Become a Better Investor Newsletter – 25 May 2024
Noteworthy this week
- US gov’t debt service to exceed S&P profits in 2025
- Gold hits another ATH
- 70%+ investment advisors allocate <1% to gold
- Nvidia hits US$2.5trn market cap
- Real ESG progress in the US
US gov’t debt service to exceed S&P profits in 2025: Crazy statistic indeed. At the current pace, the interest on US federal debt is going to exceed S&P GAAP profits in 2025.
Crazy stat — at current pace, interest on US debt will exceed S&P GAAP profits in 2025 https://t.co/Z10IAHErGC
— Michael Green (@profplum99) May 21, 2024
Gold hits another ATH: Gold price recorded a new high of US$2,450/oz t, up 23% in just 3 months.
JUST IN: Gold prices rise to a new record high of $2,450, now up 23% in just 3 months.
Gold prices are now up 35% since October, even outperforming the S&P 500’s gain of ~29%.
As geopolitical tensions in the Middle East continue to escalate, gold is being viewed as the global… pic.twitter.com/IZVlJHmXZQ
— The Kobeissi Letter (@KobeissiLetter) May 20, 2024
70%+ investment advisors allocate <1% to gold: 71% of US advisors have little to no gold allocation, i.e., less than 1% of their portfolio. Based on gold’s characteristics, it’s interesting that many advisors don’t include it in their portfolios.
‘71% of US advisors have little to no gold allocation, i.e. it is less than 1% of their portfolio. We also see a similar lack of interest in gold mining stocks, which have largely lost the trust of investors in view of their disappointing performance.’ https://t.co/yJ8POhxsnU pic.twitter.com/yN0Rp96B2T
— Jesse Felder (@jessefelder) May 20, 2024
Nvidia hits US$2.5trn market cap: After its earnings release, Nvidia’s stock traded with a market cap above US$2.5trn.
BREAKING: Nvidia stock, $NVDA, is now trading with a market cap above $2.5 TRILLION for the first time in history.
To put this in perspective, Nvidia is now larger than Tesla and Amazon COMBINED.
Furthermore, Nvidia is now larger than the entire German stock market.
Nvidia is… pic.twitter.com/Uaj9mgFoML
— The Kobeissi Letter (@KobeissiLetter) May 22, 2024
Real ESG progress in the US: In 4Q23, 28 companies mentioned ESG, and 4 mentioned DEI or diversity and inclusion on their earnings calls compared to 131 ESG mentions and 34 DEI mentions in 4Q20. Great news!
For the fourth quarter of 2020, 131 companies mentioned ESG, and 34 mentioned DEI or diversity and inclusion, per BI.
For the fourth quarter of 2023, those numbers dropped to 28 and four. pic.twitter.com/r0Cn4toMMZ
— unusual_whales (@unusual_whales) May 21, 2024
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Weekly market performance
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Chart of the week
Discussed in the Become a Better Investor Community this week
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Podcasts we listened to this week
This Past Weekend w/ Theo Von – Robert Greene
“Robert Greene joins Theo to talk about practical ways to find your purpose, how his disillusionment (and even anger) with Hollywood led him to write about strategy and power, and the keys to seduction that anyone can employ. They also dive into Robert’s life and talk about his experiences with psychedelics, his investigatory past as a skip tracer, and his personal favorite authors and works that helped shape his worldview.”
Readings this week
The In Gold We Trust Report 2024
“Detailed study on gold and gold-relevant capital market developments.”
Book recommendation
The Saad Truth about Happiness: 8 Secrets for Leading the Good Life by Gad Saad
“It is a scientific fact, which means we can measure happiness, we can assess it, and we can devise strategies to make ourselves happy and fulfilled human beings.”
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
As history has always proven that socialism doesn’t work, socialists need to follow two avenues:
1. Steal other people’s money via excessive taxation
2. Steal our children‘s money via excessive debt
Prove me wrong pic.twitter.com/ITUYxCZ2Xh
— Michael A. Arouet (@MichaelAArouet) May 17, 2024
🤣🤣🤣 pic.twitter.com/IBe6y6IF4e
— Not Jerome Powell (@alifarhat79) May 18, 2024
New My Worst Investment Ever episodes
Ep785: Jusper Machogu – Africa Needs More Fossil Fuels Not Aid
BIO: Jusper Machogu is a farmer in rural Kenya, an agricultural engineer by profession, and an advocate for Fossil Fuels for Africa.
STORY: In this episode of My Wost Podcast Ever, Andrew and Jusper discuss the potential of fossil fuels to drive economic growth and development in Africa.
LEARNING: Africa needs more fossil fuels not aid.
Access the episode’s show notes and resources
Published on Become a Better Investor this week
Can a 4th grade class decide on an operational definition of “joy in learning”? In part 4 of this series, educator John Dues and host Andrew Stotz discuss a real-world example of applying Deming in a classroom. This episode covers the first part of the story, with more to come in future episodes!
Listen to Goal Setting Is Often An Act of Desperation: Part 4
Makalot Industrial Company Limited (1477 TT): Profitable Growth rank of 1 was same compared to the prior period’s 1st rank. This is World Class performance compared to 920 large Cons. Disc. companies worldwide.
Read Makalot Industrial – World Class Benchmarking
Korea Aerospace Industries Limited (047810 KS): Profitable Growth rank of 6 was up compared to the prior period’s 8th rank. This is below average performance compared to 1,390 large Industrials companies worldwide.
Read Korea Aerospace Industries – World Class Benchmarking
Jiangzhong Pharmaceutical Company Limited (600750 SH): Profitable Growth rank of 2 was up compared to the prior period’s 3rd rank. This is World Class performance compared to 370 medium Health Care companies worldwide.
Read Jiangzhong Pharmaceutical – World Class Benchmarking
Cal-Comp Electronics (Thailand) Public Company Limited (CCET TB): Profitable Growth rank of 9 was down compared to the prior period’s 5th rank. This is poor performance compared to 630 large Info Tech companies worldwide.
Read Cal-Comp Electronics (Thailand) – 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.