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Become a Better Investor Newsletter – 7 June 2025

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Noteworthy this week

  • Printer goes Brrr again
  • US$ has weakened significantly
  • A 40% weaker US$ would eliminate the trade deficit
  • Vietnam’s Dong still weakens against the US$
  • Learn to code, they said

Printer goes Brrr again: The money printer is back on. US M2 just hit a new all-time high at US$21.9trn. Liquidity is flowing back into the system.

US$ has weakened significantly: The US$ index (DXY) is down 9% in 2025. This could be positive for Emerging markets and Asia.

A 40% weaker US$ would eliminate the trade deficit: A 40% decline in the US$ would wipe out the US trade deficit, says Deutsche Bank.

Vietnam’s Dong still weakens against the US$: However, not all currencies have become stronger against the US$. The VND is at its weakest point in history against the US$.

Learn to code, they said: As AI is winning ground, it seems like that might not have been great advice after all. Never stop learning, and continuing to evolve is the way to stay competitive.

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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. 5 – Charles Calomiris

“The conversation delves into the concept of fiscal dominance—the point at which mounting government debt and deficits compel inflationary policies, sidelining the intentions of central banks, with Charles warning that the US is edging closer to this scenario, driven by unsustainable deficits and a political system gridlocked by the self-interest of key voting blocs and an unwillingness to confront hard choices around entitlements like Social Security and Medicare.”

Listen on Apple or Spotify.

Readings this week

Why Are Bond Investors Contrarian While Equity Investors Extrapolate?

“Survey data reveal a striking difference in how investors form long-run expectations in equity and bond markets. Equity investors tend to extrapolate recent trends in returns and earnings growth, while bond investors tend to expect mean reversion in rates.”

Read the article.

Book recommendation

Peak Human: What We Can Learn from the Rise and Fall of Golden Ages by Johan Norberg

“Golden ages are marked by periods of spectacular cultural flourishing, scientific exploration, technological achievement and economic growth: Ancient Greece gave us democracy and the rule of the law; out of Abbasid Baghdad came algebra and modern medicine, and the Dutch Republic furnished us with Europe’s greatest artistic movements. As such, each has unique lessons to teach us about the world we live in today.”

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

Ep806: Jeff Sarti – The Only Way to Learn? Lose Money First (Wisely)

BIO: Jeff Sarti, CEO of Morton Wealth, leads a firm managing over $3 billion in assets. With a mission to empower better investors, Jeff helps clients achieve their financial goals while supporting employees in their career growth.

STORY: Jeff bought a few dot-com companies, thinking it was smart and safe because he bought the big brands. All of the companies dropped 90%+.

LEARNING: Don’t let greed, FOMO, and a lack of imagination drive you to a bad investment.

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 33: An Investor’s Worst Enemy.

Listen to Enrich Your Future 33: The Market Doesn’t Care How Smart You Are

Shibaura Machine Company Limited (6104 JP): Profitable Growth rank of 5 was down compared to the prior period’s 2nd rank. This is average performance compared to 1,370 large Industrials companies worldwide.

Read Shibaura Machine – World Class Benchmarking

Manila Water Company Incorporated (MWC PM): Profitable Growth rank of 5 was up compared to the prior period’s 7th rank. This is average performance compared to 120 medium Utilities companies worldwide.

Read Manila Water Company – World Class Benchmarking

Realtek Semiconductor Corporation (2379 TT): Profitable Growth rank of 1 was up compared to the prior period’s 4th rank. This is World Class performance compared to 620 large Info Tech companies worldwide.

Read Realtek Semiconductor Corp – World Class Benchmarking

In May 2025, we published 8 new episodes of the My Worst Investment Ever podcast. Listen to all of them here.

Listen to My Worst Investment Ever May 2025

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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