Author: Henry Kanapi

Famed short-seller Michael Burry is unveiling his top market holdings, making a contrarian bet on software names at a moment when the sector is widely feared to be under existential threat from AI. In a Substack post, Burry says that the sell-off in software is being driven by mounting pressure in private credit rather than widespread fears about AI disruption, reports the macro analysis X account The Assembly. According to Burry, AI disruption fears are overblown, and none of his software picks rely on private credit. Data shows that Burry is accumulating more shares of Salesforce (CRM), a software name…

The analyst who accurately called the market bottom on March 30th says he believes one sector is poised to lead the next leg higher alongside two of his existing top picks. In a new CNBC interview, Tom Lee says the red-hot market rally in the past few weeks is being fueled by strong fundamentals alongside moderating risks. “The market’s rising for the right reasons because it’s rising because the tail risks are abating. We’ve had good fundamentals. In fact, earnings have been good enough that estimates are going up. And the leadership is coming from the groups that we want…

The global co-head of Fixed Income, Currency and Commodities in Goldman Sachs Global Banking & Markets is offering a rare and specific look at exactly how the bank is currently positioned across asset classes. In a new episode of the bank’s This Is the Markets podcast, Anshul Sehgal says that he has deployed capital in three sectors while keeping some dry powder in case of a market pullback. “We want to be invested, but we’re back to a 7 on 10, waiting for better entry points to take it up again.” According to Sehgal, he is long-term bullish on energy…

Morgan Stanley’s global chief economist says the widespread fear that AI will trigger mass unemployment is not supported by the data, and that the economy has far more built-in defenses against AI-driven job disruption than most doom-and-gloom analyses suggest. In a new episode of Morgan Stanley’s Thoughts on the Market podcast, Seth Carpenter says data shows that AI is boosting employee productivity rather than reducing hours worked. “Despite rapid advances in AI capability and evidence that adoption is spreading, the broad labor market indicators still show remarkably little disruption. According to our research, industries with higher AI exposures have recorded…

The Oracle of Omaha is issuing one of his starkest warnings, highlighting that he is seeing speculative behavior dominating the markets. In a new CNBC interview, Warren Buffett says investors today appear to be very focused on chasing short-term gains instead of long-term investing. “I’ve compared the markets to a church with a casino attached. And people can move between the church and the casino. I would say there are more people in the church and more people in the casino. But the casino has gotten very attractive to people.” According to Buffett, the behavior looks evident in the explosion…

Billionaire venture capitalist Chamath Palihapitiya says a historic shift in how capital flows through the technology sector is underway, as he names two specific areas where he believes the smart money should be positioned for the next several years. In a new post on X, Palihapitiya says he’s seeing a massive capital rotation in the market as the hyperscalers continue to spend hundreds of billions of dollars in the AI buildout. “Money is starting to flow downhill — a critical observation for the next few years. The Mag 7 may make all the money, but they are spending it faster…

Banking giant Goldman Sachs believes the S&P 500 will end the year on a high note, despite seeing clear market risks that could play out in the near term. Ben Snider, chief US equity strategist in Goldman Sachs Research, says in a new report that the bank expects the S&P 500 to climb to 7,600 by the end of 2026, a 5.50% rise from current levels. “That forecast is built on expectations of 12% earnings-per-share growth in 2026 and a 10% increase in 2027. The index is trading at a price-to-earnings (P/E) multiple of roughly 21 times—slightly below the 22…

A new study published in Nature finds that language models trained to sound warmer and more empathetic are significantly more likely to generate incorrect or misleading responses. Researchers from the University of Oxford tested five different AI models under controlled conditions, modifying the systems to generate more emotionally supportive answers. After finetuning the models to become warm and friendly, the researchers tested them on four popular question-answering evaluation tasks used by developers and practitioners. “We selected tasks with objective, verifiable answers, for which inaccurate answers can pose real-world risks: factual accuracy and resistance to common falsehoods (TriviaQA and TruthfulQA), resistance to…

David Sacks, the former White House AI and crypto czar, warns that China is set to match the capabilities of Anthropic’s most powerful AI model, Mythos, in just a few months. In a new post on X, Sacks says that Mythos, which has grabbed headlines in the past few weeks due to its ability for full system takeovers, is just the first of many AI models that will have the same capabilities. He also predicts that China will deliver a model with the same capabilities within the year. “It’s time to demystify Mythos. Mythos is not magic. It’s not a…

The Morgan Stanley executive who nailed the end of the correction in March warns that the stock market could head to lower levels if one overhang is not resolved soon. In a new Bloomberg interview, CIO Mike Wilson says he’s keeping an eye on the price of oil, noting that it needs to decline significantly if the market is to sustain its bullish momentum. “That’s the $64 trillion question: how long will it take for oil prices to subside and get to a level that’s manageable? $126 is not manageable. That will probably have at least a 10% hit to…