Money For The Rest Of Us

With a ballooning U.S. federal budget deficit, a growing national debt, and double digit increases in the money supply, is it time to bet against the dollar?Topics covered include:What is driving the double digit increases in U.S. home pricesWhy hasn't inflation spiked in line with rising home pricesWhat is the velocity of money and why is it fallingWhat are three schools of thought regarding what causes inflationWhat is the average interest rate and maturity schedule of the U.S. national debtHow the Bank of Amsterdam is an example of how central banks can go insolvent and shut downWhy the dollar has an exorbitant privilegeThanks to Policygenius 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 NotesWhere Did Americans Move in 2020? by Janelle Cammenga—Tax FoundationVelocity of M2 Money Stock (M2V) Chart—Federal Reserve Bank of St. LouisFederal Surplus or Deficit [-] as Percent of Gros

With interest rates rising does it still make sense to own bonds? Yes. This episode explores the role of bonds including why they are more effective at hedging stock losses than protective put options.Topics covered include:David's business and investment philosophyHow bond funds have performed in 2021Three disparate views on the direction of interest rates from Capital Economics, Ray Dalio, and Hoisington Investment Management CompanyHow to invest in China bondsWhy owning bonds is cheaper and more effective at hedging stock market losses than put optionsHow covered call strategies workHow to decide on your allocation to bonds versus stocksThanks to Mint Mobile for sponsoring the episode.For more information on this episode click here.Show NotesWhat I think, not what I thought – Jason FriedWhy in the World Would You Own Bonds When… – Ray DalioExplainer: Foreign access to China’s $16 trillion bond market – ReutersThe True Cost of Hedging S&P Downside - Movement CapitalRevisiting Covered Calls and Prot

There has never been this much money in the world. Now is the time to own real property.Topics covered include:How to buy something with BitcoinHow cryptocurrencies are similar and different from fiat currenciesWhat is legal tenderWhy there has never been this much money in the worldWhy central banks can control interest rates but not inflationWhat real property should investors ownThanks to Truebill and Babbel for sponsoring the episode. Use code David for Babbel to get an additional three months free.For more information on this episode click here.Show NotesThe Power of Gold: The History of an Obsession by Peter L. BernsteinIRS Virtual Currency Guidance Announcement 2014-21—Internal Revenue ServiceLegal Tender Status—U.S. Department of the TreasuryIndia to propose cryptocurrency ban, penalising miners, traders - source by Aftab Ahmed, Nupur Anand—ReutersExecutive Order 6102—Requiring Gold Coin, Gold Bullion and Gold Certificates to Be Delivered to the Government by Franklin D. Roosevelt—The American Pr

How do non-fungible tokens work, what are the risks, and how do NFTs fit within the landscape of investments.Topics covered include:Investing in physical art versus cryptoartHow NFTs work on the ethereum blockchainHow Ethereum differs from BitcoinWhat is the purpose of investing and are NFTs investmentsHow much energy do cryptocurrencies and the financial system consumeWhat are the risks of NFTsThanks to Amazon Pharmacy and SmartAsset for sponsoring the episode.For more information on this episode click here.Show NotesWant to Buy an NFT? Here’s What to Know by Amber Burton—The Wall Street JournalFrom Crypto Art to Trading Cards, Investment Manias Abound by Erin Griffith—The New York TimesNFTs, explained by Mitchell Clark—The VergeHERE IS THE ARTICLE YOU CAN SEND TO PEOPLE WHEN THEY SAY “BUT THE ENVIRONMENTAL ISSUES WITH CRYPTOART WILL BE SOLVED SOON, RIGHT?” by Everest Pipkin39% of PoW mining is powered by renewables – Cambridge University Cryptoasset study by Gareth Jenkinson—The Daily ChainCambrid

How much can you earn investing in farmland and what are the risks? What are the ways to invest in farmland?Topics covered include:What determines farmland investment returnsHow much has U.S. farmland appreciated historicallyHow much income does farmland investing generateWhy the amount of U.S. farmland is shrinkingHas another commodity supercycle startedWhy U.S. farmers are dependent on exportsWhat are farmland investing risksWhat farmland investment vehicles are availableHow to evaluate a farmland investment opportunityThanks to LinkedIn and Policygenius for sponsoring the episode.For more information on this episode click here.Show NotesFarmland Values, Land Ownership, and Returns to Farmland, 2000-2016 by Christopher Burns, Nigel Key, Sarah Tulman, Allison Borchers, and Jeremy Weber—United States Department of AgricultureLand Values 2020 Summary—United States Department of AgricultureFarming and Farm Income—Economic Research Service United States Department of AgricultureAgricultural Markets and Pric

