Money For The Rest Of Us

How to decide whether it is worth it to hedge currency exposure when investing outside of your home country.Topics covered include:How currency exchange rates impact investment returnsWhat factors impact currency exchange ratesWhat are carry trades and how do they influence exchange ratesHow currency forward contracts workHow ETFs and funds hedge currency exposureWhat to consider when deciding whether to hedge foreign currency exposureThanks to Egnyte and Quartr for sponsoring the episode.For more information on this episode click here.Show NotesRising U.S. yields push yen to lowest in nearly 3 years by Saikat Chatterjee—ReutersCutting Volatility in Foreign Stocks While Remaining 100% Invested: Hedge the Currency? by Jeff Weniger and Jeremy Schwartz—WisdomTreeCarry Trade Comes Surging Back With Biggest Gains Since 2016 by Robert Fullem and Brody Ford—BloombergRelated Episodes209: Why Bother Investing Internationally?283: Why You Should Care About Carry TradesSee Privacy Policy at https://art19.com/privac

How New York City and other metropolises will overcome the pandemic economic shock. Why do some cities thrive while others devolve into chaos? How we can develop the resiliency of thriving cities.Topics covered include:How New York and other cities have dealt with the pandemic economic shockWhy the city of Port au Prince in Haiti is strugglingWhy do cities fail less frequently than companiesHow we can replicate the rhythms and cycles of citiesHow most cities can evolve in response to the pandemic and we can tooThanks to Felix Gray and Alto CryptoIRA for sponsoring the episode.Show NotesLocal Area Unemployment Statistics - New York City— U.S. Bureau of Labor StatisticsScale: The Universal Laws of Growth, Innovation, Sustainability, and the Pace of Life in Organisms, Cities, Economies, and Companies by Geoffrey B. WestThe Office Sector in New York City by Brian McElwain, Anita Yadavalli, and Amar Mehta—Office of the New York ComptrollerDesperate Haitians suffocate under growing power of gangs by Dánica Coto and

Why the new U.S.-based Bitcoin ETFs are a bad idea and will underperform Bitcoin.Topics covered include:What fund and ETF options are available for investing in BitcoinWhy the U.S. has only authorized Bitcoin ETFs that invest in Bitcoin futures even though there are closed-end funds that hold Bitcoin directlyWhat is there a regulatory battle surrounding cryptocurrencies?How closed-end funds differ from ETFsHow Bitcoin futures workWhy Bitcoin ETFs that invest in Bitcoin futures will lag the performance of owning Bitcoin directlyWhy investors should avoid the new U.S. Bitcoin ETFsThanks to Policygenius and Justworks for sponsoring the episode.For more information on this episode click here.Show NotesSEC Set to Allow Bitcoin Futures ETFs as Deadline Looms by Katherine Greifeld, Vildana Hajric, and Benjamin Bain—BloombergU.S. SEC Chair Gensler calls on Congress to help rein in crypto 'Wild West' Katanga Johnson—ReutersBitcoin Strategy ETF—ProSharesPurpose Bitcoin ETF—Purpose InvestmentsGrayscale® Bitcoin Tru

How the economics of timeshare vacation rentals work, and why they can be a great fit for some individuals.Topics covered include:When were the first timeshares introducedWhat are the different timeshare ownership modelsWhy timeshares don't appreciate but fall in price after purchaseWhat are maintenance fees and why do they keep increasingWho is the target market for timeshares and how do timeshare companies market to themHow timeshare companies make moneyHow to sell your existing timeshareHow to buy a new timeshareThanks to Quartr and LinkedIn for sponsoring the episode.For more information on this episode click here.Show NotesThe ABC’s of PUD’s (Part II): The Basics of Timesharing—American Bar AssociationSecond Quarter 2021 Earnings Conference Call July 29, 2021—Marriott Vacations WorldwideInvestor Presentation July 2021—Marriott Vacations WorldwideSellMyTimeshareNow, LLCFirm to Pay $2.6M, Stop Making False Timeshare Claims—Claims JournalRelated Episodes24: Timeshares, Preppers and Permanent Portfolios

