Interesting point by Barclays on AI stocks
Source: Barclays
Based on earnings yield, Brazilian equities have never been cheaper relative to US stocks.
Source: Bloomberg, Tavi Costa
Here's the outperformance (vs. S&P 500) of a pure play Trump index created by Alpine Macro.
It owns DJTA, Bitcoin, Tesla and GEO equally-weighted
🚨BREAKING: Bitcoin surpasses the Great British Pound (GBT) to become the 5th largest currency in the world 🌎!
Source: BrianDeMint
Feast on Small Caps?
The "Thanksgiving/Santa Claus rally trade" starts next Tuesday. Based on historical data, the S&P 500 up 79.73% of times since 1950. Average return is 2.58%. Since 19790, the Russell 2,000 is up 77.78% of times during this period, with an average return of 3.34%. We are supposed to enter the 3 months of the year: Santa Claus Rally + January effect. Source: Jeffrey A. Hirsch @AlmanacTrader
As highlighted by Andrea Lisi, CFA on X, market participants and policymakers have not fully understood the heavy toll artificial intelligence will take on our Electrical grid.
As shown on the chart below, a single Google search query typically uses about 0.3 watt-hours (Wh) of electricity. On the other hand, each ChatGPT query is estimated to consume around 2.9 watt-hours of electricity, which means 9.66 times more energy than a Google query! To run AI at scale, both the private and public sectors will have to invest a significant amount of money to strengthen the electricity grid.
As a reminder... From April to October 2018, the US announced tariffs on half of all imports from China at 25%.
The Yuan fell 10% in an almost full offset. Turkey and Argentina had their own crises at the time and were blowing up constantly. But all of EM got hammered. Brazil was down 11%... History doesn't repeat but often rhymes... Source: Robin Brook, Bloomberg
Inflation expectations have diverged from crude oil prices.
Source: The Daily Shot
