Gambling in the stock market is increasing, with most traders losing money while generating billions of dollars per year for brokerages and wholesalers. Will all this trading lead to big market swoons? Topics covered include: Why sports gambling has grown so much How gambling in the stock market is measured, and how prevalent is it Why most traders lose money but continue to trade anyway How uninformed traders improve market liquidity and encourage trading by informed trading Why being an asset ...
Jul 17, 2024•23 min•Ep 486•Transcript available on Metacast Buffer ETFs protect against the downside while capping the upside. We examine them closely to see if they are worth it. Topics covered include: How buffer ETFs are structured and some current examples How buffer ETFs have performed over the past five years What are the risks of buffer ETFs How loss aversion and narrow framing contribute to the popularity of buffer ETFs Are buffer ETFs worth it and what are some alternative strategies that could be used instead Sponsors Shopify NetSuite In...
Jul 10, 2024•28 min•Ep 485•Transcript available on Metacast Seven ways to increase the odds of living long into your retirement years (if you choose to retire). Sponsors Monarch Money – Get an extended 30-day free trial Lifetime Money for the Rest of Us Plus membership Our Premium Products Asset Camp Money for the Rest of Us Plus Show Notes Podcast Stats: How many podcasts are there?—Listen Notes Quality Over Quantity Is A Growth Strategy by Steven Goldstein—Amplifi Media Slow Productivity by Cal Newport—Penguin Random House Why our brains crave beauty, ...
Jun 26, 2024•31 min•Ep 484•Transcript available on Metacast Millions of fintech app users have lost access to their cash. In this episode, we explain why this happened and show you how to protect yourself when placing cash with traditional banks, neobanks, and fintech platforms. Topics covered include: The mass chaos in the fintech space spawned by the bankruptcy of Synapse Financial Technologies What are FBO accounts, and why they are so troublesome What is the difference between a traditional bank, a neo bank, and a non-bank What to look for and protec...
Jun 19, 2024•24 min•Ep 483•Transcript available on Metacast How a few high-impact successes drive up overall average outcomes in investing, business, and creative projects. How to harness positive skewness using a barbell approach. Learn when to mitigate risks and when to embrace them. Topics covered include: What is positive skewness and how does it manifest in investing, business and creative endeavors How power laws and the 80/20 rule work Why we shouldn't beat ourselves up if we aren't incredibly successful When should we reduce positive skewness and...
Jun 12, 2024•28 min•Ep 482•Transcript available on Metacast Why are homeowners seeing home insurance premiums increases of up to 70%, as David has? What can you do if your insurer drops you, you get a huge premium increase, or you can no longer afford coverage? Topics covered include: What are the primary drivers of home insurance price increases Why these increases don't show up in the U.S. consumer price index How the reinsurance market works and why reinsurers are passing on 50% premium increases to property and casualty insurers. What percentage of h...
Jun 05, 2024•27 min•Ep 481•Transcript available on Metacast Why stock, ETF, and bond trades are optimized to settle in less than a day, allowing investors quicker access to their cash and securities. What are the benefits and costs of optimization in the relentless drive for cheaper, faster, and more profitable. Why countries are moving to T+1 settlement from T+2 for security trades What will it take for secur How BlackRock and Franklin have launched Treasury funds that are tokenized and trade on the Etherium network How optimization works and what are t...
May 29, 2024•27 min•Ep 480•Transcript available on Metacast In part three of our national debt masterclass, we share a simple debt dynamics formula we can monitor to help guide our investment choices. Topics covered include: How much has the national debt grown over the past fifties years, and what are the underlying drivers How the budget deficit, interest rates, and economic growth determine the level and growth in the national debt Under what circumstances will the U.S. default on its debt How should we invest to protect ourselves from the uncertainti...
May 22, 2024•28 min•Ep 479•Transcript available on Metacast In part two of this national debt series, we explore how households and businesses, including commercial banks, can choose not to participate in what some call a national debt ponzi scheme. We also look at how central banks and federal governments monetize the national debt using quantitative easing. Sponsors Yahoo Finance LinkedIn Jobs – Use this link to post your job for free on LinkedIn Jobs Our Premium Products Asset Camp Money for the Rest of Us Plus Show Notes Credit and Liquidity Pr...
May 15, 2024•52 min•Ep 478•Transcript available on Metacast In part one of this three part series, we consider why a country that issues debt in its own currency can't default unless it chooses to. We also explore how central banks can control interest rates on the national debt. We also consider whether it is possible for government borrowing to crowd out the private sector. Sponsors Shopify NetSuite Insiders Guide Email Newsletter Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter Our ...
