Old school investors “won” last week hands down. The “trendy” stock markets and indices that are concentrated in tech shares, especially semiconductor shares (e.g. the NASDAQ and Asian exchanges like the KOSPI), took it on the chin, as investors finally got skittish on the broader A.I. trade. The winners last week were what I view as the “boring places to have your money”, including US Treasuries, European stocks, and indices like the DJIA that are not heavily concentrated

Stocks bounced around but closed the week higher, with both the S&P 500 and the NASDAQ closing at record highs on Friday. US Treasuries were ever-so-slightly better bid, with yields falling a few bps across the curve, Oil remains elevated. Gold and the US Dollar rose, while the Japanese Yen and Bitcoin fell. This week S&P 500 earnings will kick off with the six largest US banks reporting. JNJ, ASML and TSMC will also release results. The FOMC is week after next.

Stocks mixed, with Japanese and emerging markets stocks chalking up gains, while European stocks lost ground. US stocks were mixed. Yields were higher at the belly and long end of the UST curve, with inflationary expectations remaining elevated. Gold and oil were higher, the Yen and Bitcoin weaker.

"....That being said, let’s motor on to what really matters in the coming days – May CPI in the U.S. (released yesterday), upcoming central bank meetings, the SpaceX IPO which is on the launch pad (no pun intended), and U.S. social security."

Stocks were fine much of the week due to the ongoing "to the moon" A.I. narrative and rampant momentum buying. However, things came to a screeching halt on Friday, once the "adults in the room" (i.e. bond investors) started to run for cover with inflation soaring higher and becoming ever-more entrenched. Friday was firmly risk off, and now the question is what will happen next week? What if buy-the-dip investors go on strike? I don't even want to imagine that!!

Investors got hammered again this week with few places to hide. Having said this, it could be worse. The Trump Administration continues to release conflicting information about the status of the war, but it is clear that the Iranians are not about to capitulate. This is causing all sorts of problems with the oil market, and this in turn is splattering both global stocks and bonds.

Writing this weekly update is starting to get boring, because everything goes up every week, or so it seems. Having said that, one casualty this past week was gold, which finally seems to have come off the boil. The price of gold declined nearly 6% on Tuesday, and then stabilised but still ended down 1.8% on the week, the first weekly decline in the price of this safe haven precious metal since mid-August. All global equity indices were higher (yawn) on the week – most end

Markets were good again this week, with stocks and bonds both increasing in spite of plenty of economic headwinds on the horizon and growing geopolitical risks. Nothing seems able to stop the momentum......until it does!

We have some US data coming that might matter today (CPI), but the FOMC will sit tight (also today). Discusses Apple's run and GameStop.