This week on the podcast, we share excerpts from Plus episode 484 on ETF size and the impact of QE, as well as Plus episode 493 on stock market inelasticity.

You can learn more about Money for the Rest of Us Plus here.

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What does the Federal Reserve's policy rate cut mean for our portfolios? Will interest rates keep falling? What changes should we make?

Topics include:

• What determines interest rates, and where are those drivers currently
• What is the best estimate of bond returns
• How duration works and why it changes
• What are some current fixed income investment options

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Show Notes

Asset Camp

FedWatch—CME Group

Summary of Economic Projections—US Federal Reserve

Investors may be getting the Federal Reserve wrong, again—The Economist

Term Premium on a 10 Year Zero Coupon Bond—Federal Reserve Bank of St. Louis

Yield to Maturity Is Always Received as Promised by Richard J. Cebula

and Bill Z. Yang—Journal of Economics and Finance

The Truth about Yield by Jason Bove and Mark Willauer—J.P. Morgan

Related Episodes

464: More Ways to Lock in Higher Yields in Case Interest Rates Fall

463: How to Lock in Higher Yields in Case Interest Rates Fall

455: Easier Investing, Richer Life: TIPS Ladders to Annuities

418: Bond Investing Masterclass

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How do home equity investments, income share agreements, and music royalties work, and how can you participate?

Topics covered include:

• How a home equity investment differs from a home mortgage
• What is the cost of home equity investments
• How funding education through income share agreements has changed
• Why artists sell royalties to their work
• How individuals can invest in music royalties

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Show Notes

Unlock Product Guide—Unlock

Point and Atalaya Capital Management Close Oversubscribed $141 Million Home Equity Investment Rated Securitization—Global Newswire

What Colleges Should Know About Income Share Agreements and Private Education Loan Requirements by Rich Williams—Homeroom

CFPB settles claims against operator of training program arising out of income share agreements by John L. Culhane, Jr. & Thomas Burke—Consumer Finance Monitor

Bond market: Bowie Bonds and the Evolution of the Bond Market—Faster Capital

Related Episodes

493: The Housing Affordability Crisis: What Caused It and How to Fix It

349: Forward and Reverse Mortgages: When To Take Them Out and When to Pay Them Off

307: Income Share Agreements—Good for Students or Investors?

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In this episode, we explore the concept of optionality—how small, strategic decisions can lead to outsized rewards with limited downside risk. From ancient philosophy to modern financial strategies, discover how recognizing and seizing options can unlock opportunities in both life and investing.

Topics covered include:

• How call and put options work
• The difference between American and European style options and why it matters
• Why options are positively skewed
• Examples of using optionality in business and life
• Why it can be challenging to commit when an option is "in the money"

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Show Notes

Antifragile by Nassim Nicholas Taleb—Penguin Random House

The Wisdom Of Finance: Discovering Humanity in the World of Risk and Return by Mihir Desai—Harper Academic

Refuse to Choose!: Use All of Your Interests, Passions, and Hobbies to Create the Life and Career of Your Dreams—Penguin Random House

An Economist Walks into a Brothel: And Other Unexpected Places to Understand Risk by Allison Schrager—Penguin Random House

Related Episodes

482: Unlocking the Power of Positive Skewness: Strategies for Investing, Business, and Creativity

268: How To Better Manage Risk

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In Episode 491, we explore the five layers of investing, including which assets fit into each layer, and give examples of advertisements targeting each layer.

The five layers are:

• 1. Short-term trading
• 2. Longer-term speculations
• 3. Individual securities
• 4. Diversified portfolios focused on underlying drivers and factors
• 5. Maximum diversification with few changes and just a few holdings

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Show Notes

Asset Camp

The Role of Emotions in Financial Decisions by David Tuckett—ResearchGate

Morningstar Active Passive Barometer

Related Episodes

486: How Retail Traders Lose Big While Enriching Wall Street

431: The Long-term Bullish Case for Gold

306: Three Approaches to Asset Allocation

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How do buyouts, venture capital, and growth equity work? Has private equity outperformed the stock market, and can individual investors pursue these investment strategies?

Topics covered include:

• How are private equity funds structured, and what are the fees
• How is private equity performance measured, and how has it performed
• Why does private equity have such a large dispersion of returns compared to the public stock market
• What is private equity dry powder, and why is there much of it
• What are some ways individuals can invest in private equity and why should they use caution in doing so

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Show Notes

Understanding Private Fund Performance by Kaitlin Hendrix and Mamdouh Medhat—SSRN

What Drives Private-Equity Performance Persistence? New Deal-Level Evidence by Axel Buchner and Susanne Espenlaub and Abdul Mohamed—SSRN

Unlocking the Power of Relationships: Limited Partner Networks and Performance in Private Equity by José Carlos Franco de Abreu Neto and Saito Richard—SSRN

Private equity dry powder growth accelerated in H1 2024 by Dylan Thomas and Annie Sabater—S&P Global

Private Equity Gets Creative to Buy Time for More Gains. Clients Say Pay Me Now by Allison McNeely and Dawn Lim—Bloomberg

Related Episodes

458: Dissecting Stock Returns: Financial Engineering or Genuine Growth?

440: Beware of Platform Risk

350: How to Invest in Startups on Equity Crowdfunding Platforms?

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This week, we release one of David's favorite episodes from six years ago, Episode 203: Is Investing More Like Poker or Chess.

Topics covered include:

• What is the difference between chess and poker.
• Why we need to separate the decision process from the outcome.
• How to improve the quality of our investment decisions.
• What are are wu-wei and qi and what role do they play in better decision making.

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Show Notes

Thinking in Bets: Making Smarter Decisions When You Don’t Have All the Facts by Annie Duke

Thinking Fast and Slow by Daniel Kahneman

The Tao of Pooh by Benjamin Hoff

Trying Not to Try: Ancient China, Modern Science, and the Power of Spontaneity by Edward Slingerland

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