Trump + AI = Trump Trap?
Issue #9. Post-Trump election moves and more AI Hype.
I wrote The Spell of Donald last week to give my thoughts and throw some cold water on those getting too hot with Trump 2.0.
I talked about the hype with tariffs and deregulation, the moves in Crypto, the Dollar and Gold — as well as the small cap rotation and more.
Now let’s look into the moves in global markets post-Trump election, and try to figure out what makes sense and what doesn’t — as we try to solve the puzzle of another Trump term.
I will start with AI and then move on to individual stocks and the macro picture — which includes the indices.
AI and AI Beneficiaries
There is no doubt that technically the AI trade is weakening across the board.
This September I introduced “The Four Groups of the AIpocalypse” as a way to break down the AI trade into segments and moving parts. 👇
Sharpen your pencils! ✏️
Palantir: Parabolic Short
This name is up 10X since Chat GPT was launched in late 2022, and is increasingly getting all the attention.
But it’s up 63% after it beat sales expectations in their last Q — beat by just 3%, or $20mln. It added ~$60bln in value because it beat sales by $20mln.
Obviously expectations can go WILD on such a name as it benefits from: 1) Leveraged business model 2) AI Hype 3) Big AI spending from new customers etc.