Chris Campbell:

3643: Trump's Trillion-Dollar Digital Pin

The recent repeal of SAB-121 by the SEC isn’t just a nod to Bitcoin – it’s a flashing neon sign saying: “Institutions, it’s time to tokenize everything.”

SAB-121 was one of the crypto industry’s biggest financial handcuffs. Issued in 2022, it forced banks to treat any crypto assets they held for clients as liabilities on their balance sheets.

With SAB-121 gone, banks can now tokenize real-world assets (RWAs) and not get punished for it. And there’s one standard for that – among maybe one or two others – set to dominate. It’s called ERC-3643.

It’s the missing piece to turn everything from real estate to government bonds into blockchain assets. And here’s where Trump comes in: He wants to make every tokenized asset run on the dollar. That’s a trillion-dollar pin waiting to pop the old financial system wide open.

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Greg Guenthner:

Sector Shake-Up! And the New Winners Are…

This week treated us to an artificial intelligence disaster, complete with wall-to-wall coverage of the most important stock to ever exist – Nvidia (NVDA). But there are plenty of opportunities in this market not named NVDA.

I know we have one more trading day left in January. But so far, the only S&P 500 sector printing negative returns is technology (XLK). Every other sector is seeing green, even staples. Notice what sectors are leading: financials, materials, energy, industrials.

The market is undergoing a textbook bullish rotation as the one-month new highs list expands and last quarter’s losers take the lead. But just because the tables have turned in favor of materials, industrials, and financials doesn’t mean you should ditch technology.

The rest of the Mags should benefit from cheap chips. Regardless, the storm clouds are parting with blue skies ahead for stock market bulls. Despite a volatile news week and some choppy action, there’s absolutely no reason to get too bearish right now.

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Davis Wilson:

Elon, Zuck, and MSFT Say Buy NVDA

If you’re looking to buy Nvidia, don’t just research Nvidia. Research the whole industry.

I mention this because on Wednesday afternoon, three of Nvidia’s top customers – Meta Platforms, Microsoft, and Tesla – all reported earnings results from the last quarter of 2024. Mark Zuckerberg, Amy Hood, and Elon Musk each doubled down on their companies' capital expenditure and AI infrastructure investment.

If you’re researching Nvidia and don’t look externally for insights, you likely would not know these quotes exist. In my opinion, however, they are the best reason to own NVDA stock.

The AI industry isn’t built in a vacuum. Its success is deeply tied to the capital spending of its biggest customers. Right now, those customers – Meta, Microsoft, and Tesla – are signaling that demand for AI infrastructure remains strong, and they’re willing to spend big in the future.

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