Officials Warned of Rate-Hike if Inflation Persists | Bloomberg Businessweek Daily 5/20/2026

Watch on YouTube ↗  |  May 20, 2026 at 21:32  |  48:52  |  Bloomberg Markets
Speakers
Thomas Thornton — President, Telemetry

Summary

Fed minutes reveal officials are concerned about persistent inflation and see a possible rate hike if inflation stays above target. OpenAI and SpaceX are preparing for IPOs, adding to market excitement. Bearish analyst Thomas Thornton warns that extreme positioning in semiconductors and Korean equities signals a looming correction. Also covered: student housing acquisition by Scion and Ares.

  • Fed minutes show majority saw rate hike likely if inflation persists; many preferred removing easing bias.
  • OpenAI plans to file for IPO in coming days/weeks, targeting a public debut in the fall.
  • SpaceX has filed confidentially for an IPO, with a valuation over $2 trillion.
  • Thomas Thornton highlights extreme positioning in semiconductors and technology as a key risk.
  • Korean retail investors are heavily leveraged into a narrow market of Samsung and SK Hynix.
  • Nvidia earnings after the close are a major event for the chip sector.
  • Scion Group and Ares Management buy $910M in student housing properties near top universities.
Trade Ideas
Thomas Thornton President, Telemetry 23:49
Semiconductor positioning too extreme, short it
Extreme positioning in semiconductors, with record fund flows into the DRM ETF and 20% of hedge fund client weight, suggests a crowded trade that is vulnerable to a sharp reversal. The semiconductor index has made new relative highs versus technology, but the narrow leadership and euphoric retail speculation (Korean investors cashing in life insurance to buy memory stocks) indicate a top. Fundamentals are strong but positioning trumps them.
SMH HIGH
Thomas Thornton President, Telemetry 24:48
Korean equities euphoric, avoid
Korean equities have become parabolic due to extreme retail speculation, with 50% of the market in just two memory stocks (Samsung, SK Hynix) and leverage ratios off the charts. This narrow euphoria is unsustainable and poses a risk of sharp correction, making the market unattractive.
Korean equities MED
Thomas Thornton President, Telemetry 31:22
Nvidia overvalued, still short
Nvidia is overvalued relative to its earnings trajectory and is part of the overcrowded semiconductor trade. He explicitly covered part of his Nvidia short at the lows but remains short, expecting a correction as positioning unwinds.
NVDA MED
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This Bloomberg Markets video, published May 20, 2026, features Thomas Thornton discussing SMH, Korean equities, NVDA. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Thomas Thornton  · Tickers: SMH, Korean equities, NVDA