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Logan

@LogWeaver

Dec 10 • 13 tweets • 4 min read • Read on X

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This software controls $21 trillion—more than the GDP of the UK, Japan, and Germany combined.

It’s used by banks, governments, and even the Federal Reserve.

Here’s how BlackRock’s Aladdin quietly took over global finance—and changed the rules of money forever:

Aladdin stands for Asset, Liability, and Debt and Derivative Investment Network.

Built by BlackRock in the late 1980s, it started as a tool for risk analysis.

Today, it’s the backbone of global finance, used by over 200 institutions, including central banks.

At its core, Aladdin is a cloud-based platform that combines data analytics, risk assessment, portfolio management, and trading execution.

Think of it as the financial world’s ultimate operating system.

When BlackRock was founded in 1988, its co-founder Larry Fink envisioned a company rooted in risk management.

He had lost $100 million in a single trade at First Boston due to poor risk assessment.

He vowed never to make the same mistake.

Aladdin was born out of this obsession with understanding and managing risk.

Originally a basic tool for internal use, it quickly evolved as BlackRock realized its potential.

Here's How Aladdin works:

1. Risk Analysis: It evaluates portfolio risks by simulating thousands of market scenarios.

From interest rate shifts to geopolitical shocks, Aladdin predicts how these changes could affect investments.

2. Portfolio Management: Aladdin optimizes asset allocation, ensuring investments align with client objectives.

3. Trade Execution: The platform connects directly to global markets, allowing for seamless trading and execution.

4. Compliance Monitoring: It ensures portfolios meet regulatory requirements, avoiding costly penalties.

Aladdin’s dominance comes from its network effect.

Every institution using the platform feeds its data into the system, creating a feedback loop of insights.

The more users, the smarter Aladdin becomes.

Institutions trust Aladdin because it offers unparalleled transparency.

What makes Aladdin unique is that BlackRock licenses it to competitors.

Institutions like JPMorgan, Allianz, and UBS rely on Aladdin to manage their portfolios.

Even the Federal Reserve has used Aladdin to oversee financial markets during crises.

By selling Aladdin as a service, BlackRock turned it into a global monopoly—a tool everyone needs but no one can replace.

As artificial intelligence advances, Aladdin continues to evolve.

BlackRock is integrating machine learning and predictive analytics to make the platform even smarter.

Its goal? To anticipate market movements before they happen.

Get investing strategies powered by the best insights and historical precedent,

Join Surmount and start automating your investments:

surmount.ai/strategies

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More from @LogWeaver

Logan

@LogWeaver

Nov 26

In 2008, the global economy collapsed, but this man made $15 billion.

John Paulson placed a $4 billion bet against the housing market that no one else dared to make.

Here’s the story of the greatest financial trade in history:

In 2006, John Paulson, a hedge fund manager, forecast the collapse of the housing market.

While everyone was riding the real estate boom, he saw a bubble about to burst.

He noticed that housing prices were unsustainably high and that a significant portion of mortgages were subprime, meaning they were given to borrowers with poor credit histories.

So he and his team conducted extensive research, analyzing thousands of mortgaged securities.

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Logan

@LogWeaver

Nov 21

This is The History of Stock Market Crashes.

From the Great Depression to the 2008 Financial Crisis, stock market crashes have wiped out trillions in value.

Here are the most disastrous crashes in history and the lessons they’ve taught investors:

1. The Panic of 1907

The Panic of 1907 was triggered by failed speculation in the copper market, causing bank runs and a severe liquidity crisis.

The absence of a central bank in the U.S. at the time magnified the crisis.

In 1913, The Federal Reserve was established in response to this crisis to stabilize the financial system and prevent future liquidity shortages.

2. The Great Depression (1929)

The stock market crash of October 1929, also known as Black Tuesday, marked the beginning of the Great Depression.

Over $30 billion vanished from the U.S. stock market, and the economic downturn lasted for a decade.

Read 12 tweets

Logan

@LogWeaver

Nov 7

In 2008, a junior trader pulled off one of the most dangerous financial schemes ever.

When the truth came out, it nearly bankrupted one of the oldest banks in France.

Here’s the full story of the $7 billion error that shocked the world:

Jérôme Kerviel was a junior trader handling relatively low-profile trades for Société Générale.

He was known by his peers as hardworking but unassuming.

But in January 2008, this inconspicuous trader sent shockwaves through the financial world.

To understand how Kerviel’s trades spiraled out of control, let's understand a bit about derivatives.

Dervatives are financial contracts whose value is tied to an asset like a stock, bond, or market index.

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Logan

@LogWeaver

Oct 31

The mathematician who became a trading legend without setting foot on Wall Street.

Edward Thorp used probability and statistics to beat casinos and then the stock market.

Here are the quantitative strategies that made him a legend of cards and hedge funds:

Edward O. Thorp is a mathematician who revolutionized gambling and investing through probability and statistics.

In the late 1950s, he became interested in blackjack, a casino card game where players aim to have a hand value closer to 21 than the dealer without exceeding it.

1. Beating the Casinos

Blackjack was traditionally considered a game of pure chance, with the house holding a consistent edge over players.

However, Thorp realized that because cards are not replaced after each hand in games with finite decks, the composition of the remaining deck changes.

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Logan

@LogWeaver

Oct 24

The Buffett Indicator.

One of the most powerful and overlooked tools for predicting market movements.

But it’s just one of several hidden indicators used by smart traders to get ahead.

Here are 5 forgotten market indicators that can give you a serious edge: 🧵

1. The Buffet Indicator

Named after Warren Buffett, this indicator measures the ratio of the total market cap of all publicly traded stocks to a country’s GDP.

It provides a high-level view of whether the stock market is overvalued or undervalued relative to the economy.

Here's How It Works:

1. A market cap to GDP ratio above 100% generally signals an overvalued market.

2. A ratio below 100% suggests the market might be undervalued.

Buffett himself has stated that this is “probably the best single measure of where valuations stand at any given moment.”

Read 15 tweets

Logan

@LogWeaver

Oct 17

This investor made billions by creating one of the most resilient portfolios in history.

For decades, he has endured every market crash and outperformed Wall Street legends.

Here are the investment secrets of Ray Dalio (the man who mastered market cycles):

Ray Dalio didn’t just play the markets—he changed how we think about them.

As the founder of Bridgewater Associates, he built an empire by focusing on simple but powerful ideas: resilience, diversification, and clear thinking.

His strategy, called the All Weather Portfolio, is built to handle any economic ups and downs, making him billions and helping him stay on top of Wall Street.

Here’s how Dalio cracked the code on navigating market cycles: