BREAKING: President Trump posts a screenshot of our August 11th post regarding his reported capital gains tax cut discussions, including "indexing" capital gains for inflation before taxes are calculated.
It appears President Trump is actively considering capital gains tax cuts.
Most people don't realize how big of a growth wave we are currently experiencing.
So far, with 88% of S&P 500 companies reporting earnings, the index has posted +50.4% growth in earnings year-over-year.
To put this into perspective, the already astronomical expectation of +23.1% growth has been more than doubled.
This will mark the 2nd consecutive quarter of earnings growth above +25% and the 7th consecutive quarter of double-digit earnings growth for the S&P 500.
The last time growth was this strong was in Q2 2021 as the US economy emerged from the pandemic and $4+ trillion in stimulus was handed out.
We are arguably in the midst of the biggest technological revolution in US history.
The data is absolutely insane.
BREAKING: US data center construction spending jumped +28% YoY in April, to a record annualized rate of $50.7 billion.
At the same time, public spending on transportation came in at $49.9 billion.
This means data center construction spending has outpaced government transportation spending for the first time in history.
Since 2022, spending on data centers has surged by +357%.
Over the same period, government spending on transportation has increased +16%.
As a result, data centers now account for 2.3% of all US construction spending.
The AI buildout is reshaping US infrastructure spending.
Just for the visual learners about CPO:
This is what the CPO market growth looks like from GS + $LITE transcript confirmations.
There's certain names that are very high-beta correlated to CPO.
Maybe... not the best idea to copy firms named after Orange Peels on $AAOI to $SNDK to short names.
At the very beginning or middle of supercycles?
Especially if you're retail, live in Europe, and only look at last 12 months revenue instead of forward growth.
"The market hasn't made these stocks expensive yet." Forward P/E on the semi index: 22x. Scarcity of compute is real and the risk/reward is still positive, even in the names leading this rally. Tom's full take: https://t.co/aYhYcI7Qat
Too Compelling Not to Comment. $AMZN $300
Citron has followed $AMZN for 25 years. Today is the game changer where the ridiculous discount to $WMT multiple should close.
For 4 years the market rewarded $WMT for stability and punished $AMZN for capex. Walmart looked like the adult in the room.
Today, Jassy just showed you what that capex built….F$&@ ME!
The most serious threat to NVIDIA's semiconductor dominance ever created. Amazon. $50 billion standalone revenue run rate. Triple digit growth. Trainium4 not even shipping and already sold out. Two customers tried to buy ALL of Graviton capacity for 2026. Amazon said no!
This is another trillion dollar company hidden inside $AMZN.
This does not exist in a single sell side model. Not one.
The market spent 4 years punishing Amazon for building this. Now it's built. And $WMT still trades at 45x earnings for 4% revenue growth while $AMZN sits at 26x forward.
$WMT sells potato chips. 45x earnings. $AMZN sells AI chips. 26x forward earnings. (And they do sell a lot of potato chips.)
The chips are sold out. The multiples have to flip.
F$&@ $WMT. $AMZN. $300.https://t.co/QfOhOpN9sj
Trump: ...I agree to suspend the bombing and attack of Iran for a period of two weeks. This will be a double sided CEASEFIRE! The reason for doing so is that we have already met and exceeded all Military objectives, and are very far along with a definitive Agreement concerning Longterm PEACE with Iran, and PEACE in the Middle East. We received a 10 point proposal from Iran, and believe it is a workable basis on which to negotiate. Almost all of the various points of past contention have been agreed to between the United States and Iran, but a two week period will allow the Agreement to be finalized and consummated.
Is the market setting up for a rally?
The S&P 500 is down -5% since the Iran War started, now 15 trading days into the sell-off.
In previous geopolitical conflicts, US stocks bottomed around day 15 on average, based on over 30 major geopolitical shocks since 1939.
The current sell-off is tracking almost exactly in line with the historical average and median path.
After the typical bottom, the average recovery lasted for ~40 trading days.
From there, stocks tended to move higher after reaching their pre-event levels.
Is the usual geopolitical playbook set to repeat?
Major life cheat code: Ask for the thing you’ve earned. People waste their entire lives simply because they're afraid to ask. Stop waiting for good things to happen. If you want something, and you've done the work to deserve it, go ask for it. Closed mouths don’t get fed.
Some perspective:
1. Bitcoin averages 2 declines of -20% or more per year
2. Ether averages 3 declines of -20% or more per year
3. The S&P 500 averages 4 declines of -5% or more per year
4. The Nasdaq 100 averages 4 declines of -5% or more per year
5. Gold averages 1 decline of -10% or more per year
6. The VIX spikes above 20 roughly 40 times per year
7. The average S&P 500 stock declines -20% once every 12 months
Zoom out and ignore the noise.
THE MATH DOESN’T LIE
Billionaire Ron Baron just spelled it out in the simplest way possible:
Money loses 4-5% of its value every year from inflation, while the economy grows about 2% a year.
That’s roughly 7% erosion + growth -- which means prices double about every decade while cash keeps falling behind.
If your money is melting, you have to own assets that outrun inflation. That’s why #Bitcoin has crushed every major asset over the last decade.
When the system inflates, $BTC protects. 🔥