What if the AI revolution is just getting started?
As companies work out how to insert AI into their workflows, they can streamline their workforce and increase their margins.
Perhaps stocks are still cheap compared to the profits they will be spitting out in a few years.
Is that the real reason why Commonwealth Bank of Australia [ASX:CBA] is flying higher?
Atlassian [NASDAQ:TEAM] boss Mike Cannon-Brookes came clean this week that the reason he was firing 150 workers was due to AI.
What happens if every large company starts coming out with such announcements regularly over the next few years?
Does the unemployment line of white collar workers keep growing while stock prices continue marching higher?
Meta Platforms [NASDAQ:META] and Microsoft [NASDAQ:MSFT] flew higher this week on the back of stellar results. They won’t slow down their investments into AI because it seems to be paying off in spades so far.
The IPO (Initial Public Offering) market seems to have sprung back to life after a few years in the doldrums. Figma Inc [NASDAQ:FIG] listed yesterday and jumped 250% above its listing price on day one!
you are always wary that the music is about to stop in a market as strong as US stocks at the moment. I have clear lines in the sand where I will start taking evasive action if the selling returns.
But what if the current uptrend continues uninterrupted?
These are some of the questions Callum and I discuss today. We also look at the strong rebound in the US dollar this week on the back of the European tariff deal and the US Feds decision to keep interest rates steady at their FOMC meeting.
After months of selling pressure in the US dollar we could be on the cusp of a short-term rebound that could affect overbought commodity markets such as gold and silver.
We hope you enjoy today’s instalment of Closing Bell and be sure to head to the YouTube version to give us a ‘like’ and subscribe to the channel if you haven’t already.
Regards,
Murray Dawes,
Editor, Retirement Trader
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