Money For the Rest of Us
495 episodes - English - Latest episode: 10 days ago - ★★★★★ - 1.3K ratingsA personal finance and investing podcast on money, how it works, how to invest it and how to live without worrying about it. J. David Stein is a former Chief Investment Strategist and money manager. For close to two decades, he has been teaching individuals and institutions how to invest and handle their finances in ways that are simple to understand. More info at moneyfortherestofus.com
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Episodes
The U.S Is More Socialist Than Denmark with Home Mortgages
January 30, 2019 17:00 - 28 minutes - 25.7 MB#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...
Brexit Is A Mess—Lessons Learned
January 23, 2019 17:00 - 26 minutes - 24 MB#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 ...
How Investors Cope With Radical Uncertainty
January 16, 2019 17:00 - 26 minutes - 23.8 MB#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 consen...
What If Home Prices Always Fell
January 09, 2019 12:10 - 28 minutes - 26.4 MB#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...
Index But Don't Herd
December 19, 2018 17:00 - 29 minutes - 26.6 MB#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 r...
Is An Emerging Markets Crisis Imminent?
December 12, 2018 17:00 - 32 minutes - 29.9 MB#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] ...
Is It Time To Invest In Commodities?
December 05, 2018 17:00 - 33 minutes - 30.5 MB#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 af...
What Determines How Much You Make
November 28, 2018 17:00 - 25 minutes - 23.8 MB#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...
Use Caution With Real Estate Crowdfunding
November 14, 2018 17:00 - 33 minutes - 30.3 MB#230 With RealtyShares and other crowdfunding platforms shutting down, should you invest on these platforms and if so how do you go about evaluating the investment opportunities. Thanks to Policy Genius for sponsoring the episode. For show notes and more information on this episode click here. [0:30] Check out this episode for David’s experience with real estate crowdfunding investments [2:35] Real estate crowdfunding platforms are comprised of this type of structure [6:57] You...
Stop Maximizing Your Returns Using Modern Portfolio Theory
November 07, 2018 17:00 - 29 minutes - 27.4 MB#229 Why modern portfolio theory is a defective way to build out an investment portfolio. This episode explains a better approach to asset allocation. For show notes and more information on this episode click here. [0:11] What is modern portfolio theory? [4:29] There are many downfalls to relying on this theory while investing [7:05] We should prepare for the worst possible outcome when investing, not the average positive outcome [14:08] The true goal of investing should be abo...
How Tokenization Will Radically Change Investing
October 31, 2018 16:00 - 31 minutes - 28.4 MB#228 How distributed ledger technology and tokenized assets will increase liquidity, transparency and fractionalization, allowing investors to purchase very small, liquid positions in real estate, private companies, art and other assets. Thanks to LinkedIn for sponsoring the episode. For show notes and more information on this episode click here. [0:12] Stocks ownership used to be tied to paper certificates, but there’s a problem with electronic records as well [10:00] Proxy voti...
How To Teach Children About Money
October 24, 2018 16:00 - 28 minutes - 25.9 MB#227 Here are four most important things to teach children about money and why showing is better than telling when it comes to kids and money. Thanks to CNote for sponsoring this episode. For show notes and more information on this episode click here. [2:58] Here’s how you can start teaching children about money [5:30] #1 - The right attitude about money comes with a balance of respect, understanding, and trust [8:40] #2 - Healthy relationships with money come with accountabilit...
How To Spot Asset Bubbles and What To Do About Them (The Case of Cannabis)
October 17, 2018 16:00 - 30 minutes - 27.9 MB#226 What are the characteristics of an asset bubble and how to invest when one exists. Are cannabis stocks in a bubble? Thanks to Blinkist and Policy Genius for sponsoring this episode. For show notes and more information on this episode click here. [0:10] Is the cannabis industry in an asset bubble right now? [4:41] Public conversation is often a sign of an asset bubble [8:19] Hopeful assumptions are often what drive an asset bubble environment [13:24] Tesla can be considered...
How To Invest In Bonds and Other Fixed Income Securities
October 10, 2018 16:00 - 34 minutes - 31.7 MB#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...
Mastering the Market Cycle—New Book by Howard Marks
October 03, 2018 16:00 - 29 minutes - 26.6 MB#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...
How To Invest When You Have Little Money
September 26, 2018 16:00 - 28 minutes - 25.8 MB#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 commiss...
Why We Overpay and How It Leads To Income Inequality
September 19, 2018 16:00 - 32 minutes - 30.1 MB#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 ourselve...
Should You Prepare For The Next Financial Crisis?
