The "Invisible Hand" of the market is a curious thing. Lately, I’ve been reflecting on the paradox of our current economy. Everywhere I look, the market is erupting. Yet, in my daily life... especially during my side-hustle... I see a different reality. I see a plague of "I Want" disease. People choose immediate, depreciating "wants" over the long-term power of compounding. For me, the choice has always been clear: I’d rather own the debt of a utility company than a fleeting luxury. With interest rates in a state of flux and Jerome Powell stepping aside for new leadership, the era of the "easy" 5% High-Yield Savings Account (HYSA) is showing cracks. Just this past Wednesday, April 22nd, I watched my HYSA rate get trimmed to 3.25%. But the Economy is moving aggressively in many segments. When the bank pulls back, I lean into the alternatives. Specifically, I’m looking at Junior Debt ... often called "Baby Bonds." The Middle Groun...
Exploring the mechanics of capital, the discipline of compounding, and the margin of safety found in a meaningful life.
A periodical by Michael Medeiros