I sold all the stocks in my investment account today. The recent HSBC report on OpenAI and the FT article on SPV financing for data centers is extremely concerning. These companies are borrowing massive amounts from banks like JPMorgan to build data centers, while taking on none of the actual risk. The banks are assuming the full exposure and are hoping to recover their investment over 17 years, even though the GPUs inside these facilities only have a usable life of about 3–5 years.
That imbalance feels like a disaster in the making. Both the companies and the banks seem to be betting that the Federal Reserve will step in with taxpayer-funded support if this all goes wrong.
I’ll DCA back in when I see the markets start to behave more rationally. I’m certain Trump and team will screw up something again soon, so plenty of opportunities ahead.