There is a record $8.19 trillion in money market funds right now.
Source: KoyfinCharts
⚠️ The AI gold rush has a hidden cost… and Big Tech is footing the bill.
Here’s the reality no one wants to say out loud: • Big Tech free cash flow peaked at ~$300B in 2024 • By 2026… it’s heading toward ZERO Why? Because AI isn’t just innovation… it’s a capital black hole. → ~$715B in capex (2026) → +70% YoY increase → Nearly ALL cash flow consumed Margins are collapsing fast: • Microsoft → ~16% • Meta → ~3% • Alphabet → ~0% • Amazon → ~-2% So what’s happening behind the scenes? They’re borrowing. Aggressively. • ~$175B in new debt expected in 2026 • Buybacks slowing across the board • Key equity support disappearing Translation: The AI boom isn’t being funded by profits… It’s being funded by leverage. And that changes everything. Less cash flow + more debt + fewer buybacks = ⚠️ Fragile market structure The uncomfortable truth: AI may define the future… But it’s draining the present. And the bill is just getting started. Source: Global Markets Investor, JPM, Bloomberg
The Rise of Alphabet
Source: The Market Mind
THE G.O.A.T...
Source: Stocks World
Google portfolio
Source: Stocks World
Hedge funds have rarely been this underweight North American stocks:
Hedge funds sold North American stocks for 3 consecutive weeks despite 3 consecutive weeks of S&P 500 all-time highs. This has pushed their allocation to North American equities down to the lowest on record relative to the MSCI All World Index, according to Goldman Sachs. At the same time, their allocation to Emerging Markets is up to an all-time high. What is happening here? Source: Global Markets Investor, Goldman Sachs
The US economy is picking up, corporate earnings are picking up, and investor sentiment is picking up. The headwind? Oil prices are picking up, too.
But so far, US sticks continue to shrug off higher oil prices. On Monday, Deferred Brent (Dec 2026) - see below black line (inverted) - hit a new Iran war high. The S&P 500 (green line) has been moving up for 5 weeks in a row and was only down -0.4%. Source: zerohedge
South Korean stocks have more than tripled over the last 16 months, trouncing every other country.
Source: Charlie Bilello
