Hello everyone interested in The Ghost Disruptive Innovation Fund and welcome back to day 143!
Today's post will be addressing two very big events occurring in the market, beginning with The DeepSeek AI scare and then a small commentary on Trump's proposed Tariffs. The Fund continues to focus on educating all readers and analysts involved with The Fund, education will continue to remain The Funds most important performance indicator. As always we ask you please stay connected for future trades, updates on holdings, and more holding reports in the future. Thank you for the continued interest in The Ghost Disruptive Innovation Fund!
The DeepSeek AI Scare
On the morning of Monday, January 27th, 2025, investors were welcomed to the week with a -15% Nvidia Corporation (NVDA) and -10% Broadcom (AVGO), as well as the S&P500 dropping over 2%, so what just happened? Well to begin one must look at the facts and information available about DeepSeek, DeepSeek is a Chinese LLM AI Model which is rumored to have the capability to compete with OpenAI's ChatGPT, not only is the performance supposedly on par, but it was built for significantly less and much faster. When you take these facts into consideration and the detail that it's Chinese, it makes more sense why the market reacted so violently. DeepSeek is currently only available to Chinese citizens with no plans of becoming accessible in the United States. In conclusion the whole DeepSeek AI Scare is just that, a big scare. No clear facts or information about the technology or its use are out yet and any serious reaction seem incredibly emotional. In 12 months its more likely that investors will have profited large off of this dip, rather than this be the clear symbol that The United States has lost the AI race.
What Do Trump Tariffs Mean For The Fund?
According to Yahoo Finance mentions of the word "Tariff" are at an all time high around wall street, and talks about Tariffs have never been so complicated before. It seems like this would be a good point to consider how Tariffs are going to effect The Fund. To begin, a large amount of our investments will overall not be effected by Tariffs, obviously Mr. Market moves however he wants, but all of our Bitcoin Proxies generally have no fears over Tariffs. With the elimination of The Proxies, that only leaves 8 stocks which could be effected by Tariffs. To begin, Tesla (TSLA) may face some issues with imported parts around the car body, but overall the company has historically showed an incredibly resilient supply chain. Next is Advanced Micro Designs (AMD) and Broadcom (AVGO), both of the companies are in the Semiconductor Industry and could face some problems with Asian and South American sales, however United States sales may increase with the decrease in international sales. ImmunityBio (IBRX) shouldn't have any problems with Tariffs and the main focus of the company remains on United States sales. Not only will IBRX likely be fine, but so will Hims & Hers Health (HIMS) with very little focus on international sales, only on The United States currently. Next is Sofi Technologies (SOFI), Tariffs should also have no impact on Sofi as the company doesn't deal with any physical items. Finally is AST SpaceMobile (ASTS) and Archer Aviation (ACHR) both of them could face some minor issues in there supply chain, especially from Asian countries. Regardless though both ASTS and ACHR will likely continue all of there plans on time and the Tariffs should not impose any serious threats. There's no telling how Tariffs may or may not effect the market, but The Fund believes we will receive a lower impact from Tariffs then the rest of the market, and we remain ready for whatever Mr. Market may bring with the new policies.
January 28th Holdings
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