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 philosophy How bond funds have performed in 2021 Three disparate views on the direction of interest rates from Capital Economics, Ray Dalio, and Hoisington Investment Management Company How to invest in China … [Read more...]
336 Plus: A Simple Money Supply, Money Creation Analogy
In Plus Episode 336 for the week of March 27, 2021, we discuss some new site additions for Plus members. We also explore an analogy to explain under what circumstances the money supply and purchasing power increase and under what circumstances they don't. We use the analogy to explain what is happening currently and under what circumstances it could lead to higher inflation. Finally, we review why Hoisington Investment Management Company believes inflation will stay low and interest … [Read more...]