37sec snip

The Compound and Friends cover image

All the News That’s Fit to Print

The Compound and Friends

NOTE

Borrow Low, Invest High

Leveraging low borrowing costs to invest in higher-yielding assets can significantly enhance a consumer's financial position. For example, refinancing a mortgage at a low rate, such as 3%, while earning a return of around 5% from T-bills, mimics the strategies employed by hedge fund managers. This creates a hedge against inflation, allowing consumers to sustain their spending power even in challenging economic circumstances. Effective management of borrowing and investment ultimately positions consumers to strengthen their financial standing.

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