Equity Gap
Equity Gap
3.08 | "Life is 10% what happens to us and 90% how we react to it." - Charles R. Swindoll
News and Numbers
Markets this Week:
S&P 500 is up 3%.
NASDAQ 100 is up 2%.
Bitcoin-USD is up 1%.
Ethereum-USD is up 3%.
Headlines from this Week:
The US Supreme Court ruled against President Biden's student loan forgiveness plan, ruling that a 2003 federal law does not allow the program to wipe out nearly half-a-trillion dollars in debt.
The US Supreme Court ruled against affirmative action.
Unity has unveiled Unity Muse, an AI-powered platform that accelerates the creation of real-time 3D applications and experiences like video games and digital twins
Finance
By Vlad Estoup, B.Comm. (Finance); working in Ethereum cybersecurity
Time to chase Alpha
As we plunge into the sultry days of mid-2023, the stock market's major indices have been heating up, displaying eye-catching gains that have left investors giddy and Wall Street more animated than usual.
While many financial pundits preach the gospel of "letting your profits run", I like to encourage our readers to apply discernment and cautiously analyze the ever-changing financial landscape. Riding the waves of an enticing bull market is exhilarating, but seasoned investors know all too well that each wave inevitably meets the shore. It's time to reassess, rebalance, and make room for a safe, fixed-income asset class – Guaranteed Investment Certificates (GICs).
Riding the High Tide: The Appeal of GICs
If you've been tracking global financial news, you'd know that interest rates are standing proud at a solid 5%. This presents an attractive opportunity for investors to consider a defensive strategy - GICs.
GICs are time-deposit investments that offer a guaranteed rate of return over a fixed period. They might seem a tad unadventurous next to the glittering tech unicorns and dynamic ETFs. Yet, there's beauty in their simplicity and security, especially in the context of an overheated stock market. A well-timed shift towards GICs could preserve your capital, deliver a steady income stream, and shield you from the inevitable downturn when it occurs.
The shift doesn't imply abandoning your growth assets entirely. It's about achieving the ideal balance between risk and reward, ensuring your portfolio has the resilience to weather storms. Remember, investing isn't about catching every last piece of the upside; it's about avoiding significant downfalls that can take years to recover.
Spicing Things Up: Altcoins
However, it would be remiss to talk about diversification without addressing the white elephant in the room – cryptocurrencies, or more specifically, altcoins.
Over the past years, cryptocurrencies have swung from being fringe assets to mainstream investments. Amid the plethora of digital currencies, altcoins – cryptocurrencies other than Bitcoin – offer a high-risk, high-reward opportunity for investors willing to bear the risk.
Diversification into altcoins allows investors to maintain a degree of exposure to potential explosive growth in the crypto markets, even as they shield a portion of their portfolio with GICs. Companies like Ethereum, Cardano, and Polkadot have all shown remarkable growth potential, making them worthy of consideration.
Investing in altcoins is not for the faint-hearted. Its extreme volatility can lead to substantial gains or significant losses. Therefore, it's crucial to invest only a small portion of your portfolio, well within your risk tolerance. The art lies in striking a balance - maintain exposure to the exhilarating growth of the crypto market while ensuring the majority of your portfolio is safeguarded through GICs.
This is not financial advice and you should always do your own research before investing in any securities or cryptocurrencies.
Sci-Tech
By Keyann; Software Engineer in Web3
The case for Self-Custody
Blockchain technology is ushering in a new era for finance, offering individuals unprecedented control and transparency over their financial assets. As this transformative technology continues to reshape and disrupt existing financial systems, one crucial decision facing individuals is whether to self-custody their digital assets or rely on third-party custodians. In this article, we explore the case to self-custody your crypto assets versus entrusting them to others, while also providing a brief explanation of what self-custody entails.
Self-custody, in the context of cryptocurrencies, refers to the practice of personally managing and securing the private keys that grant access to the crypto wallet that holds your digital assets. Private keys are like very long passwords; they are cryptographic codes that serve as digital signatures, allowing individuals to authenticate and control their ownership of an account stored on a blockchain network. When you self-custody, you hold the keys to your financial kingdom, enabling you to transact, store, and manage your crypto assets autonomously, without relying on intermediaries.
Ownership and Control:
Self-custody of your crypto assets empowers you with unparalleled ownership and control. By holding the private keys, you are the sole custodian of your digital wealth. It may seem extreme, but we’ve witnessed an instance recently, when the Canadian government seized the assets of the ‘freedom convoy’ protestors, as well as those that donated to their cause. The only assets they couldn’t seize were their bitcoin wallets. This control ensures that you have direct access to your funds and can execute transactions promptly, without requiring approval from or depending on any third party.
Enhanced Security:
One of the primary advantages of self-custody is enhanced security. By personally managing your private keys, you have the ability to implement robust security measures to protect your crypto assets. Hardware wallets, like Ledger or Trezor, provide offline storage and encryption, shielding your private keys from potential cyber threats. In contrast, custodial services can be susceptible to hacking attempts or internal security breaches, putting your assets at risk.
Privacy:
Self-custodying your crypto assets also enables you to preserve your privacy. When you entrust your assets to a third-party custodian, you often need to disclose personal information as part of their Know Your Customer (KYC) procedures. Self-custody allows you to retain anonymity, preventing the exposure of your financial activities to external entities.
Avoiding Counter-party Risks:
By opting for self-custody, you mitigate the counter-party risks associated with relying on a custodian. Regardless of their reputation, custodial services may be vulnerable to unforeseen circumstances such as bankruptcy, regulatory intervention, or operational failures, potentially jeopardizing your funds. We’ve already seen several instances of entities falling, such as FTX or SVB. By assuming full control, you eliminate the need to trust a centralized entity and reduce the likelihood of encountering such risks.
