Money For The Rest Of Us

Warren Buffet said, "Diversification makes very little sense for anyone that knows what they’re doing." He also said, "Diversification is a protection against ignorance..." Most of us need that protection against ignorance, yet diversification often makes us feel bad when some of our holdings don't do as well as others. We make the case why we should diversify anyway.Topics covered:Warren Buffet says it's crazy to own more than 30 stocks, but Berkshire Hathaway owns 48 stocksWhat does it mean to analyze a businessHow have U.S. stocks performed relative to non-U.S. stocks long-termWhat has driven the outperformance of U.S. stocks and what has to happen for it to continueWhat are examples of diversification plays just in case the U.S. faltersFor more information on this episode click here.Show NotesWarren Buffett and Diversification—GrahamValue.comThe Complete Berkshire Hathaway Portfolio by John Divine U.S. NewsThe Business Cycle Is Different Than The Economic Cycle - Crestmont ResearchEU Natural Gas—Trad

How economic wars, pandemics, and worker shortages could lead to years of high structural inflation. What needs to happen to avoid this dire inflation scenario.Topics covered include:What are the three inflation lessons Federal Reserve Chair Jerome Powell sharedWhat is inflation anchoringWhat caused the current period of high inflationHow China and Russia contributed to low inflation and why those trends have reversedHow behavior changes and productivity improvements can contribute to lower inflationHow to invest for an extended period of high inflationFor more information on this episode click here.Thanks to Policygenius for sponsoring the episode.Show NotesMonetary Policy and Price Stability, August 26, 2022, byChair Jerome H. Powell—Board of Governors of the Federal Reserve SystemFed's Kashkari: 'happy' with market reaction to Powell speech by Ann Saphir and Matthew Lewis—ReutersWar and Interest Rates by Zoltan Pozsar—Credit Suisse2nd Quarter Market Commentary, July 2022—Horizon KineticsBP Energy Outl

We explore examples of positive and negative unintended consequences, what causes them, and how to navigate a world where unanticipated things happen all of the time.Topics covered include:What leads to unintended consequencesWhat are some unintended consequences of QE and stimulus, price controls, tax incentives, gun legislation, and marijuana legalizationHow positive unintended consequences and order can arise from the bottom upHow recent climate legislation could lead to unintended consequencesWhy customers don't always know what they wantFor more information on this episode click here.Episode SponsorsLinkedIn – Post your job for freeShow NotesLarge rent increases squeeze metro Phoenix tenants by Associated Press—The Journal RecordUnintended Consequences by Karras Lambert and Christopher J. CoyneThe Seen, the Unseen, and the Unrealized: How Regulations Affect Our Everyday Lives by Per L. BylundNorway reconsiders electric car privileges by Chris Randall—electrive.comMore Guns, More Unintended Consequen

We analyze two listeners' portfolios. One who is close to retirement and considering hiring an outside money manager. The second is 45 and just sold a business and is trying to decide whether to fire Schwab's robo-advisor service and manage his portfolio on his own.Topics covered include:What elements are part of a financial planWhat to consider when researching an investment advisorWhat is a core-satellite investment approachWhy Schwab was fined $180 million for misleading its clients about the cash balance in its Intelligent Portfolios serviceHow to decide if an investment advisor is a good fitWhy no portfolio can be on autopilot, but they can be as simple as two ETFsFor more information on this episode click here.SponsorsExpress VPN - get three months free on VPN serviceMasterworks - Invest in contemporary artShow NotesSchwab Subsidiaries Misled Robo-Adviser Clients about Absence of Hidden Fees—SECCease-And-Desist Order Against Charles Schwab & Co, June 13, 2022—SECRelated Episodes92: What Robo-Ad

