Jordi Visser / VisserLabs
While You’re Watching Oil Prices, AI Is Accelerating And Rewriting The Economy — Jordi Visser (5 abril 2026)
TL;DR
- Cambio de Régimen impulsado por IA: El mercado está experimentando una ruptura fundamental en la correlación entre petróleo y acciones, con la Inteligencia Artificial como el motor de inversión más duradero.
- Riesgos Crediticios CrÃticos: Existe un desmantelamiento crediticio genuino en el sector del crédito privado, exacerbado por presiones de rescate (ej. Blue Owl) y la alta exposición de aseguradoras.
- Dilema Macroeconómico: La amenaza de estanflación es real debido a la debilidad global, pero el impulso estructural de la IA podrÃa forzar una respuesta polÃtica que beneficie activos alternativos como Bitcoin.
Resumen
YouTube: https://www.youtube.com/watch?v=oJrKVGyKfww | Duración: 54 min
◆ Dinámica de Mercado y Ruptura de Correlación
El mercado actual no es una simple corrección bajista, sino un cambio de régimen. Esto se evidencia en la ruptura de la correlación negativa tradicional entre el precio del petróleo y las acciones. La resiliencia del consumidor se mantiene fuerte gracias al aumento de la riqueza neta y a los cambios demográficos.
El mercado exhibe caracterÃsticas de una estanflación con expectativas inflacionarias elevadas, aunque los rebotes en Ãndices como el S&P no indican una recuperación limpia. El motor principal que desorienta a muchos analistas es la Inteligencia Artificial.
â–¶ Indicadores de Crecimiento Nominal (PIB)
Los sectores clave como transporte y servicios públicos indican una salud económica firme, respaldada por la teorÃa del Dow. Los servicios públicos están soportando la creciente demanda eléctrica generada por los centros de datos impulsados por la IA.
- El mercado de flete plano muestra volúmenes históricamente fuertes.
- Este auge está directamente ligado a la construcción masiva de centros de datos, las industrias mineras y el desarrollo energético, sugiriendo una base económica sólida basada en el PIB nominal.
âš ï¸ Alerta CrÃtica: Desmantelamiento Crediticio
El sector del crédito privado enfrenta riesgos significativos. La presión de rescate, ejemplificada por los movimientos de Blue Owl, apunta a un desmantelamiento crediticio genuino y no aislado.
Las ventas forzadas están impactando negativamente en fondos de pensiones e aseguradoras. El IMF ha advertido sobre las calificaciones infladas de estos activos, lo que subraya la gravedad de este ciclo crediticio clásico.
🔥 Riesgo de Estanflación y Restricciones Monetarias
El riesgo de estanflación está aumentando debido al debilitamiento del crecimiento global y las presiones inflacionarias reforzadas por los altos precios de la energÃa fÃsica. Los indicadores muestran manufactura en contracción.
La Reserva Federal enfrenta una situación única: su alta relación deuda-PIB, que se sitúa en un 122%, limita drásticamente su capacidad para subir tasas sin provocar una recesión total.
★ El Tema Estructural: La IA Agentica y el Cómputo
El tema estructural más importante es el rápido ascenso de la IA agentica y autónoma. Esto va más allá del enfoque tradicional en GPUs, moviéndose hacia agentes de software que aprenden flujos de trabajo mediante mejora recursiva.
- Esta "contratación" masiva de empleados digitales genera una presión exponencial sobre la demanda de cómputo, manteniendo escasez en toda la cadena de suministro de hardware.
- Modelos como Gemma 4 facilitan la implementación de habilidades agenticas en el borde (edge AI), democratizando el acceso y redefiniendo cómo se monetiza la IA avanzada.
► Mecánica del Mercado y Estrategia de Inversión
El mercado muestra signos de desapalancamiento a largo plazo, pero el apalancamiento bruto sigue siendo peligrosamente alto. La persistencia inflacionaria y la disrupción de la IA mantienen al Fed en una posición desafiante.
