This is a significant difference compared to dot com era. The big companies are not cyclical companies, a la XOM, they have strong earnings, and their earnings are accelerating. $NVDA TTM profit is $85 B, $MSFT is over $100 B, $AMZN $75 B (this is somewhat suppressed), $GOOGL, $115 B…
We don’t know how long this rally will continue.. as I said in LL post, it may not be AI but the credit bubble elsewhere could bring down this stock market rally.
US tariffs are causing significant strain on global economy.
Gold is up 30% in the last 2 months. It is moving up 1% 1.5% every day. It is finding unrelenting bid. The challenge is whether/ when to take profit or let it run. I took profits in SLV last friday and it is already up 8%. Now, imagine if the stock market rallies for another 2 years and 100%…
I have already moved away from direct AI names, except one stock, I am pretty much out of mag 7 names except some minor core position. But, I know that is a wrong decision and I am paying in performance. Without AI and to large extent tech, my trading account is up 37%, but I cannot shake the feeling, what if I instead of closing my $NVDA position on deepseek, I turned around and bought more $NVDA?
Bubbles are the time to make money and not the time to run away. The beach will be there when the market crashes… 