How accelerating bank deposit withdrawals could harm the economy, including real estate prices. How dollars slosh around the financial system but always seem to end up at the Federal Reserve. Topics covered include: How many deposits have left banks since the Silicon Valley Bank collapse How much have banks borrowed from the Federal Reserve to meet deposit withdrawals Why exiting deposits are harming bank profits and causing them to make fewer loans How the credit crunch could hurt commercial re...
Apr 12, 2023•28 min•Ep 428•Transcript available on Metacast What has been the impact on trade and the trade deficit since the U.S. implemented tariffs on steel, aluminum, and goods made in China? Topics covered include: Has the shipping backlog been reduced at U.S. ports What are the dangers of running too high of a trade deficit How large is the U.S. trade deficit What has been the impact of U.S. tariffs on trade, domestic production, and prices How Chinese direct-to-consumer retail companies Shein and Temu are driving prices of goods ever lower Why con...
Apr 05, 2023•26 min•Ep 427•Transcript available on Metacast David has a fascinating discussion with Kristof Gleich about active management, indexing, and how ETFs and mutual funds really work. Topics covered include: Should individual investors even try to select active mutual funds Is there an indexing bubble Why are there so many new ETFs Should we be worried about an ETF flash crash What do ETF market makers and authorized participants do Do SEC yields for international equity mutual funds and ETFs reflect the impact of dividend withholding taxes As t...
Mar 27, 2023•49 min•Ep 426•Transcript available on Metacast "If something is profitable, it will be done," says Martin Wolf of the Financial Times. We explore how profits will drive the energy transition and how and where water from the Colorado River is used. Topics covered include: How profits have led to higher energy market share for natural gas and renewal energy What is hindering a faster transition to renewables What is contributing to a water shortage in the southwestern U.S,. and how will it be resolved Why big infrastructure projects often aren...
Mar 22, 2023•28 min•Ep 425•Transcript available on Metacast What caused Silicon Valley Bank to collapse in only 44 hours, and how likely will the contagion spread, leading to other bank failures? Topics covered include: How losses on bonds blew up SVB's balance sheet How is Silicon Valley Bank similar and different than other regional banks What the FDIC and Federal Reserve are trying do to restore confidence and stop bank runs How a weakening of the Frank-Dodd bank regulation act set the stage for SVB's failure Why bailing out uninsured depositors is co...
Mar 15, 2023•29 min•Ep 424•Transcript available on Metacast How leveraged loans and CLOs work and how to invest in them. What are the risks and opportunities with the new CLO ETFs. Topics covered include: What are the characteristics of leveraged loans and how David has invested in them in the past, both professionally and personally. Why LIBOR reference rate for leveraged loans is being phased out What is the current investing climate for leveraged loans How collateralized loan obligation work Why insurance companies are fighting over CLOs What are the ...
Mar 08, 2023•33 min•Ep 423•Transcript available on Metacast Do activist hedge funds including Carl Icahn's add value? Should you invest in Icahn Enterprises L.P., a conglomerate with a 15% dividend yield and a stake in Carl Icahn's hedge fund? Topics covered include: How Icahn Enterprises' (IEP) investment performance compares to Berkshire Hathaway How to analyze individual stocks and why it is challenging What are activist hedge funds and do they make a positive performance difference What are the risks and opportunities of investing in IEP For more inf...
Feb 22, 2023•20 min•Ep 422•Transcript available on Metacast Why long-term U.S. stock market outperformance could be because it has avoided major catastrophes. Does an over-reliance on historical U.S. stock returns when modeling retirement outcomes lead to spending rates that are too high? Topics covered include: Why you might consider earthquake insurance What is survivorship bias and what are some examples Why the U.S. is an outlier when it comes to stock market performance Why the 4% retirement spending rule might be too high If the 4% spending rule is...
Feb 15, 2023•23 min•Ep 421•Transcript available on Metacast What are the pros and cons of a simple stock and bond portfolio consisting of two funds or ETFs? Given U.S. stocks have significantly outperformed the rest of the world over the past decade, is there even a role for non-U.S. stocks in your investment portfolio? Topics covered include: How have 60/40 and similar portfolios performed over the long-term What are the advantages and disadvantages of a 60/40 portfolio What is the expected return of a 60/40 portfolio and what should be included? What h...
Feb 08, 2023•28 min•Ep 420•Transcript available on Metacast We consider four case studies in which individuals struggle to decide what to do with their investment portfolios. Topics include: Why it's so difficult to reenter the stock market after sitting on the sidelines and what to do instead What are the risks of having a too aggressive portfolio allocation in retirement and what to do instead What to do when an investment strategy has worked really well but you feel it is time to make a change How to decide on an appropriate portfolio mix after a sign...
