Buybacks, Bond Doubts, DRAM, and T-Rex
Summary
Hosts Jack and Emily answer listener questions on stock buybacks, bond allocation, and municipal bonds. They explain that buybacks are captured in share price appreciation rather than total return, and discuss why bonds serve as a crucial hedge against market crashes and sequence of returns risk. The episode also covers the impact of AI capital expenditures on S&P 500 valuations and the structure of the Roundhill Memory ETF, which uses swaps to navigate diversification rules. Finally, they provide a formula for comparing tax-free municipal bond yields against taxable alternatives based on i…
Topics discussed
Intro, Morningstar ad, and conflict of interest policy
Episode overview and Uncle John's introduction
Uncle John: Calculating true yield with dividends and buybacks
Dr. Jesse: Why you might not need bonds for portfolio protection
Break: Sparkling water preferences and Morningstar ad
Drew: Is the US dollar a useful measure for S&P 500 valuations?
Marco: How the Roundhill Memory ETF uses swaps and treasuries
Trenton: Municipal bond performance and tax-equivalent yield math
Outro and call to action for listener questions
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