Recomendaciones Estratégicas
- Enfoque Temático: Los inversores deben centrarse estrictamente en los temas relacionados con la IA.
- Gestión de Cartera: Se debe ajustar la construcción de cartera, ya que las posiciones tradicionales en crédito privado o grandes tecnológicas pueden estar subrendiendo.
- Mentalidad de Trading: Este es un mercado para traders; se requiere rotación constante de portafolios y mantener efectivo disponible, no es una configuración fácil de "buy-and-hold".
â–º Panorama Final: Ciberseguridad y Activos Alternativos
Aunque la adopción empresarial de la IA es lenta, la demanda por componentes avanzados sigue siendo insaciable. Existe una creciente amenaza cibernética, donde las grandes tecnológicas podrÃan liberar modelos capaces de hackear sistemas a gran escala.
Perspectivas Financieras
| Entidad/Concepto | Rol | Tesis Clave |
|---|---|---|
| Blue Owl | Crédito Privado | Presión de rescate que indica un desmantelamiento crediticio. |
| Morgan Stanley | Finanzas/Tokenización | Uso de pools oscuros para respaldar activos tokenizados antes de 2026. |
Se predice que, una vez que la intervención gubernamental y las decisiones del Fed obliguen a un cambio en la polÃtica monetaria, Bitcoin será el activo de mejor rendimiento. La disrupción de la IA está redefiniendo el panorama económico.
â—† Buscar el alpha
La tesis central es que la economÃa está en un cambio de régimen impulsado por una demanda tecnológica estructural e insaciable (IA), lo cual ha roto las correlaciones macroeconómicas tradicionales. El dinero se mueve hacia los habilitadores de esta IA, mientras que los riesgos crediticios y la estanflación actúan como lÃmites tácticos para el inversor pasivo.
- Rotación de Capital: Rotar activamente fuera de posiciones tradicionales en crédito privado y grandes tecnológicas, ya que estas están subrendiendo frente a las tendencias estructurales actuales.
- Riesgo CrÃtico (Evitar): El sector del crédito privado es un riesgo genuino de desmantelamiento crediticio, impulsado por presiones de rescate (ej. Blue Owl) y la exposición de aseguradoras. Este no es un problema aislado.
- Tema Estructural Principal: La apuesta debe estar en el ascenso de la IA agentica y autónoma. El foco se desplaza del simple centro de datos a los agentes de software, el *edge AI* y toda la cadena de suministro de cómputo asociada.
- Catalizador/Soporte Macroeconómico: La salud nominal del PIB está siendo sostenida por sectores infraestructurales (Transporte, Servicios Públicos) impulsados por la demanda eléctrica masiva de los centros de datos de IA.
- Condición de Reentrada Alternativa: Bitcoin y otros activos alternativos solo serán el mejor rendimiento cuando las presiones macroeconómicas obliguen a una intervención o cambio en la polÃtica monetaria de la Fed, dada su actual limitación por deuda-PIB.
â–º Resumen por capÃtulos
Oil broke its negative correlation with stocks, and the week’s rally reinforced the idea that this is a regime shift rather than a standard bear market. Consumer resilience and AI-driven investment themes remain key supports. (0:00)
El mercado está experimentando un cambio de régimen en lugar de una simple corrección bajista, evidenciado por la ruptura de la correlación negativa entre el petróleo y las acciones. La resiliencia del consumidor se mantiene fuerte gracias al aumento de la riqueza neta y a los cambios demográficos. La inteligencia artificial es identificada como el tema de inversión más importante y duradero, impulsado por una demanda insaciable de capacidad de cómputo. Aunque existen preocupaciones sobre la estanflación y el debilitamiento del ciclo crediticio, estos factores no han detenido el impulso alcista. Los inversores deben enfocarse en los temas relacionados con la IA y ajustar su construcción de cartera. Las posiciones tradicionales en crédito privado o las grandes tecnológicas pueden estar subrendiendo.
