Money For the Rest of Us

#225 How to evaluate interest rate risk, credit risk and other factors when investing in bonds. Thanks to Sleep Number for sponsoring the episode.For show notes and more information on this episode click here.[0:11] Predicting interest rates can be tough - here are some things to consider[4:28] What determines the rate of return if you invest in bonds or fixed income securities?[7:00] Bond prices fluctuate as interest rates change[15:30] Data on default rates for bonds and other investment strategies[19:40] Consider this before deciding whether or not to hold bonds[23:13] Passive vs active investment strategies in bonds and other fixed-income securities[25:35] Why would you own a long duration bond?[34:19] There isn’t a single right answer when it comes to bonds and fixed income securitiesSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#224 How to position your investment portfolio based on market cycles. Investing principles from Howard Marks' new book Mastering the Market Cycle. Thanks to CNote and LinkedIn and for sponsoring today's episode.For show notes and more information on this episode click here.[0:11] Howard Marks’ new book is the inspiration for this episode of Money For the Rest of Us[7:13] The first tool in learning how to invest during a market cycle[11:49] The second tool in learning how to invest during a market cycle[18:00] Successful investing involves a mix of skill and luck[25:30] There’s no way of knowing where the bottom of a market may be[26:30] We are not in a period of extreme risk or opportunity in today’s US economySee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#223 How commission free ETFs, mobile apps and zero fee index funds make it easier to invest if you have little money. What are some examples of commission fee ETFs and funds for Vanguard, Fidelity, Robinhood and TD Ameritrade. Thanks to Blinkist for sponsoring this episode.For show notes and more information on this episode click here.Episode Chronology[0:14] Here’s how to invest when you have little money[4:26] How do brokerage firms make money if they don’t charge commissions? [11:37] What happens to investments if a brokerage firm goes bankrupt?</li> [18:14] Thoughts on investing with a very simple portfolio [27:35] A lack of money is no excuse to not investSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#222 How asymmetric information, price discrimination and the stories we tell ourselves contribute to artificial profits and income inequality. Thanks to CNote for sponsoring today's episode. For show notes and more information on this episode click here.[0:20] Rents, overpayments, and income inequality are all side effects of market distortions[8:55] Value-based pricing vs pricing based solely on cost[17:13] Pricing is inextricably tied to the stories we tell about ourselves and to others[22:30] Consumers need to consider these 4 things when evaluating the cost of goods and services See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#221 How the Great Financial Crisis changed how individuals and institutions invest, and why we shouldn't invest solely focused on the next crisis. Thanks to CNote for sponsoring today's episode.For show notes and more information on this episode click here.[0:40] Overview of how the 2008 financial crisis continues to impact investing today[6:48] Data on current investments and the stock market[8:40] How you invest depends on your experience in the 2008 crisis[11:41] Future investing is enveloped in big questions and unknown variables[16:10] The great financial crisis impacted both individuals and institutions[19:58] Should you invest in preparation mode for the next crisis?[26:00] Invest smartly by separating speculations from investments[28:40] Consider this when investing and thinking about the future of the marketSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#220 How to evaluate cash savings options at banks, credit unions and brokerage firms. Why are yields on cash savings so much higher than a few years ago. How to tell if your bank or credit union is in experiencing financial difficulties. Thank you to Blinkist for sponsoring this week's episode.For show notes and more information on this episode click here.[0:10] All about banks, credit unions, and the pros and cons of cash savings[4:47] How can banks and credit unions become financially unstable?[14:25] The Federal Reserve is setting a new short term interest rate target[15:55] What tools does the Federal Reserve have to keep short-term interest rates in line with its target?[19:20] There are other options for investing your cash savings[25:49] Is it really worth pursuing multiple investing options for your cash savings?See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#219 How fewer publicly traded companies, less stock shares outstanding and more intangible assets have led to higher earnings growth for U.S. listed companies and ultimately stronger stock market performance. Thanks to Circle Invest for sponsoring today's episode.For show notes and more information on this episode click here.[0:08] Observations on the current state of the US stock market[4:01] What if there’s something going on within the US market that suggests continued outperformance is coming?[7:23] Why the number of publicly listed companies, particularly small companies, is shrinking[14:52] The impact of intangible assets within small companies[18:21] Increased amounts of buybacks are leading to a shrinking stock market[20:38] Multiple factors are contributing to higher shareholder profits, yet lower wages for employees[26:05] What are the investment implications of low wages due to monsopony?See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#218 What are the headwinds facing China that could slow economic growth, but still could lead to China growing faster than the U.S. Also, what is going on with Turkey and are other emerging market countries vulnerable to the same plight? Thanks to Circle Invest for sponsoring today's episode.For show notes and more information on this episode click here.[1:07] Is China or the US more vulnerable to economic downturn?[4:55] Why have emerging markets done so poorly recently?[8:51] The concept of balance of payment is reviewed and examined in a case study of Turkey[16:20] Emerging markets are doing better than in previous years[20:35] The 3 reasons why China is more vulnerable than the US[22:25] What China has to do in order for their economy to continue growing quicklySee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#217 Which rebalancing strategy is best or should we even bother rebalancing? Should we just exit stocks completely, especially given how overvalued the U.S. stock market it is? And why do companies split their stocks? In this episode, we answer these and other listener questions. For show notes and more information on this episode click here.[0:30] Why this episode of Money For the Rest of Us is a bit different than previous ones[2:15] Is rebalancing your portfolio really necessary?[12:43] Can you use valuations for timing the market?[23:17] Is it possible to use exiting stocks as a way to increase revenue?[33:39] The idea behind doing investing on a sector neutral basis rather than a capitalization weighted basis.[36:20] What factors do companies consider when doing stock splits?See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#216 Why peer-to-peer lending on platforms like Lending Club and Upstart is no place for individuals to invest given higher defaults, lower returns and competition from institutional investors. Thanks to Circle Invest for sponsoring today's episode.For show notes and more information on this episode click here.Episode Chronology[1:04] There are a lot of issues going on with the global P2P lending market[5:34] How the P2P lending environment has changed over the past few years[11:24] Why advertised returns are higher than actual returns[15:35] How are these P2P lending platforms surviving?[21:26] How these 3 credit enhancements impact the P2P lending market[25:51] Individual investors don’t do as well in P2P lending environments - here’s why[30:00] Here’s the bottom line on why you should avoid P2P lending investmentsSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.