Welcome! It's Colton here; CTO and registered rep at Hedgehog.app, a robo-adviser for digital assets. Our goal is to empower everyone to make informed cryptocurrency investments by providing a secure and user-friendly platform that ensures optimal diversification and risk management.
Last week we talked about Unit Investment Trusts (UITs), this week is all about fun finance terms! Finance doesn't have to be all seriousness and numbers—there are some quirky, amusing terms that add a touch of color to the financial landscape.
Fun Finance Terms:
The Cockroach Theory refers to the belief that if you spot one problem or issue in a company or financial situation, there are likely many more lurking beneath the surface, just like cockroaches in a kitchen. This theory encourages investors and analysts to thoroughly investigate and address issues at the earliest signs to prevent potential crises.
In finance, Big Uglies are typically used to describe large, established, and unexciting companies that may not possess the glamor and innovation associated with high-growth startups. These companies, often in mature industries, are known for their stability and consistent performance.
Jennifer Lopez, or J-Lo, stocks refer to companies that are considered to be on an upward trend or "hot" at the moment after reaching an all time low, the graph highlights a curve at the bottom. Similar to J-Lo's popularity, these stocks often experience a surge in interest and demand.
While the term may sound a bit unpleasant, the Puke Point refers to the price level at which an investor or trader can no longer bear the losses and decides to sell their position, often due to extreme market volatility or unexpected downturns. It's the point where the negative emotions associated with losses overwhelm rational decision-making.
The Sandwich Generation refers to a group of individuals who find themselves squeezed between the financial responsibilities of caring for aging parents and supporting their own children. They are "sandwiched" between two generations and face unique financial challenges related to caregiving, education costs, and retirement planning.
These fun finance terms add a touch of whimsy and creativity to the otherwise serious world of finance.
They remind us that financial concepts can be as diverse and amusing as the language we use to describe them.
So, the next time you hear someone mention the Cockroach Theory, Big Uglies, or even J-Lo stocks, you'll have a deeper understanding of the playful side of finance.
As always, we encourage you to continue exploring and expanding your financial knowledge while having some fun along the way.
Quick Hits
Crypto.com lists r/Cryptocurrency’s token Moon. All the pros & cons are listed within the subreddit conversation. The announcement resulted in a ‘number go up’ rally for the day.
Presidential hopeful Ron Desantis vows to ban CBDCs if elected president. This presidential candidate is not the only one to make cryptocurrency part of their platform. RFK Jr is accepting campaign donations in Bitcoin.
Vitalik highlights Ethereum’s plan to make wallets, ‘as easy to use as email’ in the latest announcement; highlighting account abstraction and how this development could make this possible.
Giveaway
Answer the question of the week for a chance to win three of these prizes:
- insulated stainless steel water bottle with Hedgehog logo
- official Hedgehog team baseball cap
- snazzy Hedgehog socks
- cozy Hedgehog hoodie
- comfy Hedgehog baseball tee
If you were to make your own funky finance term, what would it be? Reply to this email with your story and you'll be entered in the giveaway.
Keep hedging,
Colton