Biden's Parkinson, Wall Street record highs, and NVIDIA's AI boom bubble. It's time to park the bus and enjoy the summer. Winter will come.

July 9, 2023

As President Biden struggles with Parkinson's, Wall Street hit yet another record high and NVIDIA kept rising into bubble territory. It's time to park the bus, hoard cash, sit back, relax, and enjoy the summer. Winter is coming sooner or later. 

Biden's Parkinson

It is speculated that President Biden is suffering from Parkinson's disease or a similar neurological condition. The diagnosis would not be a surprise for the 81 year old President who has been looking shakingly senile recently. The speculation is based on New York Times press reports indicating that the White House visitor logs show multiple visits by a neurologist that specializes in treating Parkinson's disease. That is enough for many to unofficially diagnose Biden with Parkinson's or a similar neurological condition consistent with his aged demeanor. 

The actual medical diagnosis may not exist yet or may not be made public for "National Security" reasons. Even if Biden does have Parkinson's, or a similar neurological condition, a medical diagnosis may not exist. Some may have calculated that it would be imprudent to diagnose him at the moment. Politically, the optics are different and no official diagnosis is required. In the "clinic" of public opinion, Biden is an old man suffering from Parkinson's or a similar condition. In the "court" of public opinion, the "establishment" and the "deep state" will do their best to cover up the "truth" from the the masses. 

Biden's Parkinson's "diagnosis" spells trouble for his bid for re-election. Although Biden may not know it yet, he will be stepping down this summer. Democrats will nominate someone else to run against the presumptive Republican candidate and frontrunner Donald Trump. We are betting on California Governor Gavin Newsom with Kamala Harris as Vice President. We'll see.

Wall Street is on Fire

Wall Street took very well the news of Biden's Parkinson's intrigue. The S&P reached 5,900 setting an intraday record high. Of course, the rise is due to the AI boom, not to Bidenzheimer or Parkinson's. The U.S. technology sector keeps printing money. The AI boom seems unstoppable for now and will continue rising until everyone gets used to AI and it is no longer a novelty. Winter will come for AI stocks relatively soon. 

NVIDIA gained 2.5% today and has gained 173% year to date. It is 8% below it's all time high of $140 per share. NVIDIA's current market capitalization of $3.23 trillion makes it the third most valuable company in the world behind behind Microsoft's $3.42 trillion valuation and Apple's $3.51 trillion. That's right, these three U.S. companies alone are worth about $10.1 trillion. NVIDIA has done well for a company that a couple of years ago was relatively speaking a "nobody", focused on computer graphics card and video graphics processing units (GPUs). It's just so happens that NVIDIA was sitting on gold or oil because those GPUs offer the paralleled processing that is used to power AI computing. 

Winter will come sooner or later

What should do to maximize gains at this moment? We don't know. What we are doing is "parking the bus" as they say in soccer. In soccer, "parking the bus" is a defensive tactic where a team plays deep in their own half of the field to prevent the opposing team from attacking. The goal is to keep a clean sheet and avoid conceding a goal. The tactic is often used when a team is leading and wants to protect their advantage. We are gaining on this market. Instead of being super greedy, we have 40% in cash in the following currencies U.S. dollar, Euro, British pound, Swiss Franc, Australian dollar, and Japanese yen. The 60% in stock is allocated between the S&P 500, the Russell 4,500, and international ETFs. We are also shorting NVIDIA and we are currently down 10% on the position. We are holding zero gold and zero Bitcoin. We'll see.

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