To The Moon

Oil breaks off ... more than $100

Tech sold off. Meanwhile: PG +5.58% KO +2.87% LLY +2.83% WMT +2.82% COST +1.99% BRK.B +1.32% At first glance, the message looks obvious: AI out. Defensives in. I think that interpretation is too simple. The market is not suddenly abandoning technology to buy toothpaste, Coke and supermarkets. It may be doing something much more important: changing the price it is willing to pay for uncertainty. And that could affect how I position for the rest of 2026. 🔵 WHAT ACTUALLY CHANGED? For much of the AI rally, investors rewarded companies for what their earnings could become. AI infrastructure spending accelerated. Revenue expectations exploded. Multiples expanded. Future cash flows were pulled forward into today's stock prices. That works beautifully while expectations keep rising. But once valua

The market: technology shares, oil and Treasuries pointed in three directions The $NASDAQ(.IXIC)$ fell 2.60 per cent to 26,009 on Thursday, the $Invesco QQQ(QQQ)$ lost 2.86 per cent to US$704.47, and the $S&P 500(.SPX)$ declined 1.21 per cent to 7,663.43. Technology carried most of the damage: $Meta Platforms, Inc.(META)$ fell 6.98 per cent, $NVIDIA(NVDA)$ 4.40 per cent, $Advanced Micro Devices(AMD)$ 8.10 per cent,

For months, the market has rewarded growth, AI ambitions and future earnings. Now, investors appear to be asking a different question: Who is actually generating the cash? As technology stocks come under pressure, defensive names are attracting attention. Procter & Gamble gained 5.58%, Coca-Cola rose 2.87%, Eli Lilly advanced 2.83%, Walmart climbed 2.82%, Costco added 1.99%, and Berkshire Hathaway gained 1.32%. The rotation suggests that investors may be reconsidering how much they are willing to pay for future growth when economic uncertainty increases. And one name stands out: Berkshire Hathaway. With approximately $360 billion in cash and short-term Treasury holdings, Warren Buffett’s company has the financial flexibility to weather market volatility and potentially take advantage o

When the market gets nervous, investors often stop chasing growth and start asking a different question: Which companies can keep making money when conditions get tougher? That question is becoming increasingly important as technology stocks face selling pressure and investors rotate towards defensive businesses. Recent gains in Procter & Gamble, Coca-Cola, Eli Lilly, Walmart and Costco suggest that some investors are seeking earnings stability. Berkshire Hathaway has also attracted attention, supported by its substantial cash reserves and ability to act when opportunities arise. But is this the beginning of a genuine shift in market leadership? 🔎 1. Why Cash Flow Matters More Now For much of the AI rally, investors were willing to pay premium valuations for companies expected to benef

One defensive rally does not make a regime change. For me, confirmation would require persistence, breadth and fundamentals. I would want to see defensives outperform tech for several weeks, not just during sharp risk-off sessions. More importantly, PG, KO, LLY, WMT and Berkshire should continue showing relative strength even when the broader market rebounds. That would suggest investors are deliberately reallocating capital rather than temporarily hiding from volatility. Earnings also matter. If defensive companies deliver resilient earnings and guidance while highly valued AI names face slowing growth or further multiple compression, the rotation has a fundamental reason to continue. Berkshire is worth watching as a signal too. If its huge cash pile continues moving into buybacks, acquis

Tech sold off. Meanwhile: PG +5.58% KO +2.87% LLY +2.83% WMT +2.82% COST +1.99% BRK.B +1.32% At first glance, the message looks obvious: AI out. Defensives in. I think that interpretation is too simple. The market is not suddenly abandoning technology to buy toothpaste, Coke and supermarkets. It may be doing something much more important: changing the price it is willing to pay for uncertainty. And that could affect how I position for the rest of 2026. 🔵 WHAT ACTUALLY CHANGED? For much of the AI rally, investors rewarded companies for what their earnings could become. AI infrastructure spending accelerated. Revenue expectations exploded. Multiples expanded. Future cash flows were pulled forward into today's stock prices. That works beautifully while expectations keep rising. But once valua

The market: technology shares, oil and Treasuries pointed in three directions The $NASDAQ(.IXIC)$ fell 2.60 per cent to 26,009 on Thursday, the $Invesco QQQ(QQQ)$ lost 2.86 per cent to US$704.47, and the $S&P 500(.SPX)$ declined 1.21 per cent to 7,663.43. Technology carried most of the damage: $Meta Platforms, Inc.(META)$ fell 6.98 per cent, $NVIDIA(NVDA)$ 4.40 per cent, $Advanced Micro Devices(AMD)$ 8.10 per cent,

For months, the market has rewarded growth, AI ambitions and future earnings. Now, investors appear to be asking a different question: Who is actually generating the cash? As technology stocks come under pressure, defensive names are attracting attention. Procter & Gamble gained 5.58%, Coca-Cola rose 2.87%, Eli Lilly advanced 2.83%, Walmart climbed 2.82%, Costco added 1.99%, and Berkshire Hathaway gained 1.32%. The rotation suggests that investors may be reconsidering how much they are willing to pay for future growth when economic uncertainty increases. And one name stands out: Berkshire Hathaway. With approximately $360 billion in cash and short-term Treasury holdings, Warren Buffett’s company has the financial flexibility to weather market volatility and potentially take advantage o

When the market gets nervous, investors often stop chasing growth and start asking a different question: Which companies can keep making money when conditions get tougher? That question is becoming increasingly important as technology stocks face selling pressure and investors rotate towards defensive businesses. Recent gains in Procter & Gamble, Coca-Cola, Eli Lilly, Walmart and Costco suggest that some investors are seeking earnings stability. Berkshire Hathaway has also attracted attention, supported by its substantial cash reserves and ability to act when opportunities arise. But is this the beginning of a genuine shift in market leadership? 🔎 1. Why Cash Flow Matters More Now For much of the AI rally, investors were willing to pay premium valuations for companies expected to benef

One defensive rally does not make a regime change. For me, confirmation would require persistence, breadth and fundamentals. I would want to see defensives outperform tech for several weeks, not just during sharp risk-off sessions. More importantly, PG, KO, LLY, WMT and Berkshire should continue showing relative strength even when the broader market rebounds. That would suggest investors are deliberately reallocating capital rather than temporarily hiding from volatility. Earnings also matter. If defensive companies deliver resilient earnings and guidance while highly valued AI names face slowing growth or further multiple compression, the rotation has a fundamental reason to continue. Berkshire is worth watching as a signal too. If its huge cash pile continues moving into buybacks, acquis

Oil breaks off ... more than $100