Follow the bull? After initially selling off on the ADP employment report yesterday which was in honesty a prelude to today’s reports, the markets recovered and strongly rallied with SMH closing just a whisker above last Friday's local top at 280.5 but still shy of the ATH last year on July 11th of 283.07. The narrative was clear. What the market initially read as a deteriorating economy was then interpreted as rate cut imperative. In other words, the market believe rate cuts are around the corner because the Fed will need to step in to support the labour market. Now this is the conundrum. In a normal macro environment, that might be considered an iron clad certainty. But a normal macro environment this is not. Just look at the uncertainties going around. I believe the market Is underprici
Nvidia: Is it wise to hold through earnings? Key Outline: Nvidia (NASDAQ: NVDA) is set to announce its fiscal Q1 2026 earnings on May 28, 2025, after market close. Investors are keenly watching the report, especially after the company’s recent stock performance and strategic moves in the AI sector. Earnings Expectations Analysts project Nvidia to report earnings per share (EPS) of approximately $0.89, with revenue estimates around $43.2 billion, marking a significant year-over-year growth of about 65% . This growth is largely attributed to the continued demand for AI and data center products. Recent Developments Nvidia’s stock has experienced volatility, recently rebounding from its April lows. The company announced a partnership with Saudi Arabian AI firm Humain to supply semiconductors f
High-Risk, High-Reward vs Compounding Investing: Two Roads to Wealth In the world of wealth creation, investors often find themselves choosing between two vastly different paths: high-risk, high-reward investing, and compounding-based long-term investing. Both strategies aim to grow capital, but they differ fundamentally in risk appetite, time horizon, emotional discipline, and outcome predictability. Let’s unpack the key features, strengths, risks, and psychological implications of each approach. ⸻ 1. Understanding the Two Models A. High-Risk, High-Reward Investing This strategy involves seeking out investments that have the potential for massive gains—but also carry the risk of substantial losses. Examples include: • Cryptocurrency speculation • Leveraged trading (e.g., options, margin,
The Benefieciaries of Saudi's AI ambitions Saudi Arabia is making significant strides in the field of artificial intelligence (AI), aiming to position itself as a global leader through substantial investments and strategic partnerships. With a commitment of over $40 billion towards AI initiatives, the Kingdom is fostering collaborations with major tech companies and nurturing domestic innovation to diversify its economy beyond oil. ⸻ Saudi Arabia’s Strategic AI Investments Under the Vision 2030 initiative, Saudi Arabia is channeling investments into various AI sectors, including chip manufacturing, data centers, and AI-driven applications. A notable development is the launch of “Humain,” a sovereign AI enterprise backed by the Public Investment Fund (PIF), which is central to the Kingdom’s
Considering Tariffs and All: If the iPhone Were 30% More Expensive, Is It Still Worth It? In today’s global economy, tariffs and trade tensions can directly affect the price of tech gadgets — and few products are more globally beloved (and debated) than the iPhone. Imagine if, due to increased import duties, taxes, and currency shifts, the iPhone cost 30% more. Would it still be worth buying? Let’s break down the value proposition — and whether Apple’s iconic device still justifies its premium in such a scenario. ⸻ 1. Understanding the 30% Hike A 30% increase is not insignificant. An iPhone 15 Pro, for instance, currently priced at around $999, would shoot up to about $1,299. For the Pro Max variant, you’d be looking at close to $1,600 — nearly the cost of a high-end laptop. So, the centra
Why Inflation No Longer Drives Interest Rate Cuts—It’s About Tariffs Now For years, whenever the economy seemed too slow or prices were rising too fast, central banks—like the U.S. Federal Reserve—adjusted interest rates to keep things in balance. This system worked well when inflation was mostly caused by people spending too much or too little. But today, a new player has entered the scene: tariffs. And they’re changing the rules. The Old Way: Watching Inflation Like a Hawk Interest rates are kind of like the economy’s gas pedal or brake. When inflation (the general rise in prices) was low, central banks would cut rates to make borrowing cheaper, which encouraged people and businesses to spend more. When inflation was high, they’d raise rates to cool things down. This worked well when inf
Are the new tariffs inflationary or deflationary? The recent implementation of tariffs by the U.S. government has sparked a robust debate among economists, policymakers, and industry leaders regarding their potential impact on the economy. While tariffs are designed to protect domestic industries and address trade imbalances, their effect on inflation and deflation is complex and multifaceted. Inflationary Pressures from Tariffs Tariffs function as taxes on imported goods, leading to increased costs for businesses that rely on these imports. Often, these additional expenses are transferred to consumers through higher prices on everyday products, contributing to overall inflation. For instance, the Federal Reserve Bank of Boston estimated that tariffs imposed in 2018 accounted for a 0
Is Gold a Safe Haven Asset? Throughout history, gold has held a unique position in the world of finance and investing. It’s often seen as a timeless store of value—an asset that provides security when uncertainty grips global markets. But in the ever-evolving economic landscape, the question remains: Is gold truly a safe haven asset? Understanding the Concept of a “Safe Haven” A safe haven asset is one that retains or increases in value during times of market turmoil. Investors typically flock to such assets during crises—economic downturns, geopolitical conflicts, stock market crashes, or periods of inflation and currency devaluation. Gold has traditionally been considered a prime safe haven. Its physical nature, limited supply, and historical use as money lend it an aura of stability tha
Pre-emptive trading vs trend trading: Which is better according to data? In trading, two primary strategies are often discussed: left-side trading and right-side trading. Each approach offers distinct advantages and challenges, and their effectiveness can vary based on market conditions and individual trader expertise. This article explores both strategies, comparing their benefits and drawbacks, and examines data-driven insights to determine which may be more advantageous. Understanding Left-Side and Right-Side Trading • Left-Side Trading: This strategy involves making trading decisions before a market trend fully develops. Traders attempt to predict market tops or bottoms, aiming to buy just before a price increase or sell before a decline. This predictive approach relies heavily on
Is AI in a Bubble, or Are Concerns Overblown? In recent years, artificial intelligence (AI) has transitioned from a niche technological curiosity to one of the most talked-about, hyped, and heavily invested-in sectors globally. The rapid advancements, coupled with staggering valuations and investor enthusiasm, have prompted discussions about whether we are witnessing an AI bubble. Yet, others contend these fears are exaggerated, and that AI’s growth trajectory reflects a fundamentally transformative technology. So, is AI truly experiencing a speculative bubble, or are concerns merely alarmist? The Case for an AI Bubble 1. Inflated Valuations One primary indicator that supports the bubble theory is the extreme valuations of AI-centric companies, especially startups. Driven by a surge in ve