Money For The Rest Of Us

Half of the global financial system is made up of shadow banks. You have probably already used one. What are shadow banks and what to be wary of when using them.Topics covered include:What are the roles of shadow banksWhat are examples of shadow banksHow two shadow banks, Greensill Capital and Archegos Capital Management, contributed to billions of dollars in lossesHow China's massive use of shadow banks differs from the rest of the worldHow individuals investors can benefit from the careful use of shadow banks.Thanks to Mint Mobile and Clear for sponsoring the episode. Use code David to get two months of Clear for free.For more information on this episode click here.Show NotesQ+A-What is shadow banking and why does it matter? by Michelle Martin—ReutersWhat You Need to Know About the Shadow Banking System Now by Craig Kirsner—KiplingerGlobal Monitoring Report on Non-Bank Financial Intermediation 2020—Financial Stability BoardHow fintech will eat into banks’ business—The EconomistWhy is supply-chain finan

Why productivity growth is key to creating wealth. Why U.S. productivity growth is slowing, and what we can do to increase business and personal productivity.Topics covered include:How productivity is measured and how it relates to GDP, inflation, and living standardsHow productivity growth has led to more food, better health, better housing, and more consumer goods.What are potential reasons why productivity growth is slowingEvidence that work from home has led to lower productivityWhat individuals and businesses can do to increase productivityThanks to LinkedIn and Hello Fresh for sponsoring the episode. Use code david12off for 12 free meals with free shipping from Hello Fresh.For more information on this episode click here.Show NotesThe Slowdown in Productivity Growth and Policies That Can Restore It by Emily Moss, Ryan Nunn, and Jay Shambaugh—The Hamilton ProjectThe technology-employment trade-off: Industry, automation, and income effects by Gene Kindberg-Hanlon—World Bank BlogsWill productivity and

How today's inflationary environment is similar and different from the great inflation of the 1970s. What are the best assets to protect your portfolio if the next great inflation is here.Topics covered include:How is inflation measured and why the pandemic made calculating inflation difficultWhat causes inflationWhy is inflation increasing currentlyWhat caused the great inflation of the 1970sWhich assets are best to own to protect against inflationThanks to Blinkist and IPVanish for sponsoring the episode.For more information on this episode click here.Show NotesA Complete Guide to Understanding and Protecting Against Inflation—Money For The Rest of UsGreat Inflation 2.0? Lessons from the 1970s by Simon Macadam—Capital EconomicsWhen it comes to inflation, how much fortitude does the Fed have? by Sebastion Mallaby—Financial TimesIf Inflation Is Coming, Here Is What to Do About It by James Mackintosh—The Wall Street JournalA Complete Guide to Investing in TIPS and I Bonds—Money For The Rest of Us334 Plus:

Seven ways to manage fear in order to improve your investing. How fear can be beneficial.Topics covered include:Why fear can be both helpful and harmfulWhy expected investment returns are lower from a year agoWhat are the drivers of asset class returnsWhat is a bucket approach to investing and why it can be helpfulWhat are ways to automate investingWhy getting an investment second opinion can be valuableWhy we can never avoid investing mistakesThanks to Raycon and Policygenius for sponsoring the episode.For more information on this episode click here.Show Notes“How do I get rid of the fear?” by Seth Godin—Seth's BlogThe Gift of Fear by Dharmavidya David Brazier—Tricycle: The Buddhist ReviewRelated Episodes254: Should You Be 100% Invested In Stocks?306: Three Approaches to Asset Allocation326: The New Math of Retirement Spending and Investing

How businesses, households, governments, asset managers, and investors interact in unpredictable ways to address the risks and opportunities related to climate change and other global trends. Why ESG investing goes beyond just buying an ESG fund or ETF.Topics covered include:What are incentives, constraints, opportunities, and risks faced by businesses, households, governments, asset managers, and investors when deciding what to do.What is ESG and sustainable investingWhat are the different levels of sustainable investing practiced by investors and asset managersHow investors can benefit from emerging technologies to combat climate changeThanks to Mint Mobile and Clear for sponsoring the episode. Use code David for two months free of Clear.For more information on this episode click here.Show NotesThe Beauty of Everyday Things by Soetsu Yanagi (affiliate link)Darmstadt Definition of Sustainable Investments by Johannes Hoffmann, Gerhard Scherhorn, Timo Busch (eds.)—Wuppertal InstituteFACT SHEET: President

