The massive investment in generative AI is creating a real-world economic boom in adjacent industries. The ninefold increase in AI revenue is fueling unprecedented demand for data center construction, which in turn is causing significant wage inflation for skilled labor like electricians and project managers.
Contrary to narratives about the death of traditional portfolios, 2025 has been an excellent year for simple diversification. With US stocks up 17%, developed international stocks up nearly 30%, and the aggregate bond market up 7%, a basic three-fund portfolio has performed exceptionally well.
A clear split is emerging between the performance of the broader stock market and more speculative assets. While equities are strong, the crypto market is experiencing record outflows and price weakness, and companies like MicroStrategy are building USD reserves, signaling caution.
The power dynamic in media has decisively shifted from legacy studios to tech-driven streaming platforms. Legacy media's share of TV viewing time has plummeted, while Netflix generates significant profits and YouTube surpasses it in viewership, leading to speculation that a giant like Warner Bros. could be acquired by Netflix.
Despite strong market returns, there is a persistent undercurrent of concern that nearly all financial assets are overvalued. This sentiment, voiced by prominent investors like Jeff Gundlach, echoes historical warnings and questions the sustainability of current price levels across stocks, bonds, and real estate.
Keep pulling the thread on S&P 500.