The S&P 500 ex-AI has reached a new ALL-TIME HIGH, proving that there is life beyond AI. YTD, up 14.2% compared to the headline index's 11.8%. At +15.3%, equal weight is performing even better. Dividends are included. The entire stock market is not included in the AI trade. https://t.co/yHbkjimNJD

Unlucky for the third time? The Nasdaq 100 falls more than 4%, surpassing the 10% decline from its intraday top in October. As investors penalise weak tech profits, the market is now on track for its THIRD downturn this year. There is minimal margin for error when there are high expectations.

Here, Rick Rieder argues that this is one of the "most exciting investment moments I've ever seen," in contrast to the pessimism that seems to rule feeds. Numerous IG/AI loan arrangements for tens of billions of dollars have been made by well-known, financially successful businesses.

Credit risk for AI reaches unprecedented heights. As future spending commitments reach $825 billion, Oracle's 5Y CDS surpasses 300bps, SpaceX surpasses 200bps, and Meta sets a record 119bps. A financial competition is emerging from the AI weapons race. The cost of insuring the dream against default continues rising.

Since July, the Chinese government has been purchasing $2.5 billion worth of equities ETFs every day in an effort to boost the market following the AI decline. What's crazy is that China's government receives 10 times the average daily ETF inflow, which are just approximately $218 million. This would be comparable to the US Treasury purchasing $100 billion in ETFs every day.

Breaking: BlackRock has submitted a new Bitcoin ETF application. This will be a "buffer" Bitcoin ETF, which means that investors will forfeit some profit in exchange for downside protection. $PBIT will be the ticker. https://t.co/WxJXrtvtS9

The use of quantitative techniques was prevalent. Notable sources of outperformance included Asian semiconductors and financial equities. #stocks https://t.co/E4QPvWdGCL

Though they are not immune, community banks' deposit franchises may prove stickier than those of their larger brethren if AI agents like Meta's Muse push depositors towards better rates. Zero-cost deposits at smaller banks fared better during the 2022–2023 hiking cycle, although any margin hit could be amplified by the group's increased reliance on spread revenue. While commercial-focused banks like Banc of California are probably shielded from changes in customer behaviour, low-deposit-beta institutions like Community Financial might be less affected by interest-bearing deposit fees.

According to Bloomberg, Berlin is lobbying for EU limitations on Chinese machinery, chemicals, and possibly pharmaceuticals in Germany. The German trade gap with China has reached an all-time high of about €108 billion. The export giant of Europe now demands more stringent import regulations. The 350,000 annual cap on Chinese hybrid vehicles would only be the beginning. By year's end, Germany needs suggestions for more sectors.

Despite the flow-a-thon, the average age of a liquidated ETF is falling as the ETF death rate rises (245 liquidated ETFs through September, record pace). The reason is that a lot of spaghetti is flung at the wall, and there isn't much time to wait to see if it sticks. https://t.co/Yeul3Kho7L