The circular AI economy...
$AMD giving OpenAI 10% of its stock (worth roughly $35bn pre-market) so OpenAI can buy 6 GW of AMD chips over the next few years. Stock up +27%. Source: Wasteland Capital @ecommerceshares
How much of the S&P 500 is AI related stocks?
JP Morgan has identified 41 "AI-Related" stocks. As this chart shows, they are now 45% of the S&P 500. Source: Bianco Research
The S&P 500 is up more than 100% since 2020
But the index is actually down 88% when priced in a hard asset like bitcoin. Source: Anthony Pompliano 🌪@APompliano (H/t @philrosenn)
It's liquidity stupid!
Strong M2 growth in China, and to a smaller extent Brazil and India, add to the ongoing expansion of M2 in the United States and in Europe. Our Global M2 proxy continues to point to a broadly supportive liquidity environment for risk assets. The S&P 500 continues to follow the evolution of our Global M2 proxy with an 11-week lag. Bitcoin has desynchronized from our Global M2 proxy since mid-August but bounced up strongly last week. Will it catch up our Global M2 proxy (and rise toward 140k)? NB: liquidity is one risk assets driver among others. Past results do not guarantee future results
It seems that Russell 2000 small & mid caps ETF $IWM is joining the breakout party...
Source: Trend Spider
Foreign holdings of US equities have crossed above $20 trillion, a record high.
30% of the total US stock market is now held by foreign investors, the highest percentage on record with data going back to 1945. Source: Charlie Bilello, Bloomberg
What moves stock prices:
Source: Brian Feroldi
US technology stocks now account for a record 56% of total US stock market cap.
At the same time, defensive stocks make up just 16%, AN ALL-TIME LOW. This has NEVER happened. Source: Global Markets Investor, Topdown charts
