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The yield curve will steepen with the short end coming down which will spur capital markets activity.

They join the Dow on Monday which will give it a brief bounce. Key staff leaving hurt the stock earlier this week. Likes GOOG a lot. 

He's long this name despite last Tuesday when they suggested they may be a seeing a slowdown in orders.

Are many positives with the Canadian banks: strong cash flows, buying back shares, raise dividends and expanding into other businesses and territories like the U.S. Also, M&A, retail, mortgages and asset management are doing well. But the PEs are much higher than before (higher than American banks). Don't sell them here, but don't expect this momentum to last. Banks are in the sweet spot.

Will benefit from the AI buildout. They made a big acquisition today.

They have pricing power, are a consumer staple name, are executing, and trading at an all-time high.

Power will continue to be a bottle-neck in the AI build, and VST is best-positioned.

It will be volatile, down 25% from highs, but had rallied 50% from the IPO price. Set it and forget it, holding for 10-15 years. Revenues could rise 70% and double gross margins by 2030. They have a 90% market share in space, cost advantage given scale, launch costs will plunge from $14 million to $3-5 million in time. Starlink has 10 million customers, expected to top 200 million by 2030. Anthropic and Google are spending $2 billion/monthly renting AI compute. 

The changing role of the U.S. Federal Reserve. Last week's new Fed Chief was surprisingly hawkish, since Trump appointed him to lower interest rates. Warsh is restructuring how the Fed will communicate with investors. This adds uncertainty and less transparency. And more volatility which is not necessarily negative. When 2008 hit, the balance sheet of the central bank became a policy tool. Critics of Alan Greenspan point to the late 1980s when he slashed interest rates to zero that maybe led to the real estate bubble. Since 2008, there's been a massive ramp-up of the Fed's balance sheet as a percentage of US GDP is what Warsh will manage, to lessen than past Fed chiefs. Warsh's intent is to lower the bond coupon of 3.36% and the T-bill yield of 3.84%; his hawkish stance will help the long end of the curve, but hurt the short end. It will add volatility.

Be cautious. We've seen this before and it ended badly. Many good things are happening: the US economy is doing well, Canadian jobs numbers were solid, the housing market is firming up a little, the AI boom. Though he's skeptical, the Middle East war is de-escalating. We're near the end of the bull market: are record-high multiples and the market should mean-revert in a correction. U.S. 10-year treasury notes are not being issued because 85% of the issuance is now at the short end. Even defensive stocks aren't cheap. Only energy and tech have gained in the last 12 months; all else has done poorly. In Canada, telcos are cheap because of competition and regulatory threats. Canadian banks have shot up to all-time high PEs. He's not in a hurry to deploy new capital.