If you like today’s post, please like and share. I run a combination of a free and paid notebook that highlights my notes, thoughts, opinions, and trade ideas.
You can do so by subscribing via the link below and selecting which tier you would like to be a part of. (Free trial offer at end of post)
I came across this Bloomberg article the other day on BNPL and had to share thoughts about it and its data.
According to a recent survey from LendingTree, nearly 1 in 5 Americans have used BNPL services to afford groceries while almost half have used the apps in general. On top of that some 27% use the loans as a bridge to their next paycheck.
To make matters worse, BNPL apps have also become more popular as benefits that were extended during the pandemic, such as food stamps and Medicaid, expire for many beneficiaries.
The notion that the consumer is doing fine because you can point to inflation coming down, spending still going on, wages, excess savings, etc isn’t seeing the forest for the trees.
There are fundamental issues in the underlying base of the consumer and I’ve never met anyone saying the economy is fine when you’re making payments on groceries in installments.
Get 14 day free trial
Until next time,
Paul Cerro | Cedar Grove Capital
Personal Twitter: @paulcerro
Fund Twitter: @cedargrovecm
HoldCo Twitter: @cedargrovech
Share
Disclaimer: All information provided herein by Cedar Grove Capital Management, LLC (“Cedar Grove Capital”) is for informational purposes only and does not constitute investment advice or an offer or solicitation to buy or sell an interest in a private fund or any other security. An offer or solicitation of an investment in a private fund will only be made to accredited investors pursuant to a private placement memorandum and associated documents.
Cedar Grove Capital may change its views about or its investment positions in any of the securities mentioned in this document at any time, for any reason or no reason. Cedar Grove Capital may buy, sell, or otherwise change the form or substance of any of its investments. Cedar Grove Capital disclaims any obligation to notify the market of any such changes.
The enclosed material is confidential and not to be reproduced or redistributed in whole or in part without the prior written consent of Cedar Grove Capital. The information in this material is only current as of the date indicated and may be superseded by subsequent market events or for other reasons. Statements concerning financial market trends are based on current market conditions, which will fluctuate. Any statements of opinion constitute only current opinions of Cedar Grove Capital which are subject to change and which Cedar Grove Capital does not undertake to update. Due to, among other things, the volatile nature of the markets, and an investment in the fund/partnership may only be suitable for certain investors. Parties should independently investigate any investment strategy or manager, and should consult with qualified investment, legal and tax professionals before making any investment.
