Money For The Rest Of Us

A regulatory crackdown and ideological campaign by the Chinese government has upended the Chinese stock market, which comprises close to 40% of emerging market indices. We evaluate what is going on and what investors should do.Topics covered include:How has the Chinese stock market performed in 2021Why has Cathie Wood and Ark Invest dramatically cut their Chinese stock exposureWhat are examples of regulatory changes in ChinaWhy the stocks of Chinese online tutoring companies that trade on the New York Stock Exchange fell 90% this yearWhat are variable interest entities (VIEs) and why they are a risky corporate structure for Chinese companiesHow a high private sector debt burden could lead to a banking crisis or contagion in ChinaWhat are ways investors can invest in emerging markets while having a smaller allocation to ChinaThanks to LinkedIn and Simplify ETFs for sponsoring the episode.For more information on this episode click here.Show NotesCathie Wood’s Ark cuts China positions ‘dramatically’ by Leo

What are the demand and supply drivers of home prices? What is the current status of those drivers and do they suggest a housing price crash is imminent, particularly given mortgage forbearance programs are ending?Topics covered include:How much have home prices appreciated in the past year compared to historical ratesWhat has driven the demand shock for housingWhy U.S. houses are so much more affordable compared to earlier periodsHow big is the housing shortage in the U.S.What could cause home prices to crashHow housing supply and demand drivers apply to local real estate marketsHow to purchase a home in a hot housing marketThanks to the Modern Finance podcast and Simplify ETFs for sponsoring the episode.For more information on this episode click here.Show NotesIn a forgotten town by the Salton Sea, newcomers build a bohemian dream Rory Carroll—The guardianFor One Weekend a Year, a Tiny Town on the Salton Sea Becomes a Mecca for Artists and Partiers by April Wong—Los Angeles MagazineElectric vehicles ne

Why bother rebalancing your investment portfolio and what is the best method for doing so.Topics covered include:How a target asset allocation can get out of line if a portfolio is not rebalancedWhat is positive skewness and why it matters to portfolio investingWhat is volatility drag and how it can lead to lower end of period wealthWhat are the costs of rebalancingWhich rebalancing method if any has been the most effectiveThanks to Felix Gray glasses and Mint Mobile for sponsoring the episode.For more information on this episode click here.Show NotesLong-Horizon Stock Returns Are Positively Skewed by Adam Farago and Erik HjalmarssonPositively Skewed Distribution—Corporate Finance InstituteProspect Theory and Stock Market Anomalies by Nicholas Barberis, Lawrence J. Jin, and Baolian WangStrategic Rebalancing by Sandy Rattray, Nicolas Granger, Campbell R. Harvey, and Otto Van HemertPortfolio Rebalancing: Tradeoffs and Decisions by Xing Hong and Philipp Meyer-BraunsDiversification Returns, Rebalancing Retur

We compare the U.S. dollar with Bitcoin on their key attributes to determine which is better for transactions and preserving wealth, which is most absurd and which has serious flaws.Topics covered include:How are new U.S. Dollars and Bitcoin createdHow much has the supply of each currency grownHow both the dollar and Bitcoin have had rule changesWhy Bitcoin transactions are faster than non-cash U.S. dollar transactionsWhy both the dollar and Bitcoin require add-on layers to facilitate transactionsHow tax treatment of a currency can encourage or discourage its use for paymentsWhy divisibility is a critical attribute of any currencyWhy Bitcoin has been as volatile as the Russian rubleWhy Bitcoin is energy inefficient while having built-in incentives to use renewable energyWhat will determine the long-term viability of Bitcoin and the U.S. dollarFor more information on this episode click here.SponsorsMasterworks - the premier platform for investing in blue chip artPolicygeniusShow NotesFederal Reserve Stati

What are the advantages and disadvantages individual investors have relative to professional investors. How individual investors can capitalize on their advantages without being overwhelmed by too many choices.Topics covered include:How much have fees and commissions dropped for individual investors in the past two decadesHow the overall objective of individual investors differs from professional investorsWhy the smaller scale at which individual investors operate provides an advantage relative to professional investorsWhat are some advantages that professional investors have relative to individual investorsHow having constraints and rules of thumb allow individual investors to generate better returns and be less overwhelmedWhat are some examples of rules of thumb that collectively form an investment philosophy and processThanks to Streak CRM for sponsoring the episode.For more information on this episode click here.Show NotesTrends in the Expenses and Fees of Funds, 2020—ICI Research Perspective March 2

