FinanceMaster

By: Oliver Rahman One important factor in investing that long‑term holders often overlook is inflation’s power. I built a small simulation (non-Monte Carlo) to model how net worth grows over time when you factor in monthly contributions, market volatility, and inflation. The interesting part was seeing the difference between nominal growth (what your portfolio says on paper) and real growth (what your money is actually worth after inflation). The gap gets larger over a longer period of time. This graph displays compound growth over 20 years with inflation randomly generated each year between 1.5% and 3% (conservative to moderate assumption). It's a good reminder that compounding works both ways. Your investments compound, but so does inflation. So, if you enter in values such as 10% growth a year, factoring in inflation to make that growth 8% will give you real values, and help you prepare for your future financial goals/retirement with more confidence! Big thanks to Jason Krzymia...

By:  Oliver Rahman Why did the markets rise? To day, the markets rallied back and have nearly recovered all the losses in the past week for most indexes. With some such as the Dow Jones (DJI) breaking records finally hitting 50,000. But why have they risen so much today? The main reason comes down to investors realizing the tech selloff was overblown. Investors were afraid of AI-related disruption such as ai replacing software companies' revenue and new AI entrants could undercut incumbents. There was also increased capital expenditures (capex) on new data centers, cloud expansion, and GPUs. While this scared many investors on Wednesday and Thursday, by Friday most investors realized that the market was oversold, and the market has therefore corrected itself. Crypto has also made a comeback, with bitcoin rising 9% and Ethereum rising 8% today. More investors realized that the capex being posted are typical for a growth cycle. Recent labor data was also not extremely terrible, caus...

  By: Oliver Rahman Who exactly is Kevin Warsh? A few days ago, Donald Trump nominated Kevin Warsh to lead the Federal Reserve and an increasingly polarizing Federal Open Market Committee once Jerome Powell (the current fed chairman) term ends in May. Kevin Warsh has a long history with the fed and has different viewpoints on policies for the future of the department. Kevin Warsh believes in policies such as higher fed rates, being more hawkish on inflation risk, and emphasizing financial‑market signals more heavily, and If Kevin Warsh becomes the new fed chair, it will be a major event in modern finance for anyone holding stakes in equities/stocks. First, some positives Warsh has a few positives, for example, he was one of the few individuals in charge of handling the central bank's policy decisions from 2006-2011. During the 08' crisis, Warsh was tested under pressure to solve risks with the collapse of the financial system potentially becoming a reality. So, if there is a n...