$NVDA

.@GavinSBaker says what I’ve been saying for months…. The cyclical industrials complex - the cooling, the generators, the turbines - are over-priced. And $NVDA’s pricing at 21x NTM is a gift for long-term investors. The cross-sectional mispricing in semis is echoed by the rally in junk stocks. What’s happening is Quality is trading cheap; retail momentum in *new themes* is off the charts. Meanwhile, ‘old guard high beta’ continues to lag. I believe part of what is going on is that quant trend following strategies are amplifying both moved. Ordinarily, institutional money might step in and buy ‘Quality’. That’s what they are trained to do. As long term rates comes down and energy costs eases, I’d expect a rapid bid in Quality. There’s a lot of cash still tracking the SoH