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Let’s take a step back from the tech hype for a second. Before we talk about Artificial Intelligence and side hustles and dashboards that run themselves…Let’s talk about money. Because here’s what I believe: To truly own your future, you’ve got to understand the story of how we got here. Money didn’t always look like Venmo, Bitcoin, or Apple Pay. And the idea of AI helping you build wealth from your laptop? That would’ve sounded like science fiction just a generation ago.

What Is the Treynor Ratio? The Treynor Ratio measures how much return an investment generates per unit of market risk. More specifically, it evaluates returns relative to systematic risk, which is the risk you cannot diversify away—the risk of the overall market. This is measured using beta. Here’s the simple idea: How much reward did I get for the market risk I took? The formula looks like this: Treynor Ratio = (Portfolio Return – Risk-Free Rate) ÷ Beta

There’s a shift happening right now — and if you're paying attention, you can feel it. The rules of the money game? Being rewritten. The people winning big? They’re not always working harder. They’re working smarter. They’re using AI. And whether you’re a creative, a coach, a solopreneur, or still figuring out your path — this is a wake-up call. Artificial Intelligence isn’t just for tech geeks or Silicon Valley. It’s for you. Let me show you five reasons AI is flipping

What Is the Sharpe Ratio? The Sharpe Ratio measures how much return an investment generates relative to the risk taken to earn it. In plain English: It tells you whether your investment’s performance is due to skill or just roller-coaster volatility. The basic idea is this: Higher Sharpe Ratio = better risk-adjusted return Two investments might earn the same return, but the one with a higher Sharpe Ratio did it with less turbulence along the way.

What Is Risk Budgeting? Risk Budgeting is the process of intentionally deciding how much investment risk you’re willing—and able—to take, and then allocating that risk across your portfolio in a disciplined way. In plain English: It’s not just what you invest in—it’s how much volatility, uncertainty, and downside exposure you allow each investment to have. Instead of saying, “I’ll put 60% in stocks and 40% in bonds and hope for the best,” risk budgeting asks a smarter ques

So, What Is AI Money? AI Money isn’t just about robots taking jobs or ChatGPT writing your emails. It’s about leveraging this massive technological shift to create new income, multiply your time, and expand your financial potential—without selling your soul or burning out in the process. It’s not a “get rich quick” scheme.It’s a mindset shift. It’s a toolkit. It’s a movement. And in my book, AI Money: How to Use Artificial Intelligence to Supercharge Your Personal Finance

Definition of Risk Parity Risk Parity is an investment strategy that builds a portfolio by balancing risk, not just dollars. Instead of allocating money based on how much you invest in each asset, risk parity focuses on how much volatility each asset contributes to the overall portfolio. In plain English: it’s not about how much money you put in—it’s about how much stress each investment puts on your portfolio.

Tactical Asset Allocation is a fancy-sounding term for something pretty practical: temporarily adjusting how your money is invested based on current market conditions. Think of it as steering the ship—not rebuilding it. The Simple Definition of Tactical Asset Allocation Tactical Asset Allocation (TAA) is an investment strategy where you make short-term adjustments to your portfolio’s asset mix (stocks, bonds, cash, real estate, etc.) to take advantage of market opportuniti

Definition of Contrarian Strategy A Contrarian Strategy is an approach to investing (and decision-making) where you intentionally go against the prevailing market sentiment. When most people are optimistic and buying aggressively, contrarians get cautious. When most people are fearful and selling, contrarians start looking for opportunities. At its core, a contrarian strategy assumes that markets often overreact—both on the upside and the downside...

Definition of Momentum In finance and investing, momentum refers to the tendency of an asset’s price, earnings, or financial performance to continue moving in the same direction for a period of time. Simply put: what’s been working lately often keeps working—at least for a while. Momentum is rooted in human behavior. Investors don’t change their minds overnight. Confidence builds gradually...

The Definition of Mean Reversion Mean Reversion is the concept that over time, prices, returns, or performance tend to move back toward their long-term average—or “mean.” In plain English: What goes up too far usually comes back down.What goes down too far often comes back up. Markets don’t move in straight lines forever. They swing. They overshoot. Then they correct.

What Is Window Dressing? Window dressing is the practice of making financial statements, investment portfolios, or business results look better than they really are—usually right before they’re reviewed by outsiders. It’s not always illegal. But it’s often misleading.

What Is a Santa Claus Rally? A Santa Claus Rally refers to the historical tendency for the stock market to rise during the final trading days of December and the first couple of trading days in January. Traditionally, this period includes the last five trading days of the year and the first two trading days of the new year. In plain English: stocks often get a late-December boost—right when people are hanging lights, wrapping gifts, and eating one too many cookies.

Definition of Halloween Effect The Halloween Effect (sometimes called Sell in May and Go Away) is a market anomaly that suggests stocks tend to perform better during the six-month period from November through April than they do from May through October. In plain English: historically speaking, the market has often delivered stronger returns in the “winter” months than in the “summer” months.

Definition of January Effect The January Effect is a market pattern where stocks—especially small-cap stocks—tend to perform better in January than in other months. The theory suggests that prices rise early in the year after investors rebalance portfolios, reinvest bonuses, or buy back stocks they sold in December. In plain English: January often gets a little more bullish than average.

Definition of Market Anomaly A market anomaly is a pattern, trend, or result in financial markets that doesn’t line up with what traditional financial theory says should happen. In plain English: it’s when the market behaves in a way that looks weird, inconsistent, or flat-out illogical—yet happens often enough that investors notice. Classic finance theory assumes markets are efficient, rational, and price assets perfectly based on available information...

What Is Bounded Rationality? Bounded rationality is the idea that people make decisions using limited information, limited time, and limited mental energy. Instead of finding the best possible decision, we settle for a decision that is “good enough.” The term was popularized by economist Herbert Simon, and it explains why real-world financial decisions often look messy, emotional, and inconsistent—because they are. In short: We don’t optimize. We simplify.

Definition of Hot Hand Fallacy The Hot Hand Fallacy is the belief that because someone has experienced success repeatedly in the recent past, they are more likely to continue succeeding in the future—even when outcomes are largely driven by chance. In simple terms: “They’re on a roll, so they can’t miss.”In finance, that mindset can quietly drain your wallet.

Definition of Gambler's Fallacy Gambler’s Fallacy is the mistaken belief that past random events influence future outcomes—even when each event is independent. In plain English: just because something has happened a lot lately doesn’t mean it’s “due” to change. This thinking shows up most famously in casinos, but it quietly sneaks into everyday financial decisions far more often than people realize.

Definition of Sunk Cost Fallacy The sunk cost fallacy is the tendency to continue investing time, money, or effort into something simply because you’ve already invested in it—even when walking away would be the smarter financial decision. A “sunk cost” is a cost that’s already been paid and cannot be recovered. The fallacy happens when past costs influence future decisions. In plain English: “I’ve already spent so much, I can’t quit now.”