May 08, 2024•33 min•Ep 477•Transcript available on Metacast Why global small-cap stocks have underperformed large-cap stocks and will the trend continue? The investment case for allocating to global small caps. Topics covered include: How have small caps performed relative to large caps over the past two decades What factors contributed to the underperformance How quality is an important factor to consider when investing in small caps What are the earnings prospects for small-cap stocks Why small-cap stocks could deliver double-digit returns over the nex...
Apr 24, 2024•26 min•Ep 476•Transcript available on Metacast It is not normal to want prices to rise and currencies to lose their purchasing power. We look at the advantages of stable currencies and prices. Topics covered include: What's more normal, an inflationary or deflationary mindset? Why it is more normal for prices to fall due to productivity increases How central banks seek to overcome productivity-induced deflation by increasing the money supply How inflation and ongoing currency debasement encourage debt, the financialization of housing, and ke...
Apr 17, 2024•26 min•Ep 475•Transcript available on Metacast Some analysts suggest that now is an incredibly attractive entry point to invest in emerging market bonds. We look at how to do this and whether you should. Topics covered include: How emerging markets bonds have performed relative to U.S. bonds How frequently have emerging markets bonds defaulted What is the difference between local currency and U.S. dollar-denominated emerging markets bonds Why emerging markets nations are reforming What are the ways to invest in emerging markets bonds and wha...
Apr 10, 2024•24 min•Ep 474•Transcript available on Metacast In this conversation with financial advisor Josh Jalinski, David shares his views on constructing and benchmarking portfolios, factor investing including growth versus value, and managing regret. We explore a number of asset classes and strategies including dividend investing, leveraged loans, closed-end funds, equity REITs, and China. We also discuss how to manage retirement assets. Sponsors NetSuite Monarch Money – Get an extended 30-day free trial Insiders Guide Email Newsletter Get our...
Apr 03, 2024•48 min•Ep 473•Transcript available on Metacast Why most households are in better financial shape than prior to the pandemic, but remain frustrated at their lack of economic progress. Topics covered include: How consumer sentiment surveys are designed and their current findings. Reasons behind consumer frustration with increasing prices amidst declining inflation rates. The magnitude of the inflation shock and its underlying causes. The concept of reference prices and their significant role in shaping consumer sentiment. Factors contributing ...
Mar 27, 2024•21 min•Ep 472•Transcript available on Metacast How to use covered call and buy-write strategies to generate income while understanding the risks and having realistic return expectations. Topics covered include: How covered call strategies work How much can you earn investing in covered call strategies What are some numerical examples based on current option prices How covered call strategies can be used for both stock and bond ETFs What are some covered call ETF examples Sponsors Long Angle is a private community of 2,500 very high net...
Mar 20, 2024•28 min•Ep 471•Transcript available on Metacast A primer on how the economic engine works through coordination between savers, investors, consumers, producers, governments and banks. How hoarding and unfair competition can lead to economic distortions. Topics covered include: How spending and saving are connected including the paradox of thrift How borrowing money can lead to higher income and savings and potentially to bubbles How hoarding differs from investing and why too much hoarding can deprive businesses of capital How lightbulbs, groc...
Mar 13, 2024•27 min•Ep 470•Transcript available on Metacast Berkshire Hathaway doesn't pay a dividend, its cash pile keeps growing, and Buffet says it's gotten too big to make acquisitions that can impact the company. Meanwhile, utility ETFs have a steady 3.5% dividend yield. Which will be the better-performing investment going forward? Topics covered include: How has Berkshire Hathaway performed relative to the S&P 500 Index and other active managers Why Warren Buffett believes Berkshire's electric utility holdings were a mistake Why California has ...
Mar 06, 2024•26 min•Ep 469•Transcript available on Metacast Japan's stock market recently exceeded the all-time high first set in December 1989. That's 34 years of zero price appreciation for the stock market. What drove this lackluster performance, will it continue, and what can we learn from it? Topics covered include: How big was Japan's stock bubble, and how much did it contribute to the stock market's underperformance over the past three decades How do Japan's demographic trends impact its economic challenges, and what are the solutions Why Japan's ...
Feb 28, 2024•53 min•Ep 468•Transcript available on Metacast How the ETF market is changing, why ETFs should be your preferred investment vehicle, and how to analyze ETFs to generate better investment performance. Topics covered include: How large have fund flows been away from active mutual funds into ETFs How big are the largest ETF families and how has their market share grown Why the rise of active ETFs blurs the distinction between active and passive investing Why there doesn't appear to be an indexing price bubble, but the rise of passive investing ...
