Alpha Hat
Discover insights from financial data
How did the market react during the last few corrections?
Until last week, we had gone over 1400 days since the last 5% weekly drop in the market. Given that volatility has been low for the past…several years, does this drop portend future market turmoil? ¶ Let’s take a quick look at history. After the dot-com crash and during the financial crisis, 5% weekly drops in the market were quite common (all the 0 points in the graph below. ¶ It’s been years since we have seen such a drop. ¶ We wanted to take a look at what happens to the market when there’s a long period of low volatility followed by this sudden drop.
Zain HodaAug 24, 2015
Cord-Cutting as an investment thesis
Cord-cutters are finally having a measurable impact on subscriber numbers. There’s even a whole subreddit with 86,000 subscribers dedicated…to cord-cutting. ¶ As these numbers have worked their way into the market, we saw some interesting movements earlier this month. On August 4, Netflix had a massive positive day. The following day, all the traditional media companies fell. ¶ Since July 30, Netflix is the only winner in this group. Viacom, which owns HBO, has actually been the biggest loser despite its launch of HBO Now, which is a service specifically targeted at cord-cutters.Zain HodaAug 19, 2015
Is there an alternative way to invest in Uber?
Uber is still a private company and non-accredited investors are ineligible from investing. However, if you believe that Uber is going to…disrupt the taxi market, is there a way to use the public markets to express your view in Uber? Perhaps. ¶ Medallion Financial Corporation (whose ticker is appropriately TAXI) provides financing for purchasing taxi medallions. A popular view forming is that Uber will drive down the value of owning a taxi medallion and consequently hurt Medallion Financial. ¶ However, it seems that many investors have started taking on this view.Zain HodaAug 13, 2015