Nvidia Corporation’s blowout earnings report and strong guidance have driven the stock up, but it remains overvalued by around 43%.
The company’s growth prospects are impressive, but its valuation remains speculative, and a significant market correction could be imminent.
Investors should be cautious in the short term, as the end of the debt ceiling crisis and the resumption of bond sales by the U.S. Treasury could lead to reduced liquidity and potential stock market declines.
Through May 2023, we’ve had $720 billion in effective money printing.
In the next seven months, $2.22 trillion in reverse money printing, or QT, is coming.
Effectively, starting on June 5th, it’s like the Fed cranking up the largest QT program in history X 4, creating the mother of all headwinds for big tech, which benefits most from government liquidity injections.
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