Paradigm Shift
By Roman Kuittinen-Dhaoui, BBA, CPHR Candidate; working in Human Resources
Gender Pay Gap
I enjoy exploring both sides of an issues. This week, we’ll explore the issue of the gender pay gap.
Below are a couple arguments supporting the notion of a gender pay gap:
The gender pay gap is an undeniable issue that persists in many societies, highlighting the systemic gender inequality that women face. Numerous studies have consistently shown that, on average, women earn less than men for performing the same work. This gap cannot be attributed solely to personal choices or qualifications. Factors such as occupational segregation, discrimination, and unconscious bias contribute significantly to the pay disparity. Women are often directed towards lower-paying professions and experience barriers to career advancement, leading to a persistent wage gap.
The gender pay gap is not just a reflection of individual choices or qualifications; it is deeply rooted in societal structures and cultural norms. Women often face discrimination when negotiating salaries and promotions, and their contributions to the workforce are often undervalued. Additionally, the burden of unpaid care work, which predominantly falls on women, affects their ability to participate fully in the labor market and impacts career advancement opportunities. For example, when a couple makes the decision to start a family, the woman takes time off work for maternity leave, and usually most of the parental leave to raise the babies. During that time, her man continues to gain experience and opportunities in the workplace. Closing the gender pay gap requires proactive policies, workplace reforms, and a commitment from society to address these systemic issues.
Below are a couple arguments dispelling the notion of a gender pay gap:
While the existence of a gender pay gap cannot be denied, it is important to note that simplistic claims of discrimination may oversimplify a complex issue. Factors such as occupational choices, work hours, and career interruptions play a significant role in explaining the pay gap. Studies have shown that women are more likely to prioritize work-life balance, opting for flexible or part-time positions, which often come with lower pay. Additionally, differences in education, experience, and seniority levels contribute to variations in earnings between genders. For example, when reviewing pay data within an organization, it’s easy to do a ratio of the average pay for men and women in the same position, however, this simple math doesn’t take into account the qualifications that each person had when they started the position which impacts their placement along the salary band. It is crucial to consider these nuanced factors before solely attributing the pay gap to discrimination.
Some argue that the gender pay gap is largely a result of individual choices and preferences. Men and women may have different career aspirations and pursue different fields of study, leading to variations in pay. Certain industries, such as technology or finance, tend to offer higher salaries, and they are often dominated by men. For example, women tend to be interested in people (i.e., professions like nursing which aren’t scalable) whereas men tend to be interested in things (i.e., professions like tech which are scalable) leading to differences in earning potential. Furthermore, men may be more likely to negotiate for higher salaries or seek promotions aggressively. While addressing discrimination and bias is essential, it is equally important to respect individual choices and acknowledge that not all pay discrepancies can be attributed to gender-based discrimination alone. Narrowing the gender pay gap requires a multifaceted approach that encompasses both individual empowerment and systemic changes.
TLDR: the gender pay gap - for good and for bad - can be explained by the choices/sacrifices men and women make.
(Head)Space
The Cost of Inaction
During my childhood, I immersed myself in the world of karate. From ages 8 to 18, my sister and I dedicated ourselves to training and competing at various national and international tournaments. With the guidance of our skilled Sensei, we became talented athletes, representing our karate school at a high level.
As star pupils, we carried the weight of expectations on our shoulders. We were known for our exceptional fighting skills and more often than not emerged victorious in sport karate divisions such as point sparring and continuous sparring. Even during practice sessions at the dojo, we felt like the champions everyone was eager to defeat. Our reputations ensured that we received everyone's best efforts.
In our minds, there was a fundamental difference between hoping to win and expecting to win. We expected and were expected by others to win. Anything less, such as a second or third-place finishes, felt like failures. This mindset fueled our relentless dedication to training.
However, when we did win, it didn't always bring the joyous celebration one might expect. Instead, it often felt like a weight had been lifted from our shoulders. We had accomplished what was expected of us, but the satisfaction was tinged with relief. We found ourselves constantly looking ahead to the next tournament, the next challenge, without taking the time to appreciate our achievements.
This mindset extended beyond karate and permeated other areas of my life, including academics. I carried the same expectation of success into school, always striving to perform well. However, when milestones were reached, such as graduating from university with distinction from the business honnours program, the absence of celebrations didn't bother me. I was already focused on my HR career, and the next goal had already captured my attention.
In retrospect, and as I look to the future, I have come to understand the importance of celebrating milestones in life. It's vital to acknowledge and express gratitude for the progress made before rushing toward the next objective. By taking the time to celebrate, we cultivate a sense of fulfillment and satisfaction. This doesn't mean becoming complacent or stagnant, but rather finding balance between striving for more and reflecting on how far we have come.
Moving forward, I aim to embrace a mindset that allows me to appreciate and celebrate each milestone, both big and small. Expressing gratitude for the achievements along the way will not only enhance my sense of fulfillment but also provide the motivation and perspective needed to continue progressing.
Company of the Week
Filecoin
Filecoin is an open-source cloud storage marketplace, protocol, and incentive layer. It’s a blockchain-based storage network revolutionizing decentralized data storage.
Users pay FIL tokens to storage providers who offer their capacity and earn tokens in return. This decentralized marketplace ensures reliable, cost-effective storage. With data distributed across multiple providers, Filecoin enhances security and integrity through redundancy and cryptographic proofs. It offers increased data resilience, reduced costs, and greater control.
By incentivizing resource contribution, Filecoin fosters collaboration and contributes to a decentralized internet. It empowers users with privacy, control, and ownership over their data, reshaping the storage landscape and empowering individuals in the next era of the internet.
Written by: Vlad Estoup, Keyann Al-Kheder, and Roman Kuittinen-Dhaoui