Market tries to steady, but big unknowns loom.

Today, a look at another US equity market session Friday marked by huge market divergences as we also look into what may be driving this phenomenon. Elsewhere, we preview a very busy week ahead, with the big three central banks all set to meet this week and an ongoing blitz of incoming earnings reports, with three of the Mag7 reporting. Perhaps most importantly, we remind of the terrible overhang of geopolitical uncertainty as Israel and the US are posturing with significant force build-ups in the Middle East. This and more in today's pod, which is hosted by Saxo Global Head of Macro Strategy John J. Hardy.

Links

• Michael Every highlighted this article from the FT on the EU having its own wakeup moment on critical material supply chains (ft.com/content/cfb2e934-0000-42e6-93a4-4dffa56…) and taking equity stakes in new ventures.

• Albert Bridge Capital talks about the profound short-termism of traders and investors active in the US equity market (albertbridgecapital.com/post/ai-peaks-and-vall…) as having shades of both the tech/telecom bubble and the Nifty Fifty era in the 1970's, and about the potential longer term opportunities this could bring.

• This one went really viral: a retrospective on the 2028 AI Bubble crash, written as if the year is 2030 (hub.tslombard.com/the-perkini-report). I didn't note on the podcast that the piece also has a positive on how AI will impact the economy, even if a bubble would be harmful for investors. Think the railroad and internet backbone boom/busts.

• Torsten Slok uncorks some stark language on AI, saying that non-Mag7 corporations are essentially getting nothing out of their spending on it (apollo.com/wealth/insights-news/insights/daily…).

• Two long-form podcasts for you today, one with Vincent Deluard talking his bearish call on equities and understated inflation (youtube.com/watch?v=EPGm-0XIEhg), and another one with Richard Mullin on the potential for a secular commodities bull market (youtube.com/watch?v=pH6CR-5PclU) and more.

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