Why does the stock market keep notching huge gains?

[BigBalls]

I’m just spitballing here and looking for some opinions. The US is entangled in a war that has not gone the way it was anticipated. Our leaders have gone from “only unconditional surrender is acceptable “ to “ Iran is begging for a deal”. The cost of gas is higher than it’s been in years and will climb higher, inflation is creeping up, GDP is anemic, grocery prices are high and bringing down interest rates is unlikely. So what is happening? First of all, it is evident that Trump will protect the stock market at all costs. The pushback after the liberation day fiasco of last April forced his hand. The huge market drop and financial markets rebellion taught him not to F with the markets. His love and dedication to Wall Street is clear. F the poor people. Let the trailer trash figure it out on their own.  I’m on board with that. But that is not the entire answer.

Corporate profits are continuing to boom. We are seeing one of the best earnings season in many years. companies are proving they can weather the energy related price surges. What’s more interesting is that earnings projections for the rest of 2026 remain strong. A huge part of the answer lies in AI and the huge investments going into data centers, including semiconductor companies and other tech hardware firms, as well as electrical equipment and construction companies. Billions are being invested in those sectors. Just like in the Biden years, I can take higher prices as long as I’m making the huge returns in the stock market. I sold a bunch of TSLA, Pltr and NVDA a few months ago to reduce tech sector exposure but I went back in on the dips recently. My distressed asset business is plugging along but government regulation is creeping in. I have a few million invested in zombie mortgages and the returns have been great but I’m fighting multiple lawsuits in a few states that are driving up my legal costs. I’m going to win the lawsuits but it’s really pissing me off.
In any case, cheers to all of us that had the courage to stay in the investment game. Sad for those that lacked the vision or were overcome by the fear. Your 3% yields are not the flex you thought they would be. Stay strong my friends and stay focused on making money. They say money can’t buy happiness but my 2 months traveling in Europe with my family prove otherwise.
Keep your wits about you and keep stacking paper.

 

 

• This topic was modified 1 month, 2 weeks ago by BigBalls.

[RWC]

Hey thanks for resuscitating the wealth board with a nice post it has been flatlining  for a while over here. Just as I was ready to come up with some reasons the market has been doing so well I got to your second paragraph and that pretty much sums it up.

Earnings is such a key and of course AI has been such a huge contributor to this run. I’m still long AAPL, NVDA and of course my two favorites Vertiv and Dell, both have been run away freight trains. A little pullback today but so what that’s the nature of tech as you know. Can you imagine how this market will take off if the war ends? Valuation is still a concern at 24X which is historically high, but investors don’t seem to care.

Enjoy Europe with the family that sounds like fun, but mortgages and lawsuits not as much so good luck with that. Happy travels.

[BigBalls]

Thanks RWC. Good post too.
The Total Market Cap relative to GDP has reached approximately 225.9%. It’s nuts. Those numbers indicate a strongly overvalued market. But the tremendous amount of money flowing into AI is extraordinary.The AI boom has made Big Tech richer, bigger, and suddenly much hungrier for cash.  That is also an extraordinary event. The amount of money being invested in AI shows up in the Capital Expenditures reports, CAPEX, a long term investment report. Amazon, Alphabet and Meta are spending almost all their operating cash flow on CAPEX and so are other companies. How much cash flow being put back into the machine can investors tolerate? For now it seems to be working fine but sooner rather than later investors are going to demand that those heavy investments in AI infrastructure start throwing off cash. We have room to run for a while but I’m still planning to take profits when the opportunity arises. History has taught us some boom to bust lessons. Keep stacking paper and making hay while the sun shines. Cheers!

[Java]

Because like grocery stick it keeps following Warren buffets advice and buying gold.

I should do a post from the day double headed dildo showed up here celebrating the crash of the market.  Nasdaq in particular.  And how glad he was to be in gold.  And my reply   And where we sit today.

glad I made a killing. Wish others had followed.  Up 350% in 13 months

[San Clemente]

You are NOT an investor.   You are a gambler.   350 percent is pure gambling. nothing else.    You bragged you don’t even have retirement assets.    Gold is insurance. You don’t have any either.

 

http://www.gamblersanonymous.com.

 

your welcome. sc

[Daystalker]

If shit hits the fan and you actually need to turn in your gold, where are you going to take it?  You will get rolled in the parking lot like a fool and we’ll see you on the news.

[San Clemente]

the only heavy metal I have more than gold is LEAD.    locked and loaded at all times.  Not even a gun guy.  The stuff just seems to find it’s way here.

 

Let me explain you the ORDER of money you should have.    Enough cash for 2 years of all your bills.   Your weight in gold. 3-5 million in laddered T bills, that’s generational. 8 figures in PAID OFF real estate.   another mid 8 figures in the S and P 500.   ZERO dept.    When you get that , you can retire like I did 5 years ago.

