🚨BREAKING: Markets Are Starting to Crack (Huge Stock Update For All Investors)

Investing Simplified - Professor G•Jun 6, 2026

Summary

Nolan identifies a shaky stock market riddled with warning signs, including a stronger-than-expected jobs report that signals "higher rates for longer," thus pressuring growth and high-valuation stocks. The bond market is flashing red with elevated long-term Treasury yields, competing directly with stocks for investor capital and potentially compressing valuation multiples. Furthermore, persistent Middle East tensions keep oil prices elevated, reigniting inflation concerns and complicating the Fed's path to rate cuts. Nolan advises investors to prepare for a prolonged period of higher rates, review their portfolios for excessive risk, and consider shifting towards quality companies.

Nolan discusses several key events for June, highlighting the CPI and PPI inflation reports, the new Fed Chair's first press conference on June 17th (which often causes large intraday swings), and core PCE inflation. He specifically points to June 10th (CPI), June 17th (Fed meeting), and June 27th (core PCE) as crucial dates that will likely determine the market's direction for the summer.

He discusses the following specific assets:

**SpaceX:** Nolan explicitly warns against the upcoming SpaceX IPO on June 12th, stating he is "not touching this IPO." He highlights its "insane valuation," projecting a $1.75-$2 trillion market cap at the IPO price of about $135 per share, with only $18 billion in revenue. This translates to an extremely high 94x price-to-sales ratio, far exceeding his benchmark of under two for a good ratio and above four for a high ratio, indicating a significantly inflated valuation.

**Bitcoin:** Regarding Bitcoin, Nolan acknowledges its recent "bad" dip but interprets Wall Street's move into blockchain technology, with major banks launching tokenized deposit networks, as "very positive news for blockchain in general" and ultimately beneficial for Bitcoin as the dominant asset. He critiques investors dumping Bitcoin solely based on price action, urging them to understand its long-term thesis. Nolan reveals he is "keeping the faith" and "started to add more than my normal dollar cost average" at current prices, particularly suggesting it's a "no-brainer" for those who bought over $100,000 and now see it in the $60,000 range, provided they have done their research.

**AI Stocks:** Nolan observes that after a substantial AI-driven rally, semiconductor stocks are experiencing profit-taking, driven by factors like Broadcom's disappointing performance. Investors are increasingly questioning whether AI-related stocks have outpaced their fundamental valuations. Nolan reinforces his long-held perspective that even strong earnings reports are no longer sufficient; rather, "ecstatic" results are required to sustain the high valuations of these companies, indicating a more selective and demanding market environment.

Mentioned Stocks

BTC

Sentiment: BUYAction: BOUGHT

Reasoning: Nolan believes the recent dip in Bitcoin, partly due to Wall Street's pivot into blockchain technology with tokenized deposits, is actually "very positive news for blockchain in general" and ultimately good for Bitcoin as the dominant feature. He advises understanding the long-term thesis and sees current prices (around the $60,000 range, down from over $100,000 for some) as a "no-brainer" for those who have done their research. Nolan states he is "keeping the faith" and "started to add more than my normal dollar cost average" at these prices, though it remains a small portion of his portfolio.

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SPCE

Sentiment: SELL

Reasoning: Nolan is "not touching this IPO" due to its "insane valuation." SpaceX aims for a $1.75 to $2 trillion market cap at its IPO price of about $135 per share, with only $18 billion in revenue, resulting in a 94x price-to-sales ratio. He explains that a good price-to-sales ratio is under two, and anything above four is considered high, making SpaceX's valuation extremely inflated. He will discuss alternative ETFs for safer exposure next week.

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AI-STOCKS

Sentiment: SELL

Reasoning: Nolan observes that after a massive AI-driven rally, semiconductor stocks are experiencing profit-taking, and investors are questioning whether AI-related stocks have gotten "ahead of fundamentals." He reiterates his long-held view that even good earnings reports are insufficient; "ecstatic" results are needed to sustain their high valuations. He implies caution as the market demands stronger earnings growth.

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