Why the U.S. is closing in on both a debt default and a government shutdown. Topics covered include:How a government shutdown differs from a debt ceiling crisisWhy hasn't Congress passed legislation to fund the government and raise the debt limitHow refusing to increase the debt ceiling could impact Social SecurityHow big is the national debt and who owns itWhy we never know how much federal debt is too much: Japan vs the U.S.How federal debt is used and how it has led to financial innovationWhy countries default on their debtWhat are some of the challenges with central banks pegging interest rates and monetizing the debtWhat could cause the U.S. dollar to crash and inflation to soarThanks to Alto CryptoIRA and LinkedIn for sponsoring the episode.For more information on this episode click here.Show NotesAmerica’s debt ceiling is a disaster, though fiscal rules can help—The EconomistTreasury Bulletin, September 2021—Bureau of the Fiscal ServiceMajor Foreign Holding of Treasury Securities—Department o

What is causing the shortage of goods and workers? What should we do about it?Topics covered include:How a tree pandemic killed billions of American Chestnut treesHow a massive increase in demand has crippled the global supply, leading to an eight-fold increase in shipping costsWhy there are so many job openings and people quitting their jobsWhy the free market doesn't work as well for child daycareHow stimulus payments during the pandemic reduced poverty ratesWhat is the lying flat movementHow everything is in place for an extended period of high inflation even though the bond market still anticipates inflation will be transitoryWhy we should own real things and plan more downtimeThanks to Policygenius and Masterworks for sponsoring the episode.For more information on this episode click here.Show NotesThe Demise and Potential Revival of the American Chestnut by Kate Morgan—Sierra ClubU.S. Imports to Increase by 20% by End of 2021—Material Handling & LogisticsThe largest port in the US hit a new ship

A regulatory crackdown and ideological campaign by the Chinese government has upended the Chinese stock market, which comprises close to 40% of emerging market indices. We evaluate what is going on and what investors should do.Topics covered include:How has the Chinese stock market performed in 2021Why has Cathie Wood and Ark Invest dramatically cut their Chinese stock exposureWhat are examples of regulatory changes in ChinaWhy the stocks of Chinese online tutoring companies that trade on the New York Stock Exchange fell 90% this yearWhat are variable interest entities (VIEs) and why they are a risky corporate structure for Chinese companiesHow a high private sector debt burden could lead to a banking crisis or contagion in ChinaWhat are ways investors can invest in emerging markets while having a smaller allocation to ChinaThanks to LinkedIn and Simplify ETFs for sponsoring the episode.For more information on this episode click here.Show NotesCathie Wood’s Ark cuts China positions ‘dramatically’ by Leo

What are the demand and supply drivers of home prices? What is the current status of those drivers and do they suggest a housing price crash is imminent, particularly given mortgage forbearance programs are ending?Topics covered include:How much have home prices appreciated in the past year compared to historical ratesWhat has driven the demand shock for housingWhy U.S. houses are so much more affordable compared to earlier periodsHow big is the housing shortage in the U.S.What could cause home prices to crashHow housing supply and demand drivers apply to local real estate marketsHow to purchase a home in a hot housing marketThanks to the Modern Finance podcast and Simplify ETFs for sponsoring the episode.For more information on this episode click here.Show NotesIn a forgotten town by the Salton Sea, newcomers build a bohemian dream Rory Carroll—The guardianFor One Weekend a Year, a Tiny Town on the Salton Sea Becomes a Mecca for Artists and Partiers by April Wong—Los Angeles MagazineElectric vehicles ne

Why bother rebalancing your investment portfolio and what is the best method for doing so.Topics covered include:How a target asset allocation can get out of line if a portfolio is not rebalancedWhat is positive skewness and why it matters to portfolio investingWhat is volatility drag and how it can lead to lower end of period wealthWhat are the costs of rebalancingWhich rebalancing method if any has been the most effectiveThanks to Felix Gray glasses and Mint Mobile for sponsoring the episode.For more information on this episode click here.Show NotesLong-Horizon Stock Returns Are Positively Skewed by Adam Farago and Erik HjalmarssonPositively Skewed Distribution—Corporate Finance InstituteProspect Theory and Stock Market Anomalies by Nicholas Barberis, Lawrence J. Jin, and Baolian WangStrategic Rebalancing by Sandy Rattray, Nicolas Granger, Campbell R. Harvey, and Otto Van HemertPortfolio Rebalancing: Tradeoffs and Decisions by Xing Hong and Philipp Meyer-BraunsDiversification Returns, Rebalancing Retur

