Reserved Currencies

This Week on The Compound

June 01, 2025

This Week on The Compound

Diversify Client Portfolios with CLOs

Collateralized Loan Obligations (CLOs) offer floating-rate exposure and portfolio diversification. Learn more about niche credit market interval fund strategies that seek to generate income and long-term capital appreciation at flatrockglobal.com/compound.

This week on TCAF, Josh and Michael were joined by Jens Nordvig, founder and CEO of Exante Data. They discussed the latest on tariffs, the significance of jobless claims, the dollar's status as a reserve currency, and the collapse in foreign tourism. (Listen)

OUTSIDE THE COMPOUND

Michael Batnick looked at a recent paper by Mauboussin and Callahan about the drawdowns (and recoveries) that individual stocks see over time. In short, picking winning stocks is very difficult, and even the best-performing stocks see significant drawdowns. (See also Ben Carlson and Sam Ro on the topic.) He writes:

Most stocks suck. We know from Hendrik Bessembinder’s famous study that only 40% of stocks beat treasury bills. The remaining 40% destroyed $10.1 trillion in value through the end of 2024. If you’re going to buy individual stocks, be right, have conviction, and don’t be wrong.

Michael Batnick

MERCH

You can now order the new Markets in Turmoil t-shirt (in three colors) at idontshop.com. It's perfect for Summer weather!

COMING SOON

This week on TCAF, Josh and Michael will be joined live by the CEO of Morningstar, Kunal Kapoor.

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