Money For the Rest of Us

Has the off-shore dollar market in terms of dollar financing and currency hedging gotten so big that it can dictate Federal Reserve monetary policy including the expected short-term interest rate cut by the Fed at its July 2019 open market committee meeting? In other words, has the Federal Reserve lost its ability to conduct monetary policy and control interest rates as it sees fit and is now in search of other tools?In this episode you’ll learn:Why the Federal Reserve is puzzled by how U.S. interest rates are behaving.How the large but opaque off-shore dollar lending and currency hedging market could be strengthening the dollar, slowing the global economy and pushing down interest rates.What is leading to a global dollar shortage.Why the Federal Reserve is researching other policy tools.What investors can do to protect against uncertainty regarding the dollarThanks to ButcherBox and Policygenius for sponsoring the episode.For show notes and more information on this episode click here.[0:20] The suspected outcome of the Federal Reserve Committee Meeting on July 30th and 31st. [3:04] Is the Federal Reserve’s inconsistency, in this case, something to fear?[6:31] The influence of offshore U.S. dollars on the Federal Reserve. [9:10] The issue of undocumented offshore dollar-denominated debt. [12:06] The ramifications of the inability of the global supply chain to access the dollars they need. [15:21] Banks are less willing to lend dollars while also demanding more “pristine” collateral. [18:36] The complexity of the global U.S. dollar matrix. [21:06] Steps to take to cushion your portfolio against any ramifications of a lower Federal Reserve interest rate.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Will Facebook's Libra Cryptocurrency transform money as we know it or is it "the most invasive and dangerous form of surveillance devised thus far?" How does the Libra compare to Bitcoin and the U.S. dollar in terms of the attributes of money.In this episode you’ll learn:What is the Libra and how does it differ from Bitcoin.What are the different attributes of money.What is proof of work and proof of stake for cryptocurrencies.What is the difference between permissionless and permission-based systems for cryptocurrency.Thanks to WIX and Peloton for sponsoring the episode. Use code MONEY for Peloton.For show notes and more information on this episode click here.[0:17] Praise and criticism of the Libra. [1:56] What defines money, and does the Libra match up? [3:53] Proof of work vs. Proof of stake: Libra vs. Cryptocurrency.  [9:52] The role of Libra BFT: creating a permission-less and sustainable currency. [12:30] Libra’s claim that it has intrinsic value by being backed by assets. [16:00] Measuring the reserves and political power of Libra.[17:46] How new money is created by Libra compared to other currencies. [21:05] Who makes up the Libra validators?[22:36] Possible issues with taxes and regulation. [24:42] Comparing libra to other cryptocurrencies and the U.S. dollar.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How the demand by corporations and individuals to turn single-family homes into rental units is pushing up home prices, making it more difficult for first-time homebuyers to purchase a house. In this episode you'll learn:Why the United Nations is accusing certain countries and corporations of treating housing as a tradable financial commodity rather than a human right.Why Blackstone believes it is helping to solve the housing crisis by buying and renting single family homes and that the United Nations is wrong in its accusations.How the drive by corporations and individuals to own rental housing is pushing up home prices, but not necessarily rents.Why the U.S. has a chronic affordable housing shortage and what can be done about it.Thanks to Vistaprint and WIX for sponsoring the episode.For show notes and more information on this episode click here.[0:17] The concern of the U.N. with houses being treated as a commodity vs. a right. [2:27] The rise of rent-backed securities and the debated role of Blackstone. [8:20] The impact of single institutions on the national rent average. [9:59] House flipping vs. renting. [11:34] Buying a home to rent through a company. [12:56] David’s personal experience with being outbid on a house. [14:25] Why financialization is driving up home prices—not rent. [19:48] The housing crisis for those with low income. [22:53] Possible solutions for the rental housing crisis.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How the power of compounding applies not only to wealth, but influence, expertise, and creativity. How non-monetary investments can lead to greater monetary wealth and satisfaction.In this episode, you will learn:Why the rule of 72 and the power of compounding are hindered by portfolio losses.Why the sequence of returns impacts investment performance, but also our expectations.How what we experience in the world is made up of separate glimpses and events.What are non-monetary things that compound with time and why there are no short-cuts.How to focus our attention on things that compound.How non-monetary investments of our time can increase our monetary wealth.Thanks to Vistaprint and Sleep Number for sponsoring the episode.For show notes and more information on this episode click here.[0:20] The dangers of oversimplified compounding schemes.[4:30] Our experiences influence what we expect to happen.[7:57] A picture made up of pictures taken through time.[11:26] There are no shortcuts to forming experience.[15:05] Influence is created by passing through time—not by purchasing it.[18:32] Expertise, polish, perfection are all built by passing through time.[19:41] Taking the time to invest in creative work through time.[22:01] Time brings age—and that is okay.[23:11] Passing through time brings wisdom and experience.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How does artificial intelligence and machine learning work and what are some examples of how individual investors can use AI in their investing.In this episode you will learn:What is artificial intelligence, machine learning and deep learning.How is AI being used by different industries.How are AI models built with supervised and unsupervised learning.What are the components of a quantitative trading model and why it is insufficient to have an AI based stock ranking service.What are examples of AI based investment services and AI ETFs available to individuals.Why using AI to make investment decisions is so difficult.Thanks to Warby Parker and WIX for sponsoring the episode.For show notes and more information on this episode click here.[0:20] The two types of AI: rules-based & deep learning.[3:35] Some examples of artificial intelligence.[4:59] How machine learning systems work.[6:10] Supervised learning vs. unsupervised learning. [9:10] Training deep learning AI models.  [12:46] Complications with how deep learning models come up with their answers.[14:31] The role of AI in predicting interest rates.[17:16] Understanding the different factors and components of AI models when it comes to investing.