CPU vs. GPU: The Changing Semiconductor Landscape
Since the start of the year, the Philadelphia Semiconductor Sector Index (SOXX) is up 33% compared with the broader market, which is up only 4%. The primary rationale for the significant outperformance appears to be the insatiable demand for AI […]
The Confidence Gap: Noise Or Omen?
As shown in the graph below, the University of Michigan’s consumer sentiment gauges tells us that consumer confidence is now the worst its been since the survey began in 1952. Despite the confidence gauges being lower than during peak Covid […]
Allbirds: Hustling AI To Boost Its Shares
Allbirds, the sustainable sneaker company, has recently fallen on hard times, with revenue down by more than 50% from its peak. To help right the ship, Allbirds is rebranding itself as NewBird AI. Allbirds closed all of its U.S. stores […]
The Market Knew And Proved It Again
On Monday, our Commentary, The Market Knows What You Don’t, shared an important lesson about how markets function. The message was timely, as fear and volatility over the prior few weeks had caused great anxiety among many investors. We wrote […]
Is The Iran War Good For The Petrodollar?
Diana Choyleva wrote an excellent editorial for the Wall Street Journal entitled “The Iran War Is A Boon For The Petrodollar.” She pushes back against claims that the Iran conflict is accelerating the death of the petrodollar. Instead, she argues […]
Stable Coins Versus Banks: The Battle Over Interest Rates
A battle is raging in the Halls of Congress between the banks and the crypto industry. The spark was a judgment by the White House’s Council of Economic Advisers, which recommended that stablecoins be allowed to pay interest to their […]
The Market Knows What You Don’t
A client and friend asked us a timely question: “Why did we remove our hedge position so quickly after the ceasefire, especially with little evidence it will hold?” The simple answer is the market knows more than all of us. […]
Delta Has An Ace In The Hole
On Wednesday, Delta Airlines announced it beat earnings expectations and, more importantly, its CEO maintained previous forward guidance despite the sharp increase in jet fuel prices. Delta CEO Ed Bastian cited a $2 billion quarterly fuel headwind caused by the […]
Ceasefire Rally: Can The Market Hold New Support
Upon hearing of the ceasefire, oil prices plummeted by nearly 20%, and the stock market surged. In doing so, the S&P 500 broke well above resistance. Accordingly, the old resistance of the 200-day moving average (DMA) now becomes support. While […]