My Investing Muse (11May2026)
Layoffs, closures and Delinquencies
Klarna was forced to rehire staff after an AI implementation failure. What are the lessons that we can learn? What do we need to navigate with confidence in the AI ocean. How can we avoid these mistakes during our AI deployment?
We are seeing a downward trend in job creation. We are expecting more news of layoffs, and some of them, like Amazon, will be massive.
Vibe Coding
There is mixed feedback about vibe coding. Some developers have admitted defeat when some point to an undesirable outcome. Are there more successes or failures in this domain? Are we jumping too fast into a new solution without a strong, proven track record? Is this a corporate FOMO?
US Farmers
Are we heading to a “man-made” famine? More importantly, is America self-sufficient with its food supplies?
More importantly, America needs to save this important industry that is putting food on the table. This is a strategic need of the country.
My thoughts
Is the USA in a better place following the war? There is much hype surrounding the AI and data centre boom. It is a great thing, and a robust energy infrastructure is needed to back this massive growth.
I hope that the war is not going to escalate, but it may not be within the hands of Iran and America.
With rising inflation, the Fed may need to hike its interest rates instead.
Is the market one explosion away from some correction after weeks of strong bull runs in the S&P500?
There are some concerns about natural disasters - earthquakes, El Niño-led storms, droughts, fire and more. Let us always be prepared.
While the stock market is not a reflection of the economy, overbought conditions are typically followed by oversold ones, and these are opportunities we can explore. Berkshire is sitting on over $380B in cash, and I am watching from the same sidelines while doing some small trades.
Financial Strategy and Outlook
Let us spend within our means, invest only what we can afford to lose, and avoid leverage. Let us review our current holdings and divest from businesses losing their competitive advantages. Additionally, I will consider adding both hedging strategies and defensive positions to our portfolio to mitigate risk.
As we move forward, it is crucial to conduct thorough due diligence before assuming any new responsibilities.
Wishing everyone a successful week ahead.
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