You Are NOT On Your Own...A Refresh Of The Degenerate Economy

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Happy Saturday…

My friend Tadas had an excellent post this week titled ‘You Are On Your Own’ and it bothered me because it is too true. Read it and bookmark it. The gist:

I shared the Tadas link on Stocktwits and a friend of mine posted this:

Cynical for sure, but a lot of truth.

I do not like the idea that Gambling Addiction Centers are a Growth investment opportunity. But, the markets though do not care about how I feel or what I like.

There has been such a massive misallocation of capital since the beginning of the internet boom in 1998 that it is impossible to predict the unintended circumstances. Add in the real estate bubble, the GFC, social media, ZIRP, disrespect for rule of law, and AI and who the f@#k really knows what the next 20 years will look like.

My best guess version of it I called ‘The Degenerate Economy’. Over a year ago I set up my ‘Degenerate Economy Index’ and it has been on fire (note - I doubt this outperformance lasts).

I set it up as I was thinking about the future and how I see the world and wanted a way to track this with public companies that might benefit most from the trends I think will continue.

All of this work helps me communicate with founders and LP’s as well and frames the type of companies and businesses we want to invest in at Social Leverage.

But, the term ‘degenerate economy’ is sloppy in that I do not want to glorify the idea that you are on your own. I take pride in helping people learn the language of the markets.

My utopian idea of this economy is that ‘speculation is entertainment’ and ‘investing is a sport’. That is not happening. So, while ‘catchy’ I am outgrowing my term ‘The Degenerate Economy’ and will change it.

Have a look at the index and hit me up with any names you think better capture the spirit of the portfolio and trend.

Have a great Saturday.