YWR

I'm sending out a guest post tomorrow from a good friend.

I want to tease it with my favourite chart.

It's amazing how much cash US consumers are sitting on.

Makes me think we are underestimating the positive income effect from higher interest rates on these cash holdings.

Also reinforces the view that the S&P 500 is going to $10,000.

We are adding SK Hynix to the portfolio at 4x 2027 estimated earnings. This is the most egregious misevaluation in the market across all sector. I see +175% upside in the Korean line to KRW 500,000/share. Memory and the speed of data flow is the bottleneck of AI data systems and the centre of gravity is moving towards memory. SK Hynix is the absolute tech leader in this space and it is getting more complicated by the day. SK Hynix is now looking at how to renetwork all the data flows in the chip and to the chip using optical connectors. They are also looking at how to create more of a 3D chip. The complexity is increasing, and fewer and fewer players can manufacture these chips. This is not a commodity. It's why Nvidia is locking up partnership agreements with SK Hynix. Memory is the key to AI handling larger context windows and more data for inference. Pricing this leading AI memory company at 4x 2027 estimated earnings is a disservice. We need to get long here.

Natural gas is the biggest AI trade nobody wants to touch. It is the final bottleneck.

Between new LNG terminals, industrialisation of the US and data centers there could be up to 20 bcf of new gas demand by 2030. It is the strongest confluence of gas demand drivers in the history of the US and yet nobody wants to go long natural gas. Expand Energy is the largest US gas producer with production in all the major gas basins trading on a p/e of 10x earnings with gas hedged at $3. Expand is a direct beneficiary of a potential move up in gas prices to $6/mmbtu.