Unhedged The Buy America trade
99 snips
May 7, 2026 Strong US corporate earnings are driving market highs and puzzling analysts. Tech and industrials benefit from AI demand and capacity constraints. Banks profit from volatility and a positive yield curve. Debate over cutting quarterly reporting to semiannual raises investor concerns. A quirky long/short segment contrasts open bars with muntjac deer in the UK.
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AI Spending Is Lifting Industrial Earnings Too
- AI demand is boosting not only big tech but also industrials building data centers, creating strong earnings in construction and machinery firms.
- Armstrong highlights Caterpillar and other industrials struggling to keep up with data‑center buildouts.
Traders And Yield Curve Are Powering Bank Profits
- Banks are reporting strong earnings driven by trading volatility and a positively sloped yield curve that helps borrow‑short lend‑long models.
- Financials' earnings growth is around 20% as loan growth and market zigzags boost results.
Fund Managers Hate Random Intraday Zigzags
- Fund managers are exasperated by sudden intraday moves that force reactionary decisions, sometimes reversing within hours.
- Katie Martin describes managers asking whether to sell, buy the dip, or sit on hands as stocks plunge then recover.