Doomer Boomers Vs Token Maxis
Plus: "Dow 50,000 Meme Top" & Crude Awakenings
This was a seminal week.
First of all, congratulations to Intel for managing to surpass its 2000 dot-com all-time-high after 26 years…
…proving once again that semi-conductors are “safe as chips” and definitely not cyclical…
…which is why the Semiconductors Index (SOX) enjoyed a +50% rally in a month and is now the most overbought it’s ever been (source: BofA)!
“DOW 50,000” Meme Top?
The performance of various asset classes this week is very interesting:
Brent +13%, SOX +11%, Nasdaq +2.4%, S&P +0.7%, DOW -0.4%, DAX -1.3%, Brazil -3.4%, KWEB -4.3%
Hang on… the best performing asset class was … CRUDE?!!! More on that later…
Excluding Crude, we could summarize the asset class performances as such:
Everything except AI sucked…because AI sucked the liquidity.
Yep, we are back to that Liquidity Vortex, and I don’t like it…
It gets worse…
…because while everyone was cheering the Nasdaq rally, the Dow topped on Tuesday when Trump mentioned that “the DOW is at 50,000”…
… i.e. the “Boomer Index” once again failed at the “Dow 50,000 Meme Top” level that Pat Bondi jinxed back in February.
Crude Awakenings
Back to Crude.