Avoid SPACs, memes, crypto treasury stocks, says Interactive Brokers' Sosnick

Market Momentum & Investment Strategy - Investors are currently riding market momentum, buying dips and chasing rallies, with FOMO driving active investors [1][2] - The market is not necessarily paying attention to macro fundamentals, as investment theses in companies like Nvidia, Microsoft, and Meta remain largely unaffected by events like government shutdowns [1][2] Financial Concerns & Cash Flow - There are questions regarding the financial viability of certain deals, particularly Oracle's commitments to Open AI, considering Open AI's revenue and cash burn [2][3] - Oracle has borrowed $18 billion in advance, raising concerns about whether the investments will pay back quickly enough [3][4] - The market is valuing price to free cash flow richly, even as hyperscalers spend down their free cash flow to build the future [6] - While current cash flows are strong, there are concerns about whether the ROI on new investments will match the ROI of the core business [7][8] Historical Parallels & Risk - The current situation is reminiscent of the late 90s, with potential risks associated with large commitments that may not pay back quickly enough, similar to companies like Global Crossing and Northern Telecom [4][9] - There are concerns about where the cash flow will come from to sustain the continued build-out of infrastructure and whether the spending is wise and generating sufficient ROI [10]