1. Trump pushes to make the US an AI superpower.

AI infrastructure stocks got a boost from news that Trump announced billions of dollars in private sector investment to build artificial intelligence infrastructure in the US in a joint venture by OpenAI, Softbank and Oracle called “Stargate”, as he pushes to make the US the world leader in AI in the race against China.

It will deploy $100 billion “immediately” and have a goal of increasing to “at least” $500 billion in AI projects, including data centers and physical campuses. That’s pouring oil on a fire….

Not much red toaday, but Apple received a pair of analyst downgrades, in the latest sign that soft iPhone sales are becoming an increasing concern for investors, as artificial intelligence fails to act as a hoped-for growth catalyst.

2. President Trump ECB’s Kazimir sees three to four more cuts starting next week.

3. Stick with “Financials.”

Financials led the market last week amid another strong start to earnings season.

Also, positive earnings revisions are going higher, and relative valuation looks undemanding in a historical context.

4. Who said bonds were boring?

US Bond yields have come down quite a bit in a few days.

23 basis points in a couple of days is about 2% return…on a riskfree asset.

5. Also, falling bond yields could be a tailwind in 2025 for the Utility sector and Real Estate.

These sectors are the most sensitive to falling rates.

6. Make America cheap again.

Donald Trump takes office with the most expensive stock market in history.

Of all the measures of the market’s priciness, among the most reliable is the cyclically adjusted price/earnings ratio developed by Yale University economist Robert Shiller, since it looks back a decade and adjusts for inflation.

7. The fastest growing economy at a PEG of 1.

India is in the midst of a significant positive wealth shock, which has far-reaching implications for both macro and markets.

Domestic demand should drive roughly 6.5%Y GDP growth in 2025.

The fundamentals are underpinned by the macro stability, coupled with strong balance sheets of corporates and banks.

Earnings are forecasted to grow of about 18-20% annually over the next 4 to 5 year!

Here is the Sensex, trading at a forward P/E of 20. That makes a PEG ratio of 1.

That’s the definition of cheap.

The price/earnings-to-growth ratio, or PEG ratio, divides a company's price-to-earnings (P/E) ratio by its earnings growth rate.

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