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Money For the Rest of Us

Author: J. David Stein

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A 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

342 Episodes
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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 shocksThanks to Mint Mobile and Truebill for sponsoring the episode.For more information on this episode click here.Show NotesPresident’s Working Group on Financial Markets Releases Report on Money Market Funds—U.S. Department of the TreasuryReport 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 TreasuryU.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 CommissionFinancial Stability Report November 2020—Board of Governors of the Federal Reserve SystemHow Vanguard Overhauled a Prime Money Fund by Bernice Napach—ThinkAdvisorOvernight Index Swap by James Chen—InvestopediaCash Viewpoint: What do Variable Rate Demand Notes do for Your Money Market Fund—InvescoRelated Episodes270: Repo Rates Soared—Here’s Why It Matters291: How To Survive the Coronavirus (COVID-19) Shutdown305: Are Banks Safe?
When should you protect against rare, but extreme events? When should you self-insure? Under what circumstance should you sell tail risk protection to others?Topics covered include:How tail events differ from tail riskWhy volatility is not the best measure of risk for individualsWhat does it cost to protect against large stock market lossesWhy younger investors can take more risk due to their human capitalHow does the profit wheel options strategy workHow the catastrophic power outage in Texas exemplifies tail riskWhy individuals need to build more reserves because the economic system is too efficient and vulnerable to breakdownsThanks to SmartAsset and Babbel for sponsoring the episode. Use code DAVID for Babbel to get three months free.For more information on this episode click here.Show NotesAverage Weather in San Antonio Texas, United States—Weather SparkUpdate on the CBOE BuyWrite and PutWrite Option Indexes, October 2018—Asset Consulting GroupThe Texas Freeze: Why the Power Grid Failed Katherine Blunt and Russell Gold—The Wall Street JournalHis Lights Stayed on During Texas’ Storm. Now He Owes $16,752 by Giulia McDonnell Nieto del Rio, Nicholas Bogel-Burroughs, and Ivan Penn—The New York TimesWhen More Is Not Better: Overcoming America’s Obsession with Economic Efficiency by Roger L. MartinRelated Episodes250: Investing Rule One—Avoid Ruin283: Why You Should Care About Carry Trades321: How to Analyze Complex Investments323: The Economy Is Not A Machine
Why Do We Work So Much?

Why Do We Work So Much?

