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In this buzz: Big Tech’s Nuclear Gambit – Amazon, Google, Microsoft; Gold , 3% Mortgage and more…

Big Tech’s Nuclear Gambit

It’s all about strategic moves today.
① Amazon just took a $500M leap into the future by investing in small modular nuclear reactors (SMRs), setting the stage to power its data centers with nuclear energy.
② Google isn’t far behind—signing a deal with Kairos Power to secure nuclear power by 2030.
③ Microsoft is resurrecting Three Mile Island to power its AI ambitions.
Big Tech isn’t waiting around for wind and solar to keep up—nuclear energy is the new backbone of the AI revolution.

Our take: As AI’s energy demands surge, reliance on traditional energy sources is becoming unsustainable. Nuclear power presents a clean, reliable solution that could reshape the energy landscape for tech giants and beyond.

⚡ Energy in Flux

➤ Crude Oil Falls Below $71
Oil prices slid below $71 per barrel as Middle East tensions cooled off, but don’t get too cozy—this market moves faster than a meme stock. With oil’s unpredictability, today’s dip could be tomorrow’s spike.

➤ Gold Nears Record Highs
While oil cools off, gold is heating up, nearing all-time highs. As investors scramble for safety in uncertain times, gold’s glow is only getting brighter.

Our take: The fluctuations in oil prices reflect geopolitical realities that can impact global economies. Gold’s rise signifies a shift toward safe-haven investments during turbulent times, offering clues about investor sentiment and market stability.

💼 Corporate Move

GM’s $625M Lithium Investment

• $625M is what GM just dropped into a lithium mining venture in Nevada.
• Why? It’s all about EV battery dominance. Securing lithium now means GM stays ahead of the pack as the EV market accelerates.

ASML Warns of a 25-30% Sales Drop
U.S. export curbs to China are hitting ASML where it hurts. The chipmaking titan expects sales to China to drop by 25-30% by 2025. Geopolitics are shaping the future of tech, and ASML’s warning is a wake-up call for the global supply chain.

Our take: GM’s investment solidifies its position in the fast-growing EV market, essential for meeting future demand. Conversely, ASML’s sales forecast highlights how geopolitical tensions can disrupt even the most established supply chains in the tech sector.

📈 Market Movers

➤ Dow Gains 100 Points
The Dow climbed 100 points, shaking off Tuesday’s losses. It’s earnings season, and the market’s bouncing around like a rubber ball. Today’s gain? A much-needed breather.

image source: cnbc.com

➤ United Airlines Takes Off
United Airlines is soaring toward pre-pandemic stock levels after announcing a $1.5B share buyback plan. With a strong forecast to close out 2024, United is setting itself up for a smooth landing.

Our take: The Dow’s recovery signals a positive outlook among investors, reflecting confidence amid earnings announcements. United’s stock performance also indicates a strong rebound in the travel sector, crucial for overall economic recovery.

🏠 Real Estate Hack:

3% Mortgages Are Making a Comeback

Homebuyers are getting crafty.
➤ Assumable mortgages—yes, they still exist.
By taking over existing mortgages, buyers are locking in rates as low as 3%. With today’s rates hovering around 6%, it’s a golden ticket for those who know where to look (think VA, FHA, and USDA loans).

Our take: In a tight housing market, assumable mortgages offer a lifeline for buyers feeling squeezed by rising rates. This opportunity can help stabilize the housing market and make homeownership more accessible.

✂️ Quick Hits

➤ Airbus is trimming 2,500 jobs in its defense and space division by 2026. It’s a tough call, but Airbus is aiming for leaner, meaner operations in a competitive landscape.

➤ Berkshire Hathaway is still Berkshire. No big shake-ups today, but when Warren Buffett speaks, we listen.

Our Take: Airbus’s decision reflects broader challenges in the defense sector, emphasizing the need for operational efficiency. Meanwhile, Berkshire Hathaway remains a cornerstone of investment strategies for many, and any shifts in its portfolio are worth monitoring closely.

Quote of the day:

“In the middle of every difficulty lies opportunity.” – Albert Einstein

The stinger

Disclaimer

This letter is not offering investment, trading, or investment advice nor is based on any individual portfolio or business operation. We are are not a registered investment, stock nor commodity advisor. One should consult with their own registered advisor to discuss investment strategies that are appropriate for their business or personal goals, risk tolerance and financial situation. Information in this report and on any website is derived from a variety of source believed to be reliable however no representation is made that the information is accurate, complete or correct. These lessons, newsletter and site content is not intended nor shall not constitute or be construed as an offer or recommendation to “buy”, “sell”, “trade” or invest in any securities, commodities, futures, options or other asset referred to in said lessons, reports or newsletters. Rather, this research is intended to identify situations and circumstances that those in the trading community should be aware of to better help assess and improve their own risk management skills.