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Become a Better Investor Newsletter – 21 March 2026

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Noteworthy this week

  • Traditional correlations are breaking down
  • US inflation ticking up
  • Private credit doesn’t look good
  • Chinese home prices fall further
  • Non-green energy security

Traditional correlations are breaking down: The 3-month dispersion across US equities, oil, the US Dollar, bonds, and credit is up to ~18%, the highest since the 2022 bear market. This measures divergence in the price of major asset classes, with higher readings signaling that traditional correlations are breaking down.

US inflation ticking up: US annual headline inflation at 3.4% and core at 3.9% in February. These figures set a high inflation baseline just as the Middle East War, which began on February 28, is certain to exert further upward pressure on prices.

Private credit doesn’t look good: Morgan Stanley says private credit default rates are set to reach 8%. Fun fact: 8% default rate in real estate mortgages was the PEAK of the GFC.

Chinese home prices fall further: New home prices in 70 Chinese cities fell 3.2% YoY in February, the steepest annual drop in 8 months. Home prices in China have fallen in 44 of the last 47 months, the longest streak in history.

Non-green energy security: As the US-Israel-Iran war leads to shortages of oil and gas, some Asian countries have coal plants to turn on. Korea is lifting a cap on coal-fired power generation (until now set at 80% of capacity) to offset the loss of LNG.

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Weekly market performance

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Chart of the week

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Podcasts we listened to this week

Connor Teskey: The 90% Rule, AI Infrastructure, and the Future of Investing | The Knowledge Project

“Discover why effective investing begins with minimizing losses, how waiting for perfect information can result in missed opportunities, the strategies Brookfield uses to manage market risk while maintaining upside potential, and the key insights he gained working alongside Bruce Flatt.”

Listen on Apple or Spotify.

Readings this week

Thai pension fund needs reform, hits risk limit on selloff

“Fund’s exposure to Thai equities caused breach of risk metric. Urgent reforms needed to safeguard pensions of 25 million Thais. Structural issues include concentrated domestic investments, slow decision-making. Independent governance and professional management are needed.”

Read the article.

Book recommendation

The City and Its Uncertain Walls: A Novel by Haruki Murakami

“When a young man’s girlfriend mysteriously vanishes, he is heartbroken – and determined to find the imaginary town where he suspects she has taken up residence. Thus begins a lifelong search that takes the man into middle age, to a job in a remote library with mysteries of its own, and on a journey between the real world and this otherworld: a shadowless city where unicorns roam and willow trees grow.”

Get the book on Audible or Kindle.

Audible is great; have you tried it? If not, click here to get 2 books for free.

Memes of the week

Published on Become a Better Investor this week

How do you run an offsite that actually changes performance — not just conversations? In this episode, Travis Timmons and Kelly Allan share with Andrew Stotz what happened during the Fitness Matters off-site.

Listen to Fitness Matters: A Deming Success Story (Part 4)

TSH Resources Berhad (TSH MK): Profitable Growth rank of 3 was up compared to the prior period’s 6th rank. This is above average performance compared to 440 medium Cons. Staples companies worldwide.

Read TSH Resources – World Class Benchmarking

Promotora y Operadora de Infraestructura SAB de CV (PINFRA* MM): Profitable Growth rank of 1 was up compared to the prior period’s 2nd rank. This is World Class performance compared to 1,390 large Industrials companies worldwide.

Read Promotora y Operadora de Infraestructura SAB de CV – World Class Benchmarking

Hisense Home Appliances Group Company Limited (000921 SZ): Profitable Growth rank of 5 was same compared to the prior period’s 5th rank. This is average performance compared to 920 large Cons. Disc. companies worldwide.

Read Hisense Home Appliances Group – World Class Benchmarking

Star Petroleum Refining Public Company Limited (SPRC TB): Profitable Growth rank of 5 was up compared to the prior period’s 6th rank. This is average performance compared to 290 large Energy companies worldwide.

Read Star Petroleum Refining – World Class Benchmarking

DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.

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