September 12, 2018 16:00 - 29 minutes - 26.9 MB#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] Futur...
Where Should You Invest Your Cash Savings?
September 05, 2018 16:00 - 27 minutes - 25.5 MB#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 ...
The Incredible Shrinking Stock Market
August 29, 2018 16:00 - 29 minutes - 27.1 MB#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 out...
Is China or the U.S. More Vulnerable?
August 22, 2018 16:40 - 25 minutes - 23.7 MB#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...
Rebalancing, Overvaluation, Market Timing, and Stock Splits
August 15, 2018 16:00 - 39 minutes - 36.4 MB#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 nec...
Avoid This Investment: P2P Lending
August 08, 2018 16:00 - 30 minutes - 28.1 MB#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 ye...
Is A Dollar Collapse Coming?
August 01, 2018 16:00 - 34 minutes - 31.9 MB#215 Will stagflation cause the dollar to crash and be a bottomless pit when the next recession hits? That is what Peter Schiff is predicting. We look at where he is right and where he seems to be off the mark when it comes to the U.S. economy and a dollar collapse. Thanks to Haven Life and Wunder Capital for sponsoring today's episode. For show notes and more information on this episode click here. Episode Chronology [0:33] Is a dollar collapse imminent? [3:07] Economic expans...
Should You Trade Currencies (Forex) Like Soros?
July 25, 2018 16:00 - 30 minutes - 27.7 MB#214 How the foreign exchange market works and how George Soros made more than a $1 billion shorting the British pound in 1992. Why currency trading today is more like gambling than when Soros made his billions. Why trading closed end funds can be more profitable than currency trading. Thanks to Wunder Capital and Blooom for sponsoring todays' episode. Use code DAVID on Blooom for your first month free. For show notes and more information on this episode click here. [0:35] David i...
Why Health Insurance Is A Mess
July 18, 2018 16:00 - 29 minutes - 26.9 MB#213 How health insurance isn't really protection against a catastrophic illness but prepayment of routine healthcare consumption, leading to overconsumption of healthcare and over treatment by medical professionals that drive up costs. What would it take to reform the health insurance marketplace so it is more fair and functions more like life insurance or homeowners insurance. Show notes and links can be found here. Thanks to Circle Invest for sponsoring today's episode. For show...
Trade Wars Increase Prices and Poverty
July 11, 2018 16:00 - 29 minutes - 27.2 MB#212 How a complex global trade system has reduced poverty, raised incomes, increased productivity, and lowered prices while a trade war will reverse those trends. You can find show notes and links here. Thanks to Blooom and Wunder Capital for sponsoring this episode. Episode Summary President Trump recently unveiled new tariffs on trade with China, and many fear this decision could lead to a trade war. This 25% tariff on $34 billion worth of Chinese imports into the U.S. and an a...
How To Navigate A Housing Bubble
June 27, 2018 16:00 - 30 minutes - 27.9 MB#211 Why housing bubbles can last such a long time and what to do if you really want or need to buy a house in a frothy market. More information, including show notes, can be found here. Episode Summary Navigating a housing bubble is often on everyone’s minds. With changing family needs, balancing multiple incomes, and varying environmental factors, finding a great house is a struggle most families face. On this episode of Money For the Rest of Us, David responds to a listener’s q...
Are There Always Winners and Losers When Trading?
June 20, 2018 16:00 - 28 minutes - 26 MB#210 Why fair markets require uncertainty for both the buyer and the seller, and why sellers don't need to disclose everything they know to the buyer. More information, including show notes, can be found here. Thanks to Wunder Capital for sponsoring this week's episode. Episode Summary A recent listener of the Money For the Rest of Us podcast posed the question, “Are there always winners and losers when trading?” This question is the focus of this episode of the podcast. David exp...
Why Bother Investing Internationally?
June 13, 2018 16:00 - 32 minutes - 29.5 MB#209 Is it worth investing outside your home country given the risk? Should you hedge currency risk? What is the impact of Chinese "A" share listed companies being added to emerging market indices. More information, including show notes, can be found here. Episode Summary Should you be investing internationally? What are the benefits to having foreign stocks in your portfolio? Do the currency risks outweigh potential returns? On this episode of Money For the Rest of Us David consi...
The Biggest Market Crash Is Recyclables
June 06, 2018 16:00 - 26 minutes - 24.2 MB#208 How a Chinese ban and careless recycling habits by households and businesses led to a market collapse in recyclables. More information, including show notes, can be found here. Episode Summary The biggest market crash facing the United States today isn’t entirely economic in nature. It’s actually surrounding the idea of recycling and recyclable goods. Recycling is a service that most communities require and demand. But is it economical? Why has the market crashed in recent mo...
