constant market timing and individual stock picking, suitable for long-term investors.
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