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Become a Better Investor Newsletter – 5 July 2025

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Noteworthy this week

  • Boom in US tariff revenue
  • Historic bond drawdown
  • Delinquency rate on office-linked debt skyrocket
  • US$ weakens at record pace
  • Trump and Musk are back at it

Boom in US tariff revenue: Tariffs are currently generating over US$300bn in revenue, an increase from closer to US$80bn a year ago. But at what cost?

Historic bond drawdown: The US Bond Market has now been in a drawdown for 59 months, by far the longest in history.

Delinquency rate on office-linked debt skyrocket: The delinquency rate on Commercial Mortgage-Backed Securities (CMBS) for offices reached a record 11.1% in June 2025. This has now officially surpassed the post-2008 high of 10.7% and the December 2024 peak of 11.0%.

US$ weakens at record pace: The US$ index plunged 11% during 1H25, the worst first-half performance since 1973, when Richard Nixon was President – two years earlier, Nixon had taken the US off the Gold Standard.

Trump and Musk are back at it: The beef has resurfaced. Musk said he considers starting a new party. Trump suggests looking into Tesla’s subsidies or deporting Musk. We sure live in interesting times :/

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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

The Hundred Year Pivot Ep. 6 – Lawrence Fossi

“With Lawrence’s trademark candour, the conversation delves into the dangers of celebrity-driven populism, the fragility of democratic norms, and the deep structural imbalances threatening the US political and economic system. This is a sobering yet essential listen for anyone trying to make sense of the chaos—and looking for slivers of hope within it.”

Listen on Apple or Spotify.

Readings this week

Asia Payment Survey 2025

“Companies expect payment behaviors to worsen amid economic uncertainty. The Asia Payment Survey, conducted by Coface in Q1 2025, provides insights into the evolution of payment behavior and credit management practices of about 2,400 companies across the Asia Pacific region.”

Read the article.

Book recommendation

Big Sur by Jack Kerouac

“Jack Kerouac’s alter ego Jack Duluoz, overwhelmed by success and excess, gravitates back and forth between wild binges in San Francisco and an isolated cabin on the California coast where he attempts to renew his spirit and clear his head of madness and alcohol. Only nature seems to restore him to a sense of balance.”

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

New My Worst Investment Ever episodes

Enrich Your Future 36: The Madness of Crowded Trades

In this episode of Enrich Your Future, Andrew and Larry Swedroe discuss Larry’s new book, Enrich Your Future: The Keys to Successful Investing. In this series, they discuss Chapter 36: Fashions and Investment Folly.

LEARNING: Do not be swayed by herd mentality.

Access the episode’s show notes and resources

Published on Become a Better Investor this week

In this episode of Enrich Your Future, Andrew and Larry Swedroe discuss Larry’s new book, Enrich Your Future: The Keys to Successful Investing. In this series, they discuss Chapter 35: Mad Money.

Listen to Enrich Your Future 35: Market Gurus Are Just Expensive Entertainers

China Telecom Corporation Limited (728 HK): Profitable Growth rank of 6 was same compared to the prior period’s 6th rank. This is below average performance compared to 250 large Comm. Serv. companies worldwide.

Read China Telecom Corp – World Class Benchmarking

Korea, Singapore, Hong Kong, China, Vietnam, India, and Philippines were the only markets with a positive return in 1H25. Korea was the strongest performer in USD and local terms.

Read Korea Was the Best Performer in Asia in 1H25

In June 2025, we published 4 new episodes of the My Worst Investment Ever podcast. Listen to all of them here.

Listen to My Worst Investment Ever June 2025

Jet2 PLC (JET2 LN): Profitable Growth rank of 2 was up compared to the prior period’s 3rd rank. This is World Class performance compared to 1,360 large Industrials companies worldwide.

Read Jet2 – 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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