Bond Vigilantes
The bond market is signalling a broad distaste for fiscal policy that has led to increasing government debt burdens, with rates now touching their post-financial crisis highs. Stickier inflation driven by everything from tariffs to oil (and the general trend of deglobalization) certainly hasn’t helped either.
Thus far, the equity market has proven reasonably resilient as decreased multiples have been offset by booming earnings. Whether that persists, or for how long, highly depends on the end state for rates. Regardless, environments like this one remind us of the importance of having other portfolio ballasts when the bond markets’ reliability as a hedge disappears.
Ordinary Abundance
Take a couple of minutes to scroll through this page. It is a visual of a modern room which highlights the reaction at the time of each item’s introduction.
Don’t ever believe anyone who says the world hasn’t gotten better with age.
Of all the marvellous achievements of modern science, the Electric Telegraph is transcendently the greatest and most serviceable to mankind. It is a perpetual miracle, which no familiarity can render commonplace.
AI, Tools, and Transformation
There is a narrative that AI is going to make every person and business the architect of their own tech stack. This completely misses how most people think and the value of common technologies and processes.
But if you’re a really great matrimonial lawyer, you spend all your day thinking about your cases and your clients, not about what great legal discovery software would do; if you’re a really great enterprise salesperson, you spend all your time thinking about your product and your clients and your competitors, not about how great sales enablement software could make you more productive.
The Economist & Elon Musk
Love him or hate him, Elon Musk wields tremendous influence and has proven to be one of the most successful business builders of the modern era. This is his first extended interview since SpaceX’s IPO. The discussion covers AI, the rapid progress of China, the reasons for his interest in Europe, and why he thinks he “got a little too involved” in politics.
Fair warning that, in typical fashion, there is a jarring amount of hyperbole here, but we think it is helpful to know how one of the leaders of the tech revolution is pressing his agenda.
The Proven Path to Meaningful Work
True mastery of any subject demands extraordinary time and dedication in the context of the average human lifespan. That fact makes true greatness all the more impressive. Sacrificing alternative paths can be difficult, but it can also be glorious with the power of hindsight.
At the end of the line—where the bus comes to rest and the driver can get out for a smoke or, better yet, a cup of coffee—that’s when the work is done. It could be the end of your career as an artist or the end of your life for that matter, but your total output is now all there before you, the early (so-called) imitations, the breakthroughs, the peaks and valleys, the closing masterpieces, all with the stamp of your unique vision.
“Why? Because you stayed on the bus.
Gallant MacDonald is a Private Investment Office serving a select group of ultra-high net worth families who have made significant contributions to business, public service, and philanthropy.
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