A holiday-shortened week.
Last week revolved around the earnings report for Nvidi.
It was once again buying on the rumor, but selling on the news.
The chip maker climbed above $1,000 per share just before a ten-for-one stock split.
There is talk that Nvidia is being considered to be included in the Dow kicking Intel to the curb.
Another example of a once-vaunted tech firm being surpassed by an innovative newcomer.
Most of the analysts have finally given up on a rate cut by the Fed this summer.
It does appear that inflation has slowed and probably won’t accelerate.
The supply side struggles from the pandemic have been overcome and demand has remained consistent.
The labor force is strong with hiring and wages still gaining.
I am not sure how consumers can continue to support this economy now, having to pay substantially higher prices than three years ago.
They seem to find a way as last Friday saw airline travel set an all-time record.
There is still plenty of concern out there with gold prices at record levels and the interest curve inverted.
Shorter term Tate’s exceed longer term indicating fear of a downturn in the economy in the future.
It goes without saying that global wars seem never to end.
Russia, Iran and North Korea have expressed hatred for the U.S.
China sees this as a long-term economic war for supremacy.
I am a believer that AI will enhance productivity.
How it actually impacts labor will be interesting. Moreover, the euphoria will end and the rubber will meet the road.
I am not saying this is a bubble to rival what we experienced in 2000, but I’m not sure I am drinking the Kool Aide.
Even Jaimie Diamond, the CEO of JP Morgan is suspending buybacks due to the level of the banks stock price being so elevated.
This is simply a traders’ market and good luck finding value.
Shopping for dividends is starting to get a little over the top.
