A Reckoning Is Coming For U.S. Debt

At Porter & Co. we are determined to be your best source of investing, economic, and financial insight, and your first choice for information about what to do with your money… in the entire world, bar none.

This is Porter & Co.’s Sunday Investment Chronicles. Every week, the Porter & Co. research team pores over thousands (and thousands) of articles, reports, social media posts, analyses, regulatory filings, and anything else we can get our hands (and eyes) on to understand what’s happening in the world of investing and finance – and to uncover the most original, compelling, and double-head-fake ideas…

… and we curate the best of those here. We do it all the old-fashioned way: Hours of reading and brainpower (no AI curation here). We read everything – for you.

In Case You Missed It… What We Published Last Week

On Monday, in the Daily Journal, Porter wrote about the emerging trend of stablecoins that he says will disrupt the banking industry. He wrote…

If you can use and hold stablecoins safely, you simply won’t need a bank anymore. It’s like Blockbuster: nobody needs to rent DVDs anymore. Nobody needs to hold dollars in a bank, ever again. You can hold them with stablecoins, yourself.”

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He continued on the stablecoin topic in Wednesday’s Journal, when he wrote:

What’s been needed to unlock innovation in banking and payment services has been a digital currency that’s stable and backed by a legal and regulatory framework. Stablecoins have the cryptological features necessary to facilitate distributed financial applications, and now they will have the legal and regulatory framework under the U.S. government to be widely adopted. This will enable immediate and free transfers and payments across the internet.

And, over time, this will lead to a complete revolution in banking. As I explained on Monday: this is like Netflix (NFLX) coming for Blockbuster. All of the reasons physical banks needed to exist just disappeared.”

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In this week’s Big Secret On Wall Street, we reported on five stocks in the current portfolio that we believe can hold up to potential market downturn. These are companies we feel can thrive regardless of the economic environment. Three of these companies are our current 3 “Best Buy” recommendations, and another is thriving as it executes its ambitious growth plans to become one of America’s leading energy exporting powerhouses. 

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The Trading Club issued a Buy Alert to members this week for a company that provides the capital and legal expertise that enables its clients to pursue litigation they might not otherwise be able to pursue.

We issued the alert now because, we wrote, 

News broke that a new clause was added to President Donald Trump’s One Big Beautiful Bill Act, as it makes its way through the U.S. Senate, which proposes a higher tax rate of 41% on litigation finance transactions.” 

The company’s shares declined nearly 15% on the news, and we felt that was an overreaction by the market, and that shares would rise closer to their previous level.

Membership to The Trading Club is full, but there is a waiting list for those who would like to get access to the next tranche of trades, with a fresh $100,000 investment, beginning in July… To get on the waiting list, click here.

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And in Friday’s Daily Journal, Porter ended the week by analyzing the recent sale of the LA Lakers NBA basketball franchise. He wrote:

So let’s round up and say the total cash-out in the Lakers deal was $10.1 billion – on a $68 million investment!

Sounds great, doesn’t it?

No. It was a terrible investment, actually. 

It underperformed the S&P 500 by about $3 billion, as a $68 million investment into the S&P 500 in 1979 would now be worth $13 billion. A similar investment into a great business – Coca-Cola (KO), McDonald’s (MCD), Philip Morris International (PM), The Hershey Company (HSY), Deere & Co. (DE) – would have made even more.”

The Best Things We Read Last Week

Out of the hundreds of sources of investment, finance, and economics news and insight we regularly review – our Bloomberg terminal, hedge-fund letters, annual reports, the financial news media, Securities and Exchange Commission (“SEC”) filings, investment newsletters, newspapers, X (Twitter) threads, conferences, podcasts, and more – here’s what we’ve read that we think you might find interesting.

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