NVIDIA = throwback LeBron right now... - March 2024 (#9)

Hello dear reader! Aside from taking excessive pleasure in the Bitcoin all time high, your dude Brent has done some digging on whats driving this bonkers stock market. Lets just say a few stars are carrying the team BIG TIME. Seriously, it’s about as bad as LeBron’s time with the Cavs. Let’s go!

Motivation

Money

The stock market has been on an absolute rampage lately. Lots of headlines about this and that stock index that are up X% for the year. From the sounds of it you’d think that owning any stock would mean your up big right now, but as you’ll see that’s not really the case.

All these glowing stock market headlines struck me as kinda odd, considering many of the other news headlines (if not about the illustrious T-Swift) are about tech layoffs and all the wars that be ragin’. So I did some digging and discovered that this stock market rally is being led by JUST 4 STOCKS!!! Yes, FOUR stocks are responsible for the majority of the gains in the stock market as of late. Without further ado, those 4 stocks are:

• Microsoft (up 9% this year)

• Amazon (up 15% this year)

• Meta (up 36% this year)

• Nvidia (up 60% [YES THATS SIX ZERO!!!] this year)

These 4 stocks are responsible for a full 60% of all gains in the S&P 500 (the most citied US stock market index) THIS YEAR. ONE THIRD of the gains in the S&P 500 are from Nvidia alone!!! So what TF is going on here!?

Ok, so here’s the deal. The stock market is meant to be forward looking. Generally its supposed to be forecasting what’s going to happen in the next 6 months or so. Aside from Meta (the social meed formerly known as Facebook) who’s driving its stock price up with cost cutting (lame Zuck), most gains are being made by people betting on two different themes making stupid amounts of the money. Those are:

• Cryptocurrency & Bitcoin

• AI

Both need a TON of processing power, which requires special hardware. The biggest maker of such hardware is… you guessed it, NVIDIA. As a result Nvidia is now worth more than either Google or Amazon!!! So really it’s not so much the stock market is on fire…. as much as a handful of stocks are doing great and one is F’n DESTROYIN’ IT!!! That’s the reality of this crazy stock market right now. What that also means is if one of these star players gets ‘injured’, it could really mess up the season…

FINAL MEMES

That’s all folks!

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