Market Milestones: AI Overlords

As a market analyst, it is part of the job to predict what may play out in the future based on the current signals and happenings of the day. Well, let’s get started. The year is 2037, two years after the singularity, and our AI overlords have subjugated all life on Earth as well as Elon and his family on Mars. We’re now relegated to watching 15 hours of TikTok per day—a fate worse than becoming a battery in a goo pod, or as some might call it, an average day for an American in 2024. Optimus and Atlas robots are foot soldiers in the war to control the planet's energy and bitcoin mining operations.

The only way for humans to move around safely is in their bulletproof Cybertrucks. Despite being in Beta FSD for the last 15 years, Elon assures us they’ll be fully self-driving before the year is up. The only real reason to leave the house is to be the first to get the newest iPhone, which is released every other Monday, boasting cutting-edge technology for the next thirteen whole days. For those glorious thirteen days, one can revel in the new and improved Siri, who is now smarter than the collective human species, a 12-lens, 452-megapixel camera, and a new adamantium exterior.

NVDA, MSFT, AAPL, TSLA, AMZN, FB, GOOGL, LLY, TSM and COST are the only publicly traded companies left on Earth after they either absorbed or annihilated the competition. All have reached orders of magnitude higher than even Cathie Wood and her dream team could have projected. Bitcoin is now Earths reserve currency, and the only currency accepted by the AI overloads. Doge is often used on the black market and is the official currency of the Martian colony, aka the Musks.  

The upshot of it all? Costco is selling hotdogs for just 0.5 Satoshis, so, that’s pretty cool. Also, all the investors in the remaining Earth companies can easily afford their bi-weekly iPhone by selling covered calls and using the knowledge they gained from Real Life Trading.

Back in the year 2024, AAPL, NVDA and MSFT all had massive weeks with NVDA moving a cool 8% after their 10:1 stock split. What is curious about this market is that the majority of stocks are not doing too hot. Less than ½ of the stocks in the S&P 500 and in the Nasdaq are above their 50DSMA and this number has been trending lower all year long. However, a handful of tech giants and semiconductors continue their immense outperformance and that is all it takes to regularly push the SPY and QQQ to new all-time highs.  If AAPL, NVDA, MSFT, META, AMZN, GOOGL are all making all-time highs on a weekly basis, this market will continue to make all-time highs right along with them.

This week we saw that CPI is once again trending lower, which further bolstered the bullish sentiment that already permeated the markets. Jerome Powell came out and tried to put the kibosh on everyone’s bullish fun, but NVDA and AAPL were having none of that nonsense. The Fed is planning on cutting rates one time in November, but I think that the cut will come earlier, likely in September. There will be strong political pressure to cut rates and ease the monetary policy just ahead of the election. Despite the Feds single cut dot plot, the market as well as Goldman Sachs, thinks that two cuts are still on the horizon in 2024. After all, when has the Fed ever kept their word?