Technology, AI, and Market Commentary by Steve Hou
Steve Hou: Submariner purchase followed TSLA call profits during COVID
Steve Hou said he bought a Submariner watch during COVID after making money on TSLA call options and feeling bored. He explained that he became tired of wearing the watch within three weeks, ...
AI and crypto roadmaps share similarities, Steve Hou notes
Steve Hou described an interesting analogy between the development roadmaps of artificial intelligence and crypto. He acknowledged that his own knowledge of crypto history is limited but pointed ...
Steve Hou: Investing in companies charging tolls on internet traffic seems like a no-brainer
Steve Hou suggested that, regardless of changes in the compute and model layers, internet traffic is set to increase significantly. He described investing in companies that charge tolls on ...
Dynamic pricing improves liquidity and lowers costs, Steve Hou notes
Steve Hou described dynamic pricing as beneficial for market efficiency, price discovery, liquidity, and lowering costs for all participants. He also expressed appreciation for Nebius AI's ...
Steve Hou: Bond yields surge in recent weeks not ordinary or justified
Steve Hou described the recent surge in bond yields as neither ordinary nor justified. He also reflected that expectations from 2022 for a return to pre-COVID rate levels did not materialize, and ...
What is the highest risk-free rate consistent with aggressive AI expansion, Steve Hou asks
Steve Hou questioned what the highest level of risk-free interest rate would be that remains compatible with an aggressive artificial intelligence buildout offering a solid return and positive ...
Steve Hou: Technology stands out as the best aspect of this cycle
Steve Hou described the technology as the best aspect of the current cycle, in contrast to previous crypto cycles. He stated that all the technical whitepapers are real this time ...
Bonds start to factor in economic risks from further Fed tightening and AI slowdown, Steve Hou notes
Steve Hou said bonds, which have not embraced the narrative that AI raises aggregate productivity, may now be starting to reflect downside economic risks. Hou also pointed to concerns about ...
Steve Hou: Passive index investors outperformed stock pickers
Steve Hou argued that the current market environment has favored passive index investing over active stock picking. According to Hou, stock pickers who dedicated time to analyzing their ...
Nous announces $1.5 billion series B led by Robot Ventures, Steve Hou reveals
Steve Hou shared his excitement about meeting new people interested in compute at an event, where anticipation built around a major announcement for Nous. The big reveal was a $1.5 billion series ...
Steve Hou: OpenAI revenue reaction seen as accounting issue not growth change
Steve Hou questions why the market reacted to the news that OpenAI’s annual recurring revenue (ARR) was reported as $50 billion instead of $70 billion. He suggests the reaction may stem from a ...
Buying scam crypto coins from hacked accounts is a risk, Steve Hou warns
Steve Hou uses humor to highlight the dangers of purchasing scam crypto coins, referencing hacked social media accounts as a frequent source of such scams. He explicitly advises against buying ...
Steve Hou: AI agent missed opportunity to acquire new credit card or BNPL service
Steve Hou comments that a capable consumer AI agent would have proactively found and purchased a new credit card or buy now, pay later (BNPL) service on behalf of the user, without requiring ...
Doubling U.S. GDP by 2035 requires stronger real growth, Steve Hou notes
Steve Hou highlights that in order for U.S. GDP to double in nominal terms by 2035, it would need to grow at an average annual rate of 8%. So far this year, nominal GDP growth is tracking at about ...
Steve Hou: Atlanta Fed NowCast more volatile than year-on-year GDP growth
Steve Hou explains that the Atlanta Fed's GDP NowCast represents a seasonally adjusted annualized rate of quarter-on-quarter real GDP growth. He points out that while the NowCast generally ...
Comparing Iran rial and U.S. 10-year yield trends, Steve Hou notes
Steve Hou draws attention to the correlation between the Iran rial exchange rate and the U.S. 10-year Treasury yield. He describes this comparison as an illustration of a high-stakes dynamic, ...
Steve Hou: Instinct raises $1 billion at $10 billion valuation with 14 employees
Steve Hou reports that Instinct has raised $1 billion at a $10 billion valuation from prominent investors including Benchmark, Sequoia, and Coatue. The company currently has only 14 employees, and ...
Achieving tax alpha drives real returns, Steve Hou notes
Steve Hou references the perspective of a former AQR manager, highlighting the idea that 'tax alpha is the true alpha.' The comment emphasizes the importance of tax management in investment ...
Steve Hou: Chart shows three economic regimes through 1958–81 inflation and Fisher equation
Steve Hou challenges the interpretation of a chart depicting economic regimes. According to Hou, the three sets of colored dots represent distinct periods, with the blue dots from 1958–81 ...
PPI and core CPI trends since 1995 shape U.S. economy, Steve Hou notes
Steve Hou discusses the relationship between producer price index (PPI) and core consumer price index (CPI) trends in the U.S. economy since 1995. He highlights that the economy remains ...
Steve Hou: Betting on House intervention to prevent 10y yield from reaching 5 percent by end of September
Steve Hou expresses his hopes that Secretary Bessent, also called “the House”, will act decisively to prevent the 10-year yield from reaching 5 percent before the end of September. Hou ...
