(Part 5 of 5) My investing muse - Layoffs, AI Data Centre, Private Credit - canary (06Apr2026)
My Investing Muse
Layoffs, closures and Delinquencies
AMAZON JUST EXECUTED 16,000 WORKERS WHILE BURNING $200 BILLION ON AI INFRASTRUCTURE
We are expecting more layoff news to come. Let us monitor and hedge accordingly.
Private Credit - a canary in the Financial coalmine?
The Private Credit sector continues to leak confidence with withdrawal limits and default news. Will this trip up the market? Probably.
Data Centre updates
Half of US data centers planned for 2026 are expected to be delayed or canceled. One big reason is shortage of electrical equipment, such as transformers, switchgear and batteries. US doesn’t have manufacturing capacity, forcing it to rely on imports. - Bloomberg
Outdated electricity grids are now a “national security risk,” JPMorgan has said.
The promised AI of a multi-billion-dollar AI ecosystem is being questioned following the delay and cancellation of data centre constructions. Will this imply a delay in the energy crunch and a slowing down of AI computation capability?
My Muse
The worst is yet to come ... energy, food, chemicals, supplies, supply chain, chips, data centre, data, connectivity, loss of lives and livelihood, break up of trading blocs and weakening of superpowers.
"In trading, we don't make things happen. We lose the need to act and instead need to develop patience, waiting for the right setup to come to us." - Rande Howell.
The impact of the energy shortage should be felt in stronger ways in the coming days. We can expect it to show up in an increase in fuel costs, transport costs, and product prices. Countries that rely heavily on the Gulf for their energy needs would face more constraints as there is a mad scramble for these resources. Will Europe distance itself from America and lean into BRICS? Let us monitor as we can see some shuffling in trading relationships.
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 that are 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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