 

or you can deliver microplastic poisoned water bottles on christmas.      It’s really up to you.  sc

[Java]

If that’s really what you have and really how you invested it I hope you get sued by one of your many former patients that hate you.   So many you can’t count them all.  What a clown to invest that way.

you don’t deserve whatever you have.  I have more than your whole net worth in one account.  Man you are sad.

[BigBalls]

Folks with one star reviews don’t get hired by any medical network. Fact. This wasn’t a retirement to “spend more time with the family”. Lmao.

“Laddered bills” hahahaha. You don’t get rich that way. In fact you lose money.  TBills are a temporary parking spot not a long term strategy. T bills  are a good short term capital preservation strategy but a stupid long term investment. Yields hardly keep up with inflation and since 2020 have been under water vs inflation. Stupid to even brag about “laddered tbills”.  Comedy hour.

[Java]

Oh there you are. About time you showed up.  Lately he’s been claiming he was in the market the whole time and making money and he never said he said he followed buffets advice and got into gold

you read it.  I read it.  We all read it.

we also all read how happy he was the market tanked around 4/2/25 when Trump went tariff.  And he celebrated here.  Doesn’t seem to remember I told him I’d bet him any amount of money id win the next 3 6 12 whatever months and I did.  Gold has risen. Tqqq murdered it.  350%.  In 13 months.  Now he shows up and claims he was in the market. Index sp500 the whole time.

yeah. Sure.  People who just lost millions.  As he would have if he’s as wealthy as he says and truly that far into the market.  People who lost millions don’t show up and do td dances when the market fails.

im doing great thank you. Always have been. Heavy on lrcx and tqqq now. Kinda wondering when is a good time to get out.  Was gonna sell 1.1 million of tqqq at $55. Then it went to 60 and im like nah.  Moves it to 57. Then it went to 65.  I went to 58.  It went to 70. Then 75. My call to sell is now 60 lol.  Always trying to get that extra 10k man lol.

Carvana continues to me free money for me.  How to make a million a year working from your phone ten minutes a day.  I should write a book

[BigBalls]

Grocery Stick was orgasmic on liberation day, I believe his post was something like this, “HAHAHAHAHAHAHA, EAT MERDE SANKA AND RAISINS”. The only time(s) I have seen him that giddy is after a USC football loss.

We all read when he posted that he follows Buffets advice on buying gold. Meanwhile Buffet has been in record for many years as saying gold is do nothing investment. He celebrated the market tanking and now he says he invests in stocks, LIAR. Everyone I know that invests was pissed. Super pissed.

They say it takes money to make money. Yeah, once you hit a certain level a few minutes on your phone can make you hundreds of thousands if not millions. Trump is fuckving the working class but is a boon for those of us that invest. Inflation be damned. I can handle increasing prices as long as the cash from investments is rolling in.

 

 

 

[Java]

Cracked me up when he tried revisionist history. Suddenly he’s an s & p 500 guy.  Sure thing.

everyone dances around happy when they are all in and the market crashes

 

that’s  why he’s the double headed dildo

[FresnoMike]

Profits.

[BigBalls]

Yes.
Profits.

if I were to go with a one word answer I would pick the same word.

• This reply was modified 1 month, 1 week ago by BigBalls.

[BigBalls]

Let’s add AI to that, profits and AI fever.

[Java]

Truth. I have mixed feelings here.  I sold calls on Amazon at 200 now 205. About half of what I own.  Then it took off.  So I don’t like it going down but if it does I’ll be actually able to keep it.  Hard to roll it forward when you’re $70 a charge off. 205 versus 275

 

if it could dip to 230 or 240 I could buy out and then resell to the future at maybe 220 230 and climb back in

 

have the same problem with tqqq and intel right now.  Both outpaced my calls. I mean boo hoo if I have to sell at a solid profit.  I’m just greedy enough that now I want a huge profit.    I confess these are rich men’s problems

[Daystalker]

What’s your thoughts on AI in the market?  If everyone is using it, technically competing with each other, will it cause an eventual stagnation?  If one “Ai” system, or whatever you want to call it, starts a campaign that sees gains, will another system just manipulate to counteract that?  I guess it will all boil down to who gets the algorithm first, but if the systems are able to learn and counter almost instantly, how will there end up being any gains at all?  I can’t see anyone being able to stay in without having ai do all the work, they will get annihilated. Each gain on one side will be wiped out from the other, imo.  I don’t know maybe I’m not fully grasping it, but seems like it will just be a huge Mexican standoff.

• This reply was modified 1 month ago by Daystalker.

[Java]

Been thinking a lot about this and will have a thoughtful reply on the football board.  Because it applies not only to investing but this board.

might be long.  But I think there are analogies to 1998 and the WWW evolution

 

why on the football board?  Because my business is facing some of these issues now as is this board

[RWC]

Good question. Don’t really have the answer but I would think instead of the result being stagnation you would just have more competition where companies would have to compete on true innovation. It would raise the bar for what stands out. AI is still young it’s hard to tell where this ultimately ends up.

• This reply was modified 1 month ago by RWC.

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