If there’s one thing that keeps the US going… it’s the availability of cheap credit. Love it or hate it – the US is a credit driven economy. If credit dries up – it’s goodnight nurse. The US consumer now owes close to $1Trillion on their credit card – a 17% jump from a year ago and a record high. More than 33% U.S. adults have more credit card debt than emergency savings
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Berkshire: The Power of Compounded Returns
Warren Buffett’s investment vehicle Berkshire Hathaway has posted an Compound Average Growth Rate of 20.1% for 57 years. This dwarfs the S&P 500 average of 10.5% inclusive of dividends.
2021 – A Torrent of Buying
When stock indices double their average rate of return in any one year (typically around 10%)… you need to ask why. Two catalysts which come to mind: (i) negative real rates; and (ii) central bank liquidity.