1.Investors are increasingly all-in on stocks
(just as valuations reach new highs 🥴 )
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2.Tech innovation or Financial innovation?
US Profit Margin expansion over the past couple of decades has been driven much more by financial innovation (lower taxes and interest expense) than any kind of technological innovation.
Problem is, while AI might help, it will be hard to repeat this... and if anything some of this might reverse.
$.SPX(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$
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3.Like most, I did not see DeepSeek coming, but what I did see coming (as outlined in the link below) is the huge potential for a big Shock to consensus that expects nothing from China and everything from America.
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