Nvidia, another great quarter
Interest on the federal debt has doubled as a percentage of GDP in just five years, from 1.6% of GDP in 2021 to 3.2% of GDP for 2026.
https://www.crfb.org/blogs/net-interest-costs-will-double-again-over-next-decade
Tough on crime prosecutors reduce death rates for young men, ages 16-29 years. When violent criminals are in prison, they pose no threat to a community. After they are released, prohibitions on gun ownership reduce violent crime.
https://drive.google.com/file/d/1aEfIlS943SwbDytdghTdFeWc49dws7yw/view?pli=1
Social media use does NOT correlate with youth depression.
https://link.springer.com/article/10.1007/s12144-026-09205-3
Markets and Stocks
Equities closed higher yesterday. The S&P 500 index added 0.8% and the Nasdaq Composite rose 1.3%. Investors started to nibble at software stocks such as Oracle and Microsoft, two names I like.
Nvidia
The company reported a strong quarter and raised guidance. The stock is extraordinarily cheap, selling at 25 times yet growing at 70%. The launch of its generation platform, Vera Rubin, is on track. I continue to pound the table on the stock.
The world is short compute.
Corning Glass and Ciena each have a long runway for growth.
Oracle and CoreWeave
I continue to believe that both stocks are deeply undervalued.
The United States and the global economy don’t have enough computing power to meet daily demand. The compute bottleneck is massively under appreciated. I would guess the gap between supply and demand is growing single digit % every day.
Financials
The largest banks have underperformed the broad market since the beginning of the year. But their fundamentals continue to improve. Net interest margins are expanding. Business lending is growing. Capital markets activity is very strong. And trading desks are minting money. In rank order, I like GS, JPM, MS, BAC and C.
To illustrate: JPM is down 12% from its all time high. C is down 12.5% from its all time high. BAC and MS are also 12% away from their all time highs. GS is the out performer but it too is well off its highs, down 8%. See CNBC.
Coeur Mining
Gold and silver continue to rip higher.
I continue to see substantial upside in CDE. My initial price target is above $30 a share. The price of silver traded above $90 an ounce.