Investment
Editor’s Note * AI is no longer theoretical, it is showing up in revenue and backlogs. What stood out to me this week was how many management teams moved from “AI strategy” to AI contribution. Companies like Lenovo and Palo Alto Networks are directly tying AI to revenue growth and
Investment
Editor’s Note * The U.S. macro backdrop is getting more complicated, not clearer. Slowing growth alongside sticky inflation is putting the Fed in what feels like a genuine stagflation trap, and policy optionality is narrowing. At the same time, the Supreme Court’s decision to strike down Trump-era tariffs
Investment
Editor's Notes: * Some sectors saw reversals in sentiment due to macro: (a) high interest rates and a cooling luxury market continued to weigh on homebuilders and high-end furniture retailers (RH, LEN), (b) concerns over rising fuel costs, combined with severe winter weather ("Winter Storm Fern") and
Investment
Editor's Notes: * With permanent SaaS rerating possible and earnings expectations super high to justify multiples in the US, money is flowing to companies with high 2026 certainty and low valuation multiples. This is a time for bottom-up independent thinking, as there is no consensus yet how AI / geopolitics
Investment
Editor's Notes: * Stocks tend to become overbought or oversold when liquidity shifts. The ongoing rotation away from SaaS and high-multiple US equities will inevitably push up the price of some assets (e.g. Costco / Walmart way too expensive?) while providing bargain-hunting opportunities. Not all SaaS will lose favor—
Investment
Editor's Notes: * To our readers celebrating Lunar New Year, we wish you a prosperous Year of the Horse! * We largely agree with several market trends discussed by recent podcast hosts: (1) a rotation out of US equities, (2) the likelihood that certain software giants (e.g., MSFT) will
Investment
Editor’s Note * We are living through an “AI Paradox.” The market is no longer rewarding “AI exposure” broadly. It is rewarding the landlords of the ecosystem. Chips, power, cooling, nuclear baseload, memory supply. Names like Applied Materials and Constellation Energy are being treated as essential infrastructure, while parts of
Investment
Editor’s Note: * Why Machinery, Why Now? The Machinery Manufacturing sector is often viewed as a "GDP-plus" play, but today’s landscape is anything but uniform. We are seeing a historic decoupling where the AI infrastructure race and a generational shift in global defense are clashing with a
Investment
Editor’s Note * We are clearly in Phase Two of the AI cycle. The easy money phase is over. The market is now separating true infrastructure “Landlords” from vulnerable workflow tools, and rewarding companies that control data, distribution, and renewal rates. Nearly $700 billion in projected AI capex sounds impressive,
Investment
Editor’s Note * The credibility question is no longer fringe. With national debt compounding at a historic pace and interest expense crowding out core spending, investors are starting to price in a world where multiples compress not because of recession, but because of trust and funding costs. This is subtle,
Investment
Editor’s Note * Japan’s “Takaichi Bump” is real, but no longer forgiving. Optimism around policy continuity and corporate restructuring continues to support the market, yet valuation discipline is creeping back in. Elevated PBR levels and sharper currency moves are a reminder that this phase of the Japan trade is
Investment
Editor’s Notes * Profitability inflections matter more than narratives right now. In a market increasingly skeptical of revenue growth without cash flow, we are seeing sharper stock reactions around turning points in margins, free cash flow, and capital efficiency rather than headline growth alone. * Not all inflections are positive and