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Volatility Beneath the Surface: The Current State of the Market 💡
Rough Week for our 5 Stock Portfolio: Our Strategy Holds Steady 📊
Earnings Summaries from 4/5 of Our Premium Picks ✍
My Take on Earnings and the Future of These Stocks 🔎

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“Over the last few decades, investors’ timeframes have shrunk. They’ve become obsessed with quarterly returns. In fact, technology now enables them to become distracted by returns on a daily basis, and even minute-by-minute. Thus one way to gain an advantage is by ignoring the ‘noise’ created by the manic swings of others and focussing on the things that matter in the long term.”

- Howard Marks

Volatility Beneath the Surface: The Current State of the Market

The stock market, especially the tech-heavy Nasdaq and S&P 500, have seen notable pullbacks over the past couple of weeks.

Main drivers include:

AI disruption fears are hammering software and now financial stocks. New tools are threatening traditional software and broker businesses, sparking sell-offs in names like Microsoft and Oracle.
Big Tech's massive AI capex including hundreds of billions of projected spending from Amazon, Microsoft, and various other tech names, raising profitability concerns during cautious earnings outlooks.
Weaker economic data consisting of flatter retail sales (missing estimates), a cooling labor market (higher job cuts), and mixed consumer spending.

This is more of a sector rotation and correction than a full crash.

Keep reading below for more information.