This episode edits and remasters two earlier episodes on investing based on cycles to focus on timeless investing principles.Topics covered include:What are different types of cyclesWhy do cycles have subjective start and end dates.Why do coincidences happen so often.How to position investment portfolios based on cycles.How luck and skill play a role in investing.Why it is better to invest based on calibrating risk rather than prediction.Show NotesWeiss ResearchWeiss Research SEC ActionFoundation For The Study of CyclesFluke: The Math and Myth of Coincidence by Joseph MazurA Spectral Analysis of World GDP Dynamics – Andrey V. Korotayev and Sergey V. TsirelHoward Marks – Yet Gain?Mastering The Market Cycle by Howard MarksSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Why it is challenging to distinguish a legitimate multi-level marketing company from a pyramid scheme as hedge fund billionaire Bill Ackman found out in his losing campaign against Herbalife. How Forsage has taken pyramid and Ponzi schemes to a whole new level, and why the regulators can't shut it down.Topics covered include:What are multi-level marketing companies and how most MLM distributors are unsuccessfulWhat is the difference between a pyramid scheme and a Ponzi scheme and what are some examplesHow hedge fund Pershing Square Capital Management took on Herbalife and despite FTC and SEC actions, Herbalife continues to thrive.Why Forsage, a pyramid and Ponzi scheme on the blockchain, continues, despite SEC regulatory actionsWhy Bitcoin isn't a Ponzi schemeFor more information on this episode click here.SponsorsPolicygeniusMoney For the Rest of Us PlusShow NotesHerbalife Settlement With F.T.C. Ends Billionaires’ Battle by Matthew Goldstein and Alexandra Stevenson—The New York TimesMulti-Leve

How slowing population growth and an eventual population peak will lead to competition for foreign workers, potentially higher inflation, and ultimately the need to transition to a steady-state economy rather than one based on constantly producing more.Topics covered include:How longevity and birthrates impact population growthWhat areas of the world are seeing population increases versus declinesWhy high income countries will need more immigrants in order to sustain their population levelsWhen is global population expected to peak and at what levelWill greater dependency ratios lead to higher inflationWhat is the difference between growth and developmentHow slowing population growth will impact investmentsWhy the world will need to transition to a steady-state economy focused on well-being rather than growthFor more information on this episode click here.SponsorsLinkedIn Jobs - post your job for freeMoney For the Rest of Us PlusShow NotesWorld Population Prospects 2022: Summary of Results—United Nations

Five ways we can better take and manage risk.Topics covered include:How likely is it that China will invade Taiwan and the stock market will fall 80%Why experts tend to be humble and don't make specific predictionsWhat is the difference between risk and uncertainty, and between loss capacity and loss aversionWhat factors impact our degree of loss aversion and loss toleranceWhy the economy needs more risk takers rather than rentiersFor more information on this episode click here.SponsorsMasterworks - invest in modern artReal VisionShow NotesInvestor Risk Profiling: An Overview by Joachim Klement, CFA—CFA Institute Research FoundationLooming Large or Seeming Small? Attitudes Towards Losses in a Representative Sample by Jonathan Chapman, et al.The Global Impacts of Climate Change on Risk Preferences by Wesley Howden and Remy LevinDoes Mood Take the Front Seat in Determining the Financial Risk-Taking Propensity of Individuals? Evidence from India by Crystal Glenda Rodrigues and Gopalakrishna B. VVenture Capi

How protected are you if the brokerage firm where you hold your stocks, bonds, and crypto assets files for bankruptcy? Why you shouldn't store your crypto assets with an online broker.Topics covered include:How traditional brokerage firms protect their client assets in case of bankruptucyHow cryptocurrency brokers, such as Voyager, mistreat their clients in bankruptcy proceedingsWhat is the safest way to hold cryptocurrencyFor more information on this episode click here.SponsorsKeeper - keep your passwords safePolicygeniusMoney For the Rest of Us PlusShow NotesVoyager To Acquire Circle Invest Retail Digital Asset Business From Circle Internet Financial—CisionWelcome, Circle Invest! Voyager Acquires Circle Invest's Retail Customers—VoyagerCrypto lender Voyager Digital files for bankruptcy by Shivam Patel, Sinead Cruise, and Tom Wilson—ReutersCrypto lender Voyager addresses customer anger in first bankruptcy hearing by Dietrich Knauth—ReutersIf a Brokerage Firm Closes Its Doors—FINRACrypto Broker Voya

