AMA - Meme Stocks Are Back, Google I/O Thoughts, Elon's Pay Package, And Much More
Here is the transcript from this week's Live Q&A Chat.
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Q. Doesn’t it feel very toppy at the moment? I see a lot more downside than upside. Inflation is sticky, consumers are feeling the pain from inflation, debt delinquencies are starting to rise, economic output is slowing, government spending, fewer buyers of UST, debt balance continues to rise, Reddit (RDDT) users buying of Gamestop (GME)/ AMC Entertainment (AMC) stock. It all feels a bit off. There are going to be better opportunities later in the year than now to buy IMO.
A. It does indeed feel a little bit blow-off toppish again, especially with the action in the meme/Reddit stocks like GME and AMC this week. Lots of retail investors just got crushed to the tune of millions of dollars on those in the last two days. The move those stocks made this week, all because some YouTuber dude who lost them billions in those meme stocks over the last two years, tweeted a picture of a dude leaning forward in a gaming chair, is a reflection of the greed and lack of fear in the crypto markets and, to a lesser extent, in the speculative small caps and even the broader stock markets right now. On the other hand, The AI Revolution is driving hundreds of billions of dollars of incremental spending on data centers and the highest-end chips, and is likely to help profit margins in many industries in the next two to three years. That's going to help the broader economy stay steadyish here even if the consumer, especially the consumer at the low end of the income spectrum, is getting tapped out here with bills and inflation. It's possible that the topline GDP and topline revenue numbers for the S&P 500 slow here or even contract a little bit in the next 12 to 24 months but that the earnings power of the S&P 500 actually stays steady and/or grows as margins expand courtesy of AI. It's possible the markets dip and/or just churn here for a year and then start to realize that earnings power is actually growing and could accelerate if/when the topline GDP and revenue numbers start growing again and that the market doesn't tank 20-30% in a relative recession over the next year. I think we want to focus on buying the companies that are about to generate tens of trillions of dollars of value for investors via The Humanoid Robotics Revolution and scale into more of them regardless of what the broader markets do in the next few months and the next year or two. If the market does actually finally go into a major correction, I'd be happy to load up aggressively on Tesla (TSLA), NVIDIA (NVDA), Amazon (AMZN) and whatever other Robotics Revolution companies we end up liking over the next year or two.
Q. What are your top 5 buys and top 5 sells today?
