Welcome Avatar! Looks like all possible forces to send markets down are working at once. We have the following: 1) Rates going back up and remaining high with the 10-year at 5%, 2) Mortgage rates have finally caught up to the mess and are at 7.5%, 3) AI trade has been cooked since June 28-30 as we flagged numerous times. With Jensen out it makes the problems 10x worse as he was the figure head for the circular deals. 3:3 for GPUs, 4) Stocks are coming down as consumer spending hasn’t been particularly amazing and inflation is eating into the paychecks with CPI at 4% and 5) debt on hyperscalers/data centers are in the double digits and we’re in full correction mode at this point.
This is largely as expected from what we’ve written for the past few months, that said, Jensen firing + the Binance hack have added another 2 negative catalysts that were unpredictable. Which means? Time to make some moves.