Economy Alert from Gene! By Gene W. Edwards. Posted 8/5/2024.

Are we, as it would seem, entering a full-bore RECESSION? Since a week or two after June 11, when Nvidia did a 10:1 stock split, the investor public, etc., seems to have dismissed Nvidia, the king of A.I., in search of A.I. bargains, such as start-ups, low market-cap companies — these investors looking for the next colossus like Apple, Nvidia, etc., stocks that have multiplied original investments by thousands of times over in not so many years!

As Nvidia slowed down a bit, the small-capper companies speeded up, all wishing to cut-in on Nvidia. Some of them are subsidiaries of Nvidia, or are otherwise linked-up with Nvidia, to keep it up with chip demand. Now Nvidia tells us its flagship Blackwell chip contains an error and it could be months before that GPU (Graphic Processing Unit) chip is available.

In short, Nvidia has lost one trillion dollars in market-cap (total stock valuation) . . . and counting within scant weeks’ time!

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The pre-market stock exchanges open at 2:00 a.m. my mountain time. It is now 0340 and the NASDAQ is down 744 points and the Dow 593. Will either or both go down 1,000 points today, Monday 8/5, before recovering somewhat? NASDAQ is down 4% right now and the Dow 1.6%. “If” the NASDAQ went down 744 points a day for 25 days, it’d be worth nothing. What if it goes down half that far? This is not the time to be in the stock market at all, or even looking for bargains within it.