Summary – A top-down review of interesting calls and comments made last week in Treasuries, monetary policy, economics, stocks, bonds & commodities. TAC is our acronym for Tweets, Articles, & Clips – our basic inputs for this article.
Editor’s Note: In this series of articles, we include important or interesting Tweets, Articles, Video Clips with our comments. This is an article that expresses our personal opinions about comments made on Television, Tweeter, and in Print. It is NOT intended to provide any investment advice of any type whatsoever. No one should base any investing decisions or conclusions based on anything written in or inferred from this article. Macro Viewpoints & its affiliates expressly disclaim all liability in respect to actions taken based on any or all of the information in this article. Investing is a serious matter and all investment decisions should only be taken after a detailed discussion with your investment advisor and should be subject to your objectives, suitability requirements and risk tolerance.
1. Forget AI or even Quantum Computing – Instead Imagine Quantum Consciousness Xfer
What you see & read below is fresh from beyond that was reported this past week. The 22-minute clip below is absolutely stunning in what has been accomplished so far. Before we very briefly get into it, a quick refresher might be helpful in a concept we had discussed before:
- Quantum Entanglement – occurs when two or more particles are interconnected in such a way that the state of one particle is instantly correlated with the state of the other no matter how far apart they are. This means that if you change the state of one article, the state of its entangled partner will change instantaneously.
This is old stuff, stuff that Einstein referred to as “spooky”. But this becomes very relevant when you add the concept of Quantum Teleportation – ability of instantly transferring information, energy, or even objects from one location to another without any physical medium. Think of benefits to Global Financial Exchanges, Defense & so many other fields. Why bring it up today? We found out this last week that Quantum Teleportation has FINALLY been Achieved: The clip blew our mind.
What almost fried our mind was the description of Quantum Teleportation of Consciousness – concept of teleporting your own entire consciousness to create & teleport a perfect copy of you to another location (minute 20:16 of the clip below).
And instantly dropped into our physically conscious memory the famous story from centuries ago – a Great & Brilliant young man of 16 toured the entire Indian subcontinent debating all the learned Pandits & Achaarya about his unique interpretation of the Ved & UpaNiSad. He was so incredibly brilliant in his analysis & so skilled in verbal duels that he won over almost all of the great Pandits of various schools in greater India.
Then he went to meet the greatest Pandit of them all. Getting the great man to debate this 16-year old was no easy task. So he used the tactic used thousands of years later by Muhammed Ali to verbally shame Sonny Liston into fighting Ali. The result was the same – the young arrogant guy defeated the Champion Sage. But that was not enough bringing us to our topic of this section.
The Great Pandit’s wife, a famous Pandita herself, challenged the young man to debate her. During that debate, according to summaries of that debate, she asked the virginal young man a question about female orgasms achieved during physical encounters of that nature. Naturally, the young & virginal debator was flummoxed. He stood to lose the all-important debate of his life upon which rested the future of his unique interpretation of the Ved.
So he asked for a pause in the debate to find the answer to the question raised. After all, he had heard that the young King of Kashmir had died that morning & his queen was in deep mourning. After receiving the requested pause, he retired to his chamber in the debate hall &, to use the expression we learned this week, he Quantum Teleported his entire consciousness into the body of the dead King of Kashmir.
Lo & behold, the young King woke up from his moribund condition & his queen was stupefied & overjoyed at the miracle. So the teleported consciousness & the queen engaged in intense lovemaking. Over a period of a day & night, the teleported consciousness of the young debator presumably became educated in female orgasms. That night, the debator re-teleported his consciousness back to the original physical body lying in the debating hall.
He then proceeded to fully answer the questions of the famous Pandita who praised him & resigned from the debate. This story has been told for centuries as a divine blessing from God. But having heard the Quantum Teleportation of entire Consciousness (minute 20;16 of the clip below), we wonder the story might have a quantum technology as a base.
PS: – the phenomena of Quantum Entanglement have been described in multiple tales going back to the Vedic age.
- Wait a minute!!! OMG – What about the 5 Paandav of the Great Mahaa-Bhaarat – The great epic tells the story of Queen Kunti married to Emperor Paandu who, because of a curse, was NOT allowed on pain of death to have sexual relations. So Queen was given 5 divine boons by which she could summon any Divine Atmospheric Deity. She, with permission of her husband & Emperor, summons in succession, the Celestial Sun, the Celestial Righteousness, the Celestial Wind & then the most Alpha or all Alphas, Indra to impregnate her with Divine seeds. She then transferred the remaining boon to the Emperor’s second wife who got twin sons from the Divine Healer. We have always wondered how the Celestial Divine Entities would travel to earth & engage in physical interaction with Kunti & Madri. Now we get it – Quantum Teleportation of their Divine Consciousness. Wow – The Mahaa-Bhaarat took place at least 1,000-2,000 years BCE
Sorry to Jensen, but this quantum teleportation does make Blackwell a bit small, right? Or, could perhaps the next generation of NVDIA chips might embody this quantum stuff?
