JuniorDepot18 – Hedging Profit by a Long-Short Lock-in

During a high-turbulence market regime it often makes sense to fix the profit quickly. However, Elle's broker DeGiro provides fee-free trades with the following ETFs only once per months. Elle's trading capital is relatively small so far (€2165), thus paying €2 trading fee shall be avoided whenever possible. So I taught her to lock the profit in long position by means of the respective inverse ETF! Continue reading "JuniorDepot18 – Hedging Profit by a Long-Short Lock-in"

JuniorDepot17 – Fixing Profit for a while

Elle continues growing her wealth, reaching the CAGR of 11.50%. Now she is to learn that keeping a good pace in the long run implies making pauses. Due to political risks and economic concerns in Europe we have, so far, closed all positions in Elle's portfolio.
Continue reading "JuniorDepot17 – Fixing Profit for a while"

Salaries in German IT Branch – a Case Study of Critical Statistics Review

Recently I have read the results of salary survey among Russian-speaking  software developers in Germany, published on dou.ua. I was skeptical about the validity of conclusions and expressed my critics (a bit less polite than I should have done it). But the survey author reasonably pointed out that he did his best in his free time and did provide the raw survey data. Recalling a popular motto in Soviet Union: if you are disagree then criticize but if you criticize then do it better I try to interpret the survey results more correctly. Continue reading "Salaries in German IT Branch – a Case Study of Critical Statistics Review"

Historic Black Swans in Historical Financial Data: EQT on 13.11. 2018 et al.

On November 13, 2018 the shares of EQT Corporation (NYSE:EQT) fell down by 46%. Yet, as Montley Fool reported, it was just a spinoff of the midstream assets into a separate public company, Equitrans Midstream Corp... FinViz and eoddata.com has completely failed to depict this event properly. Yahoo.Finance and AlphaVantage coped with it but only to some extent. We discuss the problems, caused by such events and sketch some ways to mitigate them. Continue reading "Historic Black Swans in Historical Financial Data: EQT on 13.11. 2018 et al."

Häuslebau II – Plan B: Bau wird verschoben bzw. sogar aufgehoben

Vor einem Jahr habe ich über den Kauf eines Grundstücks ohne Baupflicht ausführlich berichtet. Ich war damals in der Probezeit (was die Darlehensgenehmigung schwer jedoch nicht unmöglich machte) und mein Plan A war nach der Probezeit mit Hausbau anzufangen. Die Idee war, die monatliche Kaltmiete in die Monatsrate umzuwandeln, was ohne jeglichen Zusatzaufwand ca. €27000 sparen würde. Allerdings hat es mit dem neuen Job nicht rightig geklappt, so kommt nun Plan B: Verkauf des Grundstücks nach dem Ablauf der Spekulationsfrist.
In diesem Beitrag zeigen wir Schritt für Schritt die Kalkulation dieses Plans mittels unseres Quantitatives Toolbox. U.a. zeigen wir, dass der Grundstückerwerb eine bessere Alternative als ein Aktiensparplan war!
Continue reading "Häuslebau II – Plan B: Bau wird verschoben bzw. sogar aufgehoben"

The Highest Volatility in October? Don’t trust a Superficial Statistics!

A recent post "Fasten your seat belt for stocks: October is almost here" on MarketWatch, repeated by Morningstar and shared in my social networks may make an illusion that it is likely to expect high(est) volatility in October. A little bit more detailed statistical analysis shows that such expectation is superficial.
A more general (and very old) lesson from this case: the statistical analysis is much more than a primitive consideration of the mean values in groups. And of course: don't trust provoking titles. Continue reading "The Highest Volatility in October? Don’t trust a Superficial Statistics!"

Yahoo Finance Live Feeds in Excel after their API Discontinuation in November 2017

On the fateful Wednesday of November 1st, 2017 Yahoo decided to stop their – until then – free service of delivering real time market data as a text stream through a special URL. For hundreds of businesses and individuals who had relied for years on Yahoo's benevolent free service, this single action meant only one thing: Instant death! Continue reading "Yahoo Finance Live Feeds in Excel after their API Discontinuation in November 2017"

Your Fundamental Analysis is Only as Good as Your Data are: The Example of NWL

Whereas the opinions on the usefulness of technical analysis are highly controversial, it is generally agreed that the fundamental analysis does make sense. Value investing, e.g. the choice of companies with low p/e and p/b coefficients but high RoE and EBIT-Margin is not an uncommon approach. However, the data quality and creative data interpretation are critical. Otherwise one yields yet another GiGo: Garbage in, Garbage out! Continue reading "Your Fundamental Analysis is Only as Good as Your Data are: The Example of NWL"

Betriebstrenten sind in Gefahr – Teil II: was tun?

In diesem Folge-Beitrag betrachten wir, was Du – sowohl als Bürger als auch als Einzelperson – gegen die Entwertung der Betriebsrenten machen kannst. Continue reading "Betriebstrenten sind in Gefahr – Teil II: was tun?"

A Fairy Tail or The Magic of Extreme Casino Wins

Michael Shackleford, a who has made a career of analyzing casino games, designed Australian Reels Slot Machine in 2009. In modeling the casino's risk of ruin he (blindly) relied on the normal distribution. We show that this drastically undervalues the tail risk. Continue reading "A Fairy Tail or The Magic of Extreme Casino Wins"