Compound

Have you heard about the power of compound interest?
That’s when you deposit a dollar in the bank, and the interest builds up the principal to earn more interest, until your ending balance is much larger than before.
The problem is that if interest rates are low, or zero, there’s no compound interest.
So, people invest. Too much.
The bubble builds with the overvalued investments, until the bubble bursts.
The scared folks out there end up keeping their money stuffed in their mattress.
This is why I invest in mattress companies.
For people to stuff money under… and sleep better.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.