What is decentralized finance and how it is seeking to solve the shortcomings of centralized finance. How BlockFi and MakerDAO, early entrants in the DeFi space work. How to earn up to a 9% yield with cryptocurrency lending.Topics covered include:How centralized finance differs from decentralized finance (DeFi)What are the shortcomings of centralized finance and why decentralized finance is more inclusiveWhat are the key elements of DeFiHow Ethereum smart contracts workHow MakerDao and Dai work and replicate many aspects of the modern financial systemHow BlockFi operates using overcollateralized and undercollateralized loansWhat are the risks of cryptocurrency lending using BlockFi and DaiThanks to LinkedIn and Truebill for sponsoring the episode.For more information on this episode click here.Show NotesCrypto Lending Interest Rates for April 2021—DeFi RateDeFi and the Future of Finance by Campbell R. Harvey, Ashwin Ramachandran, and Joey SantoroMillions Lost: The Top 19 DeFi Cryptocurrency Hacks of 2020

With a ballooning U.S. federal budget deficit, a growing national debt, and double digit increases in the money supply, is it time to bet against the dollar?Topics covered include:What is driving the double digit increases in U.S. home pricesWhy hasn't inflation spiked in line with rising home pricesWhat is the velocity of money and why is it fallingWhat are three schools of thought regarding what causes inflationWhat is the average interest rate and maturity schedule of the U.S. national debtHow the Bank of Amsterdam is an example of how central banks can go insolvent and shut downWhy the dollar has an exorbitant privilegeThanks to Policygenius and Hello Fresh for sponsoring the episode. Use code david12off for 12 free meals with free shipping from Hello Fresh.For more information on this episode click here.Show NotesWhere Did Americans Move in 2020? by Janelle Cammenga—Tax FoundationVelocity of M2 Money Stock (M2V) Chart—Federal Reserve Bank of St. LouisFederal Surplus or Deficit [-] as Percent of Gros

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 philosophyHow bond funds have performed in 2021Three disparate views on the direction of interest rates from Capital Economics, Ray Dalio, and Hoisington Investment Management CompanyHow to invest in China bondsWhy owning bonds is cheaper and more effective at hedging stock market losses than put optionsHow covered call strategies workHow to decide on your allocation to bonds versus stocksThanks to Mint Mobile for sponsoring the episode.For more information on this episode click here.Show NotesWhat I think, not what I thought – Jason FriedWhy in the World Would You Own Bonds When… – Ray DalioExplainer: Foreign access to China’s $16 trillion bond market – ReutersThe True Cost of Hedging S&P Downside - Movement CapitalRevisiting Covered Calls and Prot

There has never been this much money in the world. Now is the time to own real property.Topics covered include:How to buy something with BitcoinHow cryptocurrencies are similar and different from fiat currenciesWhat is legal tenderWhy there has never been this much money in the worldWhy central banks can control interest rates but not inflationWhat real property should investors ownThanks to Truebill and Babbel for sponsoring the episode. Use code David for Babbel to get an additional three months free.For more information on this episode click here.Show NotesThe Power of Gold: The History of an Obsession by Peter L. BernsteinIRS Virtual Currency Guidance Announcement 2014-21—Internal Revenue ServiceLegal Tender Status—U.S. Department of the TreasuryIndia to propose cryptocurrency ban, penalising miners, traders - source by Aftab Ahmed, Nupur Anand—ReutersExecutive Order 6102—Requiring Gold Coin, Gold Bullion and Gold Certificates to Be Delivered to the Government by Franklin D. Roosevelt—The American Pr

How do non-fungible tokens work, what are the risks, and how do NFTs fit within the landscape of investments.Topics covered include:Investing in physical art versus cryptoartHow NFTs work on the ethereum blockchainHow Ethereum differs from BitcoinWhat is the purpose of investing and are NFTs investmentsHow much energy do cryptocurrencies and the financial system consumeWhat are the risks of NFTsThanks to Amazon Pharmacy and SmartAsset for sponsoring the episode.For more information on this episode click here.Show NotesWant to Buy an NFT? Here’s What to Know by Amber Burton—The Wall Street JournalFrom Crypto Art to Trading Cards, Investment Manias Abound by Erin Griffith—The New York TimesNFTs, explained by Mitchell Clark—The VergeHERE IS THE ARTICLE YOU CAN SEND TO PEOPLE WHEN THEY SAY “BUT THE ENVIRONMENTAL ISSUES WITH CRYPTOART WILL BE SOLVED SOON, RIGHT?” by Everest Pipkin39% of PoW mining is powered by renewables – Cambridge University Cryptoasset study by Gareth Jenkinson—The Daily ChainCambrid