[19:43] David’s personal experience with an AI-based investing service. [23:29] The Equbot and investing in ETFs.[25:46] The difficulties of using AI as an individual investor.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How an asset class such as bonds can play different roles in your portfolio depending on your investment philosophy. In this episode you will learn:What are bonds and how can they be used in investment portfolios.What is interest rate anticipation.Why individuals have an advantage over institutions because they don't have to worry about outperforming a benchmark when it comes to bonds.Why U.S. interest rates could rise and fall from current levels.Why China is unlikely to sell all of its U.S. Treasury bonds.Examples of higher yielding strategies other than bonds that can benefit from falling interest rates.Thanks to LinkedIn and Policygenius for sponsoring the episode.For show notes and more information on this episode click here.[0:20] Generating a return on bonds. [2:22] David explains why his own portfolio has not seen huge success in bonds.[3:56] What is the role of bonds in your portfolio?[6:41] A historical analysis of bonds.[9:55] The advantage of being an individual investor.[10:59] Speculating whether or not interest rates will go up or down.[14:50] The effects of the global economy on US bond behavior.[17:12] Strategies for diversifying your portfolio.[20:49] What to focus on as an individual investor in bonds.[22:19] Comparing the story of the carpenter and the tree to the life of a bond.[24:23] Deciding which path to choose for the use of your bonds.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What are the pros and cons of having your entire investment portfolio invested in stocks versus a multi-asset class portfolio.In this episode you’ll learn:What are some investment options if you want to be 100% invested in stocks.What attributes do you need as investor to have an all stock portfolio.Why it is difficult for active managers to outperform.Why an all Japanese stock portfolio has severely underperformed for 25 years and how it is possible a U.S. stock portfolio could suffer the same fate.What are the pros and cons of a multi-asset class portfolio.Overview of The Simple Path to Wealth by J.L. CollinsOverview of Investing at Level 3 by James B. CloonanThanks to WIX for sponsoring the episode. You can find show notes and more info on the episode by going here. You can learn about Plus Membership here.For show notes and more information on this episode click here.[0:19] Can investing really be as simple as investing 100% of your portfolio in stocks?[4:16] Can diligent analysis actually outperform the index?[8:50] Understanding the difference between risk and volatility.[14:24] Knowing the risks associated with investing 100% in stocks.[19:17] The influence of the crowd and the misjudgments of investors on the market.[23:25] The benefits of diversifying your portfolio.[26:43] Investing 100% in stocks is viable, but it will come with ups and downs.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How venture capital funded startups run up massive losses while justifying premium valuations using creative profitability metrics. These private companies are now going public allowing early investors to cash out with sizable gains. Meanwhile, these new publicly traded companies are added to equity indices, forcing passive managers to purchase them for their index funds and ETFs.In this episode you will learn:How venture capital and initial public offerings work.How many venture capitalists are there and how have they performed.Why do startups stay private for longer and then go public while still incurring massive losses.What is blitzscaling.How startups use creative profitability metrics to attract investment capital at premium valuationsHow the current venture capital regime contributes to income inequality.How to get an allocation to an initial public offering. Thanks to Policygenius and TripActions for sponsoring the episode.For show notes and more information on this episode click here.[0:19] What are IPOs?[2:12] The growth of new venture capital firms.[5:22] Blitzscaling and the willingness of venture capitalists to initially lose money.[8:33] How start-ups are choosing to exit.[11:18] The cost of going public at premium valuations.[13:26] The social and economic repercussions of blitzscaling.[18:16] How money-losing firms try to create a profit.[19:38] How unprofitable companies convince investors to buy at high valuations.[21:20] How individuals participate in venture capital without investing in an IPO.[24:08] Possible solutions to IPO’s problems.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The three-step plan for becoming financially wealthy and how to be wealthy without the money.In this episode you’ll learn:The results of two recent surveys on wealth, investing and retirement planning.How much money do people believe they need to consider themselves wealthy.How is wealth distributed across the U.S. population and how wealthy are Americans?Why you need a simple financial plan.What are the three steps to becoming financially wealthy.How to live like you are already wealthy.Thanks to WIX and Sleep Number for sponsoring the episode.For show notes and more information on this episode click here.[0:16] Schwab and Stash survey results.[2:49] Saving vs. living paycheck to paycheck.[4:29] How much does one need to be considered wealthy?[7:44] The value of social security.[9:23] The historical distribution of the country’s overall wealth.[11:33] The importance of having a plan.[13:38] Step One: increase your income.[15:10] Step Two: increase your savings percentage.[16:44] Step Three: increase your investment returns.[23:57] It’s not about optimization. It’s about diversifying and learning.[25:20] How to live like you are wealthy today.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How individuals can have a positive impact while earning a good return investing. What are some examples of socially responsible and impact investments and platforms.In this episode you’ll learn:What is the difference between impact investing, ESG and SRI?What are examples of socially responsible exchange traded funds.What are green bonds.What are some examples of impact investments and platforms.What are three ways we can have a positive impact as individuals.Thanks to Blinkist and LinkedIn for sponsoring the episode.For show notes and more information on this episode click here.[0:18] What is impact investing?[5:25] How impact investing is different from socially responsible investing.[8:50] Different opportunities to invest in a socially responsible way.[10:49] The impact that just one individual can have.[16:08] Keeping from negatively affecting the social and environmental fabric.[18:53] Generating positive impact with our investments.[20:01] Analyzing opportunities for truly impactful investments.[21:06] Impact Investing in the secondary market.[24:55] We each have to decide in what ways we will intentionally invest.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.