SPDR gold ETF $GLD went crazy yesterday, seeing $12.5b in volume, easily most in decade
(for context that's more than most of the Mag 7 traded). Only other time it's been that high was in 2013 during the Greek debt crisis h/t @Todd_Sohn Source: Eric Balchunas, Bloomberg
It's not just a stock bubble: AI is also now the largest sector in investment grade credit.
According to JP Morgan, AI-related companies now make up around 14% of the entire investment-grade debt market, with over $1.2 trillion in outstanding debt. It shows just how massive and expensive the AI buildout has become. These companies are financing data centers, semiconductor plants, and cloud infrastructure at a pace we haven’t seen in years. Much of the AI revolution is being funded by the debt markets. Every new data center, chip fab, and GPU cluster requires capital. It’s not just Big Tech spending cash reserves, the entire credit market is fueling AI growth. Source: JP Morgan, StockMarket.news
Same same... Below is a 30 min chart of the Nasdaq index and gold since September....
Stocks and gold have moved in close tandem over the past weeks when the last squeeze started. Slightly illogical given the fact gold is, at least partly, a fear hedge. It could be that the same short term money is just chasing momentum, irrespective of "logic". Source: The Market Ear
StockMarket.news: "AI isn’t cheap... By 2030, the world will need $2 trillion in revenue just to fund new data centers.
Even after AI-related cost savings, an $800 billion gap remains meaning $500 billion in annual capex just to keep building the infrastructure powering the AI boom. Can Big Tech and private equity afford to sustain this level of funding by 2030?" Source: StockMarket.news
Quote by Steve Jobs
Source: UpSkillYourLife @UpSkillYourLife
As pointed out by Wall St Mav, Rare earth metals are NOT rare. Plenty of sources around the world.
95% of the refineries and smelters that process raw ore are in China. Even if rare earths are mined in USA, it all needs to be shipped to China. Issue is that trying to build a smelter in the USA or Europe seems impossible these days. The environment litigation would take years. Hence the scarcity issue. Source: CNBC, Wall St Mav
The S&P500 is now up 71% and has hit 88 all-time highs since Michael Burry said ‘Sell.’
Source: Peter Mallouk
When geopolitical & socio-economic tensions rise, both people & nations turn to hard assets.
One big buyer in particular has been Beijing. China has been swapping Treasuries for gold for years, lifting reserves to over 74m ounces. 👉 This is a reflection of both state policy and popular sentiment: hedging against dollar risk, sanctions, and China’s own shaky property and stock markets. Source: Chamath Palihapitiya @chamath, Steno Research, Bloomberg
