Equities back up, Silver kills, DefiLlama, and Spotlight Companies Credo Tech. and Astera Labs

About this video

• Video Title: Equities back up, Silver kills, DefiLlama, and Spotlight Companies Credo Tech. and Astera Labs
• Channel: Mark Meldrum
• Speakers: Mark Meldrum
• Duration: 1:19:15

Overview

This video provides a comprehensive market update, covering interest rates, yields, and their implications for the banking sector. It also explores the stablecoin market using data from DeFi Lama, discusses the potential impact of AI on employment based on the "Iceberg Index" paper, and analyzes two spotlight companies, Credo Technology and Astera Labs, focusing on their role in data center connectivity for AI.

Key takeaways

• Market Overview: Equities are performing well, with SPY nearing all-time highs and Triple Q outperforming. Silver has seen a significant surge.
• Interest Rate Outlook: The speaker expresses skepticism about the market's pricing of future rate cuts, suggesting a more aggressive Fed policy might be warranted.
• Stablecoin Market: DeFi Lama data shows Tether's dominance, but the growth rate of stablecoins may not be sufficient to offset upcoming revenue challenges for issuers like Circle due to expected rate cuts.
• AI and Employment: The "Iceberg Index" paper suggests that while direct job losses from AI might be visible, the hidden automation of cognitive tasks represents a larger, less apparent impact, potentially widening the gap between experts and non-experts.
• Company Spotlight: Credo Technology and Astera Labs are key players in data center connectivity for AI. Astera Labs is seen as having a stronger long-term advantage due to its focus on smart retimers and potential alignment with the shift towards composable infrastructure (CXL), while Credo benefits from higher speeds and bandwidth demands. Both face risks from customer concentration and the evolving competitive landscape.