📈 V-Shaped Reversal or Bull Trap?

Here's what I find interesting:

The market’s reaction wasn’t driven by a major improvement in earnings, economic growth, or interest-rate expectations.

It was driven by the removal of a negative catalyst.

That’s an important distinction.

Bull markets climb because fundamentals improve.

Bear market rallies often occur because bad news becomes less bad.

Every few weeks, we get the same headline:

“AI is in a bubble.”

Then a pullback happens, sentiment turns negative, and investors start calling for the top.

Yet every dip keeps getting bought.

Why?

Because the AI boom is no longer a story.

It’s becoming infrastructure.

Twenty years ago, companies spent heavily to build the internet.

Ten years ago, they spent heavily to build the cloud.

Today, they’re spending hundreds of billions to build AI.

The difference is that we’re still in the early innings.

Data centers are expanding globally.

Power demand is surging.

Chip demand continues to exceed supply.

Hyperscalers are raising capex guidance instead of cutting it.

This doesn’t look like the end of a cycle.

It looks like the beginning of a multi-year investment supercycle.

Many investors are trying to time the next 5% correction.

Meanwhile, the bigger opportunity may be identifying which companies will dominate the next 5 years.

The market keeps focusing on valuation.

The winners focus on scale.

The biggest mistake investors made with Amazon was thinking it was overvalued.

The biggest mistake investors made with Tesla was thinking growth would slow.

I suspect many will make the same mistake with AI.

The trend is clear:

More compute.

More data centers.

More power.

More AI.

Until that changes, I remain structurally bullish.

📈 The question isn’t whether AI stocks can go lower next week.

The question is whether they’ll be significantly higher by 2030.

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