Avril Hong

Local media reports suggest Samsung could price its HBM4 chips at around $700 per unit, representing a 20-30% increase from the HBM3E. Bloomberg Intelligence analysis suggests this could drive operating margins to as much as 60%. The market previously penalized Samsung for lagging SK Hynix in high-bandwidth memory. A successful price hike and margin expansion indicate they are closing the gap and exercising pricing power in a supply-constrained environment. LONG Samsung as it catches up in the AI memory race with improved unit economics. Production yield issues or faster-than-expected commoditization of HBM chips.

Investors are rotating out of the crowded AI trade into fresh narratives for the second half, favoring Japanese and South Korean financial stocks and recently beaten-down internet names.

Investors are buying gold and the VIX is rising alongside the dollar due to "haven demand" amidst US-Iran tensions. In a dual-threat environment (Geopolitics + Private Credit liquidity fears), capital flees to traditional safe havens. The USD strengthens as a reserve currency during conflict, and Gold acts as a hedge against chaos. LONG Safe Havens. De-escalation in the Middle East would reverse these flows rapidly.

Reports suggest any US conflict with Iran could last "weeks" (extended strikes) rather than being a "pinpoint" operation. Oil rose $5 in the prior session. The market had been pricing oil based on "oversupply" (US/Venezuela output). The shift to a "weeks-long" conflict narrative forces algorithms and traders to re-price geopolitical risk premium, which had been complacent. LONG. Energy acts as a hedge against the escalating Middle East tension. Diplomatic resolution or demand destruction from a global slowdown.

Korean AI stocks are staging a powerful rebound from this week's rout, driven by solid earnings from Microsoft and Amazon, the sovereign wealth fund's first-time inclusion of domestic AI investments, and returning foreign flows. The unwind in momentum appears to be ending, making this a genuine relief rally underpinned by 20%+ gains in Samsung and SK Hynix.

Investors are reassessing the need for extensive AI buildout after Meta's cloud infrastructure plans, rotating out of the overextended chip trade into beaten-down Japanese financials, South Korean financials, and Chinese internet names which are now turning green.

Investors are reassessing the need for extensive AI buildout after Meta's cloud infrastructure plans, rotating out of the overextended chip trade into beaten-down Japanese financials, South Korean financials, and Chinese internet names which are now turning green.

Investors are rotating out of the crowded AI trade into fresh narratives for the second half, favoring Japanese and South Korean financial stocks and recently beaten-down internet names.

The Iran peace deal and Strait of Hormuz reopening are reducing jet fuel cost pressures, giving a reprieve to Asian carriers that had been dogged by fuel supply concerns.

Higher oil prices from the Iran conflict make gasoline more expensive, which could boost demand for electric vehicles. BYD, as a leading EV maker, could gain market share, and the stock is already gaining ahead of earnings.

Brent and US Crude futures saw double-digit gains, heading for the biggest weekly surge since 2022. The US has sunk an Iranian ship, and the Strait of Hormuz is compromised. The conflict has moved from "tensions" to kinetic warfare involving US naval assets and Iranian territory. This removes Iranian supply from the market and spikes insurance premiums for all transit. Long energy exposure. The supply shock is physical, not just speculative. The Trump administration (mentioned in transcript) might release SPR or negotiate a sudden ceasefire.

Brent and US Crude futures saw double-digit gains, heading for the biggest weekly surge since 2022. The US has sunk an Iranian ship, and the Strait of Hormuz is compromised. The conflict has moved from "tensions" to kinetic warfare involving US naval assets and Iranian territory. This removes Iranian supply from the market and spikes insurance premiums for all transit. Long energy exposure. The supply shock is physical, not just speculative. The Trump administration (mentioned in transcript) might release SPR or negotiate a sudden ceasefire.

The Supreme Court struck down previous levies, but the administration is immediately using new authorities (national security) to reimpose tariffs on batteries and telecom equipment. The legal back-and-forth creates an "alphabet soup of statutes" and regulatory fog. Investors hate uncertainty more than bad news, driving capital into classic safe havens despite the risk-on potential of AI. LONG Safe Havens (Gold/Bonds) as a hedge against trade policy volatility. A definitive trade deal or clarity on tariff rules could unwind the safety premium.

Markets are witnessing a rotation into the "HALO" trade (Heavy Asset, Low Obsolescence). These sectors are outperforming the S&P 500 as investors seek tangible economic beneficiaries. The AI build-out requires massive physical infrastructure (energy, materials, logistics). As the "pure software" AI trade becomes volatile/crowded, capital flows into the "picks and shovels" of the physical world. LONG heavy assets and industrials. Global recession or a sharp contraction in global trade volumes due to tariffs.

Markets are witnessing a rotation into the "HALO" trade (Heavy Asset, Low Obsolescence). These sectors are outperforming the S&P 500 as investors seek tangible economic beneficiaries. The AI build-out requires massive physical infrastructure (energy, materials, logistics). As the "pure software" AI trade becomes volatile/crowded, capital flows into the "picks and shovels" of the physical world. LONG heavy assets and industrials. Global recession or a sharp contraction in global trade volumes due to tariffs.