QuietGrowth Blog

One of the most significant discussions in finance and economics is about the predictability of stock market prices. The theories and hypotheses are many, but one concept that has grabbed considerable attention is the Random Walk Hypothesis. (more…)

The Efficient Market Hypothesis (EMH) is a financial theory that posits that financial markets are “efficient”, meaning that prices reflect all available information at any given time. (more…)

We hope to provide a clearer understanding of Modern Portfolio Theory by answering common questions. (more…)

When exploring the world of finance and investing, you might encounter various myths and misconceptions about Modern Portfolio Theory (MPT). So let’s debunk some of these myths. (more…)

Modern Portfolio Theory (MPT) is an investment theory developed by Harry Markowitz in 1952. He was later awarded a Nobel Prize in Economics for his work in this area. (more…)

‘Reversion to the mean’ is a statistical phenomenon where a variable that deviates significantly from the mean or average will likely move closer to the mean over time. This is an outcome of the law of large numbers. (more…)

Risk-free bonds are a theoretical concept in finance, referring to an investment that guarantees return without any risk of financial loss. The idea is that the bond issuer has a 100% probability of fulfilling their debt obligations, meaning that the investor will receive the agreed interest payments and the return of the principal at maturity. (more…)

One of the unique features of US fiscal policy is the concept of a “debt ceiling”. This term, which often arises in economic and political discussions, has profound implications for the US government and its financial obligations. (more…)

The Japanese real estate market experienced one of the most significant crashes in history during the late 1980s and early 1990s. This was a notable event in economic history. The asset bubble, as it was called, was fueled by excessive lending by Japanese banks, low-interest rates, and speculative investment. (more…)

A reserve currency is a foreign currency held in substantial quantities by governments, central banks, and other financial institutions as part of their foreign exchange reserves. These reserves are typically used to stabilise their domestic currency’s value and to conduct international trade and investment transactions. (more…)