This Week on Trends with Friends (May 26th, 2024)
Welcome Friends,
Here’s an assortment of posts shared this week on Trends with Friends.
Howard Lindzon announced the return of Stocktoberfest and shared his illustrious Coronado routine. The Hotel Del will host the investor conference October 20-22, limited to 250 people. Read more here.
We’d like to welcome Ted Merz, the newest contributor to Trends with Friends! This week, Ted reflects on the college letters he sent his son and provided insightful information as to his inspiration. Merz mentioned,
I started sending my son letters in the mail when he went to college four years ago. He graduated this past weekend.
I also called, texted or emailed, but I figured he would be more likely to read and keep a physical letter he received in the mail.
Also, there were things I could write that would be hard to say.
I got the idea from…
It was a sobering thought for any parent.
If the greatest American novelist of the 20th century cannot get his daughter to read his letters, what hope is there for the rest of us?
Click here to read the full piece.
JC Parets posted a chart highlighting Consumer Discretionary’s 10-Year Low relative to the S&P 500. He writes,
It’s Consumer Discretionary that is the problem.
Even Small-cap Discretionary peaked 3 years ago relative to the rest of small-caps and they’ve been struggling ever since.
So the problem goes all the way down the cap-scale.
I think it’s important to zoom out. Always, not just this time.
But this time it really tells a more bleak story.
Look at Consumer Discretionary going out this week at new 10-year lows relative to the S&P500:
In this week’s AI deep dive, Michael Parekh puts AI Errors in Context. He leads,
It’s ironic that while the media, regulators and society have been fearing and dreading what happens if and when AI reaches AGI (artificial general intelligence), and surpasses human capabilities, we also pounce on when these early LLM AI systems also make human-like mistakes.
And not give them the room to make mistakes and literally learn from them, much like we were taught to do with humans in kindergarten. But instead use these episodes as ‘Gotchas’ and hand-wringing that AI technologies may not be ready for prime-time. While we know that’s the case already, and the companies deploying Ai constantly remind us of that every step of the way. Let me unpack the Bigger Picture.
Ram Ahluwalia reviews Nvidia earnings, software stocks’ struggle and uranium in this week’s Lumida Ledger. He shares his belief that Nvidia will be the most valuable company in the world within a year or two and his thesis to boot. It’s a must read.
Tadas Viskanta shared his Sunday Links reflecting on markets, the economy, policy and more. Have a look.
Thursday, Trends with No Friends featured Dycom Industries, BBB Foods, UL Solutions, Li Auto, SolarEdge and Teladoc Health. Have a look.
And in case you missed it… Howard Lindzon, Phil Pearlman and JC Parets are joined by Brian Shannon to review anchored VWAP strategies, Netflix and more on the latest episode of Trends with Friends. Tune in today.
If you share insights on the market and would like to contribute to Trends with Friends, send us an email.
