What are the tangible and intangible factors that have contributed to long-term U.S. stock market outperformance compared to the rest of the world? Despite these advantages, why might we still want to continue to be globally diversified? Show Notes American productivity still leads the world—The Economist The Outlook for Long-Term Economic Growth by Charles I. Jones—Federal Reserve Bank of Kansas City How Much Will Global Warming Cool Global Growth? by Ishan B. Nath, Valerie … [Read more...]
497 Plus: Portfolio Trade, Bond and CLO Defaults, and Non-U.S. Stock Valuations
This week on Plus episode 497, we review David's trade to sell ASGI. We review historical default rates for bonds and CLOs. We also explore why non-U.S. stock valuations are lower today than 20 years ago. … [Read more...]
486 Plus: Callable Bonds, U.S. AI Stock Bubble, Robinhood, and Crypto Taxes
In Plus episode 486, we review how to estimate expected returns when a fund or ETF holds callable bonds. We consider two questions from members worried about high valuations for the U.S. stock market. We discuss the long-term viability of Robinhood. Finally, we discuss ways to reduce the tax headache of owning cryptocurrency. … [Read more...]
424 Plus: CLO ETF Trade, Bonds vs Stocks, Preferred Stock Dividends, and AI ETFs
In Plus episode 424, we review a recent portfolio trade David made. We look at the valuations of stocks versus bonds. We consider why more preferred stocks are non cumulative versus cumulative. Finally, we review an ETF that invests in AI. … [Read more...]
347 Plus: A New Actively Managed Preferred ETF and Three Pillars of Stock Returns
In Plus Episode 347, we review recent portfolio changes David made to his portfolio. We introduce the new retirement spending calculator. We analyze the new Fidelity Preferred Securities and Income ETF (FPFD), and we review an article by Mark Hulbert on the three pillars that have contributed to above average U.S. stock returns. … [Read more...]
315: Are We Being Forced to Buy Stocks?
How ultra-low interest rates support higher stock market valuations but also make the investment environment more challenging. Is there a stock market bubble? Topics covered include: How expensive are stocks on an absolute basis and relative to bondsWhat are examples of individual investor enthusiasm for stocksWhy stock valuations and prices increase when interest rates fallWhy lower interest rates making it more difficult for central banks to support stocks during a downturnWhy TIPs … [Read more...]
167 Plus: Shiller P/E’s, The Dow Theory, and Paying Off Mortgages
This week August 5, 2017 on Money For the Rest of Us Plus we look at how the U.S. stock market has returned when its cyclically adjusted price-to-earnings ratio is high versus low. We look at whether the Dow Theory, which involves analyzing the trend in the Dow Jones Industrial Average versus the Down Transportation Index has be useful at predicting stock returns. We answer questions from two members who are considering paying off their mortgage. Finally, we review a member's retirement … [Read more...]
MNY129 Plus: Becoming A Millionaire and Stock Valuations versus Interest Rates
This week on Money For the Rest of Us Plus look at how to construct a portfolio and how much needs to be saved in order to become a millionaire. We also look at the relationship between stock valuations and interest rates. Finally, we learn about warrants. … [Read more...]
MNY044 Plus: Homes and Liquidity, Stock Valuations and the Eurozone
In this week's Money For the Rest of Us Plus episode, I discuss a variety of topics including: Liquidity and your home, Are hedge funds as a group smarter than the crowd, Current stock market valuations as measured by cyclically adjusted P/E ratios and the challenges of using valuations as a timing vehicle, The fate of the eurozone. The episode length is 16 minutes. … [Read more...]
