Last Thursday was the first day since Covid that all three big hedge fund strategies lost more than 1%, per Goldman $GS. If your account looked ugly, the pros got smoked too.
Morgan Stanley's Mike Wilson said last week we've got 2 to 3 rough weeks left in this correction. Fed Wednesday plus big tech earnings lands right in that window. $MS
🚨 $MS MORGAN STANLEY CIO MIKE WILSON SAYS THE STOCK MARKET CORRECTION IS IN THE "FINAL INNINGS":
"I think the average stock is done... it's been a really nasty correction since the start of June."
What the market has digested:
"The momentum unwind... the sustainability of the AI CapEx. You have a couple wars going on. You had the midterm election anxiety."
What comes next:
"We still gotta get through the next probably 2 to 3 weeks, and then I think we can still finish the year pretty strongly and definitely into next year."
$META spent years buying back its own stock and now it's selling $35 billion of new shares to pay for AI. When a company that prints money still needs more money, I start paying attention.
META RAISES $35 BILLION TO FUND AI EXPANSION
Meta ($META ) launched a $35B equity offering to finance AI infrastructure, including $22.5B in common stock and $12.5B in convertible preferred shares.
$NVDA, $AMD and $AVGO have expressed interest in investing up to $5B combined.
Meta targets $135B–$145B in 2026 capex, with another $60B stock-sale program planned for 2027.
The key risk: Rising AI financing needs and potential shareholder dilution.
Elon says lenders basically quit funding anybody living off AI data center money, the same day SpaceX lands $40 billion in debt for chips. Big guys still get the loan. If I held $CRWV or any of these neoclouds I'd be nervous right now.
BREAKING: Elon Musk has said:
"As of the past few weeks, debt markets have almost entirely shut off access to money for any company that doesn’t have substantial revenue independent of AI data centers. That means the 200+ neoclouds are going to see guppy-level death and consolidation. Some will make it through, but not many.”
Trump says attacking Iran is "a possibility" and Brent already ran 6.2% this week on Middle East worries. Pretty sure the work truck's gonna feel this at the pump next week 😬
Saturday morning coffee on the porch and it's finally cool enough to need a jacket. Gonna knock out a couple small jobs then do nothing the rest of the day. Y'all working this weekend or taking it easy?
💰 WEEKLY CLOSE
Oil and wheat both had war fear priced in. This week they split.
Brent finished up 6.2% on Middle East worries. Wheat fell 5.4%, its 8th straight losing week, on peace talk hopes.
I think wheat's pricing in peace way too early.
Not financial advice.
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I wrote the whole thing up in my new weekly, The Gap Report. Free to subscribe:
thegapreportweekly.substack.…
