Another Blue Friday
Yesterday is one of those Fridays that will just be remembered with sadness. So much is happening, especially in the AI world. Marvell is set to be added to the S&P500 and in fact there is someone else too that is being added. The sad part of that is that one of those is replacing Campbell Soups. Nvidia said that Marvell would be the next Trillion Dollar Company and the stock shot up. But yesterday, it fell over 50 dollars a share. But it wasn’t the only one. Dell, Intel, Micron, HPE and pretty much everyone that had been going up lately have fallen from grace. Seems a lot of people were taking their money and running.
Seems like consumer staples did pretty well out of it. I don’t know everything at this point, but I did see that Proctor and Gamble did ok. I will be looking around a bit more over the weekend here to see where everything went. All I know is that most all my big tech stocks fell big time. That doesn’t mean that I’ll be changing any of my positions in those stocks. Sometimes these thing correct themselves. I may even buy a little bit more while they are down. I’m not sure.
Another weird thought
I was thinking today that through this whole AI build out, people have been looking at the supply chain suppliers for all the Data Center build out. I mean, we started with all the GPUs and the server companies. The foundries that actually make the chips became a topic, and the companies that make the equipment to make the chips. CPUs came back into vogue when agentic AI started to get bigger. Then we looked at the construction companies that build the buildings, and then the companies that make the heavy equipment that the construction companies use. Also all the HVAC equipment makers to keep the servers cool.
Now SpaceX is looking to build data centers in space where they can stay cool all the time and there is plenty of solar energy to run them. That makes sense to me if they can pull it off. Their IPO is coming up, and it is the talk of the town. They certainly have all the pieces in place. It will be interesting to see if Elon can pull it off.
But I was thinking that all these new buildings were going to need to be cleaned. You know, windows washed, floors swept, etc. So maybe companies like P&G and Church and Dwight, and CLX will start to be a part of that whole supply chain. Even if the centers are cleaned by robots, there will still be brushes and solutions needed, won’t there? That may be the next group of people that start to go up.
I already own some of P&G and I have been looking at CLX for a while. Maybe this is the time? I did notice that on this Friday, as everything in tech seemed to drop some of the consumer staples went up. I’m guessing that a lot of folks are taking money out of their tech stocks and putting it into consumer staples to be safer than tech. I also imagine some are preparing for Elon’s big IPO coming up next week.
I think it is set for June 12th which is next Friday. That means that you will need to have some cash available to jump in on the first day since it will probably drop in the morning. Then the weekend will come and if you didn’t get in right away, you will have to wait till Monday. I have to admit, the suspense is killing me!
Reorganizing or Spending Cut
It seems to me that there isn’t a lot of new money going into the market right now. Instead of adding to their positions, people are taking from one stock and moving it to another. Same money, just in different places. Like NVDA goes down 50 dollars a share, and somebody else goes up. Shuffling the money around especially after these crazy gains that the tech stocks had over the last couple of weeks.
I guess if you are only in it for the money, then it makes sense to grab it when it’s high and put it someplace else. I didn’t, because I invested in the companies because I believe in their mission. I want to own a piece of the company because I think it will do great things. Still, I am not happy with the sudden drops like we saw on Friday. But if things continue to drop, I just may have to invest some more!