The S&P’s bounce looks more like a 2022-style rally in a choppy, inflation-heavy market than a clean recovery. Inflation expectations remain elevated, and oil no longer automatically means lower equities. (3:54)
El mercado actual se caracteriza por una estanflación y expectativas inflacionarias elevadas, a pesar de las recientes subidas del S&P. Aunque el Ãndice muestra rebotes, la tendencia general sigue siendo bajista, manteniéndose por debajo de sus medias móviles clave. La situación difiere de años anteriores porque los inversores no están preocupados por una recesión inminente. Un cambio fundamental es la ruptura de la correlación tradicional entre el precio del petróleo y las acciones bursátiles. El motor principal que impulsa todo el mercado ahora es la inteligencia artificial, un factor que está desorientando a muchos analistas tradicionales. Se espera que haya rebotes en los precios debido a compradores de caÃdas una vez que se rompa el ciclo negativo de noticias.
Transports, utilities, and flatbed rates continue to signal firm nominal GDP, helped by data center, mining, and energy buildout demand. (10:02)
Los sectores de transporte y servicios públicos indican una salud económica firme según la teorÃa del Dow. Los servicios públicos están funcionando bien a pesar del aumento de las tasas debido a la creciente demanda eléctrica de los centros de datos impulsados por la IA. El sector de transportes muestra un rendimiento excelente, con expectativas de que el PMI se mantenga alto. En particular, el mercado de flete plano está experimentando volúmenes y fortalezas históricamente fuertes. Este auge es impulsado por la construcción de centros de datos, las industrias mineras y el desarrollo energético. Dado que este crecimiento se basa en el PIB nominal y no en el consumo, sugiere una base económica sólida a pesar de los temores de recesión.
Market internals still point to deleveraging, high gross exposure, and ongoing factor rotation. The speaker warns that the credit cycle is real and that this is a trader’s market, not an easy buy-and-hold setup. (13:07)
El mercado muestra signos de desapalancamiento y rotación de factores, indicando que estamos en una fase de deleveraging a largo plazo. El orador advierte que el ciclo crediticio es real y está desenrollándose, lo cual no se ha visto desde 2007. A pesar de la caÃda del apalancamiento neto, el apalancamiento bruto sigue estando peligrosamente alto en los Ãndices. Las presiones inflacionarias persistentes y la disrupción de la IA mantendrán al Fed en una posición muy desafiante. La alta volatilidad entre factores como valor y crecimiento garantiza un mercado de idas y venidas muy difÃcil. Por lo tanto, este es un mercado para traders que deben rotar portafolios y tener efectivo disponible, no para inversores pasivos.
Stagflation risk is rising, global growth is weakening, labor data is soft beneath the surface, and the Fed has limited flexibility with debt-to-GDP at 122%. Higher physical energy prices reinforce the inflation problem. (19:02)
El riesgo de estanflación está aumentando debido a la debilidad del crecimiento global y las presiones inflacionarias reforzadas por los altos precios de la energÃa fÃsica. Los indicadores económicos muestran un debilitamiento, con datos de manufactura en contracción y una disminución de los ingresos globales para empresas estadounidenses. La Reserva Federal enfrenta una situación única porque su alta relación deuda-PIB limita drásticamente su capacidad para subir las tasas sin provocar una recesión. Las escaseces energéticas a nivel mundial están generando racionamiento y un aumento inflacionario, lo que forzará una desaceleración económica. A pesar de estos desafÃos macroeconómicos, el orador sostiene que este escenario no se asemeja al COVID-19 y no llevará necesariamente a un colapso económico total.
Private credit is one of the biggest risks, with Blue Owl redemption pressure, insurer exposure, and wider spreads pointing to a genuine credit unwind rather than an isolated issue. (28:20)
El sector del crédito privado enfrenta riesgos significativos debido a la presión de rescate, como se evidencia en los movimientos de Blue Owl. Esto apunta a un desmantelamiento crediticio genuino y no a un problema aislado. Las ventas forzadas de bonos están provocando pérdidas significativas en fondos de pensiones e aseguradoras que poseen estos activos. Existe una preocupación regulatoria creciente, ya que el IMF advirtió sobre las calificaciones infladas de los activos de crédito privado en las aseguradoras. El orador subraya que esto es un ciclo crediticio clásico y no debe minimizarse. Además, la IA actúa como un viento en contra que agrava estos problemas financieros.
