Today’s guest post comes from a friend I met recently at the last EconoMe. I didn’t know he had a blog until fairly recently. His work is pretty great, so I invited him to guest post!I didn’t give him any guidelines about what to write about. Most do their best work when they’re doing what they want to do. However he wrote about something that I’m a little obsessed with; AI. I added some of my thoughts at the end of the post. Enjoy!🧻 Toilet Paper V. AI StocksOne of my favorite money authors is Morgan Housel ...

Group 1 - Kenvue's stock has faced challenges in 2025, particularly after controversial comments regarding Tylenol's safety during pregnancy [1] - Despite negative press, Kenvue reported a Q3 2025 adjusted profit of $0.28 on sales of $3.8 billion [2] - Kimberly-Clark announced a $48.7 billion acquisition of Kenvue, aiming to combine their consumer offerings, which include 10 billion-dollar brands [4] Group 2 - Following the merger announcement, Kenvue's stock rose by 17.5%, while Kimberly-Clark's stock fell by 12% [4] - The combined companies are projected to have $32 billion in annual sales and $3.4 billion in annual profit, with potential cost savings of $2.1 billion [6] - If the merger is successful, the combined entity could achieve a P/E ratio below 8 times earnings, indicating a potentially attractive investment [8]

Core Viewpoint - Kimberly-Clark Corp (NASDAQ: KMB) is highlighted as a top trending stock due to its resilience in economic downturns and attractive valuation metrics, despite a decline in stock price over the past year [1]. Company Summary - Kimberly-Clark produces essential consumer products such as Kleenex, Huggies, and various toilet paper brands, including Scott and Cottonelle [1]. - The stock has decreased by 20% over the last 52 weeks and 9% year-to-date, trading at approximately 16.5 times earnings [1]. - The company offers a dividend yield of 4.2%, making it appealing for investors seeking income [1]. Market Context - The current market sentiment is cautious, with a preference for stocks that have not significantly appreciated in value, as indicated by the CEO of Gilman Hill Asset Management [1]. - The demand for Kimberly-Clark's products is expected to remain stable, providing a level of economic insensitivity that is attractive for investment during uncertain times [1].

Core Insights - The discussion around a potential AI bubble is gaining traction on Wall Street as investors anticipate earnings reports from major tech companies. Some analysts argue that the substantial investments in AI are justified due to expected productivity gains [1][2][3] - Jon Gray, President and COO of Blackstone, emphasized that the company's AI investments are long-term and based on solid plans, involving long-term leases with major corporations [1] - Gray highlighted that global labor costs amount to $60 trillion, and if AI technology can enhance efficiency by 15%, it could result in $9 trillion in annual productivity gains, justifying the capital expenditures in AI [2][3] Investment Trends - There is a significant investment boom in chips, data centers, and power infrastructure that supports the anticipated productivity surge from AI technologies [3] - The popularity of ETFs is increasing, with record-breaking flows observed in the iShares business globally, indicating a strong investor interest in actively managed ETFs that aim to outperform benchmarks [8] - Investors are also seeking tax efficiency in their investments, which is a notable advantage of ETFs compared to mutual funds [8][10]