Why the Federal Reserve had to step in again to sop runs on money market mutual funds and keep the financial system from imploding.Topics covered include:What are the differences between shocks and vulnerabilitiesWhat are the four main vulnerabilities the Federal Reserve monitorsHow deleveraging and demands for liquidity lead to market stressesWhat are the types of money market funds and how were they impacted by the Covid 19 shockHow was Treasury bond trading impacted by the Covid shockWhy the Federal Reserve stepped in to stop the market contagion from spreadingWhat are the downsides to central bank interventionsWhat individual investors can do to protect against future shocksThanks to Mint Mobile and Truebill for sponsoring the episode.For more information on this episode click here.Show NotesPresident’s Working Group on Financial Markets Releases Report on Money Market Funds—U.S. Department of the TreasuryReport of the President’s Working Group on Financial Markets: Overview of Recent Events and Pote

When should you protect against rare, but extreme events? When should you self-insure? Under what circumstance should you sell tail risk protection to others?Topics covered include:How tail events differ from tail riskWhy volatility is not the best measure of risk for individualsWhat does it cost to protect against large stock market lossesWhy younger investors can take more risk due to their human capitalHow does the profit wheel options strategy workHow the catastrophic power outage in Texas exemplifies tail riskWhy individuals need to build more reserves because the economic system is too efficient and vulnerable to breakdownsThanks to SmartAsset and Babbel for sponsoring the episode. Use code DAVID for Babbel to get three months free.For more information on this episode click here.Show NotesAverage Weather in San Antonio Texas, United States—Weather SparkUpdate on the CBOE BuyWrite and PutWrite Option Indexes, October 2018—Asset Consulting GroupThe Texas Freeze: Why the Power Grid Failed Katherine Bl

How to structure employment so workers are more creative, productive, and happier.Topics include:What percentage of employees work at home due to the pandemicHow many hours per week do men and women work in both paid employment and unpaid caregivingHow workers have been allocating the time saved by not commutingWhy the economy would still prosper if we worked only four hours per dayWhat is the cult of efficiencyWhat is the difference between leisure and amusementWhy employers reward busyness at workHow work can be more satisfying and createThanks to LinkedIn and Policygenius for sponsoring the episode.For more information on this episode click here.Show Notes60 million fewer commuting hours per day: How Americans use time saved by working from home by Jose Maria Barrero, Nick Bloom and Steven J. DavisMental health: C-suite struggles in the pandemic by Rachel Ranosa—Human Resources DirectorDeep Work (Rules for Focused Success in a Distracted World) by Cal NewportIn Praise of Idleness by Bertrand Russell—H

Why has silver jumped to its highest price in eight years. What you need to know to invest in silver.Topics covered include:What drove the huge spike in silver purchasesHow silver differs from meme stocksHow hedge funds are positioned with regard to silverWhat are three ways to invest in silverWhat is the annual demand and supply for silverWhat are the reasons to own silverHow good has silver been as an inflation hedgeWhat is the gold-silver ratio and how to use itWhat happened when the Hunt brothers tried to corner the silver marketWhat evidence is there that the silver market is manipulatedThanks to Mint Mobile for sponsoring the episode.For more information on this episode click here.Show NotesSilver Prices Surge to Eight-Year High Amid Reddit-Fueled Frenzy by Eddie Spence, Jake Lloyd-Smith, and Yvonne Yue Li—Bloombergr/wallstreetbetsSilver price retreats rapidly in blow to new retail buyers by Henry Sanderson and Neil Hume‘What’d You Miss?’ Full Show (02/01/2021)—BloombergSilver Price Chart—BullionVa

