What central banks such as the Federal Reserve and federal governments are doing to counteract the negative impact of the pandemic related economic shutdown. What are the risks of this massive monetary and fiscal stimulus and how to mitigate those risks. Topics covered include: How central banks have the capacity to create an infinite amount of money.How the Federal Reserve is using its money-printing ability to stabilize the financial system and reduce the negative impact of the … [Read more...]
221 Plus: The Great Financial Crisis Revisited and ESG Investing
This week September 14, 2018, we review the causes of the Great Financial Crisis and provide an update on ESG investing. … [Read more...]
221: Should You Prepare For The Next Financial Crisis?
How the Great Financial Crisis changed how individuals and institutions invest, and why we shouldn't invest solely focused on the next crisis. Photo by Osman Rana In this episode you’ll learn: How investors changed how they invest following the financial crisis.How much has passive investing grown since the Great Financial Crisis.Why we can't invest completely focused on the next financial crisisWhy the unwinding of central bank balance sheets are the biggest … [Read more...]
173 Plus: How My Investment Approach Evolved Over The Years
This week September 23, 2017 on Money For the Rest of Us Plus I discuss how my investment process of making asset allocation decisions based on investment conditions evolved over time. I provide specific examples of portfolio trades and performance during the financial crisis of 2008 and 2009 to illustrate that adjusting one's portfolio allocation based on market conditions can be used not only to hopefully reduce volatility but also to increase returns. … [Read more...]
168 Plus: Investment Conditions During The Great Financial Crisis and a Portfolio Change
This week August 12, 2017 on Money For the Rest of Us Plus I discuss a recent change to my portfolio. We look at what the data used in the investment conditions report looked like during the Great Financial Crisis and coming out the other side to see if it would have been helpful in guiding our investment decisions. We also profile a couple who want to retire in five years who have kept 2/3 of their portfolio in cash for most of the economic recovery and now want to get more of their money … [Read more...]
155: Clues To The Next Financial Crisis
How panic caused the great financial crisis and what to look for to see if it is happening again. Photo by Matthew Henry In this episode you’ll learn: What is commercial paper. What are shadow banks. How central banks stopped the 2008 financial panic. How financial indicators such as commercial paper-T-bill spreads, the Libor-OIS spread and the spread between credit default swaps and bond yields can help identify if the risk of financial panic is increasing. Show … [Read more...]
