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Why Negative Prices Exist and What They Can Teach Us

Why Negative Prices Exist and What They Can Teach Us

FromMoney For the Rest of Us


Why Negative Prices Exist and What They Can Teach Us

FromMoney For the Rest of Us

ratings:
Length:
26 minutes
Released:
Apr 29, 2020
Format:
Podcast episode

Description

Why the oil price fell below zero and what are other examples of negative prices. What lessons can we learn from negative prices.Topics covered include:How oil futures work and why the oil future prices fell below zero for the first time ever.Why has the United States Oil ETF (USO) lost so much money.How ETF authorized participants create new shares only so they can be shorted.How storage problems for oil and electricity can lead to negative prices.How negative interest rates are another form of negative prices.Why sellers will pay buyers to deliver a service to them.What financial lessons can we learn from negative prices.Thanks to LinkedIn Learning and The Investor's Podcast for sponsoring the episode.
Released:
Apr 29, 2020
Format:
Podcast episode

Titles in the series (100)

A personal finance and investing podcast on money, how it works, how to invest it and how to live without worrying about it. J. David Stein is a former Chief Investment Strategist and money manager. For close to two decades, he has been teaching individuals and institutions how to invest and handle their finances in ways that are simple to understand. More info at moneyfortherestofus.com