2021-02-1027:412

How to structure employment so workers are more creative, productive, and happier.Topics include:What percentage of employees work at home due to the pandemicHow many hours per week do men and women work in both paid employment and unpaid caregivingHow workers have been allocating the time saved by not commutingWhy the economy would still prosper if we worked only four hours per dayWhat is the cult of efficiencyWhat is the difference between leisure and amusementWhy employers reward busyness at workHow work can be more satisfying and createThanks to LinkedIn and Policygenius for sponsoring the episode.For more information on this episode click here.Show Notes60 million fewer commuting hours per day: How Americans use time saved by working from home by Jose Maria Barrero, Nick Bloom and Steven J. DavisMental health: C-suite struggles in the pandemic by Rachel Ranosa—Human Resources DirectorDeep Work (Rules for Focused Success in a Distracted World) by Cal NewportIn Praise of Idleness by Bertrand Russell—Harper's MagazineDo Nothing: How to Break Away from Overworking, Overdoing, and Underliving by Celeste HeadleeAristotle's Nicomachean Ethics by Aristotle translated by Robert C. Bartlett and Susan D. CollinsRest: Why You Get More Done When You Work Less by Alex Soojung-Kim PangThe Art of the Siesta by Thierry PaquotWhen More Is Not Better: Overcoming America's Obsession with Economic Efficiency by Roger L. MartinRelated Episodes107: Work, Freedom and Leaving A Legacy184: Massive Job Losses Are Inevitable But There Will Still Be Work323: The Economy Is Not A Machine
Why has silver jumped to its highest price in eight years. What you need to know to invest in silver.Topics covered include:What drove the huge spike in silver purchasesHow silver differs from meme stocksHow hedge funds are positioned with regard to silverWhat are three ways to invest in silverWhat is the annual demand and supply for silverWhat are the reasons to own silverHow good has silver been as an inflation hedgeWhat is the gold-silver ratio and how to use itWhat happened when the Hunt brothers tried to corner the silver marketWhat evidence is there that the silver market is manipulatedThanks to Mint Mobile for sponsoring the episode.For more information on this episode click here.Show NotesSilver Prices Surge to Eight-Year High Amid Reddit-Fueled Frenzy by Eddie Spence, Jake Lloyd-Smith, and Yvonne Yue Li—Bloombergr/wallstreetbetsSilver price retreats rapidly in blow to new retail buyers by Henry Sanderson and Neil Hume‘What’d You Miss?’ Full Show (02/01/2021)—BloombergSilver Price Chart—BullionVaultSilver Supply and Demand—The Silver InstituteUnderstanding Futures Expiration & Contract Roll—CME GroupSilver $50: Three Years After the “Shortage” by Miguel Perez-Santalla—BullionVaultJPMorgan Admits Spoofing by 15 Traders, Two Desks in Record Deal by Tom Schoenberg and Matt Robinson—BloombergCME Hikes Silver Margins After Prices Surge to Eight-Year High by Yvonne Yue Li
How coordinated buying by retail investors has turned the table on Wall Street. Are there signs of a market bubble?Topic covered include:What are meme stocksWhy GameStop's stock (GME) has soared to over $300 from $17 in less than a monthWhat are short squeezes and gamma squeezes and how they can push up a stock priceHow short-sellers including hedge funds are losing big against individual investors on the wallstreetbets subredditIs coordinated buying of options and stocks by individual investors illegal?How market flows into stocks are taking precedence over fundamental dataIs the stock market in a bubble and how does the current market environment compare to the 1999 Internet bubble and the 2006 housing bubble?Thanks to Truebill for sponsoring the episodeFor more information on this episode click here.Show Notesr/wallstreetbetsFOR POSTERITY—Almost Daily Grants 1.25.21GameStop can’t stop going up by Jamie Powell—Financial TimesReddit: bull attack by Jamie Powell and Philip Stafford—Financial TimesHow WallStreetBets Pushed GameStop Shares to the Moon by Brandon Kochkodin—BloombergSubmit Your Pick for the Next Meme Stock Here posted by u/AssPowers 2/18/20—r/wallstreetbets17 CFR § 240.10b-5 - Employment of manipulative and deceptive devices.—Legal Information InstituteHow'd You Guys Manage to Win so Big it Made These Old Guys Drown in Their Tears? posted by u/bawse 1/24/21—r/wallstreetbetsFive Things You Need to Know to Start Your Day by Cormac Mullen and Tracy Alloway—BloombergTweet by Paul Kedrosky (@pkedrosky) on 1/25/21Baupost’s Seth Klarman compares investors to ‘frogs in boiling water’ by Ortenca Aliaj and Eric Platt—Financial TimesUS stock rally drives ‘ludicrous index’ towards dotcom era heights by Eric Platt—Financial Times
