Emergency Livestream

Hey ! Wow, what a week. The markets felt like they were on a rollercoaster. 🎢

First, we had the AI panic triggered by the DeepSeek “crisis.” Then, just as things were starting to calm down, Trump threw a surprise tariff party for China, Mexico and Canada.

But here’s the thing: after all the drama, was it really that bad? Spoiler alert: Not really. Let’s break it down.

🤖 The Great AI Panic (That Wasn’t So Great)

The chaos kicked off with news around DeepSeek AI, sparking fears that the cost of running large language models (LLMs) was dropping dramatically

• Semiconductor stocks like Nvidia, ASML, AMD, and Broadcom nosedived.

• The S&P 500 gapped down over 2.5%, and social media was flooded with “This is the big one!” doom posts.

But here’s the twist:

• Meta and Google bounced back like nothing happened—hitting new all-time highs.

• Turns out, cheaper AI models are actually GOOD for these companies because they’ll spend less on infrastructure, boosting their profit margins.

• Microsoft also recovered, despite slightly underwhelming earnings.

• As for chip makers like Nvidia and AMD, I think their business would only get better from here. I wrote about it in details here if you have not read it.

Lesson? The AI crisis was like waking from a nightmare that scare the daylight out of you but in reality, it was nothing afterall.

💥 Trump’s Tariff Bombshell

Just when we thought we could breathe again, Trump decided to spice things up by announcing new tariffs:

• 25% on goods from Canada and Mexico

• 10% on energy imports from Canada

• 10% on imports from China

No warning. No buildup. Just, “Surprise! Starting now.”
The markets did what markets do—they freaked out.

Who’s Feeling the Heat?

1. Oil & Gas:

   • 70% of U.S. crude oil comes from Canada and Mexico.

   • Expect gas prices to rise—because why not?

   • However, it could be beneficial to domestic US producers as they attract no tariffs

2. Automotive:

   • US companies like GM and Ford are sweating. It is also unclear if it applies to Japanese companies like Toyota and Honda as they do manufacture part of their cars in China too.

   • All of them rely heavily on parts from Mexico and Canada.

3. Tech & Electronics:

   • Dell and HP are vulnerable due to reliance on Chinese imports.

   • Apple? Less so, thanks to its growing revenue from services (and because everyone still buys iPhones even if they cost more).

4. Retail Giants:

   • Walmart, Target, Home Depot, and Lowe’s could face rising costs—or have to hike prices.

📊 What Should Investors Do?

When markets wobble like this, it’s easy to panic. But here’s the deal: smart investing isn’t about reacting to headlines.

Here’s what I’m doing (and what you might consider):

• Focus on Strong Businesses: Companies with solid fundamentals will weather short-term storms.

• Look Beyond the Noise: While everyone’s staring at the tariffs, think about the long-term trends—like AI, automation, and renewable energy.

• Use Dips as Opportunities: I added more Nvidia, ASML, ANET and other semicons to my portfolio during the sell-off. Why? Because nothing fundamentally changed about their business.

Think of it like this: if your favorite restaurant has a bad review because someone didn’t like the decor, are you going to stop eating there? Probably not—especially if the food’s still great.

🚨 Emergency Livestream: Let’s Break This Down Together 🚨

With all this market drama, I’ve decided to host an emergency InvestwithPete livestream to dive deep into:
✅ The AI “crisis” and what it really means for tech stocks
✅ The impact of Trump’s new tariffs on different sectors
✅ What’s going on with interest rates and the Fed’s next move

I’ll share my thoughts, recent trades, and answer your burning questions live. For investors, by investors

🗓️ Date:3 Feb 9pm (SGT)
🎥 Where: Zoom

Bring your coffee, your questions, and maybe a stress ball—just in case. 😄

P.S. Don’t forget to join the InvestwithPete Telegram group for real-time updates: https://t.me/realinvestwithpete

Happy Hunting!

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.