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Dogs of the day?what do these have in common?
NXT, MP1, GMG, NXL, HMC, DGTView attachment 192089View attachment 192090View attachment 192091View attachment 192092View attachment 192093
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the big money would tend to think so.Are they all data centre or A.I related?
Mid cap decliners:
.... yes... BUT how many hedge funds have high leverage on their tech darlingsExcerpt of Greg Canavan's view on overnight and today's rout in tech stocks. Via fat tail investment avisory:
"Do you remember what it was like in 2007?
Global property markets were finally showing signs of stress after surging for years.
In April 2007, New Century Financial Corporation, which was the largest U.S. subprime lender at the time, filed for bankruptcy.
Yet the market barely noticed. In fact, the S&P500 increased 9% from the date of bankruptcy to a mid-July high.
Then, more financial failures occurred. Bear Stearns liquidated two of its hedge funds that had significant exposure to subprime mortgages.
This got the market’s attention. It fell nearly 10% over the next month.
But the bullish sentiment was hard to shake. The market believed the housing market issues ‘were contained’. No one wanted the bull market to be over. From August to October, the S&P500 jumped over 11%...to a new all-time high.
If you relied solely on the market to inform your opinion, you would have believed the global housing bubble wasn’t a problem.
But it was. It was a very big one.
That was THE high for the market. What followed was one of the worst bear markets in a generation.
In last week’s update, I mentioned that major market tops are a process. They take time to form.
I think that is what is happening here…
Over the long weekend, you might have heard of a Chinese start-up called DeepSeek, an AI assistant to rival ChatGPT, built at a fraction of the cost.
The news sent shockwaves through the tech sector. AI darling Nvidia fell 17% overnight. The NASDAQ fell 3.2%.
No one knows whether DeepSeek is the real deal. But when valuations are at extremes, it doesn’t take much for investors and speculators to hit the sell button.
Here’s how I see it:
This is a Bear Stearns moment for the Great Tech/AI earnings bubble.
Not when Bear Stearns went bust in March 2008, but rather when it liquidated its hedge funds filled with subprime mortgages in July 2007.
It was an early warning sign. The news caused a mini panic. But the market believed the Fed would come to the rescue. And so the bull market returned and prices went to new highs.
Belief in Silicon Valley is strong. Trump and the Tech Bros are in power. DeepSeek is but a mere flesh wound in the race for US-centric AI dominance." ... continues
maybe even a top-up opportunity ( or three ).... yes... BUT how many hedge funds have high leverage on their tech darlings
maybe there is a GameStop moment ( in reverse ) in progress currently
wild-card will be a possible margin call of US portfolios
i have trivial exposure to US stocks via two small LIC holdings BUT if the contagion hits Asia ( TSMC and Samsung for two examples )
THEN i have a flesh wound just how big i don't know .. yet
So all good, thus bad dream is forgotten
Blimey! I see BHP RIO FMG LTR PLS and even NEM in the GREEN
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