US stocks are split and the U.S. Treasury trap
U.S. Treasury yields have gone on a rampage—these traditional giants like McDonald’s have been battered badly, and Nike is down 44% this year! Why hasn’t AI gotten truly huge yet, especially in the Nasdaq 100 (FANG+) segment? The essence is that its explosive growth rate is pushing through resistance; institutions are unwilling to miss their spot. But don’t forget: in the long run, high interest rates are the sword hanging over the heads of all risk assets. Even though Wall Street has recently come out saying that the 10-year Treasury yield would need to fall to 7% for the stock market to truly crash, as long as this AI fervor cools even slightly, the backlash afterward will be extremely violent. Right now, the market is waiting for Micron’s earnings report early tomorrow morning. On the other hand, if Micron’s earnings surge, and if Friday’s nonfarm payrolls employment data doesn’t come in well, then AI could still roar higher. Micron’s example shows there’s still plenty of room compared with the prior high of $1,200. What do you do in this dilemma? Look at how big capital is positioned: it’s risk versus opportunity—both are about strategically grasping the big cycle, and tactically avoiding near-term black swans. #美光财报 #非农就业数据 $MUB
U.S. Treasury yields have gone on a rampage—these traditional giants like McDonald’s have been battered badly, and Nike is down 44% this year! Why hasn’t AI gotten truly huge yet, especially in the Nasdaq 100 (FANG+) segment? The essence is that its explosive growth rate is pushing through resistance; institutions are unwilling to miss their spot. But don’t forget: in the long run, high interest rates are the sword hanging over the heads of all risk assets. Even though Wall Street has recently come out saying that the 10-year Treasury yield would need to fall to 7% for the stock market to truly crash, as long as this AI fervor cools even slightly, the backlash afterward will be extremely violent. Right now, the market is waiting for Micron’s earnings report early tomorrow morning. On the other hand, if Micron’s earnings surge, and if Friday’s nonfarm payrolls employment data doesn’t come in well, then AI could still roar higher. Micron’s example shows there’s still plenty of room compared with the prior high of $1,200. What do you do in this dilemma? Look at how big capital is positioned: it’s risk versus opportunity—both are about strategically grasping the big cycle, and tactically avoiding near-term black swans. #美光财报 #非农就业数据 $MUB
