Highest US Deficit since the Pandemic, AI spending bottleneck, extreme fear in the market

PawsAndProfits
10-23 03:44

Disclaimer: Nothing I say or post should be considered financial advice. Please do your own due diligence before making any investment decisions.‌

So US debt has hit multi year highs, generating a new high deficit since Trump administration, with no signs of slowing down. With higher debt, the US government would be forced to service it with loans, which drives up yields and devalue of US dollar as a result. So how long does US citizens need before they wake up from this bubble of promise that Trump and his team are promising. Let’s see if they truly will vote with clarity for the mid-term elections.

The AI moonshot seem to reach a bottleneck as well, with stocks showing signifcant pullback last friday till today. They showed a intent to bounceback yesterday, however the move was weak in volume and conviction. So has the ridiculous forward PE ratios coming back to bite on these high capex companies? Has debt ratio finally scare investors just in time for halloween? A perfect example would be $CoreWeave, Inc.(CRWV)$ which is dropping like a falling knife as it cannot justify the scale of its development against the debt it accumulated.

So be careful and cautious going forward as you choose which company to go long in this news sensitive and ever changing market landscape.[Eye]

@PawsAndProfits - Specialist in combining FA and TA for Options selling and Swing trading.[666]

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Comments

  • longlive100
    10-23 14:43
    longlive100
    AI bottleneck feels too broad here. Is it training demand, power availability, or just a few quarters of capex digestion?
  • jinglese
    10-23 14:43
    jinglese
    220% revenue growth is the part bears keep skipping. Bottleneck or not, CRWV is still buying scale fast
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