"The Market Has This Totally Wrong"

By Eric Peters, CIO of One River Asset Management

“There are two types of investors right now,” barked Biggie Too, back from another global tour. “Those who own Nvidia and those who don’t.” I smiled. “Looking out a year or so, there’s going to be a major high in AI and obesity drugs, then it’s two years of a bear. But no one who’s long is selling now, not unless there’s a proper recession,” said Biggie, chief global strategist of one of Wall Street’s too-big-to-fail affairs. “No one talks about China anymore, or potential credit events, or even the Fed. It’s quite simple. All roads lead to Nvidia.”

“For the past decade Europe has been a 0-3 out of 10 in investor’s minds,” bellowed Biggie. “In the past year, it’s bounced back to a 3-5 for a few weeks at a time.” China has been un-investable for the past few years, which pined it at 0. “And now with these French elections, Europe is back to 0-3, a rent-not-own market,” said Too. “US investors are looking for markets that they think can follow the S&P 500 higher so that they can diversify into them. Japan has been one. India too. Mexico was one, but their election killed that too. It’s a narrow field.”