We explore six impacts of higher interest rates on housing, capital projects, stock buybacks, excess returns for stocks, bonds, and other asset classes, and individual opportunity costs. Topics covered include: Where current interest rates stand Central banker predictions for how long cash yields will stay this high Why housing is the least affordable since the early 1980s Why new apartment building construction has collapsed What has been the excess return for stocks, … [Read more...]
394 Plus: Share Buyback Timing, Contango vs Backwardation, and the Fundrise Growth Tech Fund
In Plus Episode 394, we look at whether corporate management repurchases stock shares when the price is low or when it is high. We consider what contango and backwardation mean as it relates to commodities futures. Then we discuss whether commodity futures are generally in contango or backwardation during commodity bull and bear markets. Finally, we analyze a new fund offering by Fundrise that differs from their previous real estate related offerings. … [Read more...]
278 Plus: Mid Month Update, Buy Back Yields and Covered Call Writing Strategies
In Plus episode 278 for the week of November 23, 2019, we review the latest market conditions including measures of whether markets are in gear or not. We explore the impact of buybacks on earnings growth. Finally, we discuss the risks and reward of covered call strategies, which are also known as buy-write strategies, including why David sold his recent closed-end fund purchase that pursues that type of strategy. … [Read more...]
242 Plus: Alternative Inflation Measures, Stock Buybacks and Retirement Spending
In Plus episode 242 for the week of March 2, 2019 we look at how U.S. inflation rates are calculated differently now than in 1990 and 1980, resulting in lower reported inflation. We review the impact of stock buybacks on earnings per share growth and how that can impact stock returns. We explore how corporate debt balances can serve as a constraint to elevated stock buyback levels. Finally, we explore why we need flexibility in terms of our retirement spending given changing investment … [Read more...]
219: The Incredible Shrinking Stock Market
How fewer publicly traded companies, fewer stock shares outstanding, and more intangible assets have led to higher earnings growth for U.S. listed companies and ultimately stronger stock market performance. In this episode you’ll learn: Why the number of publicly listed companies, particularly small companies, is shrinking. What is the impact in the increase in intangible assets held by businesses. What is the impact of share buybacks by global companies. How employer … [Read more...]
196 Plus: March 2018 Mid Month Update and MLPs
This week March 17, 2018 on Money For the Rest of Us Plus, we review investment conditions as of mid March 2018. We also look at ongoing developments in the master limited partnerships space including the recent regulatory ruling, continual conversion to C-corporations, elimination of incentive distribution rights and slowing distribution growth. … [Read more...]
165 Plus: Stock Buybacks and Is Savings Equal To 30 Years of Living Expenses Enough To Retire
This week July 20, 2017 on Money For the Rest of Us Plus look at how non-financial corporations have been the leading purchasers of U.S. stocks since 2009 while individuals and institutional investors have been net sellers. We also analyze whether savings equal to 30 years of living expenses is enough to retire and what a retiree can do to ensure they don't run out of money. … [Read more...]
