Logic should tell you there may not be much growth left in Nvidia

Investing has become increasingly emotional for many people, and too often investors stop thinking logically. Could the popular company Nvidia continue climbing higher? Of course it could. But there are logical reasons to believe its future growth may be limited compared to what investors expect today. First, consider the company’s market capitalization. As the stock price rises, so does the market cap, which currently sits around $5.2 trillion, depending on the day. To put that number into perspective, $5 trillion is roughly equal to the entire GDP of Japan. With that amount of money, you could buy all the real...

The Consumer Isn’t Breaking, it’s Quietly Running Out of Cushion

The recent economic data showed that inflation came in line with expectations and much of the shift can likely be attributed to higher energy prices. A bigger concern to keep an eye on is what’s happening to household finances underneath the surface. April core PCE, the Fed’s preferred inflation gauge, came in at 3.3% year-over-year, exactly in line with expectations. This was the highest annual level since November 2023. At this point, inflation still doesn’t appear to be a crisis story. If energy prices can decline, I believe much of the recent increase in inflation would dissipate and we’d head closer to the Fed’s 2% target. While I’d say inflation isn’t a major concern currently, the data suggests consumers are increasingly stretched financially...

The most important part of the SpaceX IPO may not be the valuation. It may be the mechanics behind the stock itself.

SpaceX has yet to declare the size of its IPO offering, but it will likely be a single-digit percentage of the company’s total shares outstanding. That matters because float, not just valuation, can determines how violently a stock moves in the early months after an IPO. When demand is huge and supply is constrained, prices can disconnect from fundamentals quickly. If institutions, retail investors, and passive index funds are all competing for a tiny number of available shares, scarcity alone can drive a major rally independent of fundamentals. Nasdaq created a rule in May that shortened the waiting period for megacap stocks to be included in the Nasdaq 100 index to 15 trading days, which is down from as long as a year. There’s also a proposal to shorten the waiting period for S&P 500 inclusion to six months from 12 months and there’s speculation that could be implemented before the SpaceX IPO...

Financial Planning: Match or Max Your 401(k)

Many people have heard the advice to contribute enough to their 401(k) to receive the company match, but stopping there can mean leaving one of the most powerful wealth-building tools underutilized. A 401(k) allows investments to grow tax-deferred or tax-free with traditional and Roth contributions, which can significantly improve long-term after-tax returns compared to other investment options...

Companies Discussed: The Home Depot, Inc. (HD), Intuit Inc. (INTU), Ferrari N.V. (RACE) & MGM Resorts International (MGM)