Stay calm, my friends;

Wow….I did not expect Monday to go like this! The market had a major sell-off from the DeepSeek news, and I had a ton of viewers emailing me with questions. Since I’m about to get on a plane, I don’t have time for a video. So I hope you appreciate the effort in this format.

There are a lot of assumptions about DeepSeek’s inner workings, and very little self reporting. This is ripe for fictitious details from a Chinese backed company. I don’t believe their startup fees for the company, or how cheap the model was designed. I do acknowledge this is a great model, and their methodology for creation is scrappy. DeepSeek has nothing to gain if they were to state something to the effect of: “Hey everyone…..we imported sanctioned hardware to create a model that cost way more than than we are willing to tell you.” My lens is typically shaded in that a foreign adversary will say/do anything to disrupt Western Nations. But that’s my views on the world.

The drop in today’s market is based solely on fear. There’s not a lot of facts or fundamentals that would state the AI companies are not performing. Is the market extremely hot? Absolutely. Let’s assume everything from DeepSeek is true - if that’s the case, so what? They openly state their model was distilled from other available models. That means it can be easily replicated and improved upon from existing companies. Good! All these larger companies needed a competitive wakeup call to get them focused to do better. Aside from that, LLM models have become a commodity. Where most investors don’t get that. The LLM isn’t necessarily the secret sauce. The tools and systems designed beyond the LLM (Like Palantir has expressed) is where true potential lies.

I sold absolutely nothing today. I only sell when the stocks are at their peaks, and on my terms. Not fear. In fact, I wound up buying more Nvidia, Broadcom, ASML, and Nuscale during today’s dip.

I’m never going to tell others what to do. I’m sharing my opinion, and how I approached the news. I’ll see you in two weeks!

Thanks,

Brian

Top Reads of the Day

🎁 DeepSeek puts Silicon Valley in some DeepSh*t - Stocks tumbled following news that China's DeepSeek AI model can outperform US models for a fraction of the cost.

👍 This Week’s Video: Palantir - Should you Buy, Hold, or Sell? - Thursday

👍 Next Week’s video: Top Stock Under $10 - Here’s my version of this video from 18 months ago. It’s worth seeing what was on the prior list.

👍 Here’s the link to my portfolio. Keep in mind I share this for educational purposes. I am not giving any financial advice.

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