What would a far-right or left-wing government mean for France’s economy?
Source: FT
Is diversification a thing of the past? The sp500 has significantly beaten money managers who diversify investments globally in 13 of the last 15 years
The only 2 years where diversification worked over this period were 2012 and 2023. Such a streak has never happened before. During the 15-year timeframe, the largest outperformance by the S&P 500 occurred in 2015, by nearly 30%. Meanwhile, the S&P 500's return has exceeded global investment assets by 15% year-to-date. Source: The Kobeissi Letter, Bloomberg
⚠️ JUST IN: *DELL, NVIDIA AND SMCI COLLABORATE TO POWER ELON MUSK'S GROK AI FACTORY
$SMCI and $NVDA, rose over 4% in overnight trading after Elon Musk says they are working on AI supercomputer for xAI. $DELL has announced a partnership with hashtag#NVIDIA to construct an AI Factory designed to boost the capabilities of Grok, an AI model developed by Elon Musk's company, xAI. Source: www.investing.com, www.msn.com
The first “grand illusion” of investments is market timing
Source: naiive meme
The SNB has lowered its key rate again today, to 1.25%, after the previous 25bp cut decided in March
The view by our Chief Economist Adrien Pichoud: • Going forward, we believe that the SNB is now done with the recalibration of its monetary policy and that it shouldn’t cut rate further this year. • Swiss monetary policy can now be deemed as “neutral” for inflation and economic activity, as the real short term rate is close to 0% (actually just below with a cash rate of 1.25% and an inflation rate of 1.4%). • Provided growth remains on a gradual upward trend toward potential in 2025 (1.5%) and there is no unexpected development on the inflation front, there will be no reason for the SNB to lower further the CHF short term rate. • Should European or global developments trigger volatility and upward pressures on the CHF, we believe the SNB would rather resort to interventions on the FX market to manage the impact on the economy, rather than use the interest rate lever.
Is AI taking jobs away from Software Developers? 🤔
Source: Barchart
For nearly a decade, this group traded in a very narrow price-to-sales range, but it's different this time???
Source: Lawrence McDonald, Bloomberg
The market cap of technology stocks as a percentage of the S&P 500 just hit a record 44%
This percentage is now ~12% higher than after the 2000 Dot-com bubble peak of 32%. Over the last 10 years, this share has more than DOUBLED. Also, since 2014 Nasdaq 100 has added 426% compared to a 182% gain in the S&P 500. Are tech stocks set to account for the majority of the S&P 500? Source: The Kobeissi Letter
