Hey Everyone - sorry for the delay on releasing this one. We had some technical difficulties in this episode. There's some audio issues on Ben's side. We hope it doesn't take away from the discussion!
I'm 18, and honestly you guys may have shifted my life path. You guys have sparked an interest in finance I just can't seem to scratch and have caused me to consider changing my major. Keep up the good work, I will be watching every video.
Cameron said of Ben: "we (PWL) have lots of people like you". Really? I thought Ben was unique. Please bring all those people like Ben onto the podcast. Just think how much better it would be! 😁
I've listened to all your podcast episodes from 1-150 on my iPhone and this is the first time I'm watching you guys on video. its nice to put a face to Cameron's voice. I've watched Ben's content on his other channel. Wishing you guys another 150 successful podcast episodes guys. Thanks for everything
Please elaborate a bit on unexpected inflation. What can be unexpected as the FED expanded the money supply for such a long time? Thanks for this great channel.
Money supply and inflation are unrelated. Highly recommend this episode th-cam.com/video/mAB2eHwmRTY/w-d-xo.html The market always prices in expected inflation. Unexpected inflation is simply realized inflation that is different from expected inflation.
Thanks for the segment on Wealthsimple. I brought that point on Reddit in almost the same way you did but got downvoted to oblivion by all the clueless people who won't accept that WS's active management decisions are completely wrecking their returns.
I needed this analysis so bad. I thought I was messing up on WS because our returns are so crap after transferring to them in fall 2020. Now I have to wonder if I need to transfer... again. A costly and time-consuming proposal.
People who are US citizens should look into Series I Bonds. Unlike TIPS, they can never give negative real returns. They aren't marketable, so the face/market value never changes, and you'll always get returns equal to the rate of inflation, which is adjusted every 6 months. I see them as more like inflation-protected cash rather than a bond, since they don't give positive real returns. They can be redeemed any time after 1 year for a small interest penalty, and after 5 years for no penalty You should do your own research though, because there are a lot of differences between I bonds, TIPS, and traditional bonds. They're bought at "treasurydirect," which is also a good place to read about them
The drawback is the annual $10k limit, but I agree. As of this writing, I-Bond interest is over 7%. I believe the interest penalty is the last 3 months before redemption if you redeem before 5 years, so to me, that's a built-in indicator: 3 months of less-than-available-elsewhere-interest after 1 year = sell signal. For example: If the bond interest rate falls to 0 after 6 months, and you sell after 1 year, you've still earned 3.5% (which is more than MYGA rates, and way more than CD rates). Most importantly, if this "transitory" inflation turns out to be not-so-transitory, you'll do quite well.
Amazing work, thank you so much for doing this. I just wanted to point out that It’s possible Canada and UK outperformed the US during high inflation periods because of their larger material sector composition.
I might be joining you soon. I am so disappointed and frustrated. We are not rich, and losing a year of returns in the last 15 years until projected retirement is deadly. Or, more realistically, "cat food for dinner."
There is a narrative coming from many value investors that the best hedge against inflation is not just value stocks, but more specifically - value stocks of companies which have pricing power; that is strong brands which will adjust their prices in line with inflation. I understand that in general you do not support 'stock picking' - is this a good enough reason in your eyes not to explore mentioned idea?
please put timestamps at least of when you start to talk about the main topics thanks. the intro chat is nice but its also nice to skip if one is short on time
Except empirically the BTC inflation is de facto larger than a the fiat system like the US Dollar. It's obvious if you have to finance the miner's hardware and electricity usage (about as much as Thailand uses) using ONLY the capital inflow from bigger fools that the thing will collapse sooner or later.
this is what I did and hope it works. If the inflation is higher than the interest rate then I will even profit from higher inflation. At least with interest rate of 1.5% and inflation is over 2%. I also take into account rent vs buy and speculate with the same inflation house price. So there is a risk when buying, that you should take into account: bad location or bad substance of the building.
Probably is one of the best options which explains the boom in housing purchases. Depends on the purchase price of real estate and if the particular real estate maintains its relative attractiveness compared to other real estate options .
Pretty simple, perhaps, but also conceals some truths, where its not wrong. Prices can increase for many reasons. War, disasters, tech changes etc.... ships getting stuck in canals. However these are tempoary. Government money printing is the real inflation, the rest are just price increases. Inflation is a function of government. Left alone we would have a slow deflation (since we become better at producing stuff, and would have a fixed volume of money). That deflation is bad is mostly a myth, a justification for keynsian central bankers to print more money for their governments. Also, the Bank of Canada explanation is laughable. Making long range plans would be easier if there wasn't any inflation.
Hey Everyone - sorry for the delay on releasing this one. We had some technical difficulties in this episode. There's some audio issues on Ben's side. We hope it doesn't take away from the discussion!
I'm 18, and honestly you guys may have shifted my life path. You guys have sparked an interest in finance I just can't seem to scratch and have caused me to consider changing my major. Keep up the good work, I will be watching every video.
You have time on your side young one. Invest early and often.
Cameron said of Ben: "we (PWL) have lots of people like you". Really? I thought Ben was unique. Please bring all those people like Ben onto the podcast. Just think how much better it would be! 😁
Ben is def unique lol
I've listened to all your podcast episodes from 1-150 on my iPhone and this is the first time I'm watching you guys on video. its nice to put a face to Cameron's voice. I've watched Ben's content on his other channel.
