Why an inverted yield curve is disconcerting given such low interest rates. Why those low rates could lead to radical central bank policies during the next recession. In this episode you’ll learn: What is an inverted yield curve and does it signal a recession is coming.What determines interest rates.What is the neutral equilibrium real rate of interest and why it matters.Why is the Federal Reserve considering make up strategies that allow inflation to rise up its 2% target and what … [Read more...]
201: Is Your Portfolio Unbalanced?
Why most conventional portfolios make huge and often unintended bets on the stock market. How role-based investing can lead to a more balanced portfolio. In this episode you’ll learn: Why asset class returns and volatility are driven by changing expectations.How most investors are making a huge bet in stocks even though they might not be aware of it.The benefit and challenges of holding assets that perform well during various economic regimes.Why investing in commodity futures … [Read more...]
185: Are U.S. States Just Like Greece?
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. In this episode you’ll learn: Show Notes State of Illinois Investor Presentation (page no longer available) Weakest eurozone economies on long road to recovery - The Guardian Market Reforms At Work in Italy, Spain, Portugal and Greece - European Commission Brussels faces up to challenge of letting Greece go - Financial … [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. In this episode you'll learn: 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 ETFs Guggenheim - BulletShares U-Haul Investors Club U-Haul Parent Amerco: Ready To Move - Barrons PeerStreet Summary Article How Rising Interest Rates Impact Bond … [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. 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 returns into the … [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. 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 begins raising interest … [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...]
