Money For the Rest of Us

Why most investors practice both market timing and time in the market. Why it is okay to reduce stock exposure given the coronavirus pandemic threat.What would a stock portfolio return that misses the best or worst days and how likely is that.How do rolling 30-year stock returns differ depending on the starting point.Why are stocks likely to outperform bonds over the next 30 years.What is sequence of return risk. What is market timing.Why long-term investors should never move completely out of the stock market, but it is still okay to adjust stock exposure based on market conditions.What are some additional rules of thumb for market timing.How the coronavirus pandemic has increased financial and economic risks and what to do about it.Thanks to Policygenius and Mint Mobile for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Almost half of Millennials want to retire early. Will that hurt economic growth? There were similar concerns in the 1920s that early retirement would wreck the economy. In fact, there was significant pushback against retiring at all due to fears retirements would destroy the economy. Yet, the Great Depression still came. In this episode, we consider what ended the Roaring Twenties, caused the Great Depression, and how early retirements impact the economy. Topics covered include:What is the paradox of thrift and how does it apply to early retirement.Why the 1920s were called the Roaring Twenties.Why the work culture in the 1920s was for workers to not retire, but "die in the harness."What caused the Great Depression.How economies and job markets adapt over time.How waves of early retirements could change the economy.Thanks to LinkedIn Learning and Vistaprint for sponsoring the episode. Use promo code David to get free shipping from Vistaprint.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What factors lead to hyperinflation, why it is so devastating, how hyperinflation can be overcome and what can individuals do to be prepared for hyperinflation.Topics covered include:What causes inflation and how do central banks manage it.How the causes of hyperinflation differ from more normal levels of inflation.What is the biggest challenge of living in a country with hyperinflation.How Zimbabwe and other countries were able to overcome hyperinflation and how Venezuela is slowly taking steps to combat hyperinflation.Why Zimbabwe is again experiencing high inflation.How individuals can protect against inflation.What individuals can do to prepare for hyperinflation in case it comes.Thanks to Netsuite and Policygenius for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How pandemics have impacted the economy and financial markets. Where does the coronavirus rank in severity compared to other pandemics. What portfolio changes, if any, should investors make in response to the coronavirus pandemic.Topics covered include:Definition of a pandemicThe worst pandemics in the 20th and 21st centuriesWhat are the factors in determining the severity of the coronavirus' impactWhat are the economic ramifications of the coronavirus.How did financial markets perform during previous pandemic episodes.Are there portfolio changes investors should make in response to the coronavirusThanks to Policygenius and LinkedIn Jobs for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How most money, such as currency, bank deposits, money market mutual funds, and repurchase agreements, is really short-term debt, often backed by other debt. As a result, money is subject to runs when investors lose confidence and don't want to own it. That can lead to financial crises.Topics covered in this episode include:How counterfeiting currency works.Why most money is debt backed by debt.How a loss of confidence in money leads to bank runs and other financial crises.How demand for U.S. Treasuries as collateral is keeping interest rates low even though the U.S. federal budget deficit is growing.Why the Federal Reserve is considering capping interest rate yields on U.S. Treasuries and what are the risks of doing so.What can individuals do to protect themselves against financial crisis caused by runs on banks and financial securities.Thanks to Vistaprint for sponsoring the episode. Use promo code: "david" to get free shipping. Also thank you to The Bouqs Company for sponsoring the show. Use promo code: "david" to get 25% off.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How to protect against financial hardship and assist others who are struggling financially.Topics covered include:Why are so many families leaving Central America and seeking to enter the United States.How have U.S. immigration patterns changed.Why immigration leads to higher economic growth.Why unsheltered homelessness is increasing around the world and what strategies have been effective in reducing homelessness.What can individuals do to assist the homeless and others who are in financial distress.Note: The original audio file stated that "oftentimes they [the ayslum seekers] wouldn't ever show up for their court case." That is an inaccurate statement. Most asylum seekers attend their court hearing. The audio has been modified to remove the inaccuracy.Thanks to The Bouqs Co. for sponsoring the episode. Use code: david. Also thanks to Policygenius for being a long-time sponsor of the show.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How investors make money with carry trades, how central banks encourage such trades, and what are the dangers to financial markets and the economy when carry trades get too big.Topics covered include:What are the attributes and examples of carry trades.Why do carry trades exist even though investors can suffer massive losses.What was Volmageddeon and Francogeddan.How central banks are the largest carry traders and their actions encourage even more carry trades.Why carry trades are deflationary and lead to systemic risk.What should individual investors do about carry trades and how to take advantage of carry crashes.Thanks to Robinhood and NetSuite for sponsoring the episodeFor show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What factors determine the well-being of an individual or nation and why gross domestic product is an inadequate measure of prosperity.Topics covered include:Evidence many Americans are poorer than before the Great Recession.Why life expectancy in the U.S. is falling.How satisifiedare U.S. citizens.What is GDP and why is the U.S. Bureau of Economics developing a new methodologyWhat are the flaws with GDP and why does it fall short in measuring well-being.Which countries around the world are the most and least happy and what are the factors that contribute to that happiness.Why were U.S. founding fathers worried about too many luxuries.How the U.S. in the 19th century followed the same manufacturing model that China does today.Thanks to Policygenius and LinkedIn for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How climate change, money, trust and technology will interact to impact financial markets and the economy in the coming decade.Topics covered include:Why we change much more over a decade's time than we predict.What is the best approach for transitioning to a new career.What have stocks and bonds returned over the past decade and what are reasonable return expectations for the decade ahead.Examples of how the impact of climate change is being priced into financial transactions.Why Ray Dalio thinks the world has gone mad and the system is broken.Why uncertainties regarding the creation, use and borrowing of money will be reflected in interest rates.How trust and technology will impact global trade and productivity growth.Thanks to Cove and Sleep Number for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How is it the global economy still functions even though most individuals do not trust brands, public institutions or each other.Topics covered in this episode include:The low level of interpersonal trust around the worldWhat is social capital and how it facilitates a trust economy.What are the incentives that encourage individuals and businesses to produce goods and services rather than steal from each other.How does trust impact economic growth.Does traveling harm or help local residents.Thanks to Masterworks and LinkedIn for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.