"Yields are spiking higher; everything is going to go to shit." Hold on there, Sparky. Yields have returned to the long-run historical average following a period of abnormally low yields induced by 15 years of ZIRP and QE.

Cathie Wood says Anthropic agreed to pay 50 billion a gigawatt for compute that cost Musk and his team somewhere in the mid to high twenties "We see Elon's terrestrial data centers turning from huge losses to massive profits as he has pivoted that part of the business for the short term into the neo cloud business. So huge returns on invested capital." "I think Anthropic agreed to pay $50 billion per gigawatt, that's the equivalent, just the $50 billion, and I think it cost Elon and team somewhere in the mid to high twenties." "So right there, immediate returns on invested capital." "But we do think that there is going to be a lot of creative destruction as this new world happens."

Anthropic just released the most IMPORTANT chart in the AI labor debate. This comes from the company that builds Claude using data from 2 million real conversations. Here’s what it shows. The blue area is every task AI could theoretically do right now. The red area is what people are actually using it for. The gap between them is enormous and that gap is your career runway. Computer programmers are already 75% covered. Customer service reps, data entry workers, financial analysts, they’re next. But here’s what no one is talking about. The mass layoffs haven’t really started. Unemployment for exposed workers hasn’t budged. So what’s actually happening? Companies are closing the front door, hiring for workers aged 22 to 25 in AI exposed jobs has dropped 14%. The most exposed workers aren’t factory workers, they’re college educated, higher earning. 49% of US jobs now have at least a quarter of their tasks inside AI’s reach. That’s up from 36% just one year ago. And the red area on that chart, the real world usage is still a fraction of what’s possible. Every month, it grows a bit. Anthropic built the scoreboard and most people haven’t looked at it yet.

Creative way to explain wheel drive types.

$UNH and $NVO remind me of $META in 2022 META fell -77% to $89 because of overblown fears of cost overruns, regulatory concerns and increasing competition. However, the underlying business itself was still extremely profitable Today, $META is over $770. Great businesses always rebound back to their intrinsic over time Today, $UNH and $NVO are 2 high quality businesses facing the same overblown fears. In the short term , panic selling and manipulation can keep driving prices down until the last retail investor capitulates. Over time these stocks are easily doubles for patient and rational investors I will be publishing a video soon to delve deeper into these stocks. Watch out for it.

Sadly true and it seems Elon is destined to find out who is more powerful. Not a peep from the Tesla BOD of this absurd attack on the President he enabled.

The position Tesla investors are in is they need robotaxi to work or the stock goes nowhere for another 5 years. Their entire thesis is totally reliant on robotaxi becoming quickly dominant, and even in that case much of it is priced in. Tesla trades at a 150 PE. Google trades at a 19 PE, Waymo is not even important, yet it’s ahead of Tesla robotaxi in every measurable metric: weekly trips done, operational fleet size, regulatory approval, safety record, etc. and they’re over doubling their fleet next year. Googles side bet is beating Tesla at its core business. But Waymo isn’t needed for Google stock to go up. Google Cloud and YouTube will carry the stock for the next 5 years. And the “dying” search business, which is actually still growing (while Tesla deliveries are shrinking). Tesla investors are the angriest group of investors I’ve ever seen. And I understand it must be frustrating. But I don’t understand why they don’t just buy more reasonably priced stocks with clearer paths to high returns. Or at the very least diversify a bit so they’re not so emotionally involved in the stock. Tesla may work out, there’s always a chance, but do you really want to risk 10 years of flat returns if robotaxi doesn’t work out as expected?

OK, this is an original and good point.