Friday links: one big AI trade

The latest round of market news highlights strong performance in the energy sector, with stocks reaching record highs. Experts are analyzing projected corporate earnings for 2027, according to a report from The Financial Times. While exchange-traded funds (ETFs) boast low fees, there may be room for further reduction. However, some investors are erroneously equating ETF distributions with returns, according to a piece on Financial Advisor Magazine.

In a separate analysis, Barron's suggests that Treasury Inflation-Protected Securities (TIPS) ladder ETFs present a compelling investment case. Meanwhile, discussions surrounding AI debt abound, with Axios exploring the potential limits of market tolerance for additional debt in the AI sector. The CDS rates on Corweave ($CRWV) debt have surged, reflecting heightened market sentiment on the debt's viability.

Ezra Klein engages in conversation with Paul Kedrosky and Azeem Azhar to discuss the burgeoning AI boom, and Josh Brown and Michael Batnick interview Steve Eisman on the systemic importance of OpenAI and Anthropic. Tyler Cowen converses with Dwarkesh Patel on misconceptions surrounding AI, as reported in The New York Times.

Apple Inc. faces a pricing conundrum, while device manufacturers are eyeing the potential of unbundling the iPhone experience. The market shows robust demand for the upcoming iPhone Duo, as indicated by signs observed by SixColors.

For those in the wealth management profession, Abnormal Returns offers a daily newsletter to keep abreast of industry developments. Similarly, Talking Wealth provides a specialized newsletter for professionals within the sector. Notably, a recent piece explores the culinary impact of cars, with KFC reconfiguring its offerings to feature Coke over Pepsi. Even renowned chefs have developed a taste for Taco Bell, as reported by The Wall Street Journal.

Geopolitical tensions persist as Ukraine grapples with Russia's efforts to render Kyiv uninhabitable. Despite these challenges, the United States remains a critical player, as detailed by The Wall Street Journal. Additionally, a Russian soldier's defection unfolds on The Wall Street Journal, and The Atlantic examines the viability of relying on Starlink technology amid these conflicts.

Economically, there is a case for another rate hike, according to Capital Spectator. The current inflationary environment is scrutinized in depth on EconBrowser. Rising interest rates are attributed to more than just the Global Financial Crisis (GFC), as explored by Ritholtz Wealth Management.