Click here for the PDF: The Weekly Beacon June 2 2023

We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.

Feel free to send in your pictures of lighthouses to be featured in our weekly commentary.

This weeks issue: Nvidia, AI, Artificial Intelligence, Casinos, Gambling, Las Vegas, Blackjack players, Economic conditions, Metaverse, Bitcoin, Financial bubble or trend, Metaverse real estate, EVs, Solar panels, Green metals, Copper demand, Rare Earth metals, Exxon Mobil goes green, Lithium purchases, Arkansas Lithium deposits, OPEC+ meeting, Goldman forecasts oil, Oil prices, Airline stocks, Twitter value, Elon Musk, Tech reset ex. mega caps, New economy, Sell side targets.


Hyped-up trend or here to stay?

Is artificial intelligence the future or is it just a new phenomenon that could fade? We think it will be a part of our future but do think some market participants, individuals, and companies may be overhyping the technology slightly. We are not underplaying the value of artificial intelligence and believe it will play a massive part in our lives moving forward but we do think the hype could be a tad overdone.

For example, over the last 6 months the number of companies that have mentioned artificial intelligence on earnings calls has doubled.

The frequency in which the term “artificial intelligence” has surged in use over the last year:

We are not blaming executive teams or sell-side analysts; we are simply stating facts. Companies say what investors want to hear. Right now, all investors want to hear is automation and optimization using artificial intelligence. They prefer that to positive cash flows and boosted earnings.

The only reason we critique this surge in the use of the term AI is because it follows two other trends that we have seen in the last 10 years.

First, it was Bitcoin, then it was the Metaverse, and now it’s Artificial Intelligence. We think AI will revolutionize the world and will act more like the invention of the Internet rather than the failure that the Metaverse has been (so far)