Here’s the state of affairs:

The AI industry seems to be eating its own tail, with allegations of circular funding inflating the bubble further.

The currency debasement narrative is going strong, with people continuing to lose faith in the US Dollar and jumping ship into gold, crypto, and equities.

And in the middle of all of that, Roundhill listed a meme stock ETF, call buying hit its widest margin in 4 years, the US-China chip war continues, the US government shutdown grinds on for its 10th day, and no one knows if we’re at the start of the bubble or the end.

What do you need in a time like this? Data. And our partner AltIndex is running an experiment putting $60,000 into stock picks chosen by its AI model using alternative data. They launched the next three parts of the experiment.

More on that below.

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Stocks slipped Thursday as Wall Street paused after record highs, with traders digesting fresh Fed commentary and geopolitical headlines.

AltIndex has put its money where its mouth is in this experiment. The team took $60,000 and 6 Robinhood accounts, then asked their AI model to pick stocks based on six strategies. And then they went live with the accounts. All 6 of the strategies/funds are now live:

You can see every stock pick and update on their Twitter account:

The US Senate passed a bill forcing Nvidia and AMD to “prioritize American customers over Chinese buyers” when it comes to selling their chips. It will be interesting to see 1) how exactly this will be enforced legally and 2) how the requirement will affect AMD’s and Nvidia’s global sales and growth as companies.

Ferrari (RACE) shares had their worst day ever after an abysmal earnings call, falling 16.1%. Its new guidance “fell short of expectations,” according to analysts. However, Twitter trader Heisenberg sees this as an opportunity, not an invalidation of the stock’s intrinsic value:

Roundhill relisted its old “MEME ETF,” which includes 30 meme stocks like ASTS, BMNR, IREN, HIMS, JOBY, and QUBT. Some Twitter users are criticizing the fund for calling all the included stocks “memes” when they could be more accurately described as simply “high beta” (high volatility) stocks.

Private creditors beware: The US DOJ launched a probe into First Brands Group, which filed for bankruptcy after private creditors started asking questions about its strange financial reporting practices. Is this an isolated incident limited to just this one auto parts maker, or is this a sign of a larger contagion that might be brewing under the surface of the private credit industry?

Tesla’s self-driving cars are in trouble. Elon Musk’s electric vehicle manufacturer got hit with a new U.S. auto safety probe into its Full Self-Driving (FSD) system following reports of collisions and running red lights, adding regulatory pressure on the stock.

Rare earth miners struck gold after Beijing tightened export controls on key minerals. MP Materials jumped 10%, Lithium Americas 7%, and Trilogy Metals 5%.

Oil prices fell about 1% after President Trump said Israel and Hamas had agreed to the “first phase” of a US-brokered peace plan. Brent settled near $65 a barrel.

Options traders turned euphoric, with call buying outpacing puts by the widest margin in four years. The Barclays euphoria gauge sat nearly three standard deviations above its long-term average, echoing late-1990s exuberance.

Overall, a question we’re seeing people wrestle with on social media right now is “Are AI stocks, gold, and Bitcoin all in a bubble, or are prices high because the US dollar is losing so much value?” Or… is it both at the same time?

🎤️ What you said last time

“If we are at Stage 3 of a 5 Stage bubble, I'd say we are in the Euphoria range of this mountain. But how tall is this peak?”

We love hearing from you, and we deeply appreciate your feedback.

That’s all for today. Did we miss anything? Smash the reply button to let me know.

Cheers,
Brandon & Blake of Invested Inc