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Notes on "Financial Markets"

Chenglin Lu -

WIP

Efficient Portfolio Frontier

Week 3 / Inflation

  • CPI: Consumer price index
  • Inflation Indexed Debt
Plotly | Data source: http://www.econ.yale.edu/~shiller/data.htm

Week 4 / The Bubble

CAPE

  • CAPE: Cyclically Adjusted Price Earnings Ratio P/E10
  • TR CAPE: Cyclically Adjusted Total Return Price Earnings Ratio TR P/E10
Plotly | Data source: http://www.econ.yale.edu/~shiller/data.htm

Housing Price

  • "Housing prices had been relatively constant for 100 years, but then suddenly started to rise."
Plotly | Data source: http://www.econ.yale.edu/~shiller/data.htm

Week 5 / Ubiquity of Options

In a non-recourse state, a mortgage is really an option: you can always just walk away from the mortgage.

2020-03-11 | Menlo Park, CA