Syz the moment

OpenAI is currently raising funds at a $29 billion valuation and is allowing employees along with early investors to sell their shares at that valuation. Microsoft has already invested $1bn into the company in 2019 and is now looking to invest another $10B into OpenAI. Microsoft would receive 75% of OpenAI’s income until it has recovered its initial investment. Once they hit that threshold, they would have a 49% stake in OpenAI, with other investors taking another 49% and OpenAI's nonprofit parent getting 2%. Open AI are expected to generate ~1 Billion in revenue in 2024. Source: Finimize Image: The first day of OpenAI, 7 years ago (by Sam Altman)

US is punching well above its weight, Ruchir Sharma says. US stock market value has reached 60% of global total, which is 15% higher than its long-term average. But the US real footprint much smaller: ~50% of corpate earnings, 25% of world GDP, 1/5th of listed companies and 4% of global population. Source: FT, HolgerZ

The dollar continued sliding today, now at its lowest since June 2022 (and a death cross is looming). Source: Bloomberg, www.zerohedge.com

Historically, the ERP (Equity Risk Premium) rises materially when a recession arises. So don't assume it is priced. Source: Morgan Stanley

HYG ETF attracted $1.7 billion of inflows amid cross-asset rally Source: Bloomberg

Using Earnings Yield minus 2-year Bond Yield, Japan equities are massively undervalued vs. the US. Yet Japan is under-owned by international investors and under-represented in the World equity index. Source chart: Jeff Weniger

According to Goldman's prime book, the crowd has been very busy loading up on Chinese equities and selling US stocks (mainly driven by short sales). Meanwhile, the CSI 300 extended the move higher this morning, closing at the highest levels since mid September. On a side not, the Kraneshares China ETF (KWEB) is up approx 100% from October lows... Source: GS, Bloomberg, The Market Ear

Source: chartbear