#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.

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#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.

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#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.

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#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.

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#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.

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#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 wages

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#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 want to understand these considerations before making an investment
• [12:40] Issues began to crop up with David’s investment – learn from his story
• [18:41] David’s experience with these platforms have not led to a lot of transparency
• [25:07] There’s not a specific way to determine which real estate crowdfunding platforms are going to survive
• [30:08] Public and private REITs are another great investment option to consider

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#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 about “minimizing your maximum regret in the meta-game”
• [18:34] There isn’t the best “right answer” with your portfolio
• [25:15] Maximization of anything doesn’t work in today’s environment

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#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 voting in trading can lead to complicated issues that are almost impossible to solve with certainty
• [17:40] Tokenization could be a solution to today’s convoluted trading system
• [22:38] A new type of distributed ledger would allow for asset-backed tokens
• [27:03] There are some challenges to tokenization that need to be addressed

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#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 accountability and choice
• [11:38] #3 - Money is tied to work
• [20:25] #4 - Avoid the wrong kinds of debt
• [22:51] #5 - Teaching kids about money is often about “just in time” learning

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