Volatility!

The Lonely Bull predicted an increase in volatility; how do you like it? Even if you don’t take advantage of it, it helps to be mentally braced. The SpaceX IPO coming today has caused a stock market earthquake. A lot of money will be spent on this, and it must come from somewhere. Expect aftershocks. Remember, Anthropic and OpenAI’s IPOs are not far behind, as well as many smaller deals.

These offerings will not stop the advance and rollout of Artificial Intelligence. Companies that are enabling this revolution will continue to benefit. Work on data centers and everything that goes into them is not a stop-and-go endeavor. So, after a period of dislocation and adjustment, the stock market should smooth out. There is still plenty of money around, and the money supply is still growing!

The U.S. economy looks to be in decent shape. The two recent employment reports were very encouraging, but perhaps not for everyone. It is still an economy of haves and have-nots. However, this has been true for some time now. So, nothing new here. Stay patient and stay steady my friends.

-The Lonely Bull