We have moved into the fourth quarter with the markets setting new records. It seems no one really wants to get in front of this locomotive.
I read with interest a lone negative voice, which pointed out all of the money being pushed into data centers will end up being depreciated in probably three years.
His point is that change is happening so fast that these centers take time to build and will be out of date the day the doors open.
There will be all that capital tied up in a facility that will be out of date and demand for capital for a newer version.
Unlike the severe financial crisis with railroads that happened in 1929, they still had a use that goes on today.
I am not suggesting a market collapse, but it poses an interesting question as to recapturing the vast investment in data centers with technology changing so quickly.
Speaking of records, you cannot ignore what is happening with gold and Bitcoin.
They are up substantially and I’m not sure where the top is.
I wish I could say that for the building sector, but lower interest rates will help.
We had a surge in sales in September nationally.
I am not sure where that happened, but it isn’t anywhere near me.
I will say that it is impossible to ignore the rise in prices on almost anything.
While gas and some foods remain close to previous levels, there is nothing much else that
hasn’t gone up at an alarming rate.
I expect price increases over time, but the rate of increase does give one pause.
This last weekend Advanced Micro Devices signed an agreement with Open AI to develop an above mentioned data center.
The news sent AMD climbing 25%.
That’s nothing compared to Nvidia, but it didn’t hurt my feelings.
It will be further fuel for the NASDAQ.
This is the stuff that makes old investors nervous and young investors ecstatic.
This is what makes markets.
You have all the world events, politics and national debt and wars.
It is hard to keep up with all that is happening and it is way more bad than good.
With all that to worry about, your retirement account continues to rise.
Is this a great or what?
I have always been a believer in great CEOs being a real key to investing.
You don’t have to look far to see what Tesla, Nvidia, Oracle, Apple, Amazon, Alphabet, Facebook and Netflix have in common.
They have great leaders with vision.
It is like rooting for a team with a questionable coach or quarterback.
Can they win, sure, but the odds are stacked against you.
All you have to do is see when you get both right, you can have a run like the Patriots.
The same is absolutely true for business.
I overlooked Oracle, but they have always found a way to compete and prosper under Larry Ellison’s guidance.
I spend most of my time these days trying to find the next great company.
That is always risky as they can have promise and fizzle quickly.
Moreover, will you have the courage to make a big investment?
I was early in on Palantir, but did not put enough in.
I am beyond grateful for the ridiculous increase in value, but I could have hit it out of the park with a little more conviction.
It is why I really look for value in a down market.
You will be provided with proven winners that were taken to the shed with the rest of group.
Not that easy, as all the news is so negative.
Simply saying, there is no easy way to get this done safely and successfully.
You will never know if you don’t try.
The catch is that the wisdom you gain will almost always cost you money.