In Plus episode 499, David shares why he reduced his exposure to Series I Savings Bonds. We briefly look at the recently announced Cambria Tax Aware ETF (TAX). Finally, we analyze the historical performance of the Cambria Tail Risk ETF (TAIL) and compare it to just having a lower allocation in stocks. … [Read more...]
492: The Power of Optionality: Small Bets, Big Payoffs
In this episode, we explore the concept of optionality—how small, strategic decisions can lead to outsized rewards with limited downside risk. From ancient philosophy to modern financial strategies, discover how recognizing and seizing options can unlock opportunities in both life and investing. Topics covered include: How call and put options work The difference between American and European style options and why it matters Why options are positively skewed Examples of using … [Read more...]
337: Why in the World Would You Own Bonds?
With interest rates rising does it still make sense to own bonds? Yes. This episode explores the role of bonds including why they are more effective at hedging stock losses than protective put options. Topics covered include: David's business and investment philosophy How bond funds have performed in 2021 Three disparate views on the direction of interest rates from Capital Economics, Ray Dalio, and Hoisington Investment Management Company How to invest in China … [Read more...]
291 Plus: Mid Month Update, When to Increase Risk, Mortgage REITs and Covered Call Writing
In Plus episode 291, for the week of March 21, 2020, we review market returns and the latest economic releases. We discuss the recent changes to the model portfolios. We also consider what needs to happen before we increase risk by investing more in stocks. We review what is going on in the mortgage REIT space where securities have gotten hit extremely hard. Finally, we answer a member's question about covered call writing on a stock that comprises a large percentage of his net worth. … [Read more...]
250 Plus: May 2019 Portfolio Review and Consolidating Accounts
In Plus episode 250 for the week of May 24, 2019, we review David's portfolio including a discussion of short-term lending and ship deconstruction via Yield Street. We look at the potential liquidity risk with bank loans. Finally, we answer a member's question regarding consolidating accounts with one broker. … [Read more...]
249 Plus: Mid Month Update, More on Options, and a Bond Duration Review
In Plus episode 249 for the week of April 20, 2019, we review market conditions as of mid April including performance, recent economic releases and what needs to happen for the market rally to continue. We also continue our discussion from Plus Episode 246 in analyzing the CBOE WisdomTree CBOE S&P 500 PutWrite Strategy Fund including the discussion of delta, notional value and why the strategy might be used. Finally, we review the concept of duration and price changes for bonds fund … [Read more...]
246 Plus: Preferred Stock, Private REITs, and Put Writing ETFs
In Plus episode 246 for the week of March 29, 2019, we review why David added to his preferred stock allocation given the current interest rate environment. We compare the differences between private REITs and public REITs. Finally, we analyze an ETF that tracks the CBOE S&P 500 PutWrite Index. NOTE: If you are looking for the episode on the Innovator S&P Buffer ETFs mentioned in podcast Episode 277, part one of the discussion is Plus Episode 240, which you can listen to for free. … [Read more...]
245 Plus: March 2019 Mid Month Update, Inverted Yield Curve, Puts on ETFs, and a Private Lending Limited Partnership
In Plus episode 245 for the week of March 23, 2019, we look at investment conditions as of mid-March including flash PMI reports. We revisit the accuracy of inverted yield curves in predicting recessions, and what is different this time now that the yield curve has inverted. We look at why long term interest rates could increase during the next recession. David discusses his recent trade to buy puts on two non-investment grade fixed income ETFs. Finally, we look at a limited partnership … [Read more...]
179 Plus: Bitcoin Fork, Renting Out Home and Hedging Stocks To Defer Capital Gains Tax
This week November 4, 2017 on Money For the Rest of Us Plus, we look at the upcoming blockchain fork in Bitcoin that will create a new coin and how that undermines the primary thesis of holding Bitcoin as a store of value. We address the pros and cons of hedging a stock portfolio using puts in order to defer paying capital gains tax. We also look at the pros and cons of a member renting out his primary residence as he transitions to living full time in their vacation/retirement home. … [Read more...]
174 Plus: Can A Member Still Retire Following Divorce, HSAs, Annuities, and Antifragile Investments
This week September 30, 2017 on Money For the Rest of Us Plus, we discuss a member's retirement situation following a divorce that severely reduced his net worth. We look at using Health Savings Accounts in the U.S. as retirement savings vehicles. We also evaluate using a TIAA traditional annuity as a fixed income alternative. Finally, we explore what "antifragile" investments might be expected to perform well during the next recession with a specific look at what it costs to hedge a stock … [Read more...]
