UnCommon Cents

UnCommon Cents- Season 2 Episode 10- Unveiling the Realities of Stocks and Derivatives


Listen Later

Ready to shatter some long-held myths about investing? Join us as we dive deep into the world of stocks picking in the form of  derivatives, pulling apart the fallacies that have led even the brightest minds, like Sir Isaac Newton, down costly paths. We're debunking the allure of stock picking and exposing the reality - it's an approach that often leads to higher costs and diminished returns.

We're also demystifying derivatives. Yes, they can be complex, but they too can provide opportunities for risk management and hedging. We'll guide you through the maze of collateralized debt obligations, credit default swaps, futures, mortgage-backed securities, and options. We'll even look back at some pivotal moments in financial history to show just how influential these instruments can be.

But it's not all risk and ruin. We're bringing some uncommon sense to the investment table. We'll show you how having a clear purpose for your money and your life can lead to smarter investment decisions. Let's explore the exotic options market together, and examine the role that credit default swaps played in the 2008 financial crisis. So, whether you're a seasoned investor or just starting your journey, let us guide you towards a better understanding of investment complexities.

This episode is a must-listen for anyone wanting to avoid pitfalls in investing without a clear understanding. Tune in, and let's navigate the world of investments together.

Sources:
https://www.investopedia.com/articles/optioninvestor/10/derivatives-101.asp 

https://www.investopedia.com/terms/d/derivative.asp 

 https://www.investopedia.com/terms/e/exoticoption.asp 

 https://rpc.cfainstitute.org/en/policy/positions/derivatives

https://royalsocietypublishing.org/doi/10.1098/rsnr.2018.0018

https://www.goodreads.com/book/show/10669.When_Genius_Failed

https://www.sfmagazine.com/articles/2015/april/the-tale-of-a-whale/?psso=true#:~:text=The%20London%20Whale%20trading%20scandal,signals%E2%80%94especially%20to%20management%20accountants

This is not an offer or sale of securities. All investing involves risk, and particular investment outcomes are not guaranteed. This podcast is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, or an offer to provide advisory or other services by SmartPlan Investing in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information should not be construed as financial or investment advice on any subject matter.

The American Dream Experience presentation is based on the views of Matson Money, Inc. Other persons may analyze investments and the approach to investing from a different perspective than that reflected in this presentation. Nothing included In the American Dream Experience is intended to imply that the approach to investing espoused in this presentation will assure any particular investment results. All investing involves risks and costs. No investment strategy, including asset allocation and diversification strategies, can ensure peace of mind, guarantee profit, or protect against loss.

...more
View all episodesView all episodes
Download on the App Store

UnCommon CentsBy Jennifer Foster