Market Memo

Yeah last week was a huge reality check. Another huge selloff across tech and semiconductors really showed wall street that they have to calm down. Nasdaq went down 5 percent(worst week since June by the way). Investors are finally starting to question the high valuation and the debt financing going on for AI infra. Capital shifted a lot back to the traditional areas and out of big tech. Outside of tech, crude oil surged to $101(very expensive) amid the continuing geopolitical issues in Russia and the middle east. Even with the inflation, treasury yields went down from 5.24% to 5.09%, showing how even with this inflationary economy, investors are still looking to play it safe. If you ask me, this all points to the crash I have been talking about after election day. There are huge races coming up, and with the way they are shaping up, we could see a lot more restrictions on AI development and infrastructure. If that happens, the cycle of debt within companies like OpenAi and Nvidia could cause the market, which has been riding on AI for like a good 3 months now, to finally crash, and crash hard. I would honestly suggest shifting to healthcare and long term investments, because we could see a lot of volatility in the upcoming weeks. See you later!