Is Nvidia suffering from SUCCESS?
Apparently a bunch of senior NVIDIA engineers are retiring early after they became multi-millionaires off of their $NVDA stock options. What a time! Source: Jesse Cohen
American excess savings reached $2.1 trillion in 2021, but they ran dry months ago.
The pandemic savings cushions that helped Americans weather high prices in recent years have worn through, contributing to a loss of consumer firepower that’s rippling through the economy. Delinquencies are rising. Executives are flagging caution among shoppers in recent earnings calls, and retail sales barely increased in May after falling the month prior. Economists forecast solid inflation-adjusted consumer spending in data out Friday, helped by lower gasoline prices, but that would follow an outright decline in April. Source: Bloomberg, Lisa Abramowitz
AI is eating software development
Source: FRED, GBR LLC on X
% Increase over the last 5 years...
US Money Supply (M2): +42% Average US New Home Price: +44% "Inflation is always and everywhere a monetary phenomenon." - Milton Friedman Source: Charlie Bilello
Electricity consumption has skyrocketed, and this is just the beginning.
As highlighted by Otavio (Tavi) Costa, the surge in electric cars, electric heating, and new AI advancements is dramatically increasing our electricity needs. Among the questions raised? 1) Is the global economy prepared for these changes? 2) Could AI be inflationary in the short run and deflationary in the long run? The extensive infrastructure necessary to harness AI requires hardware expansion, while commodities (particularly metals) remain historically constrained. Source: Crescat Capital, Bloomberg
Wondering why the US stockmarket is eating the world?
Here's a visualisation of the digital trade divide... Markets & Mayhem
US equity markets have never been more expensive than the rest of the world on a price to book basis.
Source: Tavi Costa, Bloomberg
Japan's Yen weakens beyond 160 per Dollar, the weakest level since 1986.
Source: Bloomberg, HolgerZ
