Money For the Rest of Us

In our final episode of the year, I converse with author and data scientist Coco Krumme about the benefits and costs of optimization in finance, industry, and our daily lives. We explore AI and its overlap with optimization. We also consider the pros and cons of life optimization and finally discuss the extreme challenge of opting out. Episode Sponsors NetSuite  Delete Me – Use code David20 to get 20% off Insiders Guide Email Newsletter Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter Our Premium Products Asset Camp Money for the Rest of Us Plus Show Notes Optimal Illusions: The False Promise of Optimization by Coco Krumme—Penguin Random House cocofolio.com Coco Krumme—LinkedIn Related Episode 480: Beyond Faster (T+1) Trade Settlement: The Hidden Costs of Optimization See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How asset class returns move in cycles with periods of above-average returns followed by periods of lower returns. How has the rise of passive indexing led to higher stock valuations, and what does that mean for markets? Sponsors NetSuite - Download the CFO’s Guide to AI and Machine Learning LegalZoom - Use code David10 to 10% off Insiders Guide Email Newsletter Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter Our Premium Products Asset Camp Money for the Rest of Us Plus Show Notes The Equity Risk Premium: Nine Myths (JPM Series) by Rob Arnott—Research Affiliates The Greatest Scourge in Factorland: Revaluation Alpha = Fake Alpha (JPM Series) by Rob Arnott—Research Affiliates PASSIVE INVESTING AND THE RISE OF MEGA-FIRMS by Hao Jiang, Dimitri Vayanos, and Lu Zheng—NBER Limits to Diversification: Passive Investing and Market Risk by Lily H. Fang, et al.—SSRN Related Episodes 503: U.S. Stocks Have Never Been This Overhyped or Expensive 500: The S&P 500 Index and the Decade Ahead 468: Lessons from Japan’s 34 Years of Stock Market Underperformance 390: Are BlackRock and Vanguard Too Big and Powerful? 234: Index But Don’t Herd See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What are the tangible and intangible factors that have contributed to long-term U.S. stock market outperformance compared to the rest of the world? Despite these advantages, why might we still want to continue to be globally diversified? Sponsors Delete Me – Use code David20 to get 20% off LegalZoom - Use code David10 to 10% off Insiders Guide Email Newsletter Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter Our Premium Products Asset Camp Money for the Rest of Us Plus Show Notes American productivity still leads the world—The Economist The Outlook for Long-Term Economic Growth by Charles I. Jones—Federal Reserve Bank of Kansas City How Much Will Global Warming Cool Global Growth? by Ishan B. Nath, Valerie A. Ramey, and Peter J. Klenow—UC San Diego Technology and demand drivers of productivity dynamics in developed and emerging market economies by Alistair Dieppe, Neville Francis, and Gene Kindberg-Hanlon—European Central Bank Capitalism is in worse shape in Europe by Ruchir Sharma—The Financial Times The Mother of All Bubbles by Ruchir Sharma—The Financial Times The Curious Incident of the Elevated Profit Margins by James Montier—GMO Federal Surplus or Deficit [-] as Percent of Gross Domestic Product - FRED Euro area government deficit at 3.6% and EU at 3.5% of GDP—eurostat End of an era: The coming long-run slowdown in corporate profit growth and stock returns by Michael Smolyansky—Federal Reserve Board Should investors just give up on stocks outside America?—The Economist Related Episodes 500: The S&P 500 Index and the Decade Ahead 499: What Makes an Economy Prosperous? Spotlight on Cuba and Argentina 343: Why the Productivity Slowdown Could Lead to Lower Living Standards See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Why has there been renewed interest in nuclear power generation in the last couple of years, and how can we invest in it? Topics covered include:Why did Microsoft sign an agreement to reopen a nuclear reactor at the infamous Three Mile Island nuclear facilityHow much does nuclear energy contribute to global power generationWhy is demand for electricity acceleratingWhat are the advantages and challenges with nuclear energyWhat investment vehicles individuals can use to invest in nuclear energy Episode Sponsors NetSuite  Delete Me – Use code David20 to get 20% off Insiders Guide Email Newsletter Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter Our Premium Products Asset Camp Money for the Rest of Us Plus Show Notes Microsoft in deal for Three Mile Island nuclear power to meet AI demand by Myles McCormick and Jamie Smyth—The Financial Times Nuclear Power Was Once Shunned at Climate Talks. Now, It’s a Rising Star. by Brad Plumer—The New York Times Inside Diablo Canyon Nuclear Power Plant | BG2 w/ Bill Gurley & Brad Gerstner—YouTube Q&A - Germany’s nuclear exit: One year after—Clean Energy Wire Fukushima Daiichi Accident—World Nuclear Association Chernobyl Accident 1986—World Nuclear Association Nuclear Energy in a Low-Carbon Energy Future—NEI Electricity Mid-Year Update - July 2024—IEA What is U.S. electricity generation by energy source?—U.S. Energy Information Administration How old are U.S. nuclear power plants, and when was the newest one built?—U.S. Energy Information Administration Global price of Uranium—FRED Investments Mentioned Pelican Energy Partners Sprott Physical Uranium Trust Performance (SRUUF) GlobalX Uranium ETF (URA) VanEck Uranium and Nuclear ETF (NLR) Sprott Uranium Miners ETF (URNM) Sprott Junior Uranium Miners ETF (URNJ) Related Episodes 469: Which Will Perform Better: Berkshire Hathaway or Utility Stocks? 384: Has a Commodities Bull Market Supercycle Started? If So, How Do You Invest in It? See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

We explore what strategy and systems are and how we craft and change them. We consider how investment strategies and financial systems have changed over the decades and why this matters to your financial decisions. Sponsors LinkedIn Jobs – Use this link to post your job for free on LinkedIn Jobs Delete Me – Use code David20 to get 20% off Insiders Guide Email Newsletter Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter Our Premium Products Asset Camp Money for the Rest of Us Plus Show Notes Ruminating on Asset Allocation by Howard Marks—Oaktree Capital Michael E. Porter—Harvard Business School This Is Strategy by Seth Godin—Simon & Schuster Victor Meets the Boglehead by Victor Haghani & James White—VettaFi Advisor Perspectives Static vs Dynamic Asset Allocation; Victor Meets the Boglehead—Bogleheads.org Tim Cook on Why Apple’s Huge Bets Will Pay Off By Ben Cohen—The Wall Street Journal Related Episodes 491: The Five Layers of Investing 451: How Much Should You Invest in Stocks? The Art of Position Sizing in a Volatile Market 420: Does a 60/40 Balanced Portfolio Still Work? 397: How To Invest Based on Cycles See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.