9 Comments
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Craig Browne's avatar

The AI earnings bubble burst will be the catalyst. I’ve tried DEEP SEEK and it’s awesome… oh, and it’s free

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john.dentice's avatar

In recent days I have read that retail investors of IBKR have increased their Margin Loans +45%. From a different source I have read that 70% of retail investor funds are allocated to the MAG7.

I suspect that there will be similar allocations from HF's trying to keep up with their benchmarks (although they are, in aggregate underweight MAG7).

The various Systematic Funds (Vol Ctrl, CTA, Risk Parity) are also heavily invested in the MAG7 simply due to index weights.

If (and that is a big IF), Deepseek is the "straw" that breaks this bubble-camel's back, then there is a lot of capital that needs to exit.

As per Mike Green, due to passive investing trends, there is no one to take the other side ....

Cheers John

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PD Mangan's avatar

I'd imagine there could be significant cuts to be made in Medicare. Healthcare in the U.S. is outrageously expensive. No reason for the government to just pay what is demanded.

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Alfonso's avatar

Hey to all, a newbie subscriber, what platform are you guys using to follow the trades from Ferg?

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AJ's avatar
Jan 26Edited

So true re predictions for 2025, and wouldn’t surprise me if we had a correction. Probably due tbh.

I feel like so many retail investors are invested now, however I don’t think a correction will scare them. I suspect there will be fair bit of capital redeployed back in. Investors are acutely aware of lost gains of not being invested.

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PartyMarty:)'s avatar

The full deepseek model doesnt even fit on my 80 GB GPU

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Gary Mersham's avatar

In addition to a very information piece of market influences and trends, a most refreshing non woke standout statement from a Kiwi about pretend jobs, thank you

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RJ & AS DeLotto's avatar

There will most likely be SUBSTANTIAL cost savings possible just by rooting-out fraud, waste and outright corruption from the government procurement stream.

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Sri Gull's avatar

The big Kahuna of federal expense is to the Federal Reserve and we know that Trump and Musk don't dare touch that.

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