In Plus episode 504, David explains his recent portfolio trade to exit his AI-related ETFs and increase his allocation to non-U.S. small-cap stocks. We review Simplify ETF strategist Michael Greene's work on why he believes an indexing bubble exists. Finally, we look at how investments in short-term Treasury ETFs can lead to a capital gain depending on when they are sold. … [Read more...]
449 Plus: Retaining an Investment Advisor, Money Market Funds, Repos, and a QT Update
In Plus episode 449, we answer a member's question about retaining an investment advisor. We compare bank-offered money market accounts and money market mutual funds. We review what repurchase agreements are and discuss at what point the Federal Reserve will need to stop allowing its bond holdings to mature as part of quantitative easing. … [Read more...]
428 Plus: CMBS Risks, ETF Replacements for Money Market Mutual Funds, and Comparing Two Value ETFs
In Plus episode 428, we explore how commercial mortgage-backed securities work. We look at ETF options that are similar to money market mutual funds. We analyze the U.S. Benchmark Series, a new ETF family, where each ETF owns only one U.S. Treasury security. Finally, we compare the Cambria Shareholder Yield ETF (SYLD) to the Distillate US Fundamental Stability & Value ETF (DSTL). … [Read more...]
428: How the Coming Credit Crunch Could Harm the Economy and Real Estate Prices
How accelerating bank deposit withdrawals could harm the economy, including real estate prices. How dollars slosh around the financial system but always seem to end up at the Federal Reserve. Topics covered include: How many deposits have left banks since the Silicon Valley Bank collapse How much have banks borrowed from the Federal Reserve to meet deposit withdrawals Why exiting deposits are harming bank profits and causing them to make fewer loans How the credit crunch … [Read more...]
412: Where to Invest Your Cash Savings for Higher Yields
What are the best options for safely investing cash. Topics covered include: High-yield savings accounts Certificates of Deposits Government Bonds Money Market Mutual Funds When should you invest in long-term bonds Why some savings apps try to look like banks but they are not What happens when central banks lose money Where not to deposit cash for safety Show Notes a16z-backed Tellus wants to offer consumers a much better savings rate. Here’s how. by … [Read more...]
333: How The Covid Shock Nearly Destroyed The Financial System
Why the Federal Reserve had to step in again to stop runs on money market mutual funds and keep the financial system from imploding. Topics covered include: What are the differences between shocks and vulnerabilities What are the four main vulnerabilities the Federal Reserve monitors How deleveraging and demands for liquidity lead to market stresses What are the types of money market funds and how were they impacted by the Covid 19 shock How was Treasury bond trading … [Read more...]
285: Money is Debt
Money can be used to purchase things now or saved to purchase things later. If individuals want to save their money to purchase things in the not too distant future, they can invest in what are known as cash equivalents. These include savings accounts at banks or money market mutual funds. Cash equivalents pay a little bit of interest while also having price stability in that the value of deposits varies little from day-to-day. Money Is Debt Backed By Debt Gary Gorton, Professor of … [Read more...]
219 Plus: A New ETF, Realizing Gains, Money Market Funds and an Automated Investment Service
This week September 1, 2018, we look at a new levered ETF geared toward retirees in the distribution phase. We explore the timing of exercising options for a member who has the majority of his net worth in his former employer's stock. We evaluate the risk of money market mutual funds. Finally, we look at Transamerica PortfolioXpress, an automated asset allocation and rebalancing service for defined contribution plans. … [Read more...]
