Market Analysis: Too much of a good thing
- Jun 11
- 2 min read
Market Analysis
As two of the largest IPOs in history — SpaceX and Anthropic — go to market, short-term rotation and selling pressure are expected. These are trillion-dollar companies entering public markets for the first time. The absorption will likely generate volatility.
Long term, I remain constructive on equities. Europe and Japan are committing serious money to defense. For clients with direct exposure to those markets, they can expect a tailwind due to structural necessity. AI continues to compress operating costs across industries. And there remains a strong political will, globally, for investment in these areas.
Stimulus and geopolitical turmoil are expected to produce even higher inflation down the line. The most persistent pain will be food prices. Plan accordingly — and if you have outdoor space, grow something in it.
SpaceX and voting rights — know what you're buying
The shares available to retail investors in the SpaceX IPO carry a fraction of the voting power Elon Musk retains. This is a dual-class structure. Billions will flow in from ordinary investors, and control will stay with Elon. You are buying business exposure. You are not buying voting power.
This is becoming more common, but the original design of the stock market was to share company control with shareholders alongside profit. This reduces shareholder influence and concentrates power at the top, and should be a warning for market participants.
Oil is no longer a reliable commodity
An unexpected positive consequence of the war with Iran has made oil — the most traded commodity in the world — highly unpredictable, forcing countries to reconsider where they source their energy, including shifting to green alternatives. China has become a dominant player in the production of clean energy tech and could be the first to supply the world with what it needs to move away from oil dependence. This economic shift toward green energy may ultimately do more to fight climate change than any government policy ever has.
If you or anyone you know has questions about their financial planning or investments, feel free to reach out — or book a meeting directly at eurekawealthmanagement.com/book-online
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