Linda Vibe Check Wrap up

Dear Investors,

Welcome to this week’s edition of the Linda AGI Friday Vibe Check Wrap Up! We're nearing the end of the week, and the market has had its ups and downs, but there are key opportunities and trends emerging that are worth keeping on your radar. From Tesla's surge to political shifts and energy plays, we’ve got plenty to cover. Let’s dive into this week’s wrap-up of market, political, insider, AI, and energy trends for your strategic positioning.

Today's Wrap UP

• 📈 Market Vibe Check

• 👔 Insider Vibe Check

• 🤖 AI and Robotics Vibe Check

• 🧾 Political Vibe Check

• 💡 Energy Vibe Check

• Closing thoughts

📈 Market Vibe Check

This week started with a bump, but a strong buy-the-dip sentiment helped equities close mostly higher. Tesla led the way after its impressive Q3 earnings and ambitious vehicle growth estimates for 2025, lifting market sentiment.

• Tesla (TSLA) surged, while a drop in yields (2-year at 4.07%, 10-year at 4.20%) created room for equities to breathe.

• S&P 500: +0.2% (though down 0.9% since Friday).

• Nasdaq Composite: +0.8% (still off 0.4% for the week).

• Dow Jones: -0.3%, dragged by IBM, Honeywell, and Boeing.

• Market rates contributed positively to the rally, with the 2-year yield dropping two basis points to 4.07% and the 10-year yield falling four basis points to 4.20%. This drop in yields provided some breathing room for equities, as lower rates typically reduce borrowing costs and encourage risk-on behavior.

Takeaway: The market showed resilience, driven by Tesla and falling yields, but we’re not fully out of the woods. Watch for further rate movements and earnings updates.

👔 Insider Vibe Check

Notable insider buys this week signal optimism from company executives. These moves are often a strong indicator that leaders expect their companies to outperform.

• Rocky Mountain Chocolate Factory (RMCF): CEO and a key shareholder jointly purchased over $1.35 million in shares, with the stock rising 4.14% afterward.

• Synergy CHC Corp (SNYR): CEO Jack Ross bought $2.7 million worth of stock, signaling long-term confidence. This signals that the top executive believes the stock is poised for upside, as price change since the purchase is modest at 0.11% so far.

• TELA Bio (TELA): Both COO/CFO Roberto Cuca and Chief Technology Officer Paul Talmo made significant purchases, acquiring 64,444 shares and 22,222 shares respectively at $2.25 per share. Insiders bought shares, leading to a 14.67% rise in stock price post-purchase.

Takeaway: Insider buying continues to show confidence, especially in companies like RMCF and TELA Bio. These purchases suggest executives see strong future potential, making these companies worth watching.

🤖 AI and Robotics Vibe Check

Klarna is shaking up its tech stack, dropping established SaaS platforms like Salesforce and Workday in favor of its own AI-driven infrastructure. This shift reflects a larger trend of companies streamlining operations with in-house AI, aiming to cut costs and boost efficiency.

• Klarna’s CEO: Sebastian Siemiatkowski announced the integration of AI in areas like customer service, HR, and CRM, trimming the company’s workforce significantly. By replacing third-party SaaS tools with in-house AI, Klarna expects to reduce costs, simplify processes, and become more agile in the highly competitive fintech landscape. This AI-first approach has already allowed Klarna to cut its workforce from 5,000 to 3,800 employees, with plans to further reduce headcount as AI takes over key operational roles.

• Why It Matters: Klarna’s bold AI move could set a precedent for other fintech companies. While it cuts costs, risks related to data governance and compliance loom.

Takeaway: Klarna's strategy demonstrates the growing role of AI in operational efficiency. The success or failure of this shift will influence broader adoption of in-house AI systems across fintech and other sectors.

This transition shows the immense potential of generative AI to transform operational frameworks, but it’s a high-risk, high-reward strategy that will require careful execution. Investors should keep an eye on how Klarna navigates this shift, as its success—or failure—could have broad implications for how businesses approach AI and robotics integration.

🧾 Political Vibe Check

Political betting markets are signaling a strong edge for Donald Trump in the 2024 U.S. Presidential race. Betting platforms like Polymarket and Kalshi are pricing in a significant chance of his victory.

• Polymarket: Trump 61.3%, Harris 38.6%.

• Kalshi: Trump 58%, Harris 42%.

Key Takeaway: Political betting markets are often influenced by media reports, debates, and breaking news. The volatility we see in these odds can shift quickly, so it’s essential to keep an eye on events that could cause a sharp swing in these probabilities, especially as we approach November 4th.

Political uncertainty always affects markets, and with Trump gaining traction, sectors that historically benefited from his presidency, such as energy and industrials, might see positive momentum. Meanwhile, sectors tied to regulatory oversight, like tech and healthcare, could experience volatility depending on how the race unfolds.

💡 Energy Vibe Check

Eaton's Q2 results show strong growth driven by its electrical and aerospace divisions, reflecting broader sector momentum in grid modernization and the energy transition.

What This Means for Investors:

• Long-Term Growth Outlook: Eaton’s backlog and mega project wins indicate sustained growth potential in sectors tied to electrification, energy transition, and grid modernization. Investors with a long-term view should see continued strong performance from companies involved in these themes.

• Renewable Energy Boom: The increasing focus on renewable energy projects is an encouraging sign for the broader energy market. Eaton’s leadership in providing electrical solutions for power generation and data centers suggests they are well-positioned to capitalize on the shift to greener energy sources.

• Infrastructure Investments: With continued government and corporate investment in infrastructure upgrades, particularly in North America, there’s a strong runway for growth in companies that provide solutions to modernize energy grids and support clean energy transitions.

Takeaway: With governments and corporations focusing on clean energy, Eaton’s results point to sustained growth potential in the energy sector. The shift toward renewable energy projects continues to drive long-term performance for companies like Eaton.

Closing thoughts

This week, we’ve seen a mix of market resilience, bold AI moves, insider confidence, and sector-specific strength. As we move into the weekend, keep an eye on the upcoming developments in tech, energy, and the political landscape. Each of these sectors holds potential opportunities for savvy investors.

Whether you’re positioning in retail and tech giants like Amazon and Nvidia, or tracking Bitcoin’s hedge positions for a potential rise, staying on top of these trends will give you the edge you need to navigate the current market landscape.

Here’s to finishing the week strong and positioning for continued success in Q4.

Sincerely, 

LINDA