We compare the U.S. dollar with Bitcoin on their key attributes to determine which is better for transactions and preserving wealth, which is most absurd and which has serious flaws.Topics covered include:How are new U.S. Dollars and Bitcoin createdHow much has the supply of each currency grownHow both the dollar and Bitcoin have had rule changesWhy Bitcoin transactions are faster than non-cash U.S. dollar transactionsWhy both the dollar and Bitcoin require add-on layers to facilitate transactionsHow tax treatment of a currency can encourage or discourage its use for paymentsWhy divisibility is a critical attribute of any currencyWhy Bitcoin has been as volatile as the Russian rubleWhy Bitcoin is energy inefficient while having built-in incentives to use renewable energyWhat will determine the long-term viability of Bitcoin and the U.S. dollarFor more information on this episode click here.SponsorsMasterworks - the premier platform for investing in blue chip artPolicygeniusShow NotesFederal Reserve Stati

What are the advantages and disadvantages individual investors have relative to professional investors. How individual investors can capitalize on their advantages without being overwhelmed by too many choices.Topics covered include:How much have fees and commissions dropped for individual investors in the past two decadesHow the overall objective of individual investors differs from professional investorsWhy the smaller scale at which individual investors operate provides an advantage relative to professional investorsWhat are some advantages that professional investors have relative to individual investorsHow having constraints and rules of thumb allow individual investors to generate better returns and be less overwhelmedWhat are some examples of rules of thumb that collectively form an investment philosophy and processThanks to Streak CRM for sponsoring the episode.For more information on this episode click here.Show NotesTrends in the Expenses and Fees of Funds, 2020—ICI Research Perspective March 2

How permanent life insurance can be an effective tool for retirement planning.Topics covered include:What is the difference between term and whole life insuranceHow many people let their life insurance policies lapse each yearWhat are strengths that insurance companies have that are beneficial to individual investorsWhat are the benefits of whole life insurance policiesHow the infinite banking concept works and who should it be usedHow asset allocation should differ when investors have a whole life insurance policyWhat are concerns with whole life insuranceHow an integrative approach of using whole life, immediate annuities, and investments can lead to higher retirement spending levelsThanks to today's sponsors: Simplify ETFs and the all-new electric MINI Cooper SEFor more information on this episode click here.Show NotesArthur L. Williams Jr.—Wikipedia, Aug 10, 2021ACLI 2020 Life Insurers Fact Book—The American Council of Life InsurersPros And Cons Of Life Insurance For Children by Cameron Huddleston an

How owning fewer, more permanent things can lead to greater freedom and continued economic growth.Topics covered include:How a railroad company issued a bond that matured in 999 yearsWhy land and gold are the most permanent investmentsWhat is the oldest currency in useWhy fiat and cryptocurrencies are potentially worthlessWhy permanence is freedom and constantly craving more things limits freedomWhy do quality goods cost moreHow the volume of trash generation and the number of storage units are increasingWhy reducing the number of things we own is so difficult and how to go about doing itHow the economy could change as people own things longerThanks to Felix Gray Glasses and LinkedIn for sponsoring the episode.For more information on this episode click here.Show NotesBusiness & Finance: Freak FinanceBack to the future with long-term bonds by Franky Leeuwerck—Franky's Scripophily BlogSpotELMIRA AND WILLIAMSPORT RAIL ROAD COMPANY 500$ BOND, 1863—WorthPointThe Power of Gold: The History of an Obsession

How the carbon emissions allowances and carbon offset markets are structured and how to invest in them.Topics covered include:How much greater are the levels of carbon dioxide in the atmosphere and how much have average temperatures increasedWhy industries and companies are seeking to cut their greenhouse gas emissionsHow cap and trade emissions trading systems workWhat are the demand and supply dynamics of tradable emission allowancesWhat has been the performance of tradeable emission allowancesHow ETFs invest in tradable emission allowancesHow the voluntary carbon offset market is structured and what are the demand and supply dynamicsWhy do companies make voluntary pledges to reduce their carbon footprintsWhat are the types of carbon offset projectsWhy it is more difficult to invest in carbon offset markets and how that is changingThe Money For the Rest of Us podcast is ad-supported, but you can support the show and listen to episodes ad-free by becoming a subscriber. Learn about subscribing here.Thank

The risks and opportunities of investing in startups on equity crowdfunding platforms.Topics covered include:Why do individual investors now have more access to startup investmentsWhat has been the historical performance of venture capital fundsHow most startups fail, leaving only a few startups to offset portfolio lossesWhat factors to consider when deciding on which startups to investWhy do startups have so many different share classesWhat platforms are available for individuals to invest in startupsWhy indexing by investing in every credible startup deal can lead to better performance than hand-selecting a few startupsBecome a Subscriber and listen to the episode ad-free on Spotify or your preferred podcasting app. Only $4.99 per month. Subscribe here.Thanks to Streak and Masterworks for sponsoring the episode.For more information on this episode click here.Show NotesSquaring Venture Capital Valuations with Reality by Will Gornall and Ilya A. StrebulaevHow Do Venture Capitalists Make Decisions? by Pau