How much can you earn investing in farmland and what are the risks? What are the ways to invest in farmland?Topics covered include:What determines farmland investment returnsHow much has U.S. farmland appreciated historicallyHow much income does farmland investing generateWhy the amount of U.S. farmland is shrinkingHas another commodity supercycle startedWhy U.S. farmers are dependent on exportsWhat are farmland investing risksWhat farmland investment vehicles are availableHow to evaluate a farmland investment opportunityThanks to LinkedIn and Policygenius for sponsoring the episode.For more information on this episode click here.Show NotesFarmland Values, Land Ownership, and Returns to Farmland, 2000-2016 by Christopher Burns, Nigel Key, Sarah Tulman, Allison Borchers, and Jeremy Weber—United States Department of AgricultureLand Values 2020 Summary—United States Department of AgricultureFarming and Farm Income—Economic Research Service United States Department of AgricultureAgricultural Markets and Pric

Why the Federal Reserve had to step in again to sop runs on money market mutual funds and keep the financial system from imploding.Topics covered include:What are the differences between shocks and vulnerabilitiesWhat are the four main vulnerabilities the Federal Reserve monitorsHow deleveraging and demands for liquidity lead to market stressesWhat are the types of money market funds and how were they impacted by the Covid 19 shockHow was Treasury bond trading impacted by the Covid shockWhy the Federal Reserve stepped in to stop the market contagion from spreadingWhat are the downsides to central bank interventionsWhat individual investors can do to protect against future shocksThanks to Mint Mobile and Truebill for sponsoring the episode.For more information on this episode click here.Show NotesPresident’s Working Group on Financial Markets Releases Report on Money Market Funds—U.S. Department of the TreasuryReport of the President’s Working Group on Financial Markets: Overview of Recent Events and Pote

When should you protect against rare, but extreme events? When should you self-insure? Under what circumstance should you sell tail risk protection to others?Topics covered include:How tail events differ from tail riskWhy volatility is not the best measure of risk for individualsWhat does it cost to protect against large stock market lossesWhy younger investors can take more risk due to their human capitalHow does the profit wheel options strategy workHow the catastrophic power outage in Texas exemplifies tail riskWhy individuals need to build more reserves because the economic system is too efficient and vulnerable to breakdownsThanks to SmartAsset and Babbel for sponsoring the episode. Use code DAVID for Babbel to get three months free.For more information on this episode click here.Show NotesAverage Weather in San Antonio Texas, United States—Weather SparkUpdate on the CBOE BuyWrite and PutWrite Option Indexes, October 2018—Asset Consulting GroupThe Texas Freeze: Why the Power Grid Failed Katherine Bl

How to structure employment so workers are more creative, productive, and happier.Topics include:What percentage of employees work at home due to the pandemicHow many hours per week do men and women work in both paid employment and unpaid caregivingHow workers have been allocating the time saved by not commutingWhy the economy would still prosper if we worked only four hours per dayWhat is the cult of efficiencyWhat is the difference between leisure and amusementWhy employers reward busyness at workHow work can be more satisfying and createThanks to LinkedIn and Policygenius for sponsoring the episode.For more information on this episode click here.Show Notes60 million fewer commuting hours per day: How Americans use time saved by working from home by Jose Maria Barrero, Nick Bloom and Steven J. DavisMental health: C-suite struggles in the pandemic by Rachel Ranosa—Human Resources DirectorDeep Work (Rules for Focused Success in a Distracted World) by Cal NewportIn Praise of Idleness by Bertrand Russell—H

Why has silver jumped to its highest price in eight years. What you need to know to invest in silver.Topics covered include:What drove the huge spike in silver purchasesHow silver differs from meme stocksHow hedge funds are positioned with regard to silverWhat are three ways to invest in silverWhat is the annual demand and supply for silverWhat are the reasons to own silverHow good has silver been as an inflation hedgeWhat is the gold-silver ratio and how to use itWhat happened when the Hunt brothers tried to corner the silver marketWhat evidence is there that the silver market is manipulatedThanks to Mint Mobile for sponsoring the episode.For more information on this episode click here.Show NotesSilver Prices Surge to Eight-Year High Amid Reddit-Fueled Frenzy by Eddie Spence, Jake Lloyd-Smith, and Yvonne Yue Li—Bloombergr/wallstreetbetsSilver price retreats rapidly in blow to new retail buyers by Henry Sanderson and Neil Hume‘What’d You Miss?’ Full Show (02/01/2021)—BloombergSilver Price Chart—BullionVa

