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 … [Read more...]
255: With Interest Rates Falling, Why Do You Own Bonds?
How an asset class such as bonds can play different roles in your portfolio depending on your investment philosophy. In this episode you’ll learn: What are bonds and how can they be used in investment portfolios.What is interest rate anticipation.Why individuals have an advantage over institutions because they don't have to worry about outperforming a benchmark when it comes to bonds.Why U.S. interest rates could rise and fall from current levels.Why China is unlikely to sell all … [Read more...]
218: Is China or the U.S. More Vulnerable?
What are the headwinds facing China that could slow economic growth, but still could lead to China growing faster than the U.S. Also, what is going on with Turkey and are other emerging market countries vulnerable to the same plight? Photo by Hanson Lu In this episode you’ll learn: What are valuation differences between the U.S. and China..What is a balance of payment crisis.What is driving the current economic crisis is Turkey.What headwinds does China face that make it more … [Read more...]
212: Trade Wars Increase Prices and Poverty
How a complex global trade system has reduced poverty, raised incomes, increased productivity, and lowered prices while a trade war will reverse those trends. In this episode you’ll learn: Why does the U.S. run such a huge trade deficit with China. What has the U.S. tariff rate on imports been historically. How global trade decreased poverty. Why there are both good and bad unintended consequences. How businesses adapt to tariffs. Show Notes The Power Economy by John Oliver … [Read more...]
195: Has A Trade War Begun?
Why duties and other actions are necessary to address trade disputes, but across the board tariffs are a blunt instrument that can lead to a devastating trade war and global recession. In this episode you’ll learn: Why trade deficits are not always bad. How frequently has the U.S. government taken trade actions to protect national security. To what extent have steel and aluminum imports harmed U.S. domestic producers. What are the risks of using across the board tariffs … [Read more...]
116: Why Investors Can’t Ignore China
Will China's growing debt burden lead to a banking collapse? How would that impact investors globally, and what should you do about it. Photo by leniners In this episode you'll learn: Why managing a hedge fund is so difficult.How China's debt burden is a significant risk.How to tell if a country has reached its maximum private debt capacity.How wealth management products work in China.How to invest in the face of China's inevitable slowdown. Show Notes Real … [Read more...]
95: Keep Investing Simple
Steps to take to keep investing simple. Plus how changes in China are having spillover effects for global economic growth and asset class returns. Photo by Yelp, Inc. In this episode you'll learn: How flocks of birds move together.What are examples of simple things to focus on when investing.What is a maximum drawdown.Why it is important to step back and take a big picture view of the themes driving capital markets.How China's transition to a consumer driven economy is … [Read more...]
74: Capital Flows Where It Is Treated Best
How investment capital seeks out the most attractive opportunities, and why that is causing China to dump some of its U.S. Treasury bonds. Photo by J.D. Stein In this episode you'll learn: What it means to have your investment capital treated well.Why the U.S. dollar is stronger than the Canadian dollar.What drives currency exchange rates.What are the negative consequences of a weak currency.What are foreign currency reserves and how do countries acquire them.Why China owns U.S. … [Read more...]
MNY064 Plus: Is China Undervalued and the Status of Greece
This week's Money For the Rest of Us Plus episode answers a member question regarding whether China is undervalued after the sell-off. I also discuss how consumer debt and imports contributed to the Greece crisis. The episode length is 16 minutes. … [Read more...]
MNY052 Plus: Why I Reduced My Chinese Stock Exposure
In this week's Money For the Rest of Us Plus episode, I discuss The ongoing economic transition occurring in China. The status of Chinese valuations, economic trends and market internals. Why I locked in a 20%+ gain in Chinese stocks and reduced my exposure. The episode length is 15 minutes. … [Read more...]
