Money For the Rest of Us

Discover the fascinating world of sovereign wealth funds and their role in national economies. Learn why the U.S. doesn't fit the traditional mold for such funds and the complexities of making one work. Explore how these funds balance political motivations with the need for high returns, and the potential risks involved, including crowding out other investments. The discussion also touches on global examples, like those in Norway and China, and how they manage substantial national wealth.

Ben Inker, Co-head of asset allocation at GMO, shares his insights on contrarian investing, drawing from his experiences influenced by mentors like Jeremy Grantham. He and Greg Dowling, CIO at FEG Investment Advisors, delve into the significance of deep value stocks in today's market. They discuss the challenges posed by the rise of passive investing and the concentration risks in large-cap tech stocks. Together, they explore emerging opportunities in underappreciated sectors, like Japanese small caps, offering valuable perspectives for savvy investors.

Discover the intriguing world of private credit and direct lending, where companies are opting to stay private. Learn how this investment avenue contrasts with traditional leverage loans, and why it's on the rise. The discussion highlights the flexibility and direct connections to borrowers that private credit offers. Explore various investment opportunities, from business development companies to closed-end funds, as well as the risks tied to shifting interest rates. This is an insightful dive into a growing financial niche!

Natural disasters are wreaking havoc, leaving many uninsured. The podcast dives into the clash between socialized risk management and market-based insurance. It highlights California's struggles with home insurance regulations and how they impact premiums. The discussion also reveals the growing consequences of climate change, driving up disaster severity. As costs soar, the balance between affordability and accountability in insurance becomes increasingly complex. Who really bears the financial burden? This episode explores that pressing question.

Explore how geography shapes wealth and living costs, with intriguing insights from Costa Rica's economic landscape. Discover the complexities of e-commerce and its effects on traditional retail, highlighting the importance of unique shopping experiences. Delve into the call for mindful consumption and its benefits for the economy. The episode also tackles the intersection of AI technology and geography, revealing impacts on productivity and energy demands. Gain a fresh perspective on how location influences financial outcomes and societal well-being.

Joshua Sheets, host of Radical Personal Finance, dives into the complexities of living abroad. He passionately argues for the benefits of holding multiple passports and the meticulous financial planning required for early retirement outside your home country. Joshua shares his travel insights from 30 countries, emphasizing the unique opportunities the U.S. offers. He also challenges conventional views on retirement, advocating for a life filled with purpose and contribution rather than simply stopping work.

Coco Krumme, a data scientist and author of "Optimal Illusions," dives into the dual nature of optimization and AI. She critiques modern agriculture, revealing how efficiency can lead to nutritional decline and community disconnect. The conversation highlights the risks of over-optimization in supply chains and the privacy issues confounded by data brokers. Krumme emphasizes finding balance in life optimization, reflecting on the tension between efficiency and the richness of human experience.

How asset class returns move in cycles with periods of above-average returns followed by periods of lower returns. How has the rise of passive indexing led to higher stock valuations, and what does that mean for markets?SponsorsNetSuite - Download the CFO’s Guide to AI and Machine LearningLegalZoom - Use code David10 to 10% offInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesThe Equity Risk Premium: Nine Myths (JPM Series) by Rob Arnott—Research AffiliatesThe Greatest Scourge in Factorland: Revaluation Alpha = Fake Alpha (JPM Series) by Rob Arnott—Research AffiliatesPASSIVE INVESTING AND THE RISE OF MEGA-FIRMS by Hao Jiang, Dimitri Vayanos, and Lu Zheng—NBERLimits to Diversification: Passive Investing and Market Risk by Lily H. Fang, et al.—SSRNRelated Episodes503: U.S. Stocks Have Never Been This Overhyped or Expensive500: The S&P 500 Index and the Decade Ahead468: Lessons from Japan’s 34 Years of Stock Market Underperformance390: Are BlackRock and Vanguard Too Big and Powerful?234: Index But Don’t HerdSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Explore the factors behind the U.S. stock market's long-term success, including superior access to capital and a vibrant entrepreneurial spirit. Despite this edge, the discussion highlights the need for global diversification. The podcast delves into the unique characteristics of U.S. economic growth, revealing challenges like slowing productivity. It also critiques the current high valuations of U.S. stocks compared to international peers, raising questions about sustainability. Listeners can gain insights into navigating market cycles and honing investment strategies.

Recent interest in nuclear energy is fueled by initiatives like Microsoft's deal to reopen the Three Mile Island reactor. Nuclear power now contributes significantly to global electricity generation, especially in the U.S., amidst rising electricity demand driven by AI and climate change. The podcast highlights the efficiency and cost advantages of nuclear energy, while also tackling challenges such as waste management. Additionally, it explores investment opportunities in uranium and nuclear sectors, offering practical options for prospective investors.