So, Nasdaq futures are down. Big deal. We're supposed to clutch our pearls because tech stocks might not go up forever? Give me a break. The whole market's been riding the AI hype train so hard, it was only a matter of time before the wheels started wobbling.
Palantir, for example. This company, trading at 200 times forward earnings, is the poster child for this nonsense. They beat expectations, and the stock still tanks 8%. That's not normal folks. That's a market screaming, "This is unsustainable!" It's like building a skyscraper on a foundation of Jell-O. What did they expect?
Liz Young Thomas from SoFi is on CNBC saying, "I still think the large cap love affair is on." Okay, Liz, but let's be real. Is it "love," or are investors just too scared to admit they're trapped? They've pumped so much money into these bloated tech giants that selling now would mean admitting they screwed up. It's Stockholm Syndrome, but with stock options.
And this "chase" she talks about? It's a desperate scramble for the last seat on the Titanic. Everyone knows the iceberg is out there, but nobody wants to be the first one to jump ship. They're all hoping they can get out before it hits.
Meanwhile, the rest of us are stuck watching this slow-motion train wreck. They’re going to keep saying it’s a dip, a correction, or whatever other euphemism they can come up with. The problem isn’t a dip; it’s the whole damn foundation.
We're supposed to be looking at ADP private payrolls and ISM services data for clarity? In this economy? These numbers are so massaged and spun, they're practically works of fiction. I'd have better luck reading tea leaves or consulting a Magic 8-Ball. At least then I could blame the ambiguity on something fun.
I mean, come on. Earnings season is apparently crushing it, with 82% of S&P 500 companies beating expectations. The S&P 500 is set to post a blended growth rate of more than 12%. But, like, who actually feels that growth? Is anyone seeing that reflected in their paychecks, or is it just lining the pockets of the already-rich? I'm starting to think that's a rhetorical question...
Oh, and McDonald's reports earnings Wednesday. I wonder if their numbers will reflect the actual cost of a Big Mac these days. Probably not.
This whole charade is about to fall apart. Maybe not tomorrow, maybe not next week, but it's coming. The AI bubble is about to burst, and when it does, it's going to take a lot of unsuspecting investors down with it. Don't say I didn't warn you.