Most global stock ETFs, funds and indices have only about 5% invested in China even though China has the second-largest economy in the world. What are the pros and cons of increasing your allocation to Chinese stocks.Topics covered include:Why has China's economy rebounded faster than other countriesWhat are Chinese A-share stocksHow large are China's economy and stock marketWhat are four threats that could derail the performance of Chinese stocksHow individuals can invest in China's stock market including A-sharesThanks to SmartAsset for sponsoring the episode.For more information on this episode click here.Show NotesChinese shares: should you increase the amount in your portfolio? by Sam Dickens—IG GroupChina A-Shares Definition by Troy Segal—InvestopediaChina’s Economy Powers Ahead While the Rest of the World Reels by Stella Yifan Xie, Eun-Young Jeong and Mike Cherney—The Wall Street JournalChina Still Grew and Fueled Its Rise as Covid-19 Shook the Global Economy by Jonathan Cheng—The Wall Street JournalWith Americans Stuck at Home, Trade With China Roars Back by Ana Swanson—The New York TimesBuffett Indicator: China Stock Market Valuations and Expected Future Returns—GuruFocus.comMSCI Deletions Trigger Rush to Sell Chinese Telecom Stocks by Jeanny Yu and Sofia Horta e CostaExecutive Order on Addressing the Threat from Securities Investments that Finance Communist Chinese Military Companies—The White HouseNon-SDN Communist Chinese Military Companies List as of January 08, 2021—U.S. Department of the TreasuryMSCI ACWI Index (USD) December 31, 2020—MSCIHow China Lost Patience With Jack Ma, Its Loudest Billionaire by Lulu Yilun Chen and Coco Liu—BloombergChina Clampdown on Big Tech Puts More Billionaires on Notice by Zheping Huang and Coco Liu—BloombergChina’s College Graduates Can’t Find Jobs. The Solution: Grad School. by Vivian Wang
Should the U.S. cancel $10,000 or more of student loan debt per borrower? What would be the economic and financial impact? Why the student loan system is broken and how to fix it.Topics covered include:How large and what is the growth rate of U.S. student loan balancesWhat are the projections for student loan lossesWhat are the pros and cons of forgiving student loansWhat would be the impact on federal finances of canceling student loansWhy the U.S. government is already technically insolventHow student loan programs should be restructuredThanks to LinkedIn and Policygenius for sponsoring the episode.For more information on this episode click here.Show NotesStudent Loans Owned and Securitized, Outstanding—Federal Reserve Bank of St. LouiseSenate majority gives Biden path to student loan forgiveness by Sylvan Lane—The HillSchumer pressures Biden to bypass Congress to cancel $50,000 in student debt per borrower by Annie Nova—CNBCBiden will call on Congress to forgive $10,000 in student debt for all borrowers by Annie Nova—CNBCOutreach From Borrowers Could Overwhelm Student Loan System When Pandemic Pauses End by: Sarah Sattelmeyer and Lexi West—PEWFinancial Report of the United States Government FY 2019Warren makes case to Fed chair for canceling student loan debt by Naomi Jagoda—The HillStudent Loan Losses Seen Costing U.S. More Than $400 Billion by Josh Mitchell—The Wall Street JournalFinal Monthly Treasury Statement Receipts and Outlays of the United States Government For Fiscal Year 2020 Through September 30, 2020, and Other Periods—U.S. Department of the TreasuryAverage Student Loan Debt at Graduation by Mark Kantrowitz—Savingforcollege.comProfile Of The Labor Force By Educational Attainment by Vernon Brundage, Jr.—U.S. Bureau of Labor StatisticsMillennial life: How young adulthood today compares with prior generations by Kristen Bialkin and Richard Fry—PEW Research CenterForgiving Student Debt Isn’t a Great Stimulus Plan by Noah Smith—BloombergAverage annual salary of bachelor's degree recipients employed full time 1 year after graduation, by field of study: Selected years, 1976 through 2001—National Center for Education StatisticsNACE Salary Survey Winter 2020—National Associations of Colleges and EmployersAustralia’s student loan problem is a teachable moment for the U.S. by Jason Delisle and Alex Usher—Brookings
How should individuals invest and spend in retirement with interest rates so low, stock valuations high, and inflation uncertain. Why retirement managed payout funds and income replacement funds failed.Topics covered include:How managed payout and income replacement funds compare to immediate annuitiesWhy Vanguard and Fidelity changed the objective of their retiree focused income replacement and managed payout fundsHow fixed annuities workHow retirees should combine annuities with multi-asset class portfolios to ensure a successful retirementWhy the 4% retirement spending rule is not appropriate for all investors all of the time.Why inflation is the biggest determinant of how much retirees can spendWhy is there so much controversy over the current and future inflation rateThanks to Mint Mobile and Truebill for sponsoring the episode.Show Note LinksVanguard Throws in the Towel on Its Managed Payout Fund by Daren Fonda—Barron'sGenerating Retirement Income Isn’t Easy, Even for Vanguard by Reshma Kapadia—Barron'sToday's Best Multi-Year Guaranteed Annuities (MYGAs)—ImmediateAnnuities.comOpinion: The inventor of the ‘4% rule’ just changed it Brett Arends—MarketWatchThe Price of Tomorrow: Why Deflation is the Key to an Abundant Future by Jeff BoothAlternate Inflation Charts—John Williams' Shadow Government StatisticsAmericans Are Richer Than We Think by By Phil Gramm and John F. Early—The Wall Street JournalFor more information on this episode click here.
