This is exactly what many already knew. The funny part is knowing something and admitting what it means are two different things on Wall Street. Inflation too high? Everybody knows. Oil and war making it worse? Everybody knows. Labour market resilient? Everybody knows. So the Fed has room to fight inflation instead of rushing to rescue asset prices.

And yet: “Yeah, but when cuts?” 😂 My friend, the Fed just HIKE. Not cut. HIKE. The assumption of cheaper money has met an inconvenient reality: inflation remains a problem, the economy can tolerate tighter policy, and the Fed is showing inflation comes first.

This doesn't mean “Fed hikes, stocks crash tomorrow.” The point is simpler: the price of money matters. Yields matter. Valuation matters. When safer assets offer meaningful returns, paying extraordinary prices today for profits years away requires extraordinary results tomorrow.

And “AI is real” doesn't answer valuation. Of course AI is real lah. Nobody said ChatGPT imaginary. 😂 The question is HOW MUCH ARE YOU PAYING? Great technology ≠ great stock at every price. A company can deliver fantastic growth and investors can still get lousy returns if the price already assumes perfection.

But anything got AI now also can whack. GPU, data centre, power, cooling… CEO says “AI” eleven times? WHY YOU STILL TALKING? 😂 Valuation expensive? “Structural growth.” Inflation sticky? “Temporary.” Fed hiking? “Already expected.” Every uncomfortable number somehow comes with a comfortable explanation.

That's the danger. These don't need to be bad companies. Expectations just become so high that good is no longer good enough. At extreme valuations, companies must keep surprising investors who already expect brilliance.

Maybe the party continues. Momentum and FOMO can last longer than expected. But eventually price and reality meet. Then Wall Street changes vocabulary: before — “structural bull market.” After — “valuation reset.” And my favourite: “In retrospect, valuations had become stretched.” 😂 Wall Street English very powerful one — never wrong, only terminology change.

AI may very well own the future. But if you're paying 2030's price in 2026, don't call yourself early lah — you already prepaid the future, including the parts that haven't happened yet. 😂