How coordinated buying by retail investors has turned the table on Wall Street. Are there signs of a market bubble?Topic covered include:What are meme stocksWhy GameStop's stock (GME) has soared to over $300 from $17 in less than a monthWhat are short squeezes and gamma squeezes and how they can push up a stock priceHow short-sellers including hedge funds are losing big against individual investors on the wallstreetbets subredditIs coordinated buying of options and stocks by individual investors illegal?How market flows into stocks are taking precedence over fundamental dataIs the stock market in a bubble and how does the current market environment compare to the 1999 Internet bubble and the 2006 housing bubble?Thanks to Truebill for sponsoring the episodeFor more information on this episode click here.Show Notesr/wallstreetbetsFOR POSTERITY—Almost Daily Grants 1.25.21GameStop can’t stop going up by Jamie Powell—Financial TimesReddit: bull attack by Jamie Powell and Philip Stafford—Financial TimesHow Wal

Most global stock ETFs, funds and indices have only about 5% invested in China even though China has the second-largest economy in the world. What are the pros and cons of increasing your allocation to Chinese stocks.Topics covered include:Why has China's economy rebounded faster than other countriesWhat are Chinese A-share stocksHow large are China's economy and stock marketWhat are four threats that could derail the performance of Chinese stocksHow individuals can invest in China's stock market including A-sharesThanks to SmartAsset for sponsoring the episode.For more information on this episode click here.Show NotesChinese shares: should you increase the amount in your portfolio? by Sam Dickens—IG GroupChina A-Shares Definition by Troy Segal—InvestopediaChina’s Economy Powers Ahead While the Rest of the World Reels by Stella Yifan Xie, Eun-Young Jeong and Mike Cherney—The Wall Street JournalChina Still Grew and Fueled Its Rise as Covid-19 Shook the Global Economy by Jonathan Cheng—The Wall Street Jour

Should the U.S. cancel $10,000 or more of student loan debt per borrower? What would be the economic and financial impact? Why the student loan system is broken and how to fix it.Topics covered include:How large and what is the growth rate of U.S. student loan balancesWhat are the projections for student loan lossesWhat are the pros and cons of forgiving student loansWhat would be the impact on federal finances of canceling student loansWhy the U.S. government is already technically insolventHow student loan programs should be restructuredThanks to LinkedIn and Policygenius for sponsoring the episode.For more information on this episode click here.Show NotesStudent Loans Owned and Securitized, Outstanding—Federal Reserve Bank of St. LouiseSenate majority gives Biden path to student loan forgiveness by Sylvan Lane—The HillSchumer pressures Biden to bypass Congress to cancel $50,000 in student debt per borrower by Annie Nova—CNBCBiden will call on Congress to forgive $10,000 in student debt for all borrowe

How should individuals invest and spend in retirement with interest rates so low, stock valuations high, and inflation uncertain. Why retirement managed payout funds and income replacement funds failed.Topics covered include:How managed payout and income replacement funds compare to immediate annuitiesWhy Vanguard and Fidelity changed the objective of their retiree focused income replacement and managed payout fundsHow fixed annuities workHow retirees should combine annuities with multi-asset class portfolios to ensure a successful retirementWhy the 4% retirement spending rule is not appropriate for all investors all of the time.Why inflation is the biggest determinant of how much retirees can spendWhy is there so much controversy over the current and future inflation rateThanks to Mint Mobile and Truebill for sponsoring the episode.Show Note LinksVanguard Throws in the Towel on Its Managed Payout Fund by Daren Fonda—Barron'sGenerating Retirement Income Isn’t Easy, Even for Vanguard by Reshma Kapadia—Barron's

How convertible bonds work, why they gained 50% in 2020 and outperformed stocks over the past five years. Why Vanguard shut down their convertible bond mutual funds.Topics discussed include:How big is the convertible bond marketWhy companies issue convertible bondsHow convertible bonds work and how to analyze themWhy convertible bonds have performed so wellWhat is a reasonable expected return for convertible bonds and what are the risksWhat are ways to invest in convertible bondsThanks to Netsuite for sponsoring the episode. Take the Money For the Rest of Us listener survey.Show NotesA Plunge and a Recovery Drives a Top-Performing Year in Convertibles by Andrew Bary—Barron'sConvertible Bond Indices: An Overview by SPDR EMEA ETF Strategy Team—State Street Global AdvisorsCONVERTIBLE SECURITIES: Structures, Valuation, Market Environment, and Asset Allocation by John P. Calamos, Sr with contributions from Eli Pars—Calamos InvestmentsTesla, Inc. 2.00% Convertible Senior Notes due 2024 (the “Convertible Notes Offer