The Fed Holds. AI Does Not.

Fireworks in July typically happen on the 4th, but the market waited until the end of the month to let loose a "big finale".  Significant drawdowns in AI-related verticals, stability concerns in Japanese Yen and how it may all have been underpinned by new Fed Chair Kevin Warsh holding the line at this month's Fed Meeting. Let's get the latest On The Markets.  This week Sonoma Wealth Managing Principals Daren Blonski CFP®, Chris Sipes CFP®  and Marketing Director Dano Weir examine: • Rates stayed put at the July Fed Meeting.  How much of an effect did that have on this week’s market performance? • The cautionary tale of leveraged AI investing that came to an end this week. • AI volatility feels like the S&P would be “down”?  Daren has the key line it actually passed this week that’s not leading the narrative. • A look at SpaceX’s significant underperformance in light of this week’s drawdowns. • What credit default swaps tell us about this week’s AI volatility.  0:00 Cautionary tale of the Situational Awareness hedge fund and thoughts on leveraged investing 21:00 America's farmland value vs. Datacenters 25:00 SpaceX IPO underperforming 27:17 Sentiment: bears up, bulls down 28:37 Fed Meeting: rates held 34:10 Treasuries right now 38:02 Core PCE has been above 2% for 63 consecutive months 39:25 Junk credit spread 40:00 Over half of the S&P is priced at 10x sales 41:00 Cost of insuring hyperscalers spiking 42:10 Hyperscaler debt surging 43:31 Bull market cycles 46:00 Bitcoin, the sure thing that wasn't sure 49:30 S&P actually did better than you think 1:02:00 Oil sitting in a sweet spot? 1:05:00 SpaceX struggling, COCA COLA is up?! 1:09:45 The Dollar and the Yen- US stepping in to support Japan? 1:10:40 Interest rates are problematic 1:13:30 Mid cap breaks support 1:14:30 Semiconductor index getting clobbered 1:19:00 Gold continues a rough year 1:20:40 Silver hype train has left the station     Full video episode available here: https://youtube.com/live/rf-8XhEpKw4?feature=share   Book Your Wealth Analysis with Sonoma Wealth right here: https://sonomawealthadvisors.com/book-your-wealth-analysis   _____________________________________ Disclosure: Fermata Advisors LLC is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. This content was produced by Fermata Advisors, LLC, d/b/a Sonoma Wealth Advisors, d/b/a Fermata 401k, d/b/a Fermata Tax, d/b/a Fermata Insurance.  The opinions expressed by Fermata Advisors, LLC on this show are their own. Information presented on this program is believed to be factual and up to date, but we do not guarantee its accuracy, and it should not be regarded as a complete analysis of the subjects discussed.  Discussions and answers to questions do not involve the rendering of personalized investment advice but are limited to the dissemination of general information.  A professional advisor should be consulted before implementing any of the options presented.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed.  Information expressed does not take into account your specific situation or objectives, and is not intended as recommendations appropriate for any individual. Viewers and listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.