How to decide when to take out a home mortgage and whether to pay it off early. How reverse mortgages can be a helpful retirement tool.Topics covered include:Why it is more difficult to get a mortgage todayHow federal government mortgage guarantees lead to lower mortgage ratesHow to analyze whether to pay off your mortgage earlyThe differences between personal risk, market risk, and aspirational riskHow reverse mortgages work and how they can be useful as a retirement income toolWhat are the costs of reverse mortgagesBecome a Subscriber and listen to the episode ad-free on Spotify or your preferred podcasting app. Only $4.99 per month. Subscribe here.Thanks to IPVanish and Raycon for sponsoring the episode.For more information on this episode click here.Show NotesQuarterly Report on Household Debt and Credit 2021 Q1—Federal Reserve Bank of New YorkSelling Guide: Lender Letter LL-2021-03, Impact of COVID-19 on Originations (03/11/2021)—Fannie Mae0Overreliance on Fannie and Freddie Violates Their Federal C

We answer over a dozen questions from listeners on investing, housing, retirement, business, podcast production, and more.Topics discussed include:The Endowment ModelTeaching children about investing4 influential investing booksThe difference between being an entrepreneur and investingThe balance between too much and too little efficiency and productivityWhat we learned about investing from the Covid crashHow asset allocation changes as one gets olderThe state and future of cryptocurrencyIs now the time to buy individual stocks given high valuations for indicesDonor-advised fundsFDIC insuranceMoney For the Rest of Us production time and expensesIs it possible to have too much invested in one ETFIs a house and investment and will there be a housing crashHow to worry less about moneyBecome a Subscriber and listen to the episode ad-free on Spotify or your preferred podcasting app. Only $4.99 per month plus tax. Subscribe here.Thanks to Policygenius and Clear for sponsoring the episode. Use code David to get two

What are the risks and opportunities of investing in frontier equity markets?Topics covered include:What are the criteria used to determine whether a country's stock market is considered a frontier, emerging, or developed marketWhy some countries aren't included in any MSCI stock indexHow large are frontier markets in terms of population, economic output, and equity marketsHow frontier market's favorable demographic profile make them attractive, but might not lead to higher investment returnsWhat are the risks of investing in frontier marketsHow expensive or cheap are frontier marketsWhat have been frontier market's historical returns, volatility, and maximum drawdownsWhat are ways to invest in frontier marketsThanks to Mint Mobile and LinkedIn for sponsoring the episode.For more information on this episode click here.Show NotesMSCI Market ClassificationMSCI 2020 Market Classification ReviewKuwait’s Move from Frontier to Emerging Market—MSCIFrontier markets Longer Term Investments (LTI) by Corinne de Bou

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 impacts the energy impact of electric vehicles.What is the total cost of owning an electric vehicle compared with a similar model ICE vehicle.Thanks to IPVanish and Raycon for sponsoring the episode.For more information on this episode click here.Show NotesThe Gregor LetterThe Greenhouse gases, Regulated Emissions, and Energy use in Technologies Model—Argonne National LaboratoryVehicle Cost Calculator—Alternative Fuels Data CenterEV vs. Gas: Which Cars Are Cheaper to Own? by Roberto Baldwin—Car and DriverBatteries For Electric Cars

What are ways to invest in water and is it an attractive investment?Topics covered include:How water rights work and how they have been overallocated in the Colorado River basin.Why agriculture uses the vast majority of water in the southwestern U.S. while contributing only a few percentage points to the region's gross domestic product.Why hedge fund manager Michael Burry invests in farmland instead of water rights.What ETFs are available to invest in waterWhat have the historical returns been for water stock investing, what are current valuations, and what is the expected long-term revenue growth.Thanks to Blinkist and Policygenius for sponsoring the episode.For more information on this episode click here.Show NotesBeyond the Signing by Laura Paskus—Water Education ColoradoWhere the Water Goes: Life and Death Along the Colorado River by David OwensWhat Happens When The Colorado River Runs Dry—Science FridayEditorial: There is no drought by The Times Editorial BoardNew Mexico’s coming megadrought highlig