A lot to digest today, here are our thoughts: The Fed has cut interest rates again, but signaled that the path forward is far from certain. It is clear that the Fed is deeply divided, but as long as the labor market continues to weaken, the Fed MUST cut rates. On top of this, the Fed is ending QT on December 1st and Fed Chair Powell explicitly said policy is still "restrictive." This was followed by earnings from Meta, Microsoft, and Alphabet with mixed price reactions. But, these companies are EACH set to invest over 100 BILLION in CapEx over the next year. At its core, we have record levels of CapEx coupled with rate cuts into stagflation and another US-China trade deal on the way. There is a lot of noise, but the AI Revolution is in full swing. Ignore the noise.(The Kobeissi Letter)