How convertible bonds work, why they gained 50% in 2020 and outperformed stocks over the past five years. Why Vanguard shut down their convertible bond mutual funds.Topics discussed include:How big is the convertible bond marketWhy companies issue convertible bondsHow convertible bonds work and how to analyze themWhy convertible bonds have performed so wellWhat is a reasonable expected return for convertible bonds and what are the risksWhat are ways to invest in convertible bondsThanks to Netsuite for sponsoring the episode. Take the Money For the Rest of Us listener survey.Show NotesA Plunge and a Recovery Drives a Top-Performing Year in Convertibles by Andrew Bary—Barron'sConvertible Bond Indices: An Overview by SPDR EMEA ETF Strategy Team—State Street Global AdvisorsCONVERTIBLE SECURITIES: Structures, Valuation, Market Environment, and Asset Allocation by John P. Calamos, Sr with contributions from Eli Pars—Calamos InvestmentsTesla, Inc. 2.00% Convertible Senior Notes due 2024 (the “Convertible Notes Offering”) Issuer Free Writing Prospectus—U.S. Securities and Exchange CommissionRisk and Return in Convertible Arbitrage: Evidence from the Convertible Bond Market by Vikas Agarwal, William Fung, Yee Cheng Loon, and Narayan Y. NaikThe Fluctuating Maturities of Convertible Bonds by Patrick Verwijmeren, and Antti YangConvertible Bond Arbitrage by George Long—Eureka HedgeFor more information on this episode click here.Also, go here to learn more about Money For the Rest of Us Plus membership.
A review of how the pandemic, financial markets, and government policy evolved in 2020 to make for an unforgettable year.Topics covered include:Why the Covid-19 pandemic ranks as the second worst in modern historyWhat is the difference between risk and uncertainty and how our investing should be different when dealing with uncertaintyWhat portfolio changes did David make in 2020 and how should he have invested if he had perfect foresightWhy speculative assets such as gold and cryptocurrencies have performed so well in 2020Why high savings rate and pent up demand provides a tailwind for the economyHow to invest and live when the future is unknowableThanks to Policygenius and LinkedIn for sponsoring the episode.Show Notes286: Coronavirus and the Financial Impact of Pandemics291: How To Survive the Coronavirus (COVID-19) ShutdownMadame Vivelda—Saturday Night LiveWhat Is Risk vs Uncertainty?—Money For the Rest of Us Guide299: Has the Pandemic Changed You?Personal Saving Rate—Federal Reserve Bank of St. Louis302: Investing is Not Knowing310: Why the Stock Market and Economy Are Rebounding So QuicklyHow 700 Epidemiologists Are Living Now, and What They Think Is Next by Margot Sanger-Katz, Claire Cain Miller, and Quoctrung Bui—The New York TimesPaul McCartney Is Still Trying to Figure Out Love by David Marchese—New York Times MagazineFor more information on this episode click here.Also, go here to learn more about Money For the Rest of Us Plus membership.
How the drive for efficiency leads to greater wealth concentration and threatens capitalism. What can be done about it.Topics covered include:Why income growth has slowed for the middle classWhy the economy now follows a power-law distribution rather than a normal distribution, leading to skewed outcomesWhy the economy is a complex adaptive system rather than a machineHow the type of job you have and the company you work for affects your incomeWhy greater efficiency increases the risk of catastrophic collapsesWhat are ways to balance efficiency with resiliencyShow NotesChanges in U.S. Family Finances from 2016 to 2019: Evidence from the Survey of Consumer Finances—The Board of Governors of the Federal ReserveHow America Banks: Household Use of Banking and Financial Services—Federal Deposit Insurance CorporationWhen More Is Not Better: Overcoming America’s Obsession with Economic Efficiency by Roger L. MartinHow The Economic Machine Works by Ray Dalio—VideoFor more information on this episode click here.Also, go here to learn more about Money For the Rest of Us Plus membership.
How a nation's balance of payments impacts its currency exchange rate as evidenced by Turkey and other countries.Topics covered include:What is a nation's balance of payments, its current account, and its capital accountHow an individual's personal financial flows are similar to those of a countryWhat is causing the currency crisis in Turkey and LebanonWhy gold imports have increased by 150% in TurkeyWhat is the Triffin dilemma or paradox and how does it impact the United StatesWhat individuals can do to manage currency risksThanks to The Great Courses Plus and Policygenius for sponsoring the episode.For show notes and more information on this episode click here.
How to determine whether you should invest in a complex investment such as an actively managed ETF that uses option strategies.Topics covered include:A recent investment David made that he shouldn't haveWhat is the volatility risk premium and how to invest in itWhy there have been over 200 new ETFs and ETNs launched in the U.S. in 2020Why some ETF sponsors launch lower cost versions of ETFs that compete with their existing offerings.What questions to answer as part of analyzing a complex investmentWhy there is always a catch to ETFs such as the Innovators Stacker and Ultra Buffer ETF series that can make them seem too good to be true.A simpler way to lower portfolio risk without using complex option-based ETFs.Thanks to Netsuite and LinkedIn for sponsoring the episode.For show notes and more information on this episode click here.
