With oil, natural gas, coal, and gasoline at the highest prices in eight years, we consider if there is an energy crisis due to an over-reliance on renewable energy sources. Topics covered include: How high have prices risen for oil, gasoline, natural gas, and coalWhy rising energy prices is a multifaceted problem as illustrated by coalHow the global energy mix has changed for power productionWhy investment capital is flowing to renewable energy projects rather than fossil fuel … [Read more...]
346: Should You Buy an Electric Car or Truck?
What are the pros and cons of owning an electric vehicle (EV) compared with an internal combustion engine (ICE) vehicle? Are electric vehicles worth it? Topics covered include: What is the total energy consumption for EVs versus ICE vehicles including energy expended to produce the vehicles and energy used to produce the electricity and refine the gasoline that run the vehicles.What vehicles weigh the most, ICE, EVs, or hybridsHow the mix of renewables and coal in the power grid … [Read more...]
296: Why Negative Prices Exist and What Can They Teach Us
Why the oil price fell below zero and what are other examples of negative prices. What lessons can we learn from negative prices. Topics covered include: How oil futures work and why the oil future prices fell below zero for the first time ever.Why has the United States Oil ETF (USO) lost so much money.How ETF authorized participants create new shares only so they can be shorted.How storage problems for oil and electricity can lead to negative prices.How negative interest rates are … [Read more...]
281: Four Forces That Will Shape The Next Decade
This decade that is coming to a close has been rewarding for investors. The 2010s were marked by a slow but prolonged economic recovery following the Great Financial Crisis of 2008 and 2009. The U.S. began the decade with an unemployment rate of 10%. Now it is 3.5%. The current U.S. economic expansion is the longest in U.S. history. Stock and Bond Return Expectations Against that backdrop, global stock markets as measured by the MSCI All Country World Index in U.S. … [Read more...]
262: Better Not Bigger, Circular Not Linear – How the Global Economy Is Changing
How a less energy-intensive and more regenerative economy will allow the developing the world to advance without breaching ecological boundaries. In this episode you’ll learn: What is the difference between circular and linear supply chains. What is doughnut economics. What are adaptive preferences and how they led David to trade in a BMW 650i for a Toyota Prius. How electric vehicles and the proliferation of solar panels are leading to a less energy-intensive … [Read more...]
187 Plus: More On Yield Cos, Small Cap Stocks, Real Estate and Closed End Funds
This week January 13, 2018 on Money For the Rest of Us Plus, we revisit our yield co discussion from Plus Episode 186 and look at how yield cos appears to be changing. We review the allocation to U.S. small company stocks in the model portfolios. We look at when return of capital distributions for closed end funds are okay and when they should be a concern. Finally, we analyze the relationship between real estate cap rates and interest rates and provide an update on the current … [Read more...]
186 Plus: Fallen Angel Bonds, Yield Cos and MLP Distributions
This week January 5, 2018 on Money For the Rest of Us Plus, we analyze the risk and return characteristics of fallen angel bonds, which are bonds that were issued as investment grade but have been downgraded to non-investment grade. We revisit Yield Cos and look at their recent performance and valuation characteristics. Finally, we look at why MLPs and investment vehicles that invest in them have been cutting distributions. … [Read more...]
