Hope you're all hanging in there with this messy market today.
Everything took a hit—S&P 500, Nasdaq, and the Dow are all looking pretty red. On top of that, did you hear about Oman and Iran shaking hands on those Hormuz toll fees?
Naturally, oil prices are creeping right back up, dragging the 10-year yield and the DXY with it.
It's actually kind of wild watching what's happening behind the scenes. Scott Bessent over at the Treasury is basically calling out the Fed reporters and trying to sideline the Fed completely.
He's stepping on the gas to lower market rates himself, even pushing to buy up Japanese Yen bonds so they don't dump US treasuries.
Meanwhile, big tech is seriously feeling the weight of their debt. Google just rolled out another $25 billion in corporate bonds. With borrowing costs this high, pouring money into AI data centers is getting super expensive for them.
Honestly, this drop in semiconductors just looks like a normal cycle adjustment. T
he parts are too pricey, debt is too heavy, and it's going to slow down the whole AI expansion for a bit.
I'm thinking it's time to play it safe, trim down the heavy semiconductor bags, and rotate back into core holdings like VOO and VTI.
What are you guys doing with your portfolios right now? Let me know below. I left some links here that I usually use to run my numbers and adjust my allocations.
