DHUnplugged #777: Bifurcation
NEW CTP for IBIT
Under/Over - Looks like the OVER
Presidential PARDONS and A King's EVICTION
All Excited - Making headway on the Deficit !
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Warm-Up
- NEW CTP for IBIT
- Under/Over - Looks like the OVER
- Presidential PARDONS and A King's EVICTION
- All Excited - Making headway on the Deficit !
Markets
- DJIA hits new ATH - after big moves last week - Buyers stepped in (again)
- NASDAQ - lagging as AI trade is questioned
- THEREFORE - what is happening is a simple rotation again - ALL IN!
Just back from a wedding in NJ - Did some Apple picking, hot cider and donuts!
Pardon Me...
- President Donald Trump has pardoned a long list of his political allies for their support or involvement in plans to overturn the 2020 presidential election, according to the Department of Justice’s Pardon Attorney, Ed Martin.
- Several others (20+) were pardoned as well including some that plead guilty.
Over the Pond
- King Charles III on Thursday stripped his disgraced brother Prince Andrew of his remaining titles and evicted him from his royal residence after weeks of pressure to act over his relationship with sex offender Jeffrey Epstein, Buckingham Palace said.
- After the king’s rare move, which follows years of shameful scandals, he will be known as Andrew Mountbatten Windsor and not as a prince, and he will have to vacate his Royal Lodge mansion near Windsor Castle.
Debt
- The U.S. government’s gross national debt surpassed $38 trillion Wednesday, a record number that highlights the accelerating accumulation of debt on America’s balance sheet.
- It’s also the fastest accumulation of a trillion dollars in debt outside of the COVID-19 pandemic — the U.S. hit $37 trillion in gross national debt in August this year.
- “During his first eight months in office, President Trump has reduced the deficit by $350 billion compared to the same period in 2024 by cutting spending and boosting revenue,” White House spokesman Kush Desai said in a statement, adding that the administration would pursue robust economic growth, lower inflation, tariff revenue, lower borrowing costs and cuts to waste, fraud and abuse.
- Petersen Foundation: “Along with increasing debt, you get higher interest costs, which are now the fastest growing part of the budget,” Peterson added. “We spent $4 trillion on interest over the last decade, but will spend $14 trillion in the next ten years. Interest costs crowd out important public and private investments in our future, harming the economy for every American.”
- Debt Growing by $69,000 per second over the the past year...
Stock New - BIG
Softbank
- Softbank sells entire stake in NVDA - $5.83 Billion
- To soften the blow, they said that it as because they are using it to redeploy further into AI - OpenAi to be specific
- Also sold part of T-Moblie and using margin loan against ARM to fund the $22.5 BILLION investment in OpenAI
- “This should not be seen, in our view, as a cautious or negative stance on Nvidia, but rather in the context of SoftBank needing at least $30.5bn of capital for investments in the Oct-Dec quarter, including $22.5bn for OpenAI and $6.5bn for Ampere,” Rolf Bulk, equity research analyst at New Street Research, told CNBC.
- IMPORTANT SO MARKETS DO NOT GET SPOOKED: ?[SoftBank] made a point of saying that it wasn’t any view on NVIDIA. ... At the end of the day, they are using the money to invest in other AI related companies,” he said.
Coreweave Earnings
- The provider of infrastructure for artificial intelligence companies, reported better-than-expected third-quarter revenue on Monday, but the company delivered disappointing full-year...
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