The AI Boom
It is amazing that even well into the 21st century we still seem to have Luddites. That said, it is amazing that we have so many outdated thoughts, beliefs and practices, and wars going on, in the age of the iPhone Duo. On the one hand we had the launch of the $1,999 folding phone in the US, which will be £1,999 in the UK: rip off Britain is alive and kicking.
Nevertheless, the UK economy managed to grow 0.4% in July, with the services sector apparently boosted by AI. Reading the Financial Times this week it was not entirely clear how AI directly boosted the economy, but perhaps one should just be grateful it has. Perhaps it may mean that as far as the stock market is concerned, the increasing number of companies with the AI in the name, may get a rather better rating than they have thus far. That said, most of them seem to be long haul timeframes for success, as opposed to just taking a punt on Nvidia and making 10% in a week. One wonders just how many CEOs really know what a good AI investment is? This is especially the case given that we really are only 2-3 years in for this area. We also have the scare stories from the woke brigade, presumably because they hate the type of people who are entrepreneurs in the area making money. We have the scare stories that robots will be killing us within a few years, or that AI systems will go AWOL as far as stealing water for data centres et al.
Gaming Realms CEO talks results and strategy with Zak Mir
Social Security
Of course, when the Russians (or whoever is the current bete noire) bomb us, it is far more important that they bomb a happy, healthy, housed country, than not be able to attack us, because we have a solid army / defence. This was the message from our new Prime Minister, whose primary job is the defence of the realm. The message from him was also a green light for anyone who feels like going to war with us to do so. But no, buying the votes of those on benefits is the priority. It was not a stupid or negligent comment, it was a shamelessly truthful. As Jacob Rees Mogg said of the PM’s comment, there is no social security without national security.
However, as we know, the purpose of the Labour party is to buy votes from people who do not vote Labour via tax. Indeed, if those on benefits were not allowed to vote at the time of a General Election, one wonders whether Labour would change its tune? It was interesting that during PMQ’s Kemi Badenoch did not ask the Prime Minister to resign off the back of the National Security / Social Security gaffe. Perhaps she is waiting for him to find more rope to hang himself via the budget (another £30bn in tax?), or an autumn election? Certainly, the storm clouds of the bond market, and soaring oil prices suggest that any growth in the economy, or wins on the stock market will be increasingly difficult to sustain.
Talking One’s Own Book
Having been in and around the stock market for the best part of 40 years, albeit deliberately sidelined for much of that period (including now), it is always interesting to see the ebb and flow of trends / fashion. In my area the tussle between the formal PR companies and the blogger / influencers. You might have thought that the days of an old boys club are over, but I would argue that it is stronger than ever, and have first hand experience of this. This has been made all the more obvious as I actually thought I was one of the old boy’s club. I see the situation as a total mafia, although at the age of 60 this is perhaps less of a concern than it was 30 years ago. One simply has to pay one’s dues (even then this does not necessarily work), or stand aside.
Tooru CEO talks results and strategy with Zak Mir
Therefore, if one cannot necessarily be one of the insiders in the City, perhaps being a professional investor is the way forward? The latest trend seems to be talking one’s book on X. It has made a big difference with companies like East Star (EST), Tungsten West (TUN), Kistos (KIST), Strategic Minerals (SML), Orosur (OMI), ASOS (ASC), and Rank (RNK). Indeed, those people who were onto these opportunities would have done very well (in general) in recent months. One might be slightly concerned that much of the format of such activities is a big investor talking their own book. One might also wonder whether there are some on X who say they are taking £50k, £100k or more in a position, and are not doing anything at all? But then again there are so many cowboys in my PR / IR area who have no experience / no following, and are passing themselves off as big influencers et al. They could also say they are shareholders to get the gig, or promise to raise funds, who know? Who cares?
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
