Start of the Rout?

If America is a stock, is it time to dump it and sell?

Like the ouroboros, I believe Big Tech is eating itself alive with its component companies throwing more and more cash at investments in one another that are most likely to generate less and less of a return. Monday’s correction shows that our financial markets — and possibly your retirement portfolio — may be starting to reflect an understanding of this dynamic. New York Times 1/28/25 I Study Financial Markets. The Nvidia Rout Is Only the Start. Mihir A. Desai is a professor at Harvard Business School and Harvard Law School.

If Trump’s all-in-on-fossil-fuels, “drill, baby, drill” rallying cry — at the dawn of this era of artificial intelligence, electric vehicles, batteries and autonomous cars — really becomes our strategy, it will not make America great again. But it will definitely help make China great again. New York Times 1/28/25 Trump Is Going Woke Thomas Friedman

The bond market is telling us something about the dawn of the second Trump presidency, and it’s not pretty….Most of the policies proposed by President Trump, from tariffs to additional fiscal stimulus to deportations that tighten the labor market, are expected to add to inflation. And to the degree they are enacted, they will combine with an inflation rate that has declined rapidly, but which remains above the Federal Reserve’s target and is still higher than it was during most of the decade leading up to the pandemic. Rising long-term rates are bad for businesses and households that need to borrow, since the cost of loans such as mortgages and auto loans are directly linked to 10-year Treasury yields. New York Times 1/29/25 Trump’s Plans Are Already Making Your Life More Expensive Rebecca Patterson (is an economist and market strategist)