Inflation in Line, Economy Saved – for Now
Markets are rallying to new all-time-highs after today’s CPI data came in exactly in line with expectations. While Trump keeps terrorizing the economy with his tariffs – a deliberate attack on global trade and an interconnected world – the data is masking much of the damage for now.
Consumer prices were up 2.7% in July from a year earlier, signaling that companies are absorbing a lot of the pressure, as suggested in previous reports. The president, of course, was quick to comment on this development and immediately called Jerome “Too Late” Powell – Trump’s personal nickname for the Fed chair – to lower interest rates.
Besides, he had other nice things to say about Powell, including describing his job as “horrible” and “grossly incompetent”. And, of course, he doubled down on his comments about the restoration of the Fed building for supposedly $3 billion – something Powell had already fact-checked in front of the cameras, while standing next to the Trump.
It’s just hilarious seeing an administration deliberately harming the economy, pushing one of the most questionable economic agendas in history, while partying, blaming others, and interfering with the real experts responsible for the economy – the Federal Reserve.
As soon as these tariffs materialize and the true impact is revealed in the cold data, people from his own party – the sane neo-conservative wing, rather than the MAGA fanatics – will likely call for a return to normal. Funnily enough, the faster we see the economy crashing, the faster we will be back on track.
Perplexity & Google – Is there a Deal Looming?
The AI startup Perplexity surprised with an offer to purchase Google’s Chrome for $34.5 billion in a bid to penetrate the tech giant’s moat in web search. Interestingly, the offer is almost twice Perplexity’s own valuation, though the company stated that the acquisition would be backed by several investors.
This comes during uncertain times for Google. While Sundar Pichai may or may not consider this offer, a U.S. District Judge is contemplating how to reduce Google’s monopolistic position within the search market.
As long-term investors, we should hope for the judge to rule in favor of a forced sale. Why? Because short-term headwinds for Google’s stock create phenomenal opportunities to open or add to your position in this AI play. The search business is by far the most unexciting part of Google’s portfolio, and we can all just dream of the stock ever returning to the 160ish levels, if not for a “little” crisis.
