Money For the Rest of Us

#240 What Henry David Thoreau can teach us about calculating costs, profits, benefits and living a life free of "quiet desperation." Thanks to Blinkist and LinkedIn for sponsoring the episode.For show notes and more information on this episode click here.0:23] Moving into a new house and considering the simplicity of Thoreau.[2:34] Preserving Ralph Waldo Emerson’s woods.[5:15] A two-year experiment living in the woods.[6:32] Calculating cost in terms of our life.[8:37] Distinguishing profit by the benefits.[10:59] Living in the present.[15:24] Using our extra time to pursue the walk.[19:45] The effects of social media and technology on millennials.[23:41] The importance of rejuvenating, unstructured time.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#239 Why successful trading of commodities futures, foreign currencies and options depends on exploiting novice traders. Thanks to Molekule and Sleep Number for sponsoring this episode.For show notes and more information on this episode click here.[0:20] Learning how to trade.[4:52] David takes a look at a trading school for himself.[9:15] Red flags in the trade school learning process.[10:32] Common mistakes in managing wealth according to the trade school.[16:29] Is the solution found in only trading and shunning the stock market?[19:48] The patented approach to trading success is based upon taking advantage of inexperienced traders.[25:09] Trading is a zero-sum game.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#238 How the U.S. mortgage market differs from the Danish mortgage market. Danish mortgage rates and defaults are lower than the U.S.. and unlike the U.S., the Danish government is not involved in protecting investors against mortgage defaults. This episode also explores how the mortgage broker industry has evolved since the housing crash. Thanks to ShipStation and The Great Courses Plus for sponsoring the episode.For show notes and more information on this episode click here.[0:23] The socialist catastrophe of Venezuela[1:42] Who is the most socialist in housing finance? Denmark or the US?[2:50] Meet Fannie Mae, Ginnie Mae, and Freddie Mac.[11:26] Danish mortgage securitization.[15:42] Why Danish borrowers actually pay less.[19:32] Who’s liable for the loan and why it makes all the difference.[22:09] Why do mortgage brokers exist, and should you use one?See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#237 What can we learn from the difficulties the UK is having in negotiating an exit from the European Union. What happens next? Why there is always a conflict between globalization and national sovereignty.  Thanks to LinkedIn, Blinkist and The Great Courses Plus for sponsoring the episode.For show notes and more information on this episode click here.[0:32] Update on Brexit since the British Parliament Vote.[1:20] Basic Principles of Brexit.[3:58] The problem of the Irish border.[10:35] Debate over the withdrawal agreement leads to the current refusal of the deal.[12:49] Brexit Lesson One: long-held agreements are hard to break.[15:08] Brexit Lesson Two: choosing government sovereignty or globalization[22:08] Economic Unions will always be fraught with conflict.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#236 How heuristics, filters and reasonable stories help us cope with radical uncertainty and make investment decisions. Thanks to Netsuite and The Great Courses Plus for sponsoring the episode.For show notes and more information on this episode click here.[0:17] Investing is a world of radical uncertainty.[1:57] Risk vs. uncertainty.[6:01] Coping through the use of narrative.[10:39] Using filters to keep ourselves from being overwhelmed.[12:48] Staying shy of the consensus and “phantastic” objects.[16:04] Learning to tell ourselves reasonable stories.[17:01] Re-defining what makes a great decision.[20:52] Each individual’s decisions influence the future economy.[23:42] Investors aren’t alone: banks need coping mechanisms too.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#235 How to evaluate the purchase of a depreciating asset, such as buying a house in Japan where prices have declined 23 out of the past 29 years. Thanks to The Great Courses Plus, LinkedIn and Sleep Number for sponsoring the episode.For show notes and more information on this episode click here.[0:20] Unfortunately, there isn’t a magic formula for dealing with a housing bubble.[2:33] Making the decision to purchase a second home.[5:31] Japan’s declining housing market.[13:10] Another quirk of the Japanese house: it’s freezing.[20:28] Should we imitate the Japanese when making decisions regarding the housing market?[24:19] Keeping priorities straight: making a purchasing decision based upon what matters.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#234 How and when to use passive indexing strategies without following the crowd. Thanks to Masterworks and Sleep Number for sponsoring the episode.For show notes and more information on this episode click here.[2:25] Do all index investment followers herd?[4:13] Why it has taken so long for indexing to become established.[11:05] Comparing the statistic of active management to passive management.[16:14] Keeping your portfolio diverse while indexing.[19:54] Example of a return driver outside of indexing.[24:54] Steps to take to keep from following the herd.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#233 What is the cause of the economic crisis in Argentina and how likely is it that other developing nations will experience a similar financing crisis. Thanks to Policy Genius for sponsoring the episode.For show notes and more information on this episode click here.[0:20] Why the Argentine peso has decreased 47% in value.[3:41] 3 Reasons why Argentina is unique and has suffered such sharp economic decline.[10:23] What we can learn from Argentina’s funding crisis.[13:51] How to tell when the market is losing confidence.[19:43] Why are some emerging market economies thriving?[22:20] Emerging market economies are not destined to fail.[27:04] What Argentina can do to pull itself out of the crisis.[27:48] Why the US isn’t in the same fix as Argentina.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#232 Why investing in commodities such as oil and gold is challenging. What you need to know before you invest. Thanks to New Retirement Planner for sponsoring the episode.For show notes and more information on this episode click here.[0:18] Where do commodities help us in the economic cycle?[2:00] How to interpret the apparent statistical decline in commodities.[5:40] Are master limited partnerships (MLPs) helpful to your portfolio?[8:19] How the energy transition will affect the future of commodity investment.[11:43] Contango and how it affects the performance of your futures contract.[16:20] Looking back at the history of commodities may help in determining their future.[24:29] The benefits of investing in gold as a commodity.[28:11] Traders and psychology are really what determine commodity prices.[30:08] Cash flow should still be the foundation of your portfolio.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#231 Why different occupations pay differently or even the same occupation in different countries. Why the same occupation can pay differently for different companies that reside in the same city.For show notes and more information on this episode click here.[0:12] A bit of background on today’s question for Money For the Rest of Us[2:28] Why do certain occupations pay more than others?[11:36] Wages vary from county to country - here’s why[20:09] Even jobs in the same city pay different wages, and there’s a good reason behind it[25:52] You can do a few things to protect your own employability with respectable wagesSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.