The Savvy Wallet

  Retail trader speculation is a term that refers to the activity of individual investors who buy and sell stocks, cryptocurrencies, or other assets based on their expectations of future price movements. Retail traders often use online platforms, social media, or chat forums to share information, opinions, or tips about their favorite assets. Retail trader speculation can have a significant impact on the market, especially when it involves meme stocks or meme cryptocurrencies. Meme stocks are stocks that become popular among retail traders because of their association with internet memes, viral trends, or celebrity endorsements. Some examples of meme stocks are GameStop, AMC Entertainment, and Dogecoin. Meme stocks often experience high volatility and rapid price changes due to the influence of online communities and social media platforms. Meme stocks can also be targeted by short sellers, who bet on the price decline of these stocks. This can create a situation where retail trade...

The word “recession” can strike fear in the hearts of many people, especially those who remember the devastating effects of the Great Recession of 2007-2009. A recession is defined as a significant decline in economic activity that is spread across the economy and that lasts more than a few months 1 . Recessions are part of the normal business cycle, but they can also have serious consequences for individuals, businesses, and governments. In 2022, the global economy experienced a sharp slowdown due to the coronavirus pandemic, which caused widespread lockdowns, travel restrictions, and supply chain disruptions. The U.S. economy contracted by 3.5% in 2020, the worst performance since 1946 2 . However, thanks to the rapid development and distribution of vaccines, as well as unprecedented fiscal and monetary stimulus, the global economy rebounded strongly in 2021, with an estimated growth rate of 5.9% 3 . But is this recovery sustainable? And are we heading for another recession in 2023? ...

Have you ever encountered a situation where the data you are analyzing seems to contradict itself? For example, you might find that a certain investment strategy performs better than another in each of the past five years, but when you look at the overall performance over the entire period, the opposite is true. How can this be possible? This is an example of what is known as Simpson’s paradox, a statistical phenomenon that can lead to misleading or erroneous conclusions if not properly accounted for. In this blog post, we will explain what Simpson’s paradox is, how it can occur, and how to avoid it. What is Simpson’s paradox? Simpson’s paradox, also known as Yule-Simpson effect, is named after Edward Simpson, who described the phenomenon in 1951 1 . However, he was not the first one to notice it. Similar cases were reported by Karl Pearson et al. in 1899 2 and George Udny Yule in 1903 3 . Simpson’s paradox occurs when a trend or a relationship between two variables appears in several...

Blockchain Technology Use Cases Explained Blockchain technology is a revolutionary innovation that has the potential to transform various industries and sectors. Blockchain is a secure, distributed and immutable ledger that records transactions and data across a network of participants. Blockchain can enable trust, transparency, efficiency and collaboration among different parties, without the need for intermediaries or central authorities. Blockchain technology has many use cases across different domains, such as finance, healthcare, supply chain, entertainment and more. In this blog post, we will explore some of the most popular and promising use cases of blockchain technology and how they can benefit businesses and consumers. Feasible Payments One of the most well-known use cases of blockchain technology is facilitating fast, secure and low-cost payments across borders and currencies. Blockchain can offer a method for quickly and securely compiling a tamper-proof record of sensitive...

If you are interested in cryptocurrency, you have probably heard the term decentralization. But what does it mean and why is it important? In this blog post, we will explain the concept of decentralization in one minute and compare Bitcoin and altcoins in terms of their degree of decentralization. Decentralization is the process by which the activities of an organization, particularly those regarding planning and decision-making, are distributed or delegated away from a central, authoritative location or group and given to smaller factions within it 1 . In other words, decentralization means that no single entity has complete authority or control over a system. In the context of cryptocurrency, decentralization refers to the way transactions are verified and recorded on a blockchain, which is a distributed ledger that stores all the history of transactions. A blockchain is maintained by a network of nodes, which are computers that run the software and follow the rules of the protocol. ...

We all know that life is full of ups and downs, and sometimes we may face difficult situations that challenge our financial stability and well-being. Whether it is a personal crisis, such as losing a job, facing a health issue, or going through a divorce, or a global crisis, such as a pandemic, a recession, or a war, we may feel stressed, anxious, and hopeless about our future. However, there is a way to cope with these challenges and turn them into opportunities for growth and learning. It is called optimism and positive thinking. Optimism and positive thinking are not about ignoring reality or pretending that everything is fine. They are about acknowledging the reality of the situation, but also focusing on the positive aspects of it, such as the possibilities, the solutions, and the lessons. Optimism and positive thinking can help us in many ways during a financial or economic crisis. Here are some of the benefits: Optimism and positive thinking can reduce stress and improve our men...

Does Money Buy Happiness? Hedonic Treadmill, Income-Happiness Paradox and Social Comparison Theory We all want to be happy, but how much does money contribute to our happiness? This is a question that has fascinated psychologists, economists, and philosophers for decades. In this blog post, we will explore some of the theories and findings that try to answer this question, such as the hedonic treadmill, the income-happiness paradox, and the social comparison theory. The Hedonic Treadmill The hedonic treadmill is a term coined by Brickman and Campbell in 1971, describing the tendency of people to keep a fairly stable baseline level of happiness despite external events and fluctuations in demographic circumstances 1 The idea is that we adapt to changes in our life circumstances, both positive and negative, and return to our previous level of happiness over time. For example, if we win the lottery, we may experience a surge of happiness at first, but then we get used to our new wealth an...