🍔Fed Meddling Will Drive The Next Bubble

Will the AI bubble burst? Or is the rally broadening out?

SPX ended flat on the week; after a strong start with momentum carrying over from last week, it gave up gains on Friday due to news that Alibaba (the Amazon of China) is developing a homegrown chip to replace Nvidia. We have been noticing cracks starting to form in the AI thesis and a risk that the AI bubble could burst. Our post today will discuss this in depth.

In other news, Trump is firing Fed Governor Lisa Cook. The loss of Fed independence is an important development to monitor because it gives control of monetary and fiscal policy to the White House. Instead of being a credit risk, we think this could potentially drive an asset bubble of epic proportions. Read on as we explain our thinking.

And finally, our breadth signals are firing left and right! The rally appears to be broadening out to other sectors of the market. Our portfolio is positioned well to benefit from this momentum. Let’s get into it…

The rest of this article is for premium members. Today’s post covers:

• Fed meddling will create a stock market bubble

• Economic recovery continues

• Nvidia earnings and maturing AI capex

• When will the AI bubble burst?

• Our current portfolio