In Plus episode 480, we explore how Treasury auctions work and what metrics are monitored to assess whether demand is strong or weak. We review the performance of fundamental indexing relative to value strategies and size-weighted indexes. Finally, we look at likely recoveries for investors on the bankrupt Peer Street crowdfunding platform. … [Read more...]
440: Beware of Platform Risk
How to mitigate the risk of investing on crowdfunding platforms where there is little transparency on the underlying financial health of the platform company. Topics covered include: What is the platform economy How blitzscaling and an over-reliance on venture capital funding led to Peer Street's bankruptcy What happens next for investors on Peer Street's platforms How individuals and businesses can mitigate the risk of investing or conducting business on … [Read more...]
304: A 15% Guaranteed Return? Lending on the Fringes of Finance
An analysis of the returns and risks of a cash advance company called DriverLoan Investor Club that promises to pay a 15% annual percentage yield. In addition, a look at different lending platform options including asset-based lending, unsecured peer-to-peer lending, and cryptocurrency lending. Jump to transcript Topics covered include DriverLoan Investor Club that promises a 15% guaranteed return U-haul Investors Club and other asset-based lending … [Read more...]
301: Use Caution with Alternative Investments
How alternative investment opportunities, such as venture capital, private equity, real estate and real assets, are increasing for individuals. Why these opportunities differ from what is available to institutional investors and how to evaluate them like a pro. Alternative investments are a private investment vehicle. You can learn more about investment vehicles in this guide. Topics covered include: What are alternative investments and how are they structured. What are 5 factors … [Read more...]
296 Plus: After-hours Trading, Municipal Bonds and PeerStreet Discounted Notes
In Plus episode 296 for the week of May 2, 2020, we learn about extended-hour stock trading and why the after-hour trading sessions can be volatile. We look at the yields, pricing, and historical default rates of municipal bonds in light of the Federal Reserve's announcements regarding the Municipal Liquidity Facility. Finally, we evaluate PeerStreet's new program to purchase discounted notes that yield 11% to 14% before default. … [Read more...]
238 Plus: Federal Reserve Actions, DoubleLine, MBS and REITs
In Plus episode 238 for the week of February 2, 2019 we analyze the recent change by the Federal Reserve to effectively put their policy of raising short-term interest rates on hold. We review a profile of DoubleLine Capital in Kiplinger's and the risks DoubleLine sees in the current investment environment, particularly for rising U.S. interest rates. We evaluate the difference between agency and non-agency mortgage backed securities in terms of default risk. Finally, we look at Cohen … [Read more...]
193 Plus: Pensions, Bankruptcy Risk and Speculation
This week February 24, 2018 on Money For the Rest of Us Plus, we clarify the importance of understanding a pension's funding status before choosing the pension via a lump sum payment. We also clarify the risk of investing in crowdfunding platforms in the case of bankruptcy. We explore how investments with positive expected returns can be speculative for individuals and how to manage that speculative risk. Finally, we discuss asset allocation for accounts designated for children. … [Read more...]
192 Plus: Direct Indexing, Water Investing and a Money Manager Review
This week February 17, 2018 on Money For the Rest of Us Plus, we evaluate a money management firm a member is considering. We look at the pros and cons of Wealthfront's Direct Indexing strategy where they hold individual stocks versus ETFs for the U.S. equity allocation. We look at options for water investing. Finally, we look at why it is important not to over allocate to one specific crowdfunding investment platform, such as Peer Street. … [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...]
