Negative Convexity

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Akash Kanojia

Decoding the Dialogue: What Are Your Inner Voices Saying About Money?

Having helped many people work through limiting beliefs around money, I've realized that it's never one limiting belief or one painful emotion that blocks people. Usually there's an entire chorus of emotions, which I'll call "voices," clamoring for attention. Here

So how about that rate cut?

TL;DR – I don’t expect the Fed will make any change to interest rates before the election. I’ve been saying for a while that people baking in three rate cuts this year are engaged in wishful thinking, and that the risk that we won’t get even one

20 questions I ask myself when looking at financial statements

A friend recently asked me what I look for when evaluating company income statements and balance sheets. This is an area where I've reached unconscious competence so I never thought about it before. Here's a sketch of what's going on in my head when

5 Questions (and 9 charts) on the current state of the U.S. housing market

Several Fed officials have referred to the role of rent increases in the overall inflation picture. There’s also a lot of uncertainty in home purchase markets, what with the direction of inflation as well as the impact of higher rates. Some people say there’s a housing shortage; others

How to get over the fear of making a financial mistake

tl;dr - Go make a small financial mistake. Fear of making mistakes is a common emotion. It shows up in all areas of our life, but it's especially pernicious in the world of finance. The consequences of being afraid Time is money. And time is something we

Fedwatching: Some thoughts on yesterday's CPI report

Yesterday's CPI report came in higher than expected at 3.1% annualized through January, prompting a selloff in stocks and bonds. Stocks were down ~1.5% and bond interest rates climbed ~0.10-20%, concentrated in the 3-5 year range. Overall, I interpret this report as a warning sign

Fedwatching: Kugler on the Outlook (7 Feb 2024)

Fed Governor Adriana Kugler gave a video address to the Brookings Institute last week, sharing her thoughts on the outlook. Here are my takeaways: * Kugler struck me as marginally more hawkish than others on the FOMC. She repeated comments and phrases from several of her colleagues, stating that monetary policy

How to feel empowered when speaking with your financial advisor

Do you feel intimidated or out of your depth when you speak to your financial advisor? If yes, this post is for you. In my 93 conversations with ordinary people about emotions and finance, the theme of uncertainty and mistrust about financial advice (and financial advisors) has come up consistently.

Fedwatching: Powell on the Outlook (4 Feb 2024) and Friday's jobs report

Fed Chair Powell did a lengthy interview with 60 Minutes on Sunday. Here are my takeaways: tl;dr - the Fed isn't going to cut in March, and Powell (like almost every other FOMC voter) will be looking closely at the employment and inflation data to decide when

How to get through to someone

I had a conversation with a yoga teacher named Dalia (not her real name). This note isn't really about her story--it's about what I learned about getting through to someone who is paralyzed by fear, shame, and overwhelm regarding money matters. tl;dr--when a person can