How permanent life insurance can be an effective tool for retirement planning.Topics covered include:What is the difference between term and whole life insuranceHow many people let their life insurance policies lapse each yearWhat are strengths that insurance companies have that are beneficial to individual investorsWhat are the benefits of whole life insurance policiesHow the infinite banking concept works and who should it be usedHow asset allocation should differ when investors have a whole life insurance policyWhat are concerns with whole life insuranceHow an integrative approach of using whole life, immediate annuities, and investments can lead to higher retirement spending levelsThanks to today's sponsors: Simplify ETFs and the all-new electric MINI Cooper SEFor more information on this episode click here.Show NotesArthur L. Williams Jr.—Wikipedia, Aug 10, 2021ACLI 2020 Life Insurers Fact Book—The American Council of Life InsurersPros And Cons Of Life Insurance For Children by Cameron Huddleston an

How owning fewer, more permanent things can lead to greater freedom and continued economic growth.Topics covered include:How a railroad company issued a bond that matured in 999 yearsWhy land and gold are the most permanent investmentsWhat is the oldest currency in useWhy fiat and cryptocurrencies are potentially worthlessWhy permanence is freedom and constantly craving more things limits freedomWhy do quality goods cost moreHow the volume of trash generation and the number of storage units are increasingWhy reducing the number of things we own is so difficult and how to go about doing itHow the economy could change as people own things longerThanks to Felix Gray Glasses and LinkedIn for sponsoring the episode.For more information on this episode click here.Show NotesBusiness & Finance: Freak FinanceBack to the future with long-term bonds by Franky Leeuwerck—Franky's Scripophily BlogSpotELMIRA AND WILLIAMSPORT RAIL ROAD COMPANY 500$ BOND, 1863—WorthPointThe Power of Gold: The History of an Obsession

How the carbon emissions allowances and carbon offset markets are structured and how to invest in them.Topics covered include:How much greater are the levels of carbon dioxide in the atmosphere and how much have average temperatures increasedWhy industries and companies are seeking to cut their greenhouse gas emissionsHow cap and trade emissions trading systems workWhat are the demand and supply dynamics of tradable emission allowancesWhat has been the performance of tradeable emission allowancesHow ETFs invest in tradable emission allowancesHow the voluntary carbon offset market is structured and what are the demand and supply dynamicsWhy do companies make voluntary pledges to reduce their carbon footprintsWhat are the types of carbon offset projectsWhy it is more difficult to invest in carbon offset markets and how that is changingThe Money For the Rest of Us podcast is ad-supported, but you can support the show and listen to episodes ad-free by becoming a subscriber. Learn about subscribing here.Thank

The risks and opportunities of investing in startups on equity crowdfunding platforms.Topics covered include:Why do individual investors now have more access to startup investmentsWhat has been the historical performance of venture capital fundsHow most startups fail, leaving only a few startups to offset portfolio lossesWhat factors to consider when deciding on which startups to investWhy do startups have so many different share classesWhat platforms are available for individuals to invest in startupsWhy indexing by investing in every credible startup deal can lead to better performance than hand-selecting a few startupsBecome a Subscriber and listen to the episode ad-free on Spotify or your preferred podcasting app. Only $4.99 per month. Subscribe here.Thanks to Streak and Masterworks for sponsoring the episode.For more information on this episode click here.Show NotesSquaring Venture Capital Valuations with Reality by Will Gornall and Ilya A. StrebulaevHow Do Venture Capitalists Make Decisions? by Pau

How to decide when to take out a home mortgage and whether to pay it off early. How reverse mortgages can be a helpful retirement tool.Topics covered include:Why it is more difficult to get a mortgage todayHow federal government mortgage guarantees lead to lower mortgage ratesHow to analyze whether to pay off your mortgage earlyThe differences between personal risk, market risk, and aspirational riskHow reverse mortgages work and how they can be useful as a retirement income toolWhat are the costs of reverse mortgagesBecome a Subscriber and listen to the episode ad-free on Spotify or your preferred podcasting app. Only $4.99 per month. Subscribe here.Thanks to IPVanish and Raycon for sponsoring the episode.For more information on this episode click here.Show NotesQuarterly Report on Household Debt and Credit 2021 Q1—Federal Reserve Bank of New YorkSelling Guide: Lender Letter LL-2021-03, Impact of COVID-19 on Originations (03/11/2021)—Fannie Mae0Overreliance on Fannie and Freddie Violates Their Federal C

