Jun 06, 2025

In recent news, there has been discussion about the credibility of the 2025Q1 GDP decline, with concerns raised about potential undercounting of inventory accumulation and data center investment. The notable slowdown in the US economy, coupled with a decline in corporate profits due to the “capital consumption adjustment”, has sparked worries about the future trajectory of the economy. The government’s failure to accurately measure inventory accumulation and data center investment could lead to distortions in economic statistics in the upcoming quarters.

The surge in imports in the first quarter of 2025 has raised questions about the accuracy of GDP calculations, particularly in categories like gold, organic chemicals, and pharmaceuticals. The discrepancy in import volumes and their impact on domestic production could complicate the economic outlook further. Understanding the relationship between changes in import volumes and changes in GDP remains crucial in assessing the overall economic health.

Retail investors are displaying increased confidence in the stock market, driving up stock prices despite analyst warnings about potential risks. The surge, fueled by retail investors buying the dip, has raised concerns about the sustainability of the rally. As investors gravitate towards riskier stocks, there is a sense of complacency that may not align with macroeconomic risks, potentially signaling the final stages of the current equity rally.

Lux Capital’s initiative to support stranded scientists by providing funding for research projects has garnered attention in light of cuts to academic research funding. The venture capital firm’s effort to back researchers underscores the importance of supporting innovation and technological advancements. Additionally, several companies have recently secured significant funding rounds, reflecting a positive trend in investment across various sectors.

Renowned investor Jim Chanos has revealed his current favored trade strategy, emphasizing selling equity to buy more digital assets, particularly Bitcoin. Chanos highlighted the opportunity in the divergence between Strategy’s market price and its Bitcoin-adjusted book value, suggesting that buying Strategy shares at the current price could be akin to purchasing Bitcoin at twice its value. This trade strategy, involving the sale of different securities to purchase Bitcoin, presents uncertainties about its impact on premiums in the market.

Stay Well!