David and his son Camden conclude their conversation about money.Topics covered include:A review of money principles discussed in Part 1How money is createdHow money is energyWhy bank runs occurHow cryptocurrency fails as moneyHow money is debt backed by debtSponsorsPolicygeniusMoney For the Rest of Us PlusSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

David and his son Camden hold a conversation about money, its attributes, how it's created, and how money differs from investments.Topics covered include:How our earliest money memories impact our views on moneyThe difference between public and private moneyWhat are the two primary attributes of moneyWhy money should be accepted with no questions askedHow some countries use more cash than othersHow money differs from investingWhy private money can be riskyShow NotesFree email course and PDF on how to beat inflationSponsorsLinkedIn – Post your job for freeReal VisionSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Three things investors can do to survive this bear market and thrive in its aftermath.Topics discussed include:What are bear markets, how often do they occur, and how long do they lastHow the current bear market differs from previous onesHow severe have losses been for various asset classesHow have asset class long-term expected returns changed since last November when the sell-off beganWhat actions can investors take to make it through this bear market and take advantage of opportunitiesFor more information on this episode click here.Episode SponsorsLinkedIn - Post your job for freeReal VisionShow NotesUS Leading Indicators, Updated: Friday, June 17, 2022—The Conference BoardInvestment Mentioned In this EpisodeThe Vanguard Total World Stock Market ETF (VT)ARK Innovation ETF (ARKK)iShares Edge MSCI Intl Value Factor ETF (IVLU)Vanguard Total Bond Market ETF (BND)iShares 20+ Year Treasury Bond ETF (TLT)Related Episodes306: Three Approaches to Asset Allocation326: The New Math of Retirement Spendi

This week on the show, David shares some investing lessons from fly fishing and introduces our new course on How To Invest in Closed-End Funds.Between now and the end of June get 25% off the course. You can learn more here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How big index fund and ETF providers have increased their sway over publicly-traded companies while potentially discouraging competition. What can be done about it?Topics covered include:How market share for assets under management has become increasingly concentrated with big fund complexes like Vanguard and BlackRockWhat is a fiduciary relationship and how do asset managers serve as fiduciariesWhy do investors in index funds and ETFs have no input as to how fund sponsors vote on shareholder proposalsWhat percentage of outstanding shares do Vanguard and BlackRock own of publicly traded companies like Apple, Target, or gun manufacturersHow Vanguard and BlackRock use engagement and voting policies to influence publicly traded companies, particularly when it comes to climate risk and diversityHow ownership by Vanguard and BlackRock in publicly-traded companies in the same industry could discourage competition.What can be done through regulation or through individual action to reduce Vanguard and BlackRock's inf

We explore whether long-term and short-term single-family home rentals are contributing to higher rents, higher home prices, and a housing shortage. What are the options for investing in this space and should we?Topics covered include:What is financializationWhat are examples of how financialization and government policy has impacted housingHow homeownership rates vary around the worldHow much of a presence do equity REITs have in the single-family home rental spaceHow a housing shortage and more vacation rentals show up in vacancy ratesHow short-term rentals can magnify the housing shortageWhat are options for investing in single-family home rentalsSponsorsMasterworks - Invest in contemporary paintingsReal Vision - be one of the first to learn about Real Vision's new investing and trading educationShow NotesFinancialization and the World Economy by Gerald A. EpsteinHousing Vacancies and Homeownership (CPS/HVS)—United States Census BureauList of countries by home ownership rate—WikipediaThe Evolution of Homeo

How financial markets and the economy performed last time the Federal Reserve took away the punch bowl by raising its policy rate and pursuing quantitative tightening. Things worked out fine that time. Will it be different this time?Topics covered include:Where did the phrase take away the punch bowl come fromHow central bank actions can slow the economy and lower inflation.The difference between having cash and having wealthHow quantitative easing and quantitative tightening workWhat happened last time the Federal Reserve pursued quantitative tighteningFor more information on this episode click here.SponsorsFarmTogether - Your farmland investment managerLinkedIn - Post your job for freeShow NotesAddress before the New York Group of the Investment Bankers Association of America on October 19, 1955, by William McChesney Martin, Jr.—FRASERM2—Federal Reserve Economic DataAssets: Total Assets: Total Assets: Wednesday Level—Federal Reserve Economic DataAssets: Securities Held Outright: U.S. Treasury Securitie

