Trump + AI = Trump Trap?

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.

The Spell of Donald

“Countries are going to pay us back for all that we’ve done for the world.” —DJT

PhiloinvestorPhiloinvestor

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.