Last weekly recap>> The stock market may be hurt the most by Trump’s tariffs after January's rallyThe $.SPX(.SPX)$ and $NASDAQ 100(NDX)$ declined by 0.99% and 1.35% last week as DeepSeek rattled the stock market.Major market movers included $NVIDIA(NVDA)$ (-15.8%), $Microsoft(MSFT)$ (-6.5%), $Broadcom(AVGO)$ (-9.6%), $Oracle(ORCL)$ (-7.4%), $Apple(AAPL)$ (+5.3%), $Meta Platforms, I

What is DeepSeek?DeepSeek is an open-source AI model developed by a Chinese AI startup.It reportedly outperforms industry-leading models, such as OpenAI’s GPT-4, on several key benchmarks at a significantly lower cost. DeepSeek claims to have spent only $5.6 million to develop its model.However, Scale AI CEO Alexandr Wang mentioned that DeepSeek has access to around 50,000 NVIDIA H100 AI GPUs (each costing $27,000 to $40,000 per unit).Due to export restrictions, DeepSeek has avoided discussing its use of these GPUs, suggesting that their true costs may be understated. The Impact of DeepSeek’s SuccessCost Efficiency Concerns:If a Chinese startup can develop an LLM (large language model) as good as OpenAI or Meta’s models with significantly fewer AI chips (lesser cost), why should compa

The $.SPX(.SPX)$ and $NASDAQ 100(NDX)$ returned -0.45% and -0.67% last week as the Santa Claus rally took a pause.Major market movers include $Apple(AAPL)$ (-4.79%), $Tesla Motors(TSLA)$ (-4.92%), $Microsoft(MSFT)$ (-1.67%), $Broadcom(AVGO)$ (-3.81%), $Netflix(NFLX)$ (-2.92%), Nvidia (+5.44%), Constellation Energy (+11.42%), Vistra (+16.24%), Uber (+5.66%), and Chevron (+2.67%).Major economic events include JOLTS Job Openings on Tuesday, Unemployment Claims and FOMC minutes on Wednesday, and Non

Synopsis:The $.SPX(.SPX)$ has delivered consecutive returns of over 20% in the past two years. Is the U.S. equity market due for a correction in 2025, given lofty valuations, reflation risk, overhyped AI optimism, persistent high interest rates, and Trump’s policies risk? Could AI stocks once again be the key to safeguarding your portfolio in 2025? Our goal is to guide you in building an investment portfolio that helps grow your wealth.Join @Tiger_James Ooi from Tiger Brokers as he explores investment strategies for 2025.Key Takeaways:What are the key catalysts—both positive and negative—for U.S. stocks?Which stocks stand to benefit from the AI revolution?Understand the core building blocks of

Key Insights The AI inferencing market is smaller than the AI training market, but it remains an exciting growth area for investors. I am constructive nearly all the players in the custom chip market, including $Broadcom(AVGO)$ , $ARM Holdings Ltd(ARM)$ , $Microsoft(MSFT)$ , $Alphabet(GOOG)$ , $Amazon.com(AMZN)$ and $Taiwan Semiconductor Manufacturing(TSM)$ While Nvidia is expected to dominate the AI training market with over 90% market share in the coming years, I believe the AI inferencing market will be largely captured by hyperscalers

Last week, investors were taken by surprise by Goldman Sachs’ bleak S&P 500 outlook. Goldman Sachs expects only a 3% annual return for the S&P 500 over the next 10 years. In comparison, the S&P 500 has boasted a 14% annualized return over the past decade. JP Morgan, on the other hand, expects a 5.7% annual return over the next 10 years. Both firms cited high valuations and high concentration as the main reasons for future tepid returns. Goldman noted that the S&P 500 is now overly reliant on a few companies (e.g., the Magnificent Seven) for outsized return contributions, making it extremely difficult for any firm to maintain high levels of sales growth and profit margins over sustained periods. However, Goldman also acknowledged that its model has failed on multiple occasio

Despite the iShares 20+ Year Treasury Bond ETF ( $iShares 20+ Year Treasury Bond ETF(TLT)$ ) seeing a net inflow of $1.868 billion in October, the ETF has declined 1.84% so far this month.While Fed rate cuts over the next year should trigger a bond market rally, the TLT has dropped approximately 9% since the Fed cut rates during the September FOMC meeting.Source: Bloomberg, 27 Oct 2024Trump Win Raises Inflation Risks:Traders are now pricing in higher odds of a Trump victory, which could lead to soaring inflation due to his expansionary and trade policies. Consequently, FOMC rates may remain elevated for longer than expected. Soft Landing/No Landing:Economic data, including labor market metrics, retail sales, and PMI, indicate that the US econo