How should you approach money given most of it either collapses or loses its purchasing power due to inflation.Get our free six-day email course on how to beat inflation.Topics covered include:How supposedly safe savings apps collapsed, wiping out users' savingsWhy algorithmic stablecoins keep failing and why they are not black swansWhat it takes for money to be successfulHow money differs from investmentsSponsorsComposer automated traded platformWealthfront - get your first $5,000 managed for free for lifeShow NotesIntellabridgePower Women: Maria Eagleton, Mastercard-incubated Blockchain Company, is setting An Example For Women in Cryptocurrency by Shruti Sood—Morning Lazziness@kashdefi, Twitter post, May 7th, 2022 7:54 AM@kashdefi, Twitter post, May 8th, 2022 10:42 AMTerraCryptocurrency TerraUSD Plunges as Investors Bail by Caitlin Ostroff, Elaine Yu, and Paul Kiernan—The Wall Street JournalCryptocurrency TerraUSD Falls to 11 Cents, Creator Announces Rescue Plan by Paul Vigna—The Wall Street Journal@kashdef

What are examples of when it makes sense to pay more than the usual price or fair value for an item or asset?Topics covered include:Why we are willing to pay a premium for convenience, scarcity, status and to avoid wasteWhat is the difference between net asset value and book valueWhy business development companies can sell at a premiumWhy farmland REITs sell at a premiumWhy closed-end funds sell at a premiumHow to decide whether to pay a premium or notFor more information on this episode click here.SponsorsMasterworks - invest in contemporary artKeeper - keep your passwords safeShow NotesThe Fall of Netflix and Overlooked Assets W/ David Stein—The Investor's Podcast 445Hercules CapitalGladstone Land CorporationThe Gabelli Utility Trust—Gabelli FundsRelated Content381: Investing in Business Development Companies (BDCs) and other Niche Assets That Trade on Stock ExchangesHow to Invest in Closed-End FundsGuide to Farmland InvestingSee Privacy Policy at https://art19.com/privacy and California Privacy Notice

With many of the largest tech stocks falling over 20% year-to-date, is now the time to invest? Has the market changed to where tech investing is a safe bet?Topics covered include:What happened to NetflixWhat contributed to the astounding performance of large tech stocks since 2013How the largest contributors to overall stock market performance are always changingWhy the largest tech companies could fall even more from today's levelWhat are the valuations and sentiment toward large tech stocksWhat is complexity economics and how does it influence technologyHow younger investors and fractional trading have influenced the stock marketWhy stock splits are less effective today in driving up share pricesFor more information on this episode click here.SponsorsPolicygenius - save over 50% on life insuranceOurCrowd - the fastest-growing venture capital communityShow NotesNetflix stock plunges as subscribers quit by Julianne Pepitone and Aaron Smith—CNN MoneyNetflix Explores a Version With Ads as Subscriber Base S

What causes secular bull and bear markets in commodities. What factors suggest a new commodities bull market has started and how can investors participate. What are the risks.Topics include:What is a bull and bear marketHow long have earlier commodity bull and bear markets lasted and what were the returnsWhat led to the current commodity bear market that began in 2011How shareholder revolts and ESG mandates have contributed to reduced investment in the commodities space, contributing to the rebound in commodity pricesWhy natural gas prices are so much higher in Europe than the U.S.How the shift to electric vehicles is driving the demand for commoditiesWhat are five ways to participate in a commodities bull marketSponsorsLinkedIn - post your job for free by using this linkPolicygeniusShow NotesJeff Currie on the 'Volatility Trap' Keeping Commodity Prices So High - Odd Lots - BloombergNGP Energy CapitalResearch—Strategas SecuritiesThe Energy Blame Game and Other False Narratives—Energy Income PartnersFor more i