Wishing you guys another 150 successful podcast episodes guys. Thanks for everything
Let’s goooo! I’ve been waiting for this one since I saw the Instagram post yesterday
Please elaborate a bit on unexpected inflation. What can be unexpected as the FED expanded the money supply for such a long time? Thanks for this great channel.
Money supply and inflation are unrelated. Highly recommend this episode th-cam.com/video/mAB2eHwmRTY/w-d-xo.html
The market always prices in expected inflation. Unexpected inflation is simply realized inflation that is different from expected inflation.
Thanks for the segment on Wealthsimple. I brought that point on Reddit in almost the same way you did but got downvoted to oblivion by all the clueless people who won't accept that WS's active management decisions are completely wrecking their returns.
I needed this analysis so bad. I thought I was messing up on WS because our returns are so crap after transferring to them in fall 2020.
Now I have to wonder if I need to transfer... again. A costly and time-consuming proposal.
thank you! Another timely and great viddy!
Where do I send my reviews? Love you guys
People who are US citizens should look into Series I Bonds. Unlike TIPS, they can never give negative real returns. They aren't marketable, so the face/market value never changes, and you'll always get returns equal to the rate of inflation, which is adjusted every 6 months. I see them as more like inflation-protected cash rather than a bond, since they don't give positive real returns. They can be redeemed any time after 1 year for a small interest penalty, and after 5 years for no penalty
You should do your own research though, because there are a lot of differences between I bonds, TIPS, and traditional bonds. They're bought at "treasurydirect," which is also a good place to read about them
The drawback is the annual $10k limit, but I agree. As of this writing, I-Bond interest is over 7%. I believe the interest penalty is the last 3 months before redemption if you redeem before 5 years, so to me, that's a built-in indicator: 3 months of less-than-available-elsewhere-interest after 1 year = sell signal. For example: If the bond interest rate falls to 0 after 6 months, and you sell after 1 year, you've still earned 3.5% (which is more than MYGA rates, and way more than CD rates). Most importantly, if this "transitory" inflation turns out to be not-so-transitory, you'll do quite well.
Ultimate Hedge: public service / military career with cost of living adjustment in both pay and pension.
Amazing work, thank you so much for doing this.
I just wanted to point out that It’s possible Canada and UK outperformed the US during high inflation periods because of their larger material sector composition.
Could you have more of a discussion on the cards at the end? compared to two short statements, but no real discussion.
You two are my new heroes.
Thanks guys!
I completely sold the last of my holdings at Wealthsimple Invest a few months ago. I now only hold VGRO and XEQT.
I might be joining you soon. I am so disappointed and frustrated. We are not rich, and losing a year of returns in the last 15 years until projected retirement is deadly. Or, more realistically, "cat food for dinner."
4x Leveraged Real Estate for the win!
Well... maybe not at these prices...
Gold is historically a good hedge if you have hyper inflation. That's what the data supports. But as a hedge against moderate inflation......not so.
Not bad as a safe heaven during deflation period as well.
There is a narrative coming from many value investors that the best hedge against inflation is not just value stocks, but more specifically - value stocks of companies which have pricing power; that is strong brands which will adjust their prices in line with inflation. I understand that in general you do not support 'stock picking' - is this a good enough reason in your eyes not to explore mentioned idea?
I listened for an hour and am none the wiser as to what the answer is :/
Silver and commodities, especially agro, make best returns during inflationary periods. If we look at the data.
no... commodities performed very badly in 2023 when inflation was rising constantly
Hey! I love the format you guys do, can you please tell me what software you use to record voice and video? I am a huge fan. Thank you!
rationalreminder.ca/equipment-list
please put timestamps at least of when you start to talk about the main topics thanks. the intro chat is nice but its also nice to skip if one is short on time
RR 150 and still going
Except empirically the BTC inflation is de facto larger than a the fiat system like the US Dollar. It's obvious if you have to finance the miner's hardware and electricity usage (about as much as Thailand uses) using ONLY the capital inflow from bigger fools that the thing will collapse sooner or later.
Is buying real estate with a 25 years mortgage a good way to profit from inflation ? After all, inflation reduces the real cost of the property ?
this is what I did and hope it works. If the inflation is higher than the interest rate then I will even profit from higher inflation. At least with interest rate of 1.5% and inflation is over 2%. I also take into account rent vs buy and speculate with the same inflation house price. So there is a risk when buying, that you should take into account: bad location or bad substance of the building.
Probably is one of the best options which explains the boom in housing purchases. Depends on the purchase price of real estate and if the particular real estate maintains its relative attractiveness compared to other real estate options .
Isn't property good hedge to inflation?
are you referring to real estate? Interest rates go up due to inflation = lower house real estate prices
Pretty simple, perhaps, but also conceals some truths, where its not wrong. Prices can increase for many reasons. War, disasters, tech changes etc.... ships getting stuck in canals. However these are tempoary. Government money printing is the real inflation, the rest are just price increases. Inflation is a function of government. Left alone we would have a slow deflation (since we become better at producing stuff, and would have a fixed volume of money).
That deflation is bad is mostly a myth, a justification for keynsian central bankers to print more money for their governments.
Also, the Bank of Canada explanation is laughable. Making long range plans would be easier if there wasn't any inflation.