Money For the Rest of Us J. David Stein

With interest rates rising does it still make sense to own bonds? Yes. This episode explores the role of bonds including why they are more effective at hedging stock losses than protective put options.

Topics covered include:David's business and investment philosophyHow bond funds have performed in 2021Three disparate views on the direction of interest rates from Capital Economics, Ray Dalio, and Hoisington Investment Management CompanyHow to invest in China bondsWhy owning bonds is cheaper and more effective at hedging stock market losses than put optionsHow covered call strategies workHow to decide on your allocation to bonds versus stocks


Thanks to Mint Mobile for sponsoring the episode.

For more information on this episode click here.

Show Notes

What I think, not what I thought – Jason Fried

Why in the World Would You Own Bonds When… – Ray Dalio

Explainer: Foreign access to China’s $16 trillion bond market – Reuters

The True Cost of Hedging S&P Downside - Movement Capital

Revisiting Covered Calls and Protective Puts: A Tale of Two Strategies – Bryan Foltice

Pathetic Protection: The Elusive Benefits of Protective Puts – Roni Israelov

Related Episodes

302: Investing Is Not Knowing

255: With Interest Rates Falling, Why Do You Own Bonds?

225: How To Invest in Bonds

There has never been this much money in the world. Now is the time to own real property.

Topics covered include:How to buy something with BitcoinHow cryptocurrencies are similar and different from fiat currenciesWhat is legal tenderWhy there has never been this much money in the worldWhy central banks can control interest rates but not inflationWhat real property should investors own


Thanks to Truebill and Babbel for sponsoring the episode. Use code David for Babbel to get an additional three months free.

For more information on this episode click here.

Show Notes

The Power of Gold: The History of an Obsession by Peter L. Bernstein

IRS Virtual Currency Guidance Announcement 2014-21—Internal Revenue Service

Legal Tender Status—U.S. Department of the Treasury

India to propose cryptocurrency ban, penalising miners, traders - source by Aftab Ahmed, Nupur Anand—Reuters

Executive Order 6102—Requiring Gold Coin, Gold Bullion and Gold Certificates to Be Delivered to the Government by Franklin D. Roosevelt—The American Presidency Project

Total Circulating Bitcoin—Blockchain Charts

Federal Reserve statistical release: Factors Affecting Reserve Balances, March 18, 2021—United States Federal Reserve

Money Stock Measures – H.6 Release, March 23, 2021—Board of Governors of the Federal Reserve System

M2 Money Stock/Gross Domestic Product—Federal Reserve Bank of St. Louis

Monthly Budget Review: Summary for Fiscal Year 2020—Congressional Budget Office

A Fed With No Fear of Inflation Should Scare Investors by James Mackintosh—The Wall Street Journal

Biden Administration Officials Put Together $3 Trillion Economic Plan by Ken Thomas and Andrew Duehren—The Wall Street Journal

Turkey faces a currency crisis after Erdogan sacks his central banker—The Economist




Related Episodes

295: Federal Reserve Insolvency and Monetizing the National Debt

316: Paper, Rocks, or Digits—What Makes the Best Money

322: Why Currency Exchange Rates Matter

How much can you earn investing in farmland and what are the risks? What are the ways to invest in farmland?

Topics covered include:What determines farmland investment returnsHow much has U.S. farmland appreciated historicallyHow much income does farmland investing generateWhy the amount of U.S. farmland is shrinkingHas another commodity supercycle startedWhy U.S. farmers are dependent on exportsWhat are farmland investing risksWhat farmland investment vehicles are availableHow to evaluate a farmland investment opportunity


Thanks to LinkedIn and Policygenius for sponsoring the episode.

For more information on this episode click here.

Show Notes

Farmland Values, Land Ownership, and Returns to Farmland, 2000-2016 by Christopher Burns, Nigel Key, Sarah Tulman, Allison Borchers, and Jeremy Weber—United States Department of Agriculture

Land Values 2020 Summary—United States Department of Agriculture

Farming and Farm Income—Economic Research Service United States Department of Agriculture

Agricultural Markets and Prices: Towards 2025—Organisation for Economic Co-operation and Development

U.S. Agricultural Trade at a Glance—Economic Research Service United States Department of Agriculture

Why Invest In Farmland?—AcreTrader

FarmTogether

Farmland Index Posts First Negative Return in 19 Years by Mike Walsten—Pro Farmer

NCREIF Farmland Property Index

Lumber Prices Are Soaring. Why Are Tree Growers Miserable? by Ryan Dezember and Vipal Monga—The Wall Street Journal

Pistachio industry looks to reposition product amid supply boom by John Cox—The Bakersfield California

Related Episodes

218: Is China or the U.S. More Vulnerable?

232: Is It Time To Invest In Commodities?

328: Are You Underweight Chinese Stocks? Pros and Cons of Investing in China

Why the Federal Reserve had to step in again to sop runs on money market mutual funds and keep the financial system from imploding.

Topics covered include:What are the differences between shocks and vulnerabilitiesWhat are the four main vulnerabilities the Federal Reserve monitorsHow deleveraging and demands for liquidity lead to market stressesWhat are the types of money market funds and how were they impacted by the Covid 19 shockHow was Treasury bond trading impacted by the Covid shockWhy the Federal Reserve stepped in to stop the market contagion from spreadingWhat are the downsides to central bank interventionsWhat individual investors can do to protect against future shocks


Thanks to Mint Mobile and Truebill for sponsoring the episode.

For more information on this episode click here.




Show Notes

President’s Working Group on Financial Markets Releases Report on Money Market Funds—U.S. Department of the Treasury

Report of the President’s Working Group on Financial Markets: Overview of Recent Events and Potential Reform Options for Money Market Funds, December 2020—U.S. Department of the Treasury

U.S. Credit Markets Interconnectedness and the Effects of the COVID-19 Economic Shock by S.P. Kothari, Dalia Blass, Alan Cohen, Sumit Rajpal, and SEC Research Staff—U.S. Securities and Exchange Commission

Financial Stability Report November 2020—Board of Governors of the Federal Reserve System

How Vanguard Overhauled a Prime Money Fund by Bernice Napach—ThinkAdvisor

Overnight Index Swap by James Chen—Investopedia

Cash Viewpoint: What do Variable Rate Demand Notes do for Your Money Market Fund—Invesco

Related Episodes

270: Repo Rates Soared—Here’s Why It Matters

291: How To Survive the Coronavirus (COVID-19) Shutdown

305: Are Banks Safe?