The Compound
How to Spend with Morgan Housel
10/23/2025, 4:00:20 PM
Economic Summary
- Rare earth metals are essential to tech, EVs, defense and clean energy; China currently dominates production and refining, prompting global efforts to build alternative supply chains and increased investor interest in related assets such as VanEck's REMX ETF.
- There is a behavioral blind spot in personal finance guidance around how to spend money: beyond saving and investing, people need frameworks to prioritize spending that aligns with values and minimizes future regret.
- Distinction between 'rich' and 'wealthy' matters: 'rich' can mean affording lifestyle desires, while 'wealthy' implies financial independence and a backstop against shocks; heuristics like 25x annual spend are cited as benchmarks.
- The cultural prominence of movements like FIRE has shifted since the financial crisis; the 2020s environment and changing personal priorities (e.g., having kids) alter savings and spending decisions.
Bullish
- REMX offers exposure to secular demand for rare earths as countries diversify supply chains.
- Luxury/collectible cars like Ferrari can retain cultural and long-term value among enthusiasts.
- Spending on experiences and family often reduces long-term regret and increases life satisfaction.
Bearish
- China's dominance in rare-earth production creates concentration and geopolitical supply risk for related investments.
- Brag-driven consumption and status signaling can lead to fragile financial choices and poor long-term outcomes.
- Living a rich lifestyle without true wealth (no financial cushion) leaves people vulnerable to shocks.
Bullish tickers
REMXRACE
Bearish tickers
REMXRACE
REMX
Bullish
Provides ETF access to growing demand for rare earth and strategic metals driven by technology, EVs, defense, and global supply-chain reshoring.
Bearish
Concentrated exposure to rare-earth supply chains dominated by China; geopolitical, policy, or oversupply risks could negatively impact returns.
RACE
Bullish
Ferrari's collectible models (e.g., Enzo) illustrate strong brand affinity and durable value among enthusiasts, supporting long-term desirability.
Bearish
Luxury ownership can be more about signaling than cash generation; demand is sentiment-sensitive and potentially cyclical.
People mentioned
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