Humans are wired to feel regret. Here's how to learn from financial regret to become a better investor. Topics covered include: What cognitive biases make feelings of financial regret unavoidable We analyze two regret case studies - one from David and one from a Plus member Why do we avoid big regrets but manage through small ones Five cognitive tricks to help manage financial regrets Show Notes Fooled by Randomness: The Hidden Role of Chance in Life and in the … [Read more...]
315 Plus: Moving Out of Cash, Purchasing and Storing Cryptocurrencies, and Mortgage REITs
In Plus Episode 315, we answer a member's question about how to move his portfolio back into the stock market. We review how to purchase and store cryptocurrencies. Finally, the episode includes the audio from a new video lesson on how to invest in mortgage real estate investment trusts. … [Read more...]
313: No One Is Entirely a Buy and Hold Investor
What are the numerous decisions individuals have to make in managing their investment portfolios. Topics covered include: Why individual investors should invest like family offices and university endowments in order to build and preserve wealthWhy even buy and hold investors make portfolio changesWhat are examples of the numerous decisions individuals have to make in overseeing their investment portfoliosHow badly have value stocks underperformed growth stocksHow our mindset should … [Read more...]
287 Plus: Coronavirus Update, Mid Month Investment Conditions and Overcoming the Fear of Investing
In Plus episode 287 for the week of February 22, 2020, we review the spread of the coronavirus pandemic and the typical growth pattern and duration of pandemics. We evaluate recent economic releases, including the downbeat U.S. services PMI flash report, to see how they reflect the impact of the coronavirus. Finally, we assist a member who has had difficulty investing the proceeds of a home sale. … [Read more...]
188: Should You Pay Off Debt or Invest?
When should you pay off debt versus investing. Why stocks are not less risky the longer you own them, but younger investors should still own more in stocks. How to invest a lump sum payment. Photo by Tim Gouw In this episode you’ll learn: How net worth consists of both financial capital and human capital.What is the financial return for college.How does asset liability matching apply to mortgages and student loans.How to decide whether you should invest a lump sum … [Read more...]
182: Was Tulipmania Just Like Bitcoin?
What caused tulip mania in the 17th century in the Netherlands and how is it similar to Bitcoin? Photo by Andrean Valeanu In this episode you’ll learn: Why discretionary income is needed for a mania to occur.Why the tulip trade was one of the first futures market.How much were speculators paying for tulip bulbs at the top of the market.What was the impact of the tulip bulb crash.How Bitcoin is like tulipmania. Show Notes JPMorgan's Dimon says bitcoin is a fraud that will … [Read more...]
MNY139 Plus: What Drives Gold Prices, Regret, Zero Coupon Bonds and Portable Alpha
This week January 7, 2017 on Money For the Rest of Us Plus we look at how interest rates and the value of the dollar influence the price of gold. We also look at how gold has outpaced inflation over time and how investor sentiment has been a good measure of when to buy gold. We also explore how buy and hold investing reduces regret. Finally, we look at investing collateral used as part of a strategy to get market exposure though futures and how portable alpha strategies work. … [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...]
100: Navigating a Negative Carry World
What Harrison Ford can teach you about investing and living in a radically unpredictable, low investment return world. Photo by Fortune Live Media In this episode you'll learn: What is the primary narrative driving markets today.What are the two things that never change with markets.What is positive and negative carry.Why central banks implement negative interest rates.How low are interest rates around the world.How do we invest and live in a radically unpredictable, negative carry … [Read more...]