How Do The Mega Rich Invest?
May 30, 2018 16:00 - 29 minutes - 26.7 MB#207 Why the mega rich don't have magical investing powers, but there are some investing attributes they possess that we can emulate. More information, including show notes, can be found here. Episode Summary A new listener of Money For the Rest of Us inspired the question for this episode: how do the mega rich invest? Forbes reports that there are 585 billionaires in the US and most of them utilize a family office/professional management structure. But do they have some magical, ...
Be Bear Aware of Bank Loans
May 23, 2018 15:55 - 28 minutes - 25.6 MB#206 Why the leveraged loan market (i.e. bank loans) is becoming more risky. What are collateralized loan obligations and how do they influence bank loans. Why I will sell my bank loans fund when the economy turns. More information, including show notes, can be found here. Episode Summary Just as you need to be “bear aware” when traveling in the backcountry, you also need to be aware of the risks and benefits when investing in asset classes such as bank loans. What may seem harmle...
Is The Federal Reserve Really Printing Money?
May 16, 2018 16:00 - 30 minutes - 28 MB#205 If the Federal Reserve has printed over $2 trillion dollar and given it to banks to lend, why is U.S. inflation still low? More information, including show notes, can be found here. Episode Summary Many people wonder if the Federal Reserve is really printing money. Varied schools of thought exist behind the value of money, how it gets injected into a country’s economy, and how it impacts the private sector. On this episode of Money For the Rest of Us David offers insights int...
Why Are Investment Returns So Low?
May 09, 2018 16:00 - 29 minutes - 27.2 MB#204 How low real interest rates contribute to low returns for stocks and other risk assets. How real interest rates are determined. More information, including show notes, can be found here. Episode Summary Low investment returns are never the best news for financial investors. On this episode of Money For the Rest of Us, David examines the relationships between real interest rates and investment return, who or what is driving real rates, and offers historical information on prev...
Is Investing More Like Poker or Chess?
May 02, 2018 16:00 - 29 minutes - 27.3 MB#203 How to make better investing and life decisions. More information, including show notes, can be found here. Episode Summary David asks the question, “Is investing more like poker or chess?” on this episode of Money For the Rest of Us in order to help you better understand why investing is inherently unpredictable. The book, “Thinking in Bets: Making Smarter Decisions When You Don’t Have All the Facts” by Annie Duke inspired this episode. David ponders big ideas such a reflexi...
Will Your Next Car Be Electric?
April 25, 2018 16:00 - 29 minutes - 27.1 MB#202 What are the impediments to the mass adoption of electric vehicles. More information, including show notes, can be found here. Episode Summary Over the past few months David has been traveling across the country and throughout the trip, he’s covered thousands of highway miles and seen countless vehicles. This inspired him to ask the question, “Will my next car be electric?” On this episode of Money For the Rest of Us he outlines how the vehicle market is changing, the benefit...
Is Your Portfolio Unbalanced?
April 18, 2018 16:00 - 35 minutes - 32.1 MB#201 Why most conventional portfolios make huge and often unintended bets on the stock market. How role based investing can lead to a more balanced portfolio. More information, including show notes, can be found here. Episode Summary Having a balanced portfolio is a key to financial success. It offers a secure future and provides a level of security to your day-to-day lifestyle. On this episode of Money For the Rest of Us, David considers the question, “Is your portfolio unbalance...
The Great National Debt Debate
April 11, 2018 16:00 - 54 minutes - 49.7 MB#200 Joshua Sheats from the Radical Personal Finance podcast and I discuss our different views regarding the national debt and the severity of the U.S. government fiscal situation. More information, including show notes, can be found here. Episode Summary Navigating a housing bubble is often on everyone’s minds. With changing family needs, balancing multiple incomes, and varying environmental factors, finding a great house is a struggle most families face. On this episode of Money...
What Kind of Money Is It?
April 04, 2018 16:00 - 30 minutes - 27.9 MB#199 How a bank panic led to the creation of the Federal Reserve, and why having diversified sources of money can protect us in case we have a bank panic today and can't get access to our bank deposits. More information, including show notes, can be found here. Episode Summary Asking the question “What kind of money is it?” may seem a bit unnecessary. Everyone knows what money is, what it does, and why it exists. However, on this episode of Money For The Rest Of Us, David explains...
