Money For the Rest of Us

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 Lewis and Thomas Hale—Financial TimesBeijing to break up Ant’s Alipay and force creation of separate loans app by Sun Yu and Ryan McMorrow—Financial TimesChina’s dodgy-debt double act—The EconomistChina’s bid to stabilise its property market is causing jitters—The EconomistRelated Episodes218: Is China or the U.S. More Vulnerable?249: Should You Invest in India?328: Are You Underweight Chinese Stocks? Pros and Cons of Investing in ChinaSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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 need batteries. Those need lithium. That’s where the Salton Sea comes in. by Elliot Spagat—Chicago Sun-TimesA shock is headed for the housing market by Lance Lambert—FortuneHousing Supply: A Growing Deficit—Freddie MacRelated Episodes235: What If Home Prices Always Declined258: How Financialization Pushes Up Home Prices317: How To Buy In A Hot Housing MarketSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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 Returns and Volatility Pumping by Keith Cuthbertson, Simon Hayley, Nick Motson, and Dirk NitzscheGetting back on track: A guide to smart rebalancing by Jenna L. McNamee, Thomas Paradise, and Maria A. Bruno—VanguardSafe Haven: Investing for Financial Storms by Mark SpitznagelRelated Episodes313: No One Is Entirely a Buy and Hold Investor341: How to Overcome Investing Fears354: Now Is the Best Time Ever to Be an Individual InvestorSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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 Statistical Release: H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks, August 19, 2021Check Processing—Federal Reserve Bank of New YorkGold Reserve Act of 1934—Federal Reserve HistoryCreation of the Bretton Woods System—Federal Reserve HistoryFinancial Accounting Manual for Federal Reserve Banks, July 2021: Chapter 5. Federal Reserve Notes—Board of Governors of the Federal Reserve SystemFinancial Statements: Federal Reserve Bank of Kansas City; As of and for the Years Ended December 31, 2020 and 2019 and Independent Auditors’ ReportA Complete Guide to Understanding and Protecting Against Inflation—Money For the Rest of UsBitcoin: A Peer-to-Peer Electronic Cash System by Satoshi Nakamoto—BitcoinWhat is a fork?—CoinbaseMapping the Major Bitcoin Forks by Ashley Viens—Visual CapitalistTotal Circulating Bitcoin Chart—BlockchainThere’s Enough Bitcoin For Everyone by Paul Opoku—NasdaqLightning Network: Scalable, Instant Bitcoin/Blockchain TransactionsCrypto Crime Summarized: Scams and Darknet Markets Dominated 2020 by Revenue, But Ransomware Is the Bigger Story—ChainalysisAmericans' Spending on Illicit Drugs Nears $150 Billion Annually; Appears to Rival What Is Spent on Alcohol by Beau Kilmer—RAND Corporation39% of PoW mining is powered by renewables – Cambridge University Cryptoasset study by Gareth Jenkinson—The Daily ChainBitcoin Energy Consumption Index—DigiconomistThe Bitcoin vs Visa Electricity Consumption Fallacy by Carlos Domingo—Hacker NoonEl Salvador Readies Bitcoin Rollout With 200 ATMs for Conversion by Michael D McDonald—BloombergRelated Episodes316: Paper, Rocks, or Digits—What Makes the Best Money335: Are Non-Fungible Tokens (NFTs) Good Investments?339: How To Make Money with BlockFi, Dai and the Evolving DeFi EcosystemSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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 2021 // VOL. 27, NO. 3Morningstar's Annual Fund Fee Study Finds Investors Saved Nearly $6 Billion in Fund Fees in 2019—MorningstarThe Reel Deal: The Stacked Benefits of a Reel Mower by John K. Hix and Simone Bailey—Rochester Reginal HealthHow to Invest in Closed-End Funds—Money For the Rest of UsPortfolio VisualizerThe Beauty of Everyday Things by Soetsu YanagiNoise: A Flaw in Human Judgment by Daniel Kahneman, Olivier Sibony, and Cass R. SunsteinRelated Episodes313: No One Is Entirely a Buy and Hold Investor332: What Is Tail Risk and Are You Taking Too Much Of It?341: How to Overcome Investing FearsSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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 and Amy Danise—ForbesThe Four Approaches to Managing Retirement Income Risk by Wade D. PfauSafety-First Retirement Planning: An Integrated Approach for a Worry-Free Retirement (The Retirement Researcher Guide Series) by Wade D. PfauIntegrating Whole Life Insurance into a Retirement Income Plan: Emphasis on Cash Value as a Volatility Buffer Asset by Wade D. Pfau and Michael FinkeRelated Episodes279: Why All Retirees Should Consider an Income Annuity326: The New Math of Retirement Spending and Investing349: Forward and Reverse Mortgages: When To Take Them Out and When to Pay Them OffSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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 by Peter L. BernsteinHow much gold has been found in the world?