Elephants dance, how long will the frenzy in US stocks after institutional FOMO last?
The market has reached a state where no negative news seems to have any effect, indicating a full-blown frenzy after institutional FOMO. We can see that NVIDIA H20 has actually been summoned for talks, but during the night session, the stock price rebounded after being suppressed.
The most important event was yesterday's Federal Reserve interest rate meeting. Although his speech was hawkish, the market completely ignored it. In the past, such situations would have led to adjustments, which suggests one thing: institutions have missed out entirely and are now frantically buying.
This is why Microsoft and Meta surged after their earnings exceeded expectations—a classic case of 'elephants dancing.'
The result of this 'elephant dance' is that retail investors who got in early are making huge profits, and even those who didn’t get in immediately will still have plenty of opportunities later.
This opportunity might last until NVIDIA’s earnings report, as NVIDIA’s earnings could be the most significant event in global stock markets at that time.
If there’s going to be volatility, it’s likely to happen then, because, judging by the fear-greed index, the market isn’t extremely greedy—just at a greedy level.
Of course, this is also related to the structural trends in the market, which is currently dominated by tech giants and semiconductors.
Other sectors with solid logic, like nuclear power, are largely driven by the accelerated construction of data centers and increased AI spending. Both Microsoft and Meta have raised their AI investment expectations for next year, with growth rates projected at 30-50%.
All of this has been analyzed and tracked in detail on the platform, along with the companies in the related supply chains.
This is also why NVIDIA continues to push forward aggressively. However, during this surge, many smaller AI semiconductor companies haven’t seen wild gains.
They might attract more investment in the future, so we’ll keep an eye on them.
Of course, some popular tech stocks have skyrocketed like crazy, so timing is crucial to seize opportunities.
2025 is destined to be a volatile year, requiring full digestion of the gains from the past two years. This demands higher personal discipline, so everyone should plan their portfolio management carefully. Those who prioritize strict discipline might consider joining our platform.
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