Here are Todd’s latest fun picks to take your financial skills to the next level...

This week's education looks underneath the thin veneer of over-inflated stock averages to find what's really important.

I hope it gives you valuable perspective amidst the smoke and mirrors...
 

Wall Street's Reckless Gamble on Bad Debt - The New Yorker

While the financial porn industry (a.k.a. news) flaunts rising stock market prices, important stories that matter get overlooked. Corporate debt today can be compared to the subprime debt market that culminated in the Great Financial Crisis of 2008-2009. Covenant light loans and excessive leverage are indicative of the alarming decline in lending standards. High profile bankruptcies and ratings downgrades have already started. C.L.O.s are becoming the new C.D.O.s. As the economic downturn persists, there's a good chance it will draw into question the sustainability of our current capital structure. The Fed is fully aware of the magnitude of this problem, which is why they literally broke the law to directly buy junk bonds. This New Yorker article will bring you up to speed. It's well-researched, well-written, and well worth reading.

Low Bond Returns Are Nothing New

Historical perspective is essential for smart investment planning, and nowhere is this more relevant right now than in the bond market. Did you know that from 1940-1979 super-safe bonds lost over 50% after inflation? The high returns delivered by the bond market over the last 40+ years are a historical anomaly. It's mathematically impossible to repeat those returns going forward (see my Bond Bubble post from 2013 which was confirmed by subsequent 5 year returns at the lowest level in bond market history). Smart investors should recognize this current run to zero percent (or negative) interest rates as the final, dying breaths of an aged, withering, over-ripe market. Read this article from Ben Carlson paying close attention to the inflation adjusted numbers and notice the rotational returns over 40-50 year periods. The difference is night and day. Then read my article here so you can prepare for the next rotation. 

The Ultimate Personal Finance Bundle

$515 of retail priced personal finance education for $20. It's a great deal if at least 2 or 3 of the products (out of the 22 books and courses included) fit your interests. The way it works is financial educators (like myself), that have multiple books and courses, give away a feature product (mine is the 4% Rule and Safe Withdrawal Rates in Retirement ebook) to be included in the bundle. Then we all promote the bundle to our lists (like I'm doing right now). It's a killer deal for you (as long as 2-3 of the products fit your needs), and it's smart marketing for us to expand our reach to new people by giving value. Socheck it out and see if there's anything useful in the bundle that would make it a worthwhile purchase. You'll never get a better price.

The Ultimate Bundle Of Personal Finance Education - 5 Days Only!

Learn more about the books and courses included...