As we await the U.S. presidential election results, we review the results of the Trump Administration's economic policies to see if Americans are better off financially than they were four years ago.Topics covered include:Why pollsters and election models can be wrongWhy the state of the economy often drives election outcomesWhat has been the economic impact of the 2017 Tax Cuts and Jobs ActWhat has been the impact of the U.S. trade war with ChinaHow have poverty and health insurance costs changed under the Trump AdministrationWhat has been the growth of federal regulations under the Trump AdministrationHow have stocks performed during the Trump AdministrationWhy we shouldn't let whoever wins the presidency ruin our lifeThanks to Policygenius and Tempo for sponsoring the episode. Use code David with Tempo for $100 offFor show notes and more information on this episode click here.
How central bank digital currencies would work, what is the motivation to create them and what are the risks.Topics covered include:What percentage of central banks are working on a digital currency and plan to issue one soonWhat are the two kinds of money that central banks currently issue and how would a central bank digital currency differHow central bank digital currencies would be similar and different from Bitcoin and other cryptocurrenciesWhat are the benefits and risks of central bank digital currenciesWhat are the design principles that major central banks proposed for their digital currenciesWhat percentage of central banks currently have the legal authority to issue their own digital currencyThanks to Gen Z Green podcast and Masterworks for sponsoring the episode. Use code David for Masterworks to skip the wait list.For show notes and more information on this episode click here.
How special purpose acquisition companies work, what their performance has been and what are the ways to invest.Topics covered include:How much money has been raised in SPAC initial public offerings and who are some of the better known sponsorsWhat are the benefits of a SPAC acquisition compared to a traditional initial public offeringHow SPACs work from the initial IPO to the acquisition of a private companyHow have SPACs performed so poorlyHow a new SPAC ETF is structuredAn intriguing way to invest in SPACs that potentially could outperformThanks to Tempo and NetSuite for sponsoring the episode. Use code David to save $100 on Tempo.For show notes and more information on this episode click here.
U.S. home prices are on fire and sales are skyrocketing. Here are 8 rules of thumb for buying a house in a hot housing market when there are multiple bidders over the asking price.Topics covered include:What are the latest metrics on U.S. home sales, prices, and valuationsWhy are homes sales increasing and prices soaring and how likely are they to fallWhy David is buying a different house (again) in a hot housing marketWhat are rules of thumb that can help us find the right house without paying too muchThanks to The Great Courses Plus and Policygenius for sponsoring the episode.For show notes and more information on this episode click here.
This episode is an interview that Fund Evaluation Group LLC held with David as part of their FEG Insight Bridge podcast series.Topics covered include:What David did and learned at FEGWhat goes into making the Money For the Rest of Us podcastCentral banking and the Federal ReserveInvesting in gold and cryptocurrenciesCurrent investment conditionsFavorite investing books
What are the elements of a successful monetary system.Topics covered include:The stone currency of YapThe fiat currency of ancient ChinaWhy money requires trust, accounting and tokensWhy too much money can lead to inflation and too little to deflationWhy the best money is useless other than as moneyThanks to LinkedIn and Candid for sponsoring the episode.For show notes and more information on this episode click here.
How ultra-low interest rates support higher stock market valuations but also make the investment environment more challenging. Is there a stock market bubble?Topics covered include:How expensive are stocks on an absolute basis and relative to bondsWhat are examples of individual investor enthusiasm for stocksWhy stock valuations and prices increase when interest rates fallWhy lower interest rates make it more difficult for central banks to support stocks during a downturnWhy TIPs might be a better choice for a long-term bond allocationWhy deglobalization is a reason to increase the geographic diversification of stock portfoliosHow investors can make invest decisions without having an informational edgeThanks to Masterworks and Policygenius for sponsoring the episode.For show notes and more information on this episode click here.
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Comments (14)