2. Fed-Powell, Gundlach & Peebles
Gundlach felt that a new high had been reached in short-termism in the Fed presser. He said that he expects at most one rate cut this year from the Fed. And then he ventured beyond short-termism of the Fed to say “there are somethings that are troubling though“.
Below is a quick summary of what troubles him (minute 5:03 to minute 7:37):
- “… something has happened when you get down in the weeds that are disconcerting because that’s reminiscent of what was going on in the mid-00s heading into the global financial crisis about 20 years ago – that is we are starting to see re-traunching of credit risk; remember the credit ratings that screwed everything up in the market in 2007 or so; now we are starting to see in the re-securitization of bank loans called the CLO market; now we are starting to see re-traunching of traditional letter ratings, for example BBB-rated bonds all of a sudden are retraunching to Senior BBB & Junior BBBs; why are they doing that? Because the average interest rate that is paid by traunching it into 2 pieces is lower than the interest rate if it were just a BBB; and this is a slipper slope; “
But he added that this “is not an imminent problem” & reminded CNBC’s Wapner that
- ” in the sub-prime crisis, retraunching stuff & the nutty activity got started in 05 & 06 but wasn’t until 07 that it blew up … but that’s not happening now …. this is a time to be careful; “
Mr. Gundlach is an investor &, if he feels economic pain, he does so from a safe distance. What about others who are more intensely aware of the pain that high interest rates have caused. Listen to the pain expressed by Mr. Don Peebles in his clip below:
- “High interest rates have created tremendous stress in local and regional banks. Local and regional banks are the primary lenders. Small businesses, and they’re not making loans anymore. And what has happened is that the local lenders are stressed. “
- “But the hidden inflation is what Americans spend the vast majority of their money on. They spend it on housing and automobiles. Those are the top two purchases. Both are interest rate sensitive and without attractive interest rates, they can’t afford to buy either one. And what happens when they buy fewer homes and fewer cars? Then jobs are lost. And so there’s a double impact there. And what you’re seeing now in many sectors now are job cuts are beginning to take place now, and more are going to start happening and they’re going to be in banking, they’re going to be in real estate, they’re going to be in construction. And, you know, and unless we see a change in policy, I think we’re going to we could be dangerously close to a recession.
- the reality is, is that the fed should have cut made bigger cuts. They should have been 50 basis points at a minimum every time. And they should have been there should have been at least a 100 basis point cut in that process. And now to make these minimal cuts and then to do nothing and look all around you,
- “AI Servers that are needed are huge – 100,000 parts; 1.5 tons; size of refrigerator ;72 GPUs – the size of these servers is why the U.S. is going to beat China soundly in AI race“.
4. Markets Last Week
We expect markets around the world get buffeted by the decision of President Trump on Friday afternoon to impose 25% tariffs on Canada & Mexico and 10% tariff on China. So we think discretion is better than valor of guessing how markets will react. Suffice it to simply tabulate the damage we saw last week.
US Indices:
- VIX up 10.5%; Dow up 27 bps; SPX down 1%; RSP down 61 bps; NDX down 1.4%; SMH down 7.1%; RUT down 87 bps; MDY down 1.9%; XLU down 2.3%;
Key Stocks & Sectors:
- AAPL up 5.5%; AMZN up 98 bps; GOOGL up 1.6%; META up 6.2%; MSFT down 6.6%; NFLX down 18 bps; NVDA down 16%; MU down 11.7%; BAC down 58 bps; C down 31 bps; GS down 15 bps; JPM up 91 bps; KRE up 1%; EUFN up 11 bps; SCHW up 1.2%;
Dollar was up 1% on UUP & up 85 bps on DXY:
- Gold up 1.8%; GDX up 2.9%; Silver up 3.5%; Copper up 7.9%; CLF up 3.1%; FCX down 5.1%; MOS down 89 bps; Oil down 2.5%; Brent down 2.2%; OIH down 4.6%; XLE down 3.8%;
International Stocks:
- EEM up 77 bps; FXI up 1.3%; KWEB up 2.5%; EWZ up 4.6%; EWY down 3.2%; EWG up 20 bps; INDA up 53 bps; INDY up 73 bps; EPI up 14 bps; SMIN down 91 bps;
Treasury & Fixed Income:
- 30-year Treasury yield down 4.1 bps on the week; 20-yr yield down 5.3 bps; 10-yr down 6.6 bps; 7-yr down 7.4 bps; 5-yr down 8.9 bps; 3-yr down 7.8 bps; 2-yr down 5.9 bps; 1-yr flat;
- TLT up 85 bps; EDV up 73 bps; ZROZ up 58 bps; HYG flat; JNK down 23 bps; PFF down 1%; EMB up 53 bps;
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