My Investing Muse (08Jun2026)
Layoffs, closures and Delinquencies
US-based technology employers announced 38,242 job cuts in May, the highest monthly total since August 2024, according to Challenger Gray data. Year-to-date, tech sector job cuts rose +66% YoY, to 123,653, the highest among all sectors, and 3x larger than transportation, the next closest sector. AI was the most cited reason for job cuts for the 3rd consecutive month, with 38,579 cuts attributed to AI in May alone, the highest since Challenger began tracking in 2023. This accounts for 40% of all layoffs announced last month, up from just 7% in January. Year-to-date, AI has been cited in 87,714 job cuts in 2026, or 22% of the total, already surpassing the 54,836 recorded in all of 2025 and 12,742 in 2024. AI continues to reshape the labour market. - X user The Kobeissi Letter
Maeve Aerospace, a Netherlands-based hybrid-electric airplane developer that was initially treated like a dream child with the potential to take aviation into a new and more sustainable direction, was declared insolvent by a Dutch court at the start of June after failing to meet a €20 million funding round. On June 3, Bournemouth-based cargo carrier European Cargo Limited was also declared insolvent by a British court. - The Street
My thoughts on …
Geopolitical and Supply Risks
The Gulf conflict remains under a fragile ceasefire—supported more by words than by actions. Tensions appear likely to persist, and with oil prices moving toward $100 a barrel, the risk of renewed inflationary pressure is rising. The region is a key exporter of crude oil, LNG, helium, fertilizers, and other critical commodities, so any disruption could affect both supply and global supply chains.
Market Reaction and Key Risks
Last Friday’s selloff was one of the sharpest on record, and APAC markets could face similar pressure. While some investors are attributing the move to weakness in hyperscalers and the broader AI trade, others are watching the bond market closely. Another important factor is the yen carry trade, where investment returns may no longer justify the cost of borrowed funding.
Inflation and Policy Outlook
Still, a single day does not establish a trend. If the weakness extends over several sessions, market volatility could increase further. Upcoming CPI data will be especially important, as inflation may be moving back toward levels that could prompt the Federal Reserve to consider further rate hikes rather than cuts. Although the Fed leadership has taken a hawkish tone, a broader consensus among policymakers would still be needed to shift the rate outlook. With both CPI and PPI forecasts pointing to firmer inflation, markets may remain volatile in the weeks ahead.
Financial Strategy and Outlook
Let us spend within our means, invest only what we can afford to lose, and avoid leverage. Let us review our current holdings and divest from businesses losing their competitive advantages. Additionally, I will consider adding both hedging strategies and defensive positions to our portfolio to mitigate risk.
As we move forward, it is crucial to conduct thorough due diligence before assuming any new responsibilities.
Wishing everyone a successful week ahead.
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