Jason Lamberth

telling it how it is

Feb 17th
Reply

Prateek Shaw

nice

Nov 22nd
Reply

ID9531200

Hey JD - awesome explaination on collateral and repo. I wonder - why there is not any prohibition on banks for not engaging in practice of using only the limited % of institution’s money.

Jun 6th
Reply

Craig

with Trump in office i could see him or some other extremist leader causing hyperinflation through a policy mistake or two.

Feb 20th
Reply

fuliaj

One of my favorite episodes. David is an academic when it comes to explaining an issue.

Jan 11th
Reply

Richard Davis

Great skyscraper bond Example where speculation drove Production above reasonable levels

Oct 24th
Reply

Xiaosong Rong

great!

Apr 1st
Reply

samrat hazari

waoooww really appreciate your podcast

Nov 13th
Reply

David Johnson

I love this podcast. I learned of it from the Afford Anything podcast and am so happy I found it!

Oct 26th
Reply

iTunes User

Man, this podcast is fantastic. I am so glad I came across it. My favorite episode is #24 because it deconstructs and evaluates the Permanent Portfolio by Harry Dent. I like the podcast as it is, but would love to hear more episodes that cover the various investment portfolios out there. I'm particularly interested in Lazy Portfolios and have followed David Swensen's with good results, but would love to get Mr. Stein's take on it.

Aug 30th
Reply

iTunes User

I discovered your podcast on iTunes a few days ago. I am listening to them from the beginning. I usually listen to podcast about why hyperinflation is on the way and everyone needs gold or silver to survive. I have been stressed out for years waiting on dooms day. The more of your podcast I listen to, the less stress I feel. Thank you for explaining how money works in a way I can understand.

Aug 30th
Reply (1)

iTunes User

an excellent podcast. mr stein is articulate, pleasant to listen to, has great delivery and clear podcasts and while our investment styles and philosophy differ greatly, he has a sound understanding of money, investing and ideas about how to incorporate these into a philosophy of success.

Aug 30th
Reply

Matthew McKibben

This is a great podcast. I'm 29 and have just been starting to invest into a 401k and have been looking into other options. This makes it possible for me to learn while going to work

Aug 1st
Reply
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