Feb 01, 2023•31 min•Ep 419•Transcript available on Metacast What you need to know to confidently invest in bonds. Topics covered include: Key components of bond investing include face value, coupon rates, yield-to-maturity, duration, and convexity How to decide between owning longer-term or short-term bonds How to decide whether to own individual bonds or bond funds and ETFs When to use active bond management versus bond indexing How bullet bond ETFs work and when to use them How to know when to invest in municipal bonds and corporate bonds When should y...
Jan 25, 2023•37 min•Ep 418•Transcript available on Metacast How sophisticated AI apps from OpenAI and other companies create articles, art, and other works that have never existed. How generative AI will impact business owners, employees, students, and financial markets. Topics include: How AI is creating personal finance articles and other creative works ChatGPT's attempt at writing a script for the Money For the Rest of Us podcast How ChatGPT and other large language models work What are the risks and flaws of generative AI How can we adapt and take ad...
Jan 18, 2023•26 min•Ep 417•Transcript available on Metacast We analyze the worrisome national debt situation in the U.S., UK, and Japan and consider what will determine the likelihood of default Topics covered include: How big is the national debt in the U.S., UK, and Japan Why Japan and UK interest rates have increased When do federal government debts jump the most What two numbers are key to whether a level of national debt is sustainable What are five ways indebted countries have reduced the relative size of their debt Why quantitative easing is not a...
Jan 11, 2023•29 min•Ep 416•Transcript available on Metacast We kick off 2023 by answering your questions on making portfolio changes, risk tolerance, the strong dollar, inflation and retirement, influential books, and other topics. For more information on this episode click here . Episode Sponsors Thanks to LinkedIn for sponsoring the episode. Use this link to post your job for free on LinkedIn Jobs. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info ....
Jan 04, 2023•47 min•Ep 415•Transcript available on Metacast How public equity REITs differ from private REITs. Why investors are selling out of private REITs and why private REIT sponsors like Blackstone and Starwood are limiting investors' ability to do so. Topics covered include: What are public and private real estate investment trusts Why has Blackstone's BREIT been such a success Why investors are trying to exit private REITs Why commercial property values are falling Is now a good time to invest in public and private REITs? For more information on ...
Dec 14, 2022•27 min•Ep 414•Transcript available on Metacast How to solve the conundrum that consumption reductions lead to economic disasters while benefiting the environment. Topics covered include: Why consumption, fossil fuel usage, and carbon emissions keep growing How fossil fuel consumption goes well beyond heating and transportation uses but is tied to agriculture, steel, and cement production The four times global consumption fell and the dire economic consequences that resulted How the world is consuming twice as many resources as the planet can...
Dec 07, 2022•23 min•Ep 413•Transcript available on Metacast What are the best options for safely investing cash. Topics covered include: High-yield savings accounts Certificates of Deposits Government Bonds Money Market Mutual Funds When should you invest in long-term bonds Why some savings apps try to look like banks but they are not What happens when central banks lose money Where not to deposit cash for safety For more information on this episode click here . Sponsors MasterClass - Get two annual memberships for the price of one Money App - Trip...
Nov 30, 2022•27 min•Ep 412•Transcript available on Metacast Camden and David converse with Asha Mehta, Managing Partner & CIO at Global Delta Capital about the bullish case for emerging and frontier market stocks as well as the risks. Topics covered include: How to go about investing in emerging markets Should you invest in China Where are the most promising emerging and frontier markets Why aggregate emerging markets earnings have been lackluster How to balance quantitative analysis with subjective reasoning For more information on this episode clic...
Nov 23, 2022•44 min•Ep 411•Transcript available on Metacast How the bankruptcy of FTX, the world's third-largest crypto exchange, undermines trust in cryptocurrency and decentralized finance, making it even more difficult for crypto to ever be taken seriously as a monetary alternative. Topics covered include: How FTX squandered its customers' deposits How FTX is another example of a private money bank run How traditional securities lending works and why it is very low risk compared to the highly speculative nature of cryptocurrency lending platforms How ...
Nov 16, 2022•22 min•Ep 410•Transcript available on Metacast How the International Monetary Fund, the world's economic firefighter, works for global monetary cooperation and prosperity while using its own made-up currency, the SDR. Topics covered include: What was the Bretton Woods monetary system that led to the formation of the IMF and the World Bank How the World Bank and IMF differ What does the IMF do How the IMF creates its own money out of thin air Why does Argentina, the IMF's largest borrower, keep defaulting on its debt obligation including thos...
