AI & The Bulls In Charge

Each week, the Stokes Family Office staff puts together a list of our favorite news and updates on all things wealth management. From financial planning, portfolio construction, tax and estate planning, and retirement plan services to anything we found interesting.  Enjoy this week’s curated list for your weekend reading!

ECONOMY NEWS

The Case Against The AI Job Apocalypse

• Plain English Podcast with Derek Thompson. Derek talks to economist Alex Imas about the growing gap between the rhetoric around AI-related job loss and the facts. Despite widespread fears of mass unemployment, surveys show most executives expect AI to create jobs or have little impact on hiring. Even employment in software engineering (one of the fields thought to be most vulnerable to AI) continues to grow.

More Defense Spending Is Good For The Economy

• Joachim Klement: A one percentage point increase in defence spending creates a two percentage point cumulative increase in GDP over the next five years. It is almost impossible to get a better deal, economically.

The Inflationary, “K”-Shaped T—-P Economy

• The Bonddad Blog: The U.S. economy is becoming both increasingly inflationary and “K-shaped.” Wealthier households and insiders continue to benefit while lower- and middle-income Americans struggle with rising costs and weaker financial conditions.

Related:

• • • • • Gas, Electricity, & IPOs
        • AI, Inflation, & Vibes
        • An Economy Check-In
        • The Stokes Family Office Q1 Review

MARKETS NEWS

An AI IPO Impact Update: The AnthroPix Effect May Be $5-Trillion+

• Paul Kedrosky: Investor mania around potential IPOs from AI giants like OpenAI, Anthropic, and SpaceX (“AnthroPix”) could drive their combined valuations above $5 trillion, triggering massive flows of capital across markets as investors scramble for exposure.

Five More Reasons The Bulls Are In Charge

• Ryan Detrick: We understand many are confused as to why the stock market is soaring in the face of scary headlines and higher crude oil prices, but the bottom line is that earnings are justifying this bull market. Here are five other reasons the bulls may remain in control.

Would We Be In A Recession Without AI Stocks?

• JC Parets: I think people are looking at the loudest stocks and missing what’s happening underneath the surface. The rally is actually broadening out. The strength isn’t isolated to one area. It’s spreading across sectors, market caps, and industries.

CHART OF THE WEEK

Via Matt Cerminaro – The chart below shows the total number of $100 billion companies in the S&P 500 back to 2005. There are currently a total of 115. At the 2008 low, there were only 8. At the Covid-19 low, only 42 companies in the S&P 500 traded at a valuation above $100 billion. That number has nearly tripled since 3/23/2020. Incredible.

Want to hear more from our team? Check out the Lagniappe Podcast. 

The IPO Frenzy Is Here & The Prediction Charlatans Are Back

Greg and Doug Stokes analyze the recent market surge, IPO frenzy, and the implications of AI and tech stocks. They discuss upcoming IPOs like Cerebris and SpaceX, market bubble concerns, and insights from market experts like Michael Burry and Jeffrey Gunlock.

Stokes Family Office is 100% Family Owned, and has been continually operating in the New Orleans Area for over 35 years.  As a family office, we are focused on family wealth, financial planning, and tax planning. We are your local experts for Gulf South wealth management.