Moonshot AI Raises Red Flags In The AI Industry
Moonshot AI, a Chinese company, just released AI model Kimi K3. Kimi K3 is a 2.8 trillion-parameter open-source AI model that the company claims is the largest ever built. With Kimi K3, Moonshot AI believes it can compete with Claude […]
The Deficit Spending Problem With A Non-Political Fix
The national deficit debate usually focuses on entitlement and defense spending. While they have merit, they miss the single largest driver of America’s deteriorating fiscal picture. After the pandemic-related deficits, the cost of borrowing itself, not spending, has been the […]
Inflation Will Be A Thing Of The Past- Kevin Warsh
Kevin Warsh delivered his first semiannual testimony to Congress earlier this week. In it, he used every opportunity to stress the urgency of returning inflation to the Fed’s 2% target. To wit, he stated, “Inflation will be a thing of […]
Why Are BDCs Ignoring Junk Bonds?
A reader recently asked us: “Why are BDCs diverging from corporate junk bonds?” To his point, the graph below shows the ICE BOA index of BB and B yield spreads to Treasuries are at or near 30-year lows. At the […]
IBM Stunned Investors: Reveals Industry Capex Reprioritization
Coming in on Tuesday morning, investors were expecting to sift through earnings from the largest banks and the CPI data. Instead, IBM stunned investors by pre-releasing its earnings 8 days in advance. Its earnings were much weaker than expected, with […]
The KOSPI Bubble
Semiconductor chip companies have been benefiting from strong momentum and a powerful narrative. For instance, memory chip producers like Micron, AMD, and Intel have risen by 192%, 138%, and 166%, respectively, year to date. While they provided a nice boost […]
US Energy Efficiency: We Have Come A Long Way
The graph below paints a very interesting picture of US energy efficiency and a key structural economic change in this country. For roughly 25 years after WWII, the US economy’s crude oil consumption nearly tripled. Feeding the growth were a […]
The Feds Ambiguous Guidance
The FOMC released the minutes from Chair Warsh’s first meeting on Wednesday, and the best word to describe the Fed’s advice is “ambiguous.” Merriam-Webster defines ambiguous as a state or, in this case, a statement that allows for more than […]
The Low VIX Hides Fierce Undercurrents
Goldman Sachs’s volatility desk made the following comment: “With the VIX back to its lowest levels in more than a month, our Vol desk is focused on hedging opportunities as 1-month S&P implied correlation is near its lowest level in […]