Author archives: Jin Won Choi

Announcement: Moving to enjine.com

Last update on Nov. 25, 2019.

Image Credit: bearsky23 / Shutterstock.com

 

I started this blog in the year of 2013. I was a bright eyed newbie entrepreneur at the time, with the ambition to create a robo-advisor before the term "robo-advisor" was even a thing. But instead of raising a whole bunch of money to create a robo advisor, I wanted to test out the concept first. So, I created MoneyGeek, a platform to help DIY investors.

It was only after launching MoneyGeek that I started to understand how hard running a business is. I struggled in particular with how to get MoneyGeek's name ...

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My University Admissions Story And The Pitfalls Of Using Simple Algorithms

Last update on Nov. 11, 2019.

 

We recently shot a short video describing our company, and it begins with the story of how I originally came to Canada from Ireland. You can watch the video below:

 

In the video, I explained that I had applied to some Canadian universities, and that the first letter I got was a rejection from McMaster. However, I didn’t get to explain why they rejected me in the video.

I had applied to three universities in Canada: the University of Waterloo, the University of Toronto, and McMaster. Of the three, I viewed McMaster as my fallback choice in case ...

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Why Machine Learning Hasn't Caught On In Finance - A Theory

Last update on Oct. 28, 2019.

Image Credit: eamesBot / Shutterstock.com

 

You’d think that machine learning would thrive in finance. After all, the whole industry operates on data. Banks look at your credit history (data!) before they approve your mortgages. Credit card companies look at payment patterns (data!) to sniff out fraud. Investors use financial statements (data!) to select stocks to invest in. 

Anytime there’s an abundance of data, you can often use machine learning to make better decisions, more quickly and with lower costs. You may therefore be surprised to learn not only that machine learning adoption has been slow ...

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FRDM - The Better Way To Invest In Emerging Markets

Last update on Oct. 14, 2019.

Image Credit: Rawpixel.com / Shutterstock.com

 

Owning emerging market stocks could benefit your investment portfolio in two ways. First and more obvious, owning emerging market stocks would make your portfolio more diversified, thereby lowering risk. Second, emerging market economies tend to grow much more quickly than developed economies, so many people assume that emerging market stocks will outperform developed market stocks.

Unfortunately, that second assumption has not held up in recent years. The following chart shows the comparative performances of the Vanguard FTSE Emerging Markets ETF (VWO), and the SPDR S&P 500 ETF (SPY), in the ...

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Is Passive Investing A Bubble?

Last update on Sept. 16, 2019.

Image Credit: EtiAmmos / Shutterstock.com

 

Within each industry, there are certain topics that divide participants and make them battle each other with religious fervour. Among programmers, the topic might be Windows vs. *nix. Among physicists, I’ve heard of dissent against string theory.

There are several topics that similarly divide financial professionals. One such topic revolves around the issue of whether passive investing is harmful or beneficial to financial markets. Passive investing, in contrast to active investing, involves an attempt not to pick individual stocks. Instead, it diversifies as much as possible, owning every stock in an ...

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Can Yield Curves Predict Stock Market Direction? - A Machine Learning Perspective

Last update on Aug. 19, 2019.

Image Credit: dani3315 / Shutterstock.com

 

Many investors are concerned about the yield curve today. Generally speaking, a positive sloping yield curve (i.e. where long term interest rates are higher than short term rates) portends future economic health. By contrast, negative sloping yield curves (a.k.a. “inverted” curves) have tended to precede recessions.

Today, the yield curve is the most inverted it’s been since before the financial crisis. This has led some investors to wonder: should they sell stocks today to protect their portfolios? Or should they hold onto them because, despite widespread belief, yield ...

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Discontinuing MoneyGeek's Portfolios

Last update on Aug. 5, 2019.

Image Credit: William Potter / Shutterstock.com

 

On the first Monday of every month (like today), I normally give an update on MoneyGeek’s portfolios. But as you can tell from the title, today is different. Today, I’ve decided to remove the model portfolios feature from this website.

I know that many of you have been using my model portfolios to invest real money, so I feel that I owe you a full explanation. 

Early last year, I started work on a successor website to the model portfolios’ page. I called it ‘Portfolio Expo’, and it was ...

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Why Decision Trees Work Well For Investment Analysis

Last update on July 22, 2019.

Image Credit: Boo-Tique / Shutterstock.com

 

What is the best machine learning algorithm? The answer is, unsurprisingly, “it depends.” There are many different types of machine learning algorithms, each with their own unique way of modelling the real world in some fashion.

 

Tradeoffs on Model Complexity

The best algorithm is generally one that most closely mirrors the real world. Think of each machine learning algorithm as a set of lego boxes, each containing different shapes of bricks. If you’re going to build an airplane, you’re going to do better with lego boxes containing wing shaped ...

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It's Not Just Hype - Why Machine Learning Holds So Much Promise

Last update on July 8, 2019.

Image Credit: Grigorita Ko / Shutterstock.com

 

In the book “MoneyBall”, author Michael Lewis documented the story of the Oakland A’s baseball team. Despite their shoestring budget, the A’s consistently contended with teams with far bigger budgets, such as the New York Yankees. The secret of the team’s success boiled down to one thing - the use of statistics. Instead of relying on the subjective judgements of scouts, the A’s made rational decisions on player acquisitions using data.

Unfortunately, the story doesn’t have a good epilogue. Not long after the book’s publication in 2004, the team’s standing began ...

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Gold Moves Up - But Will It Continue To?

Last update on July 1, 2019.

Image Credit: photo BC / Shutterstock.com

At the beginning of every month, I brief members on how MoneyGeek's Regular portfolios have performed and comment on the state of the financial markets. In this update, I’ll also share my thoughts on gold.

 

June Performance of Regular Portfolios

The performance of MoneyGeek's Regular portfolios for the month of June 2019 were as follows:

 

Last Month

Last 12 Months

Since Apr 2013

Aggressive

+3.4%

-5.5%

+90.2%

Growth

+3.0%

-4.2%

+76.0%

Balanced

+2.6%

-3.2%

+62.2%

Conservative

+2.2%

-2.2 ...

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