investment-education

Learn how economists estimate recession probability using yield curve inversion, the NY Fed probit model, and leading economic indicators — plus portfolio strategies for elevated recession risk.

Put-call parity is a no-arbitrage relationship linking European call and put option prices with the same strike and expiration. Learn the formula, arbitrage enforcement, and how to construct synthetic positions.

Learn how equity futures and stock index futures are used for portfolio hedging. Covers beta-adjusted hedge ratios, adjusting portfolio beta with futures, and hedging examples using S&P 500 E-mini contracts.

Triangular arbitrage exploits mispricing between three currency pairs to lock in riskless profit. Learn the cross-rate formula, see a worked EUR/USD/GBP example, and understand why these opportunities are rare.

Learn how credit default swaps work — CDS mechanics, pricing, premium and protection legs, settlement types, and real-world uses for hedging and speculation.

DuPont analysis decomposes Return on Equity into profitability, efficiency, and leverage components. Learn the 3-factor and 5-factor DuPont formulas with real-world examples comparing companies like Walmart and LVMH.

Learn how equity swaps work, including total return swaps, price return swaps, and equity-for-equity swaps. Covers mechanics, example calculations, and comparison with interest rate swaps.

The dividend discount model (DDM) values a stock by discounting all expected future dividends to present value. The Gordon Growth Model simplifies this into a single formula for stocks with constant dividend growth.

Learn how carry trades work, why they profit from UIP violations, and the crash risks that make this popular FX strategy a double-edged sword.

Learn what inflation is, how the Consumer Price Index (CPI) measures it, and why it matters for investment decisions. Covers CPI calculation, core vs headline CPI, CPI variants, inflation regimes, and strategies to protect purchasing power.