GDPNow -- Still At 2.4% -- July 26, 2023

Locator: 45214ECON.  

The AI bubble, link here. Archived.

Think there's a bubble in the stock market fueled by hype surrounding artificial intelligence? Think again, says Fundstrat's Tom Lee. 

In a video to clients on Monday, July 24, 2023, Lee outlined three reasons why the stock market has yet to enter a bubble. T

o make his point, Lee compared the price action of Nvidia stock today to Cisco during the 2000 dot-com bubble. The comparison makes sense given that Nvidia is seen as one of the biggest beneficiaries of the AI boom, while Cisco was the poster child of the dot-com bubble thanks to its suite of networking products during the internet boom.

From 1990 to 1997, $100 invested in Cisco stock turned into $11,500. That may sound like a bubble to most people, but what happened next defied everyone's expectations.

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GDPNow

Link here.

If things continue to go well, JPow may go down in history as one of the best Fed chairmen ever. Right now he’s walking on water: no recession; widows getting 5% doing nothing; longest stock market rally since 1987. 

I do believe some have been awarded the Nobel Memorial Prize in Economic Sciences for less.

JPow: originally appointed to the board by Barack Obama, and later Donald Trump made him the chair.

When you compare JPow's testimony with the press conferences by the US President and/or Vice President, one can at least feel secure in the knowledge there is an adult in the room when JPow speaks.