In Plus episode 429, we consider how stocks perform during periods of high inflation by looking at the example of Argentina and a recent academic study on the topic. … [Read more...]
400: What If High Inflation Doesn’t End?
How economic wars, pandemics, and worker shortages could lead to years of high structural inflation. What needs to happen to avoid this dire inflation scenario. Topics covered include: What are three inflation lessons shared by Federal Reserve Chair Jerome PowellWhat is inflation anchoringWhat caused the current period of high inflationHow China and Russia contributed to low inflation and why those trends have reversedHow behavior changes and productivity improvements can contribute to … [Read more...]
367: What Investment Strategies Do Best During High Inflation Periods?
How different asset classes and investment strategies have performed during periods of unexpectedly high inflation. While trend and momentum strategies have performed the best, what are some of the challenges with implementing those strategies. Topics covered include: What has led to today's high inflation environment and why it is uniqueHow current demographic and technology trends are disinflationaryHow many inflationary regimes have there been in the pastHow stocks, residential … [Read more...]
361 Plus: Closed-End Fund Tender Offers and Asset Class Returns During High Inflation Environments
In Plus Episode 361, we review the proxy battle that has led to a tender offer by Templeton Global Income Fund (GIM) to purchase up to 70% of its outstanding shares. We consider whether now is the time to sell the fund. We also review two studies on how different asset classes and investment strategies performed during periods of high inflation. … [Read more...]
359 Plus: Hedging Interest Rate Risk and a Deep In the Money Call Option Strategy
In Plus Episode 359, we calculate how much of the Simplify Interest Rate Hedge ETF (PFIX) to purchase in order to protect against rising interest rates. We also look at how purchasing deep-in-the money call options is a way to get cheap leverage to magnify the returns of a specific index or asset. … [Read more...]
342: Is Another Great Inflation Coming?
How today's inflationary environment is similar and different from the great inflation of the 1970s. What are the best assets to protect your portfolio if the next great inflation is here. Topics covered include: How is inflation measured and why the pandemic made calculating inflation difficult What causes inflation Why is inflation increasing currently What caused the great inflation of the 1970s Which assets are best to own to protect against inflation Show … [Read more...]
334 Plus: A New Inflation ETF, Inverse ETFs, and Excess CAPE Yields
In Plus Episode 334 for the week of March 13, 2021, we analyze the Horizon Kinetics Inflation Beneficiaries ETF (INFL) and how it seeks to protect against inflation including holding royalty trusts. We look at how inverse ETFs work and under what circumstances might they be used. Finally, we analyze earnings yields relative to bond yields including the Excess CAPE Yield, and what conclusions can we draw when stock earnings yields are higher than bond yields and vice versa. 334 … [Read more...]
263: Should You Invest In Gold?
With gold at a six-year high, is now the time to invest? What determines the price of gold and what are ways one can invest in this precious metal? We also explore whether gold is an effective inflation hedge and store of value. In this episode you’ll learn: How has gold performed as an investment over different time periods. How gold has outperformed inflation, but has not been a great inflation hedge. What are the challenges to gold being a safe haven How gold's … [Read more...]
190: How To Keep Up With Inflation
What investments are best for maintaining purchasing power relative to inflation. Using the pencil as an example, how inflationary and deflationary forces work together over decades to determine the price of product. Photo by Sy In this episode you’ll learn: What were some reasons for the great inflation during the 1970s.How productivity increases and new technology contribute to deflationary pressures.How quality improvements factors into inflation calculations.How … [Read more...]
MNY109 Plus: Portfolio Construction and Advisory Fees
This week on Money For the Rest of Us Plus we discuss how advisory fees can be a significant drag on performance returns. We also look at which asset classes do better during episodes of inflation and deflation. Finally, we review a new academic article by Cullen Roche on portfolio construction. The episode length is 24 minutes. … [Read more...]
