To The Moon

My Investing Muse (21Jul25)

Layoffs & Closure news

• Scale AI just fired the humans behind AI… because even they overestimated the hype. 200 employees gone. 500 global contractors cut. All after Meta poured in $14.3B last month. They all bet big on GenAI... and cut the team building it. That's one for the books. Are AI companies waking up to the cost of building on hype? - X user Amanda Goodall

• Indeed and Glassdoor, which are both owned by Japan’s Recruit Holdings Co., are cutting approximately 1,300 jobs as artificial intelligence takes a larger presence at the companies, per FORTUNE

• Daimler Truck is laying off 573 workers in North Carolina - blaming a “sustained reduction in orders” for medium-duty, on-highway, and electric trucks. Assemblers. Supervisors. Logistics staff. All temporarily out with no return date. We know logistics is slowing... but damn... when truck orders disappear, the economy isn’t fine. This is a leading indicator, and yes, you should expect to see more. - X user Amanda Goodall

The above are some news items about layoffs and closures. As tariff negotiations drag on, the collateral to businesses (especially smaller ones) can compound.

My final thoughts

We can live in the same country, but we face different challenges and realities. Some of us can be the top earners of a certain demographic. Some of us can struggle to make ends meet. It is thus possible for the S&P 500 index to hit a record high as America sees one of the highest recorded bankruptcies in recent months. Some companies can make record revenue, while some of the businesses around us no longer exist.

Piecing these together, we need to understand that the S&P 500 do not represent the American economy. This represents the top 500 businesses from America, with most of them enjoying a global presence.

We need to deep dive into different demographics and income bracket groups to have a better understanding of America. We are due for a market correction. Market correction does not need to follow a “10-year” historical cycle.

The market can remain irrational longer than we can be solvent.

While we invest for better future returns, let us consider hedging. This can involve a different currency, market, or asset class (bonds instead of stocks). I remain invested, though I have more concerns for some markets.

Let us review our expenditures, income, and savings. Let us spend within our means, invest with what we can afford to lose, and avoid leverage. I am reviewing my holdings and plan to cut losses with businesses losing their competitive advantages. I would also consider hedging and adding some defensive positions.

Let us conduct our due diligence before taking on any positions. Let us have a successful week ahead.

@TigerStars

$S&P 500(.SPX)$

$SPDR S&P 500 ETF Trust(SPY)$

$Cboe Volatility Index(VIX)$