How coordinated buying by retail investors has turned the table on Wall Street. Are there signs of a market bubble?Topic covered include:What are meme stocksWhy GameStop's stock (GME) has soared to over $300 from $17 in less than a monthWhat are short squeezes and gamma squeezes and how they can push up a stock priceHow short-sellers including hedge funds are losing big against individual investors on the wallstreetbets subredditIs coordinated buying of options and stocks by individual investors illegal?How market flows into stocks are taking precedence over fundamental dataIs the stock market in a bubble and how does the current market environment compare to the 1999 Internet bubble and the 2006 housing bubble?Thanks to Truebill for sponsoring the episodeFor more information on this episode click here.Show Notesr/wallstreetbetsFOR POSTERITY—Almost Daily Grants 1.25.21GameStop can’t stop going up by Jamie Powell—Financial TimesReddit: bull attack by Jamie Powell and Philip Stafford—Financial TimesHow Wal

Most global stock ETFs, funds and indices have only about 5% invested in China even though China has the second-largest economy in the world. What are the pros and cons of increasing your allocation to Chinese stocks.Topics covered include:Why has China's economy rebounded faster than other countriesWhat are Chinese A-share stocksHow large are China's economy and stock marketWhat are four threats that could derail the performance of Chinese stocksHow individuals can invest in China's stock market including A-sharesThanks to SmartAsset for sponsoring the episode.For more information on this episode click here.Show NotesChinese shares: should you increase the amount in your portfolio? by Sam Dickens—IG GroupChina A-Shares Definition by Troy Segal—InvestopediaChina’s Economy Powers Ahead While the Rest of the World Reels by Stella Yifan Xie, Eun-Young Jeong and Mike Cherney—The Wall Street JournalChina Still Grew and Fueled Its Rise as Covid-19 Shook the Global Economy by Jonathan Cheng—The Wall Street Jour

Should the U.S. cancel $10,000 or more of student loan debt per borrower? What would be the economic and financial impact? Why the student loan system is broken and how to fix it.Topics covered include:How large and what is the growth rate of U.S. student loan balancesWhat are the projections for student loan lossesWhat are the pros and cons of forgiving student loansWhat would be the impact on federal finances of canceling student loansWhy the U.S. government is already technically insolventHow student loan programs should be restructuredThanks to LinkedIn and Policygenius for sponsoring the episode.For more information on this episode click here.Show NotesStudent Loans Owned and Securitized, Outstanding—Federal Reserve Bank of St. LouiseSenate majority gives Biden path to student loan forgiveness by Sylvan Lane—The HillSchumer pressures Biden to bypass Congress to cancel $50,000 in student debt per borrower by Annie Nova—CNBCBiden will call on Congress to forgive $10,000 in student debt for all borrowe

How should individuals invest and spend in retirement with interest rates so low, stock valuations high, and inflation uncertain. Why retirement managed payout funds and income replacement funds failed.Topics covered include:How managed payout and income replacement funds compare to immediate annuitiesWhy Vanguard and Fidelity changed the objective of their retiree focused income replacement and managed payout fundsHow fixed annuities workHow retirees should combine annuities with multi-asset class portfolios to ensure a successful retirementWhy the 4% retirement spending rule is not appropriate for all investors all of the time.Why inflation is the biggest determinant of how much retirees can spendWhy is there so much controversy over the current and future inflation rateThanks to Mint Mobile and Truebill for sponsoring the episode.Show Note LinksVanguard Throws in the Towel on Its Managed Payout Fund by Daren Fonda—Barron'sGenerating Retirement Income Isn’t Easy, Even for Vanguard by Reshma Kapadia—Barron's

How convertible bonds work, why they gained 50% in 2020 and outperformed stocks over the past five years. Why Vanguard shut down their convertible bond mutual funds.Topics discussed include:How big is the convertible bond marketWhy companies issue convertible bondsHow convertible bonds work and how to analyze themWhy convertible bonds have performed so wellWhat is a reasonable expected return for convertible bonds and what are the risksWhat are ways to invest in convertible bondsThanks to Netsuite for sponsoring the episode. Take the Money For the Rest of Us listener survey.Show NotesA Plunge and a Recovery Drives a Top-Performing Year in Convertibles by Andrew Bary—Barron'sConvertible Bond Indices: An Overview by SPDR EMEA ETF Strategy Team—State Street Global AdvisorsCONVERTIBLE SECURITIES: Structures, Valuation, Market Environment, and Asset Allocation by John P. Calamos, Sr with contributions from Eli Pars—Calamos InvestmentsTesla, Inc. 2.00% Convertible Senior Notes due 2024 (the “Convertible Notes Offer

