It’s been nothing short of an eventful week…

• The MAGA-leaning Power Alliance is reshaping Silicon Valley

• The Biden administration makes a big move with AI

• Bitcoin faces heavy pressures

The markets are filled with uncertainty, but one thing is clear: Uncertainty is the new normal. 

In these conditions, there are large risks for the gambler, but there are large opportunities for the informed trader.

Let’s talk about it…

(P.S. Our friend Steadman is hiding in here, help us find him!)

Topics🔥

• The Power Alliance and AI Restrictions

• BTC Dropped, Here’s Why

• No More Rate Cuts?

• The Dollar is Strong, But Watch Closely

• How to Weather the Storm

The Power Alliance and AI Restrictions: 

Dana White, UFC president and Trump supporter, joins Meta's board, showing a closer tie between Silicon Valley and the incoming administration. 

This move follows Zuckerberg’s $1M donation to Trump's inauguration fund and Meta's hiring of Republican Joel Kaplan. 

Dana, who is a friend of Trump and often praised for UFC’s success, will focus on AI’s role in improving rankings. 

This has been seen as “unexpected”, but it’s clear that everyone who looks good in a MAGA hat is starting to form an alliance….

On another note, Foxconn (a Taiwanese semiconductor manufacturer) reported a record Q4 revenue of $63.9B, marking a 15% increase year-over-year, which had propelled a jump in global semiconductor stocks on Monday: 

Nvidia: +3%

AMD: +3%

Samsung: +4%

ASML: +8%

Microsoft also made headlines with an $80B investment into AI data centers for 2025, which is boosting investor confidence in the semiconductor space. 

The Biden administration (probably excluding Biden honestly) plans new AI chip export restrictions with three tiers of access: 

• unlimited access for U.S. allies

• no imports for adversaries 

• limited access for most other countries

Nvidia criticized the plan of course, warning it could harm economic growth.

Following the news, Nvidia's stock experienced a small drop of 1% on Wednesday, after about a 6% loss on Tuesday.

As AI stocks continue to be the primary focus in the new year, it’s important to be aware of increased volatility while everyone tries to get a piece of the pie…