How Illinois and other states can suffer a debt crisis like Greece but why it wouldn't lead to an economic depression similar to what Greece suffered. Photo by Oleksii Khodakivskiy In this episode you’ll learn: How the economies of Greece and Portugal compare to Illinois.Why Illinois and other U.S. states have similar constraints as Greece to combat recession.What is an internal devaluation and why doesn't it work.What are sudden stops. Show Notes State of Illinois … [Read more...]
MNY144 Plus: Financial Advisors, Rising Rates and Market Depth
This week February 11, 2017 on Money For the Rest of Us Plus we look at a the difficulty in finding a financial advisor to manage assets. We look at under what circumstances an investor should shift some of their bond allocation to cash. Finally, we look at the specialist function on stock market exchanges and analyzing market depth. … [Read more...]
133: Interest Rates Are Rising. Four Things You Can Do
Here are four investment strategies investors can use to avoid losses due to rising interest rates. Photo by Pedro Lasta In this episode you'll learn: The importance of focusing on the present Why bond prices fluctuate as interest rates change. What fixed income strategies avoid interest rate risks. Show Notes Fraying At The Edges by N.R. Kleinfield - New York Times Essays In Idleness - Yoshida Kenko MNY52: Why Interest Rates Are So Low iShares iBonds … [Read more...]
MNY129 Plus: Becoming A Millionaire and Stock Valuations versus Interest Rates
This week on Money For the Rest of Us Plus look at how to construct a portfolio and how much needs to be saved in order to become a millionaire. We also look at the relationship between stock valuations and interest rates. Finally, we learn about warrants. … [Read more...]
MNY123 Plus: Regret Aversion, Interest Rates Hikes and Hedging Portfolios
This week on Money For the Rest of Us Plus we revisit the process to assist investors to transition from one portfolio structure to another, including if one is holding cash. The key is to overcome regret aversion and loss aversion. We look at how to do that. We also look at the fear of rising interest rates and why is it so great and would the outcomes be that bad. Finally, we look at the cost of hedging a stock portfolio as a member evaluates a hedge fund strategy does exactly … [Read more...]
122: Why Negative Interest Rates Are Dangerous
How negative interest rates increase volatility and lower future returns. What can you do about it. Photo by J.D. Stein In this episode you'll learn: Why risk management is critical for investing.How much of the world's population is living under negative interest rates.How negative interest rates negatively impact consumers, pension plans, insurance companies and banks.Why negative interest rates increase the risk of investing.How falling interest rates move future investment … [Read more...]
82: What Assets Return When The Fed Raises Rates
How have various asset classes performed when the Federal Reserve begins tightening by raising short-term interest rates. Photo by Joe Wessells In this episode you'll learn: How interest rates have declined over the decades.What determines interest rates.What are different measures of inflation.How long after the first Federal Reserve begins raising its policy rate have recessions begun.What have stocks, bonds and other asset categories returned one year after the Federal Reserve … [Read more...]
MNY059 Plus: Bitcoin, Bond Liquidity and Plus Membership Changes
In this week's Money For the Rest of Us Plus episode, I discuss The three definitions of money applied to Bitcoin Whats causing interest rates to rise Upcoming changes to Money For the Rest of Us Plus The episode length is 15 minutes. … [Read more...]
52: Why Are Interest Rates So Low, Even Negative In Some Places
What factors determine interest rates and why interest rates matter to the economy and your investment portfolio. In this episode, you'll learn: What are real rates.What is the equilibrium real rate of interest.What is full employment.How central bankers try to influence interest rates .How future short-term rates influence long-term rates.How can interest rates be negative.What are term premiums.How inflation expectations influence interest rates.What is secular … [Read more...]
MNY051Plus: Why Are Interest Rates So Low?
In this week's Money For the Rest of Us Plus episode, I discuss What are equilibrium real rates of interest and why they are important. How does the Federal Reserve decide when to raise short-term interest rates. Why has the equilibrium real rate of interest been so low and what influences it. The episode length is 15 minutes. … [Read more...]