—USGSThe oldest living thing on Earth by Marnie Chesterton—BBCWhat is the world's oldest currency?—CMC MarketsBitcoin, Currencies, and Fragility by Nassim Nicholas TalebSmall Is Beautiful: Economics as if People Mattered Bby E. F. SchumacherEvan KinoriGlasswingWant to Make It Big in Fashion? Think Small, Like Evan Kinori by Guy Trebay—The New York TimesArtists of Theory: Evan Kinori Interview by Isaac McKay-Randozzi—Theories of AtlantisNational Overview: Facts and Figures on Materials, Wastes and Recycling—United States Environmental Protection AgencyBasic Information about Landfill Gas—United States Environmental Protection AgencyThe Great Markdown Disaster w/ Evan Kinori—Corporate LunchMinimum by John PawsonEvan Kinori, Clothing Designer by Sean Hotchkiss—Faculty DepartmentStorage Wars—Seeking AlphaFrance Gave Teenagers $350 for Culture. They’re Buying Comic Books. by Aurelien Breeden—The New York TimesRelated Episodes278: You Have Permission to Spend262: Better Not Bigger, Circular Not Linear – How the Global Economy Is ChangingSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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.Thanks to Policygenius and Mint Mobile for sponsoring the episode.For more information on this episode click here.Show NotesVital Signs: Carbon Dioxide—NasaGlobal Energy Perspective 2021—McKinsey & CompanyClimate Change: Global Temperature by Rebecca Lindsey and LuAnn Dahlman—NOAA2030 Climate Target Plan—European CommissionFAQs Carbon Markets & Indices—Intercontinental Exchange, Inc.Carbon trading: the ‘one-way’ bet for hedge funds by David Sheppard—Financial TimesKRBN KraneShares Global Carbon ETF—Krane SharesThe Regional Greenhouse Gas Initiative, Inc.Corporate Carbon Reduction Pledges: An Effective Tool to Mitigate Climate Change? by Stephen Comello, Julia Reichelstein, and Stefan ReichelsteinCarbon offset prices set to increase tenfold by 2030 by Michael Holder—GreenBizCarbon offsetting is essential to tackling climate change—The EconomistCheap cheats—The EconomistFuture Demand, Supply and Prices for Voluntary Carbon Credits – Keeping the Balance—Trove ResearchCarbon offsets gird for lift-off as big money gets close to nature by Susanna Twidale and Shadia Nasralla—ReutersCBL Global Emissions Offset Futures – Constract Specs—CME GroupCBL Nature-Based Global Emissions Offset (N-GEO) and CBL Global Emissions Offset (GEO) Futures ‒ Frequently Asked Questions—CME GroupCME Announces Global Emissions Offset Futures by Filipe Wallin Albuquerque—Nordic Sustainable Investment PlatformRelated Episodes251: Impact Investing and Intentionality262: Better Not Bigger, Circular Not Linear – How the Global Economy Is Changing340: Climate Change, ESG, and What Should Investors Do?See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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 Paul A. Gompers, Will Gornall, Steven N. Kaplan, and Ilya A. StrebulaevWhat Are SPACs and Should You Invest in Them?—Money For the Rest of UsFirst Quarter 2021 Private Capital Quarterly Review—Fund Evaluation GroupFourth Quarter 2020 Private Capital Quarterly Review—Fund Evaluation GroupThe Pervasive, Head-Scratching, Risk-Exploding Problem With Venture Capital by Kamal Hassan, Monisha Varadan, and Claudia ZeisbergerVenture Outcomes are Even More Skewed Than You Think by Seth Levine—VC AdventureVenture Returns With Abe Othman of AngelList by Collin West—Kauffman FellowsPaul KedroskyRelated Episodes253: Are IPOs the New Ponzi Scheme?321: How to Analyze Complex InvestmentsSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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 Charters by Norbert J. Michel, Ph.D.—The Heritage FoundationMortgage Debt and Asset Allocation, Video by Ben FelixPlus Episode 329: Robinhood, Mortgages and ETF Transparency—Money For The Rest of UsBeyond Markowitz: A Comprehensive Wealth Allocation Framework for Individual Investors by Ashvin B. ChhabraHow the HECM Program Works—U.S. Department of Housing and Urban DevelopmentIncorporating Home Equity into a Retirement Income Strategy by Wade D. PfauRelated Episodes44: Should You Pay Off Your Mortgage?238: The U.S. Is More Socialist Than Denmark Regarding Home Mortgages317: How To Buy In A Hot Housing MarketSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.