Now that the SpaceX IPO has cleared the launch pad and is headed towards Mars, the market can go back to chasing its tail. Or should I say tale - like the one that brokers are telling clients. Can they continue to entice clients to pile into the AI momentum trade? Or should they diversify their risk in a market that continues to focus on a single theme? The FOMO induced rally is running on fumes as the surge in supply - IPOs and debt issuance - is matching the incremental dem

After a two-month rally in AI, some of the plates are starting to wobble. Unsurprisingly, the Artificial Intelligence fever broke on Friday. With a sudden, sharp sell-off of 3-4% across many favourites, investors received a face slap after an unfettered run-up. Semiconductors and Hyperscalers sank amid concerns about a glut in capital raising by leading AI Megatechs. Much to the chagrin of underwriting brokers, the rush to market of AI-related private companies, OpenAI, Anth

How much can the stock market inflate the AI beach ball? Yes, that image was generated by an AI agent provided by Google, the company with the highest free cash flow in the S&P 500. Despite that, they announced their intention to raise an additional $80B in capital to fund next year's AI infrastructure spending. With the arms race for AI dominance a feature, not a bug, for the economy as a whole. But just as any bug will, this feature will eventually bite. U.S. capital spen