Feb 21, 2024•26 min•Ep 467•Transcript available on Metacast Stocks that grow their dividends have outperformed non-dividend-paying stocks over the long-term, but not in the past 5, 10, and 20 years. Why are non-dividend paying stocks outperforming dividend growers, and will it continue? Topics covered include: What message do companies say when they initiate, grow, or cut their dividend What is dividend smoothing How have dividend payers performed relative to non-dividend payers Why have non-dividend payers, which are primarily growth stocks, outperforme...
Feb 14, 2024•28 min•Ep 466•Transcript available on Metacast Humans are wired to feel regret. Here's how to learn from financial regret to become a better investor. Topics covered include: What cognitive biases make feelings of financial regret unavoidable We analyze two regret case studies - one from David and one from a Plus member Why do we avoid big regrets but manage through small ones Five cognitive tricks to help manage financial regrets Sponsors NetSuite – Get your free KPI checklist Long Angle is a private community of 2,500 very high net w...
Feb 07, 2024•26 min•Ep 465•Transcript available on Metacast Professional investors and other market participants are lousy at forecasting interest rates. Here are three more options to lock in higher yields today. Topics covered include: The risk of buying long-term bonds and ETFs to benefit from falling yields How volatility drag has impacted a long-term bond ETF like TLT Why interest rates won't go up just because the government issues more bonds How CDs, fixed annuities, and zero-coupon bonds work We compare and contrast the seven fixed-income options...
Jan 31, 2024•27 min•Ep 464•Transcript available on Metacast With cash yields expected to fall, here's how you can keep your portfolio income elevated by purchasing longer-term individual bonds and bullet ETFs Topics covered include: How future short-term interest rates, inflation expectations, and term premiums impact long-term interest rates How each of those rate drivers contributed to the close to 1% drop in interest rates in the past three months How yield to maturity is our guide to locking in a fixed return using individual bonds or bullet ETFs How...
Jan 24, 2024•30 min•Ep 463•Transcript available on Metacast We explore reasons for buying Bitcoin using one of the new Bitcoin ETFs. We also consider the risks. Topics covered include: Why the SEC finally decided to approve spot Bitcoin ETFs What are the fees and structure of these new Bitcoin ETFs How Bitcoin is similar and different from the fiat money system Where Bitcoin fits in an investment portfolio Sponsors Long Angle is a private community of 2,500 very high net worth investors who leverage their collective expertise and scale to access and unde...
Jan 17, 2024•27 min•Ep 462•Transcript available on Metacast The intricate dance between profession, risk, lifestyle, and luck in determining how net worth grows. Topics covered include: The various factors that shape the growth of net worth, including professional choices, risk tolerance, and lifestyle decisions. David Stein's personal account of how these elements influenced the trajectory of his financial growth. Insights into the range of net worth increases observed in 2023, driven by the performance of financial markets. The importance of focusing o...
Jan 10, 2024•26 min•Ep 461•Transcript available on Metacast The pros and cons of investing your retirement assets 100% in equity, including half in international stocks. Why the 4% spending rule is too aggressive. Why historical asset class return studies that use only U.S. data are biased How researchers build a broader database to study retirement outcomes and spending rates How a 100% stock portfolio performed compared to balanced portfolios and target date funds Why investors should have half their assets in international stocks Why a 4% spending rul...
Jan 03, 2024•25 min•Ep 460•Transcript available on Metacast We close out 2023 by answering your questions on active vs passive management, market timing, investing for status, what we learned from Charlie Munger, thoughts on a coming recession, worst investment mistakes, recent books that changed us, and more. Sponsors Madison Trust Self-Directed IRA - Go Here to Learn More and Get Your $100 Off Promo Code Delete Me – Use code David20 to get 20% off Insiders Guide Email Newsletter Get our free Investors' Checklist when you sign up for t...
Dec 13, 2023•45 min•Ep 459•Transcript available on Metacast Do the impressive returns in public and private markets stem from strategic financial engineering or reflect actual economic growth? How corporate profit growth is linked to economic growth, even though corporate profits are more volatile How interest rates, tax rates, and stock buybacks influence corporate profits and stock returns Why there are fewer publicly traded stocks How the increase in leveraged buyouts has impacted the economy How private equity funds use financial engineering to boost...
Dec 06, 2023•28 min•Ep 458•Transcript available on Metacast One year after the release of ChatGPT, we explore the positive and negative paths AI could take and what individuals can do to assist with a positive outcome. Topics covered include: How David uses AI to increase his personal productivity The societal and economic impacts of AI, including its potential to enhance corporate profitability and individual productivity Changes at OpenAI's executive level are examined, highlighting a shift in the organization's direction and philosophy What is Effecti...
Nov 29, 2023•25 min•Ep 457•Transcript available on Metacast 