Nov 09, 2022•26 min•Ep 409•Transcript available on Metacast How to survive in a world where luck and randomness play a pivotal role. Topics covered include: What are power laws What are the narrative fallacy and hindsight bias What are examples of domains where randomness has contributed to success What are ways to distinguish investing skill from luck How sixth-century philosopher Boethius had an accurate view of chance What are ways we can benefit from good luck while protecting ourselves from bad luck For more information on this episode click h...
Nov 02, 2022•25 min•Ep 408•Transcript available on Metacast How to use laddered inflation -indexed bonds (i.e., TIPS), CDs, fixed annuities, and fixed index annuities to meet retirement living expenses while worrying less about running out of money. Topics covered include: How individuals can use liability-driven investment strategies Why now is the best opportunity to buy Treasury Inflation Protection Securities in 15 years How to use bond ladders How deferred fixed and deferred variable annuities work How to an...
Oct 26, 2022•25 min•Ep 407•Transcript available on Metacast In Episode 406, David and Camden visit with Annie Duke about how to better manage our investment portfolios including when and what to sell. We also discuss a number of behavioral finance topics such as mental accounting, sunk costs, and goal myopia. Annie Duke is an author, speaker, and consultant in the decision-making space, as well as Special Partner focused on Decision Science at First Round Capital Partners, a seed stage venture fund. Annie’s latest book, Quit: The Power of Knowing When to...
Oct 19, 2022•49 min•Ep 406•Transcript available on Metacast What is volatility and what causes it to rise and fall? How volatility itself contributes to more volatility such as in the example of the chaotic UK government bond market where long-term yields have increased by 4% in 2022. Topics covered include: How the role of volatility has changed in financial markets What caused UK interest rates to spike and long-term bond investors to lose 50% What is liability-driven investment What drives increases in volatility and volatility spikes and spillovers a...
Oct 12, 2022•30 min•Ep 405•Transcript available on Metacast What has caused the U.S. dollar's currency exchange rate to be the strongest in twenty years? How a strong dollar leads to slower global economic growth and falling asset prices. Topics covered include: Why a strong dollar is a no-win situation for the rest of the world Why have inflation and interest rates increased Why recession risks are rising as central banks combat inflation Why asset prices fall when interest rates rise What would cause the U.S. dollar to weaken from these levels How to p...
Sep 28, 2022•30 min•Ep 404•Transcript available on Metacast How risk perceptions and actions have changed over several years of the pandemic. How the pandemic's impacts continue to affect politics, the economy, financial markets, how we invest, and our personal lives. Topics covered include: Is the pandemic really over? What percentage of people continue to isolate at home How behaviors such as eating out and visiting friends have changed throughout the pandemic. How work has changed with the pandemic Has pandemic stimulus changed beliefs about the susta...
Sep 21, 2022•29 min•Ep 403•Transcript available on Metacast What are the drivers that lead to higher student loan balances? Why a one-time student loan forgiveness program doesn't solve the problem of increasing student debt. What are some more viable longer-term solutions. Topics covered include: How big is the Biden Administration student debt forgiveness plan How big has the student debt burden grown Why are borrowings for students increasing Why Baby Boomers spent so much less on college How are student loans accounted for by the U.S. federal governm...
Sep 14, 2022•26 min•Ep 402•Transcript available on Metacast Warren Buffet said, "Diversification makes very little sense for anyone that knows what they’re doing." He also said, "Diversification is a protection against ignorance..." Most of us need that protection against ignorance, yet diversification often makes us feel bad when some of our holdings don't do as well as others. We make the case why we should diversify anyway. Topics covered: Warren Buffet says it's crazy to own more than 30 stocks, but Berkshire Hathaway owns 48 stocks What does it mean...
Sep 07, 2022•27 min•Ep 401•Transcript available on Metacast How economic wars, pandemics, and worker shortages could lead to years of high structural inflation. What needs to happen to avoid this dire inflation scenario. Topics covered include: What are the three inflation lessons Federal Reserve Chair Jerome Powell shared What is inflation anchoring What caused the current period of high inflation How China and Russia contributed to low inflation and why those trends have reversed How behavior changes and productivity improvements can contribute to lowe...
Aug 31, 2022•25 min•Ep 400•Transcript available on Metacast We explore examples of positive and negative unintended consequences, what causes them, and how to navigate a world where unanticipated things happen all of the time. Topics covered include: What leads to unintended consequences What are some unintended consequences of QE and stimulus, price controls, tax incentives, gun legislation, and marijuana legalization How positive unintended consequences and order can arise from the bottom up How recent climate legislation could lead to unintended conse...
Aug 24, 2022•24 min•Ep 399•Transcript available on Metacast 
