The Long Game Pays
Headlines fade. Fundamentals and patience compound.
📰 The Long-Term Edge
Outperform the crowd — one long-term move at a time.
📅 Issue #1 — June 8, 2025
Title: Why Long-Term Thinking Still Wins — Even in a Fast Market
🏛️ This Week in the Market
Markets continued their climb this week as May's jobs report showed that 139,000 jobs were added, exceeding expectations and reinforcing the view that the U.S. economy remains resilient.
S&P 500: +1.5% → closed above 6,000 for the first time since February
Nasdaq: +2.2% → led by semis and AI
Dow Jones: +1.2%
The rally was broad, but leadership came once again from tech and AI-linked names — a sign that growth narratives still dominate investor attention.
📉 Market Reactions
Bond yields spiked, with the 2-year Treasury rose to 4.041%
Utilities and consumer staples lagged, hit by rate sensitivity
Big Tech & AI showed gains
Despite the Fed’s hawkish tone, the market is rotating towards long-term compounders with real pricing power and earnings momentum — not just hype.
🔭 What to Watch This Week
Here’s what could move markets in the short term (that we’ll view with a long-term lens):
June 11 (Tuesday): CPI inflation report
→ Core inflation trends matter more than the headline
Earnings to watch: Oracle, Adobe (enterprise and AI demand bellwethers)
🧠 Noise vs. Narrative: Nvidia’s Double Panic, Double Recovery
📉 Panic #1: DeepSeek “AI Killer” – January 2025
When Chinese AI startup DeepSeek launched its R1 model, claiming it could match ChatGPT-4 using only 1% of the compute, Wall Street panicked.
🔻 Nvidia fell ~19.5% in 5 days
📉 From $147 → $118
📰 “Nvidia, US tech stocks crumble on news of cheap Chinese AI app DeepSeek” – ABC News, Jan 28, 2025
But DeepSeek was software. Nvidia’s moat — infrastructure, CUDA, AI hardware — remained untouched. Big Tech didn’t blink.
By June, Nvidia rebounded ~20% from its low.
📉 Panic #2: “Liberation Day” Tariffs – April 2, 2025
President Trump’s sweeping tariffs — 10% baseline, 32% on Taiwan — triggered another selloff. Nvidia, tied to TSMC for chip manufacturing, plummeted again.
🔻 Nvidia fell ~21% in 4 days
📉 From ~$110 → ~$86
📰 “Nvidia says it faces $5.5B hit due to US chip tariffs” – TechRadar, Apr 2, 2025
The market feared supply chain risk. But Nvidia adapted- expanding into markets like Saudi Arabia.
By June, it recovered +62% from the April low.
✅ The Long-Term View
Neither DeepSeek nor tariffs broke Nvidia’s fundamentals.
Cash flows strong
Moat intact
Demand accelerating
Stock rebounding
Short-term fear sells headlines. Long-term investors build wealth — especially when sell-offs create rare opportunities to buy great companies at a discount.
🏁 Final Thought
The market is noisy — always has been.
But wealth compounds with clarity, discipline, and a long view.
Stay focused. Stay patient. Stay long-term.
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