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1. Gundlach says to buy international stocks as the dollar is “doomed”.

“As the US dollar is now at the beginning of a long-term descension, overseas stock markets will continue to outperform the U.S. stock market, said the "New Bond King", Jeffrey Gundlach, CEO of DoubleLine. If the US dollar falls against other currencies, and international stock markets perform excellently, the dollar investors buying foreign stocks may enjoy double benefits. Therefore, investing in some emerging market countries is entirely sensible, said the CEO, with a continued preference for India as a long-term holding target. Investing in some Southeast Asian countries, and even Mexico and Latin America, is also a viable option. ”

2. Tariffs are not yet impacting the overall inflation.

CPI inflation numbers came in below estimates, at 2.4% in May.

Trump will put pressure on the FED to lower rates again.

Although U.S. inflation is relatively low now, the Federal Reserve is expected to keep interest rates unchanged at next week's meeting, and inflation is expected to reach about 3% by the end of this year.

3. Nasdaq has led the recent US equity gains but technicals are becoming tricky with RSI and MACD indicators showing a bearish divergence.

A bearish divergence occurs when the price action is making new highs, but the RSI or MACD indicator is showing lower highs. This indicates that the upward momentum is weakening and a potential downward reversal may be on the horizon.

4. European smallcaps outperform when rates fall.

The segment of the market is outperforming larger caps this quarter in Europe, helped by multiple rate cuts, a stronger euro, Germany’s massive stimulus package and prospects of faster economic growth next year.

Germany’s stimulus plan has supported the small-cap rally, helping it survive April’s tariff scare and elevated volatility. The domestic nature of these stocks has made them attractive to investors seeking shelter in the global trade tempest. Small caps generate more than 60% of their revenues within Europe, according to Kepler Cheuvreux.

“Small caps are set to be one of the largest beneficiaries of low interest rates/low energy prices,” say Kepler Cheuvreux strategists led by Arnaud Girod.

The strategists note that small-cap stocks tend to have greater representation among energy intensive sectors such as industrials and materials. This meant they struggled under the combined weight of the monetary policy tightening cycle and high energy prices between 2022 and 2024.

Prospects are now better.

5. Connecting the dots of the 'Elonomy'.

While Tesla got a double downgrade over the weekend, others keep very bullish targets. (such as Morgan Stanley)

“Our OW rating and $410 price target ($800 bull case, $200 bear case) are underpinned by our belief that Tesla's capabilities in key areas of physical AI (AVs, humanoids and other form factors) including data, robotics, energy storage, compute, manufacturing and space/comms/networking/infrastructure offer growth and margin opportunities that greatly exceed those of the traditional EV business, which is under pressure.

Put another way, we believe the challenges facing Tesla's current business are widely reported and well known, while the opportunities in the future business are potentially greatly underestimated. Tesla's expertise in manufacturing, data collection, robotics/physical AI, energy, supply chain and infrastructure are more critical than ever beforeto put the US on an even footing with China in embodied AI.”

However, Tesla admits both intelligence and cost “need to come a long way” to unlock the true potential of humanoid robots. The neural nets for Optimus are far larger than for cars given greater degrees-of-freedom and far more open-ended tasks.

Below: MS Humanoid adoption model…estimating 1 billion humanoids in 2050.

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