A review of how the pandemic, financial markets, and government policy evolved in 2020 to make for an unforgettable year.Topics covered include:Why the Covid-19 pandemic ranks as the second worst in modern historyWhat is the difference between risk and uncertainty and how our investing should be different when dealing with uncertaintyWhat portfolio changes did David make in 2020 and how should he have invested if he had perfect foresightWhy speculative assets such as gold and cryptocurrencies have performed so well in 2020Why high savings rate and pent up demand provides a tailwind for the economyHow to invest and live when the future is unknowableThanks to Policygenius and LinkedIn for sponsoring the episode.Show Notes286: Coronavirus and the Financial Impact of Pandemics291: How To Survive the Coronavirus (COVID-19) ShutdownMadame Vivelda—Saturday Night LiveWhat Is Risk vs Uncertainty?—Money For the Rest of Us Guide299: Has the Pandemic Changed You?Personal Saving Rate—Federal Reserve Bank of St. Louis302:

How the drive for efficiency leads to greater wealth concentration and threatens capitalism. What can be done about it.Topics covered include:Why income growth has slowed for the middle classWhy the economy now follows a power-law distribution rather than a normal distribution, leading to skewed outcomesWhy the economy is a complex adaptive system rather than a machineHow the type of job you have and the company you work for affects your incomeWhy greater efficiency increases the risk of catastrophic collapsesWhat are ways to balance efficiency with resiliencyShow NotesChanges in U.S. Family Finances from 2016 to 2019: Evidence from the Survey of Consumer Finances—The Board of Governors of the Federal ReserveHow America Banks: Household Use of Banking and Financial Services—Federal Deposit Insurance CorporationWhen More Is Not Better: Overcoming America’s Obsession with Economic Efficiency by Roger L. MartinHow The Economic Machine Works by Ray Dalio—VideoFor more information on this episode click here.A

How a nation's balance of payments impacts its currency exchange rate as evidenced by Turkey and other countries.Topics covered include:What is a nation's balance of payments, its current account, and its capital accountHow an individual's personal financial flows are similar to those of a countryWhat is causing the currency crisis in Turkey and LebanonWhy gold imports have increased by 150% in TurkeyWhat is the Triffin dilemma or paradox and how does it impact the United StatesWhat individuals can do to manage currency risksThanks to The Great Courses Plus and Policygenius for sponsoring the episode.For show notes and more information on this episode click here.

How to determine whether you should invest in a complex investment such as an actively managed ETF that uses option strategies.Topics covered include:A recent investment David made that he shouldn't haveWhat is the volatility risk premium and how to invest in itWhy there have been over 200 new ETFs and ETNs launched in the U.S. in 2020Why some ETF sponsors launch lower cost versions of ETFs that compete with their existing offerings.What questions to answer as part of analyzing a complex investmentWhy there is always a catch to ETFs such as the Innovators Stacker and Ultra Buffer ETF series that can make them seem too good to be true.A simpler way to lower portfolio risk without using complex option-based ETFs.Thanks to Netsuite and LinkedIn for sponsoring the episode.For show notes and more information on this episode click here.

As we await the U.S. presidential election results, we review the results of the Trump Administration's economic policies to see if Americans are better off financially than they were four years ago.Topics covered include:Why pollsters and election models can be wrongWhy the state of the economy often drives election outcomesWhat has been the economic impact of the 2017 Tax Cuts and Jobs ActWhat has been the impact of the U.S. trade war with ChinaHow have poverty and health insurance costs changed under the Trump AdministrationWhat has been the growth of federal regulations under the Trump AdministrationHow have stocks performed during the Trump AdministrationWhy we shouldn't let whoever wins the presidency ruin our lifeThanks to Policygenius and Tempo for sponsoring the episode. Use code David with Tempo for $100 offFor show notes and more information on this episode click here.

How central bank digital currencies would work, what is the motivation to create them and what are the risks.Topics covered include:What percentage of central banks are working on a digital currency and plan to issue one soonWhat are the two kinds of money that central banks currently issue and how would a central bank digital currency differHow central bank digital currencies would be similar and different from Bitcoin and other cryptocurrenciesWhat are the benefits and risks of central bank digital currenciesWhat are the design principles that major central banks proposed for their digital currenciesWhat percentage of central banks currently have the legal authority to issue their own digital currencyThanks to Gen Z Green podcast and Masterworks for sponsoring the episode. Use code David for Masterworks to skip the wait list.For show notes and more information on this episode click here.