And in New York morning trade, we are looking at SpaceX continuing its rally, and this does come as it does top Amazon's market cap and becomes the world's 5th most valuable company.
Now the Federal Reserve's two day meeting kicking off in the nation's capital, of course we'll be waiting to see what Kevin Warsh has to say as the new Fed chair will joining me on this Tuesday morning to weigh in on what's moving markets is Ted Thatcher, president of Brightly Wealth Management and great to have you here.
Thank you so much for joining me. it's great to be with you.
Well, we are looking at the Dow continuing to climb to new record highs, and of course we're paying attention to what's happening with SpaceX, especially on the heels of their $60 billion acquisition of Cursor, and we are looking at the market cap continue to climb.
So what do you make of what we're seeing today?
You know, obviously it is absolutely the case that SpaceX has continued to climb.
Cursor, I think, such an interesting acquisition for SpaceX specifically.
You know, if you look across the Space 90% of the revenue is going to the absolute frontier models, and I think you know SpaceX having cursor puts them in a position to actually be at the frontier on coding, and we've seen how important that is, of course with anthropic, and so that's driving markets.
I think a lot of investors are excited about that.
I've also been calling this week the peace deal put.
We got the headlines with Iran of course over the weekend, and it looks like we may finally get a.
Deal here, and we're keeping a close eye on oil prices today, especially Brent, which briefly moved below that $80 a barrel level.
So we continue to see hope regarding this deal between the US and Iran.
And here in the US Friday we will see markets close because of Juneteenth, but of course we'll wait and see what happens in terms of the signing of that deal.
So what do you make of what we're expecting this week when it comes to the macro as well as the Fed?
Yeah, well, Kevin Warsh is in the driver's seat.
He's at the helm for the first time.
I think Kevin's primary goal has to be to win credibility with investors.
You know there's been this narrative that he's put out there that AI may be deflationary, and I think a lot of people can see the reasons why.
It's a logical argument over time, but that isn't the world that we're living in today.
Consumers have been under pressure because of higher oil prices and energy being at this point hitting.
I think every single inflation metric, not as much on the core thankfully, but now we have a little bit of a light at the end of the tunnel.
I think it actually opens up and makes his job a little easier this week.
Nobody really anticipates a rate decrease.
I certainly don't, but I think he needs to stay focused on the data and you know walking us through and giving investors basically kind of pointing them in the direction of the light at the end of the tunnel.
Ted, less than 60 seconds here.
Where are you seeing the Opportunities, you know, megacap names have gone up, but I think if you look under the hood, you can find companies like Nvidia and Microsoft trading near their decade lows in terms of forward earnings multiples.
Nvidia trading around 20 times forward earnings.
Its decade low is around 18.
Microsoft is around 21 times forward earnings, again, close to its decade low.
Well, a lot to keep our eyes on, so I appreciate your time, Ted.
Thank you so much for joining us today.
Thank you.
