📈 AI Isn't A Bubble

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Good Morning!

Investors are in a bit of a skittish mood, scampering away from riskier assets. Why, you ask? Inflation's the party crasher here. Meanwhile, Putin has clinched the Russian election in what can only be described as a landslide victory. Competition? What competition?

Over in the world of AI, Goldman Sachs is playing the cool, collected detective, assuring us that the AI market isn't in a bubble. So, for now, no popping sounds in the AI sector.

And finally, Bitcoin's doing its best rollercoaster impression, retreating a dramatic 12% from its record high. Hold onto your hats (and wallets), folks!

Grab your Iced Macadamia Oat Shaken Espresso and let's get into it! ☕️👇️
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Markets

S&P 500 Logs 0.3% Loss as Investors Flee from Risk Assets Amid Rising Inflation (2 minute read)
Well, it looks like the S&P 500 took a little stumble at the end of last week, dropping by a teensy 0.3%. Blame it on a price report that's playing hard to get with inflation. The Producer Prices, kind of like the backstage pass to wholesale inflation, jumped a surprising 0.6% in February. That's double what the brainy economists guessed, and it's the highest leap since last September.

Investors took a few steps back, worried that their beloved stocks might get a bit of a shake-up if the Fed delays cutting those interest rates.

Speaking of the Fed, Chairman Jay Powell and his financial Avengers are meeting this week to probably talk about all this and more.

Investing

5 big analyst AI moves: AI market is not a bubble yet, says Goldman (5 minute read)
In the AI buzzland, there's a rally in NVDA and others causing a bit of bubble gossip, but Goldman Sachs is playing cool-headed mythbuster this week. Their note says AI's U.S. stock market sizzle isn't yet Tech Bubble crazy; it's exciting, but their growth forecast is cautiously optimistic at 11%, not near the 16% of the Bubble or 13% post-COVID.

For the TMT top ten, expected earnings growth chimes in at 15% over three years, overshooting S&P 500's 11%, yet it's still less dramatic than the heights of March 2000 or October 2021. Valuation-wise, the biggest TMT players are valued at 28x, which sounds big, but it's actually playing it cool compared to the Tech Bubble's grand 52x and late 2021's 43x.

Bitcoin Prices Retreat 12% from Record After Inflation Data Dents Bright Outlook (2 minute read)
Bitcoin (BTC) traders started offloading their digital gold, spooked by US reports suggesting a comeback of inflation. The crypto rollercoaster saw Bitcoin prices nosedive in response to US economic data, particularly some alarming inflation reports.

In just four days, Bitcoin waved goodbye to 12% of its value, plunging from a dazzling high of $73,800 to a more modest $64,500. But not one to stay down for long, it bounced back a bit, flirting with $68,000 by Sunday. As Monday dawned, Bitcoin was hovering around this mark, seemingly taking a breather as traders geared up for the day.

Money

In Less Than a Decade, You Won’t Be Able To Afford Homes in These 80 ZIP Codes (5 minute read)
It's like a real estate crystal ball moment down South! Right now, there are heaps of homes lounging below the U.S. median value of $343,951, but don't get too comfy with those price tags. According to the financial seers at GOBankingRates, this affordability is on a ticking clock. They've pinpointed some Southern ZIP codes where, in less than a decade, the median home value is set to leapfrog over the national median.

Yep, in these neighborhoods, snagging a home might just become a 'wish I had' tale in the next ten years, as affordability takes a back seat. So, if you're house hunting in the South, it might be wise to move fast before these ZIP codes turn from budget-friendly to budget-busting!

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