Good morning. Target’s earnings report was bad. We’d like to see this as a timely confirmation of our argument in the last letter, which said the US consumer was getting a bit less frisky. But Target has unique problems that prevent us from taking a victory lap. Yet, we are still wondering if US retail’s Christmas season is shaping up to be a disappointment. Send us your thoughts: robert.armstrong@ft.com and aiden.reiter@ft.com. Every moment seems especially uncertain when you are living it.
Unhedged’s guess: Yes. Railroads and the internet changed everything, too, but their first manifestation was in bubbles that burst. The combination of the fact that AI is obviously an amazing, important thing, and the fact that we don’t really understand how it will work as an industry, makes it absolutely perfect bubble fuel. AI hype has loads of room to run, and there will be a reckoning at some point. But you can’t know when, so you can’t trade it. You probably can’t even get out of the way.