Last week, Enrique Abeyta warned that OpenAI reminds him of Enron from the dot com boom/bust. This week, Nvidia announced a $100B “investment” into OpenAI which will then be used to buy Nvidia chips. This is the exact kind of accounting shenanigans that Enrique warned about. He’ll be guest hosting the video version of The … Read more
Last year, there was a lot of reasonable speculation that Cisco $CSCO from a quarter-century ago was analogous to Nvidia $NVDA now. The thinking was that Cisco was selling the hardware that new internet companies needed. (That was analogous to selling the picks and shovels to gold miners more than 100 years earlier.) When the … Read more
The big news of the week was the Fed doing exactly what we all expected they’d do; cut the fed funds rate into inflation 50% above the made-up 2% target. Did anyone else catch Chairman Powell accidentally agreeing with President Trump? Gemni has its IPO and the Nasdaq invests. Did anyone expect the crypto markets … Read more
MannKind is acquiring DKI portfolio position scPharmaceuticals ($SCPH) for $5.35/share in cash and a contingent value right worth up to $1.00. It’s the second medical device acquisition from the DKI portfolio in the past two years and the third acquisition premium in four years. Steel prices fall as US suppliers increase capacity. Just a couple … Read more
This week, we got a lower-than-expected CPI. Hooray, the Fed will cut! Then, we got a higher-than-expected PPI. Oh no, the Fed can’t cut! There’s some evidence that tariffs are raising prices for now, but not nearly as bad as the fiat economist threatened. The US puts a 15% tariff on $NVDA and $AMD chip … Read more
The US and the EU reached a trade deal that was a one-sided adjustment in favor of the US. Somehow, reporters keep failing to mention the continent’s previous trade barriers against the US and the resulting large trade deficit. The Fed stays on “pause” an unpopular move, but I agree with them, or at least … Read more
The consumer price index rises for the second straight month, but that’s primarily due to shelter prices which have been rising since 2020. Fiat economists are now saying we’ll see tariff-based inflation starting in October. They might be right, but we’re noticing the constant shifting of the goalposts in their doom predictions. Nvidia wins approval … Read more
We have a lot of technology-related news this week. Hewlett Packard Enterprise partners with Nvidia to make high-end AI servers and further cement Nvidia’s position as the entrenched market leader. Peter Thiel invests $200MM in Polymarket. These prediction markets/betting platforms not only provide people an opportunity to bet on economic or political events; but also, … Read more
Maybe we should have called this The Energy Issue. President Trump is trying to cut through decades of red tape by building nuclear reactors on military bases. If you want to electrify everything and have AI datacenters without more carbon-based energy, nuclear is the only option. Do you own enough uranium? 90% of US companies … Read more
The new CPI was a win for the disinflation crowd as the all-items inflation metric falls to 2.3%. On the other hand, we’ve been above the 2% target for 50 straight months, and I think the target is 2% too high. The market celebrated a temporary tariff truce with China as both sides agree to … Read more