We answer over a dozen questions from listeners on investing, housing, retirement, business, podcast production, and more.Topics discussed include:The Endowment ModelTeaching children about investing4 influential investing booksThe difference between being an entrepreneur and investingThe balance between too much and too little efficiency and productivityWhat we learned about investing from the Covid crashHow asset allocation changes as one gets olderThe state and future of cryptocurrencyIs now the time to buy individual stocks given high valuations for indicesDonor-advised fundsFDIC insuranceMoney For the Rest of Us production time and expensesIs it possible to have too much invested in one ETFIs a house and investment and will there be a housing crashHow to worry less about moneyBecome a Subscriber and listen to the episode ad-free on Spotify or your preferred podcasting app. Only $4.99 per month plus tax. Subscribe here.Thanks to Policygenius and Clear for sponsoring the episode. Use code David to get two

What are the risks and opportunities of investing in frontier equity markets?Topics covered include:What are the criteria used to determine whether a country's stock market is considered a frontier, emerging, or developed marketWhy some countries aren't included in any MSCI stock indexHow large are frontier markets in terms of population, economic output, and equity marketsHow frontier market's favorable demographic profile make them attractive, but might not lead to higher investment returnsWhat are the risks of investing in frontier marketsHow expensive or cheap are frontier marketsWhat have been frontier market's historical returns, volatility, and maximum drawdownsWhat are ways to invest in frontier marketsThanks to Mint Mobile and LinkedIn for sponsoring the episode.For more information on this episode click here.Show NotesMSCI Market ClassificationMSCI 2020 Market Classification ReviewKuwait’s Move from Frontier to Emerging Market—MSCIFrontier markets Longer Term Investments (LTI) by Corinne de Bou

What are the pros and cons of owning an electric vehicle (EV) compared with an internal combustion engine (ICE) vehicle. Are electric vehicles worth it?Topics covered include:What is the total energy consumption for EVs versus ICE vehicles including energy expended to produce the vehicles and energy used to produce the electricity and refine the gasoline that run the vehicles.What vehicles weigh the most, ICE, EVs, or hybridsHow the mix of renewables and coal in the power grid impacts the energy impact of electric vehicles.What is the total cost of owning an electric vehicle compared with a similar model ICE vehicle.Thanks to IPVanish and Raycon for sponsoring the episode.For more information on this episode click here.Show NotesThe Gregor LetterThe Greenhouse gases, Regulated Emissions, and Energy use in Technologies Model—Argonne National LaboratoryVehicle Cost Calculator—Alternative Fuels Data CenterEV vs. Gas: Which Cars Are Cheaper to Own? by Roberto Baldwin—Car and DriverBatteries For Electric Cars

What are ways to invest in water and is it an attractive investment?Topics covered include:How water rights work and how they have been overallocated in the Colorado River basin.Why agriculture uses the vast majority of water in the southwestern U.S. while contributing only a few percentage points to the region's gross domestic product.Why hedge fund manager Michael Burry invests in farmland instead of water rights.What ETFs are available to invest in waterWhat have the historical returns been for water stock investing, what are current valuations, and what is the expected long-term revenue growth.Thanks to Blinkist and Policygenius for sponsoring the episode.For more information on this episode click here.Show NotesBeyond the Signing by Laura Paskus—Water Education ColoradoWhere the Water Goes: Life and Death Along the Colorado River by David OwensWhat Happens When The Colorado River Runs Dry—Science FridayEditorial: There is no drought by The Times Editorial BoardNew Mexico’s coming megadrought highlig

Half of the global financial system is made up of shadow banks. You have probably already used one. What are shadow banks and what to be wary of when using them.Topics covered include:What are the roles of shadow banksWhat are examples of shadow banksHow two shadow banks, Greensill Capital and Archegos Capital Management, contributed to billions of dollars in lossesHow China's massive use of shadow banks differs from the rest of the worldHow individuals investors can benefit from the careful use of shadow banks.Thanks to Mint Mobile and Clear for sponsoring the episode. Use code David to get two months of Clear for free.For more information on this episode click here.Show NotesQ+A-What is shadow banking and why does it matter? by Michelle Martin—ReutersWhat You Need to Know About the Shadow Banking System Now by Craig Kirsner—KiplingerGlobal Monitoring Report on Non-Bank Financial Intermediation 2020—Financial Stability BoardHow fintech will eat into banks’ business—The EconomistWhy is supply-chain finan

