June 3 Update

Bubble follow up.

First, S&P 500 is up 9 days in a row.  Last time late April – May 2025 & Oct – Nov 2004.

I talked about a possible bubble on Monday’s video.  The purpose of that was to introduce the concept to viewers.  Especially those who are putting hard earned money into a 401K and don’t actively manage their investments.  There is a possibility of a large drop in the financial markets which could be painful. 

There are many reason that I’m wrong.  The credit market s are funding the AI buildout. 

49% of the investment grade bonds issued this year went to AI and related sectors.  This equals $140 billion. 

87% of venture capital funding went to AI and related sectors.  $220 billion. 

Earnings are growing.  The stocks are overvalued. 

Employment data released yesterday was pretty good.

ISM above 50 and rose in May

Consumption is ok, despite higher gasoline prices and higher inflation.