To The Moon

My Investing Muse (01Jun2026)

Layoffs, closures and Delinquencies

More than 20 trucking-related companies filed either Chapter 7 liquidation or Chapter 11 restructuring cases during the past 30 days, according to bankruptcy filings compiled by FreightWaves.

Low-cost holiday carrier Magnicharters filed for bankruptcy protection in Mexico City approximately a month after suspending all flights for what it initially hoped would be a period of two weeks. In China, northwestern regional carrier Joy Air filed for bankruptcy protection and entered the early stage of the restructuring process at the start of the week after canceling all flights back in April. Zenith Aviation in administration over “cashflow issues, unpaid debtors” - The Street

My thoughts

1. The Realities of AI Implementation: Governance and Financial Runways

While AI is undoubtedly a permanent fixture of our future, recent market anxieties regarding an “AI bubble” have highlighted significant operational bottlenecks.

• The Human Element & Internal Sabotage: There is a growing concern around delayed internal reporting. Employees may be intentionally withholding system issues or even engaging in data poisoning. This friction often stems from a fear of retrenchment or a desire for retaliation against automation.

• The “Garbage In, Garbage Out” Risk: Data integrity and governance must be prioritised. Whether deliberate or accidental, skewed data inputs will compromise AI outputs, threatening business continuity.

• Budgetary Burnout: High-profile players, including Microsoft and Uber, have faced pauses in their AI integration strategies after burning through their annual AI budgets prematurely.

Business Continuity Concern: If companies deplete their capital on AI before it can successfully automate functions like customer service, they risk operational paralysis. The market will react sharply if businesses become unable to handle basic client queries due to poor budget management.

2. Geopolitical Friction and Market Resilience

Global stability remains fragile, though the markets have shown a somewhat hardened resilience to ongoing friction.

• The Middle East: Iran’s rejection of Donald Trump’s latest ceasefire requirements leaves the fragile peace process in limbo. While the markets have largely priced in this tension over the last few weeks, any escalation into a wider regional conflict will likely trigger a severe negative market reaction.

• The Gulf Supply Chain Dependency: A recent trip to Indonesia and conversations with local business owners underscored a stark reality: the world cannot easily replace the 30% market share of oil and gas originating from the Gulf region. Furthermore, this dependency extends to critical raw materials like fertilizers, helium, and sulfuric acid. Finding alternative suppliers for a player holding nearly a third of the global market is virtually impossible in the short term.

3. Environmental Reminders: A Lesson in Humility

Finally, a personal reflection from my time in Indonesia serves as a reminder of our vulnerability to natural forces. The region experienced over 1,000 earthquakes in a single week. While most were minor on the Richter scale, it is a stark reminder that we must always respect Mother Nature.

Financial Strategy and Outlook

Let us spend within our means, invest only what we can afford to lose, and avoid leverage. Let us review our current holdings and divest from businesses losing their competitive advantages. Additionally, I will consider adding both hedging strategies and defensive positions to our portfolio to mitigate risk.

As we move forward, it is crucial to conduct thorough due diligence before assuming any new responsibilities.

Wishing everyone a successful week ahead.

@TigerStars

$Vanguard S&P 500 ETF(VOO)$

$ProShares Ultra VIX Short-Term Futures ETF(UVXY)$