Capitalism Is Creation
March 28, 2018 16:00 - 28 minutes - 25.9 MB#198 Why save for retirement if capitalism is going to collapse and/or universal basic income will be available. How millennials can lead the next work transition. More information, including show notes, can be found here. Episode Summary Capitalism, universal basic income, socialism, and artificial intelligence are all tied together in America’s current economy. Today’s millennials are asking big questions about the future of the national economy and what place AI has in the job ...
The Power of Less and Local
March 21, 2018 15:39 - 23 minutes - 21.5 MB#197 Why having less things and activities gives us more freedom and happiness. Why low probability risks are unacceptable if the consequences affect all of us. More information, including show notes, can be found here. Episode Summary The inspiration behind this episode came from the idea of the power of local and less, from Nassim Nicholas Taleb’s book Skin in the Game. David discusses the power behind experimenting at the local level in order to avoid systemic risk, as well as ...
How To Survive Financially
March 14, 2018 14:58 - 29 minutes - 27.2 MB#196 Why relying on averages is dangerous given our fate is often determined by extreme events and how we react as financial markets, the economy and our own lives evolve. More information, including show notes, can be found here. Episode Summary As people age, one of the most common questions asked is “how can I survive financially?” The world is filled with unpredictable markets, unforeseen circumstances, and lifestyle events that may impact your ability to be financially secure...
Has A Trade War Begun?
March 07, 2018 16:23 - 25 minutes - 23.7 MB#195 Why duties and other actions are necessary to address trade disputes, but across the board tariffs are a blunt instrument that can lead to a devastating trade war and global recession. More information, including show notes, can be found here. Episode Summary With President Trump recently unveiling new tariffs, many investors and economists are asking the question, “has a trade war begun?” On this episode of Money For the Rest of Us, David Stein explores this idea and explain...
Four Investment Lessons From Warren Buffett
February 28, 2018 03:20 - 33 minutes - 30.5 MB#194 Four investment lessons from Berkshire Hathaway's fiscal year 2017 Shareholder Letter with additional insights from Howard Marks and Seth Klarman. More information, including show notes, can be found here. Episode Summary Every year, Berkshire Hathaway releases a letter written for their shareholders filled with information on their performance, portfolios, and investments. On this episode of Money For the Rest of Us, David digs into the 2017 letter and discusses four investm...
Why Plan If Life Is So Unpredictable?
February 21, 2018 16:12 - 29 minutes - 27.2 MB#193 How planning helps us avoid catastrophic errors while maintaining flexibility and margins of safety allow us to thrive even if our plans don't work out. More information, including show notes, can be found here. Episode Summary There are two sides to the “why plan if life is so unpredictable?” debate that David talks about in this episode of Money For the Rest of Us. Some individuals believe you should plan even though countless variables exist, and others insist on not plann...
Is Anything Scarce Anymore?
February 14, 2018 16:21 - 29 minutes - 27.3 MB#192 In this episode we explore scarcity. Artificial scarcity created by laws and real scarcity created by our evolving lifestyles and economy. We'll see that most physical products, with drinking water being an exception, are becoming less scarce while trust and attention are becoming more scarce. More information, including show notes, can be found here. Episode Summary – Is Anything Scarce Anymore? Scarce goods and services have been a topic of debate since the original intelle...
Has The Bond Bear Market Begun?
February 07, 2018 16:34 - 30 minutes - 28.2 MB#191 Why interest rates are rising and what could happen to bonds, stocks and the economy if rates returned to more normal levels. More information, including show notes, can be found here. Episode Summary – Has A Bond Bear Market Begun? On this episode of Money For the Rest of Us, David Stein walks you through the complex idea of a bond bear market. He explains that a market consisting of losses of 20% or more are considered a bear market type loss and that this type of loss is ...
How To Keep Up With Inflation
January 31, 2018 16:23 - 31 minutes - 29.3 MB#190 What investments are best for maintaining purchasing power relative to inflation. Using the pencil as an example, how inflationary and deflationary forces work together over decades to determine the price of product. More information, including show notes, can be found here. Episode Summary – How To Keep Up With Inflation Businesses and individuals are asking questions such as “How can we protect our earnings and purchasing power? How do we invest smartly while keeping infla...
Should The Minimum Wage Be Raised?
January 24, 2018 14:50 - 26 minutes - 24.2 MB#189 Will increasing the minimum wage help or harm workers and businesses? How many U.S. workers are paid at or below the minimum wage? More information, including show notes, can be found here. Episode Summary – Should The Minimum Wage Be Raised? Nearly every employee in the United States has grappled with the minimum wage question at some point in their lives. High schoolers, recent college graduates, and older workers all ask themselves, “Can I survive on an hourly job making ...