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: Show Notes Surveys of Consumers—University of Michigan Consumer sentiment climbs amid split views on business outlook—University of Michigan The Purchasing Power of American Households—U.S. Department of the Treasury Unemployment Rate—St. Louis Fed We Still Don’t Believe How Much Things Cost by Rachel Wolfe … [Read more...]
470: How the Economy Really Works: Savings, Investing, Consuming and Market Distortions
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: Show Notes Wait, Is Saving Good or Bad? The Paradox of Thrift—The Federal Reserve Bank of St. Louis Rents: How Marketing Causes Inequality by Gerrit De Geest—Beccaria Books FTC Challenges Kroger’s Acquisition of Albertsons—Federal Trade … [Read more...]
298: The Stock Market Is Not the Economy
How the stock market differs from and can perform differently than the economy while remaining highly dependent on the economy for its success. Topics covered include: Why the stock markets in countries with lower economic growth performed better than the stock markets in countries with higher economic growth.How the top 5 stocks in the S&P 500 Index have the largest weighting in 30 years and what will it takes for these stocks to outperform the market.What are the largest … [Read more...]
MNY143 Plus: Leading Economic Indicators and Liquid Alternatives
This week February 4, 2017 on Money For the Rest of Us Plus we look at a leading economic measure separate from PMI that has been very effective a predicting recessions. We also look at the state of liquid alternative ETFs and funds. … [Read more...]
125: Is the Economy Really Doing That Poorly?
How to thrive in an ever changing, increasingly complex economy. In this episode you'll learn: Why are Americans so pessimistic about the economy.What do the statistics say about the economic recovery and job growth.How the changing U.S. energy production mix is impacting employment.What are the trends in household income and wages.How a personal margin of safety can help us take control of our lives. Show Notes Gallup U.S. Economic Confidence Index U.S. Economic … [Read more...]
98: Why You Need A Lifestyle Business
How a lifestyle business can offset the impact of lower investment returns and contribute to a more sustainable economy. In this episode you'll learn: What is a lifestyle business.How venture capital works.Why economic growth is slowing.Why slower economic growth means lower returns for stocks and bonds.How a lifestyle business can help offset lower investment returns. Show Notes StartUp Season 1 Finale by Gimlet Media Throwing Rocks At the Google Bus: How Growth Became the … [Read more...]
93: Capitalism, Complexity and Cuba
Why uncertainty and failure is necessary for a functioning economy and why Cuba is embracing both in its struggle to reform its economy. In this episode you'll learn: Why the Cuba economy is struggling.Why Cuba is experiencing inflation.What is Cuba's largest export.What Cuba is doing to reform its economy.Why you need uncertainty for a functioning economy.What are the qualities of a complex system . Show Notes In a reversal, Cuba tries price controls to tame inflation - … [Read more...]
78: What If the Economy Permanently Stopped Growing
How a zero-growth economy would impact investing, employment and lifestyle. It depends on whether the economy is flat lining due to population shrinkage or a willful choice to be less productive. In this episode you'll learn: How economic growth is measured.Why long-term economic growth is tied to population growth and/or productivity growth.How population decline can lead to deflation, stagnating stock markets and falling bond yields.What happens if Japan defaults on its … [Read more...]
Economic Conditions Remain GREEN
In the December 2014 Investment Conditions report, I labeled Economic and Central Bank trends as GREEN, suggesting that global economic and central bank trends were tailwinds for stocks. The primary measure I use to determine global economic trends are Purchaser Manager Indices (PMIs), which are monthly surveys of businesses conducted by Markit and other providers. Generally, a reading above 50 suggests an economy is expanding while a reading below 50 suggests an economy is … [Read more...]
8: What If Everyone Worked Only Four Hours Per Day?
We can have sustainable economic growth and a thriving stock market while working less and enjoying life more. In this podcast, you'll learn: Show Notes Short Video on Scott and Helen Nearing - Living the Good Life John Maynard Keynes talk - Economic Possibilities for Our Grandchildren Martin Wolf article on leisure - Enslave the Robots and Free the Poor My essay on how living the Good Life is like hitting the sweet spot - Living the Good Life Summary … [Read more...]
