AVGO, the Over-Owned AI Stock, Tops Tech Stock Sales; Marijuana Stocks Gain from Trump Support; NATO Chief Issues Warning

Broadcom Earnings and Stock Performance: Broadcom's earnings exceeded expectations, leading to an initial stock rally; however, a subsequent conference call revealed lower margins, causing a stock decline. The company is considered over-owned and overvalued, primarily relying on revenue from a single customer, Alphabet Inc.

Market Reactions and Trends: The dip in Broadcom's stock has triggered selling across many tech stocks, while aggressive buying from the momentum crowd is noted. Positive seasonality and a dovish stance from Fed Chair Powell have led to increased interest in non-tech stocks and precious metals.

Marijuana Rescheduling Impact: President Trump's plan to reclassify marijuana from Schedule I to Schedule III has resulted in significant gains for marijuana stocks and ETFs, indicating a bullish sentiment in this sector.

Investment Strategies and Market Indicators: Investors are advised to maintain long-term positions while considering protective measures like cash or Treasury bills. A positive short-term market indicator suggests potential opportunities, while traditional 60/40 portfolios may need adjustments to focus on high-quality bonds.