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
Major divergence spotted:
The VIX has been trending higher since mid-May. But even the SP500 has been moving higher. This is an anomaly. Source: Game of Trades
Amazon enters elite $2tn club as AI optimism fuels rally.
Amazon up ~27% this year, driven by improving growth trends as AI re-accelerates its cloud-computing business. The milestone puts Amazon into an exclusive club of comps worth $2tn or more: Alphabet crossed the level in April, while Nvidia, Microsoft, and Apple are all worth north of $3tn. (via BBG)