Why productivity growth is key to creating wealth. Why U.S. productivity growth is slowing, and what we can do to increase business and personal productivity.Topics covered include:How productivity is measured and how it relates to GDP, inflation, and living standardsHow productivity growth has led to more food, better health, better housing, and more consumer goods.What are potential reasons why productivity growth is slowingEvidence that work from home has led to lower productivityWhat individuals and businesses can do to increase productivityThanks to LinkedIn and Hello Fresh for sponsoring the episode. Use code david12off for 12 free meals with free shipping from Hello Fresh.For more information on this episode click here.Show NotesThe Slowdown in Productivity Growth and Policies That Can Restore It by Emily Moss, Ryan Nunn, and Jay Shambaugh—The Hamilton ProjectThe technology-employment trade-off: Industry, automation, and income effects by Gene Kindberg-Hanlon—World Bank BlogsWill productivity and

How today's inflationary environment is similar and different from the great inflation of the 1970s. What are the best assets to protect your portfolio if the next great inflation is here.Topics covered include:How is inflation measured and why the pandemic made calculating inflation difficultWhat causes inflationWhy is inflation increasing currentlyWhat caused the great inflation of the 1970sWhich assets are best to own to protect against inflationThanks to Blinkist and IPVanish for sponsoring the episode.For more information on this episode click here.Show NotesA Complete Guide to Understanding and Protecting Against Inflation—Money For The Rest of UsGreat Inflation 2.0? Lessons from the 1970s by Simon Macadam—Capital EconomicsWhen it comes to inflation, how much fortitude does the Fed have? by Sebastion Mallaby—Financial TimesIf Inflation Is Coming, Here Is What to Do About It by James Mackintosh—The Wall Street JournalA Complete Guide to Investing in TIPS and I Bonds—Money For The Rest of Us334 Plus:

Seven ways to manage fear in order to improve your investing. How fear can be beneficial.Topics covered include:Why fear can be both helpful and harmfulWhy expected investment returns are lower from a year agoWhat are the drivers of asset class returnsWhat is a bucket approach to investing and why it can be helpfulWhat are ways to automate investingWhy getting an investment second opinion can be valuableWhy we can never avoid investing mistakesThanks to Raycon and Policygenius for sponsoring the episode.For more information on this episode click here.Show Notes“How do I get rid of the fear?” by Seth Godin—Seth's BlogThe Gift of Fear by Dharmavidya David Brazier—Tricycle: The Buddhist ReviewRelated Episodes254: Should You Be 100% Invested In Stocks?306: Three Approaches to Asset Allocation326: The New Math of Retirement Spending and Investing

How businesses, households, governments, asset managers, and investors interact in unpredictable ways to address the risks and opportunities related to climate change and other global trends. Why ESG investing goes beyond just buying an ESG fund or ETF.Topics covered include:What are incentives, constraints, opportunities, and risks faced by businesses, households, governments, asset managers, and investors when deciding what to do.What is ESG and sustainable investingWhat are the different levels of sustainable investing practiced by investors and asset managersHow investors can benefit from emerging technologies to combat climate changeThanks to Mint Mobile and Clear for sponsoring the episode. Use code David for two months free of Clear.For more information on this episode click here.Show NotesThe Beauty of Everyday Things by Soetsu Yanagi (affiliate link)Darmstadt Definition of Sustainable Investments by Johannes Hoffmann, Gerhard Scherhorn, Timo Busch (eds.)—Wuppertal InstituteFACT SHEET: President

What is decentralized finance and how it is seeking to solve the shortcomings of centralized finance. How BlockFi and MakerDAO, early entrants in the DeFi space work. How to earn up to a 9% yield with cryptocurrency lending.Topics covered include:How centralized finance differs from decentralized finance (DeFi)What are the shortcomings of centralized finance and why decentralized finance is more inclusiveWhat are the key elements of DeFiHow Ethereum smart contracts workHow MakerDao and Dai work and replicate many aspects of the modern financial systemHow BlockFi operates using overcollateralized and undercollateralized loansWhat are the risks of cryptocurrency lending using BlockFi and DaiThanks to LinkedIn and Truebill for sponsoring the episode.For more information on this episode click here.Show NotesCrypto Lending Interest Rates for April 2021—DeFi RateDeFi and the Future of Finance by Campbell R. Harvey, Ashwin Ramachandran, and Joey SantoroMillions Lost: The Top 19 DeFi Cryptocurrency Hacks of 2020