1906: Unemployment Rate Driving the Fed Nuts! Wes Gray, Alpha Architect

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By Jason Hartman. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

Welcome to The Creating Wealth Show where rents in suburbia are higher than rents in cities and the Fed wants to see you unemployed! Think we’re kidding, right? Think again! You couldn’t make up fiction this good if you tried! Jason Hartman takes you through the latest news stories and predictions affecting the economy and is joined by Wesley Gray, CEO of Alpha Architect for a fascinating discussion on inflation hedges and future scenarios for commodities and crypto.

Last Friday, the Bureau of Labor Statistics reported over 200K new jobs were added in September. Sounds like great news for the economy and people in general, right? Strangely, it runs directly counter to what the Federal Reserve wants to see; they don't want to see the unemployment rate fall, they don't want to see you have a job. They want to see you unemployed. That low unemployment rate has to be driving the Fed nuts! Americans working and spending money is something they don't want to see, as they have forecasted a recession next year, and are looking for the unemployment rate to reach 4.4%.

How should we allocate risk right now? Why is crypto performing so poorly? Are we truly becoming a Banana Republic that does not end well? Jason and Wesley discuss a few things that you should always consider including keeping your tax rates down as much as possible. Fees and taxes are things you can often control, whereas we can't control what the economy or inflation is going to do.

And why is crypto doing so poorly when it should, at least in theory, be the inflation hedge asset? Where's Michael Saylor? Isn’t Bitcoin digital gold? Without a military behind it, will cryptocurrencies ever be truly viable?

Key takeaway:

Jason's editorial

0:00 The Creating Wealth Show, episode 1906

3:01 Jason’s 2020 prediction - the rise of suburbia

6:21 Cities saw rent increases almost 17% since the beginning of pandemic

7:39 Weekend in Vegas at Richard Branson’s Virgin Hotel

9:48 Thanks for attending the Recession Proof Investing Summit

10:10 HousingWire article: Why a good jobs report is bad news for the Federal Reserve

14:06 Over 109,000 followers on Instagram! Instagram.com/JasonHartman1

17:20 Register now for our LIVE event in Scottsdale AZ! EmpoweredInvestor.com/Live

Wes Gray Interview

20:10 Welcome Wesley Gray, CEO & Co-CIO, Alpha Architect - Empowering investors through education

20:51 How do we allocate risk?

22:17 What assets should you be owning right now? Stocks, commodities?

25:24 Controlling your tax rates

26:49 Will we see incredibly high interest rates needed to tame inflation?

27:31 We are becoming a Banana Republic and it won’t end well

29:05 Alpha Architect investment philosophies

30:38 Following trends in crypto, bonds & stocks

32:19 Why is crypto doing so poorly right now?

34:00 Ponzi schemes backed by military

35:07 The ability to inflict violence is what makes the world run

35:50 Freedom in Iraq vs Freedom in the US

37:03 Learn more and check out Wesley’s blog at AlphaArchitect.com and follow on Twitter! @alphaarchitect

Wesley R. Gray, Ph.D.

CEO & Co-CIO, Alpha Architect

After serving as a Captain in the United States Marine Corps, Dr. Gray earned an MBA and a PhD in finance from the University of Chicago where he studied under Nobel Prize Winner Eugene Fama. Next, Wes took an academic job in his wife’s hometown of Philadelphia and worked as a finance professor at Drexel University. Dr. Gray’s interest in bridging the research gap between academia and industry led him to found Alpha Architect, an asset management firm dedicated to an impact mission of empowering investors through education. Wes has published multiple academic papers and four books, including Embedded (Naval Institute Press, 2009), Quantitative Value (Wiley, 2012), DIY Financial Advisor (Wiley, 2015), and Quantitative Momentum (Wiley, 2016).

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