The biggest structural theme is the rise of agentic AI. Mythos, Claude computer use, OpenClaw, and Gemma 4 all point to a faster shift toward autonomous software agents, edge AI, and insatiable compute demand across the full hardware stack. (35:03)
El tema estructural principal es el rápido ascenso de la IA agentica y autónoma, lo que marca un cambio más allá del enfoque tradicional en los centros de datos y las GPUs. Los agentes de software están aprendiendo flujos de trabajo por sà mismos mediante la mejora recursiva, lo que genera una presión creciente sobre el mercado laboral. La demanda de cómputo está creciendo exponencialmente debido a esta "contratación" masiva de empleados digitales, manteniendo escasez en toda la cadena de suministro de hardware. Modelos de código abierto como Gemma 4 facilitan la implementación de habilidades agenticas en el borde (edge), democratizando el acceso y desafiando los modelos de negocio de las grandes laboratorios fronterizos. Esta tendencia hacia la descentralización y la eficiencia está redefiniendo cómo se monetiza la IA avanzada.
The video closes on memory panic, cybersecurity risks, Bitcoin, and tokenized assets, arguing that AI disruption plus a trapped Fed could eventually force a policy response that benefits alternative assets. (45:13)
La disrupción de la IA está redefiniendo el panorama económico, aunque su adopción empresarial es lenta porque se trata como una simple actualización tecnológica y no como un cambio fundamental. Aunque hay correcciones en los precios de chips de memoria, la demanda insaciable por parte de los hyperscalers impulsa el crecimiento hacia componentes avanzados y la fase agentica. Existe una creciente amenaza cibernética, ya que las grandes tecnológicas podrÃan liberar modelos capaces de hackear sistemas a gran escala utilizando agentes de IA. Este riesgo se agrava con incidentes como la filtración del código fuente de Claude. En el ámbito financiero, Morgan Stanley apunta al uso de pools oscuros para respaldar activos tokenizados antes de 2026. Se predice que Bitcoin será el activo de mejor rendimiento una vez que la intervención gubernamental y las decisiones de la Fed obliguen a un cambio en la polÃtica monetaria.
Generado con algoritmo v1-chunked · modelo google/gemma-4-e4b · 2026-04-05T10:00:00Z
Transcripción
[0:03] another crazy week. Uh
[0:05] market changed uh as I talked about.
[0:08] Last week I thought we'd get a uh a
[0:11] rally and a bounce uh either Monday or
[0:14] Tuesday, and we did get a violent bounce
[0:16] on Tuesday.
[0:17] Uh oil prices continued higher, and I
[0:20] think that is a uh a clear signal that
[0:23] after 5 weeks of the market paying
[0:26] attention to every nuance
[0:28] on Iran, regardless of you know, what
[0:31] you're hearing in terms of doom and
[0:33] gloom and oil being this catastrophic
[0:36] thing,
[0:37] the market has uh now seen it. It's
[0:40] adjusted to it, and especially on
[0:42] Friday, we've reached a point where at a
[0:44] minimum, I think you can get rid of the
[0:47] narrative from people that every day oil
[0:49] goes higher, stocks will be down, and
[0:51] now the market is starting to
[0:53] uh break apart from the story, and I
[0:56] think that is going to be a reflection
[0:58] of uh what I talked about last week. So,
[1:00] as a reminder, last week the entire
[1:01] thing was separating the mindset of a
[1:04] bear market and more the mindset of a
[1:06] regime shift. There will be plenty of
[1:08] bull market places to invest in because
[1:11] AI is durable, because the consumer is
[1:15] uh
[1:15] completely different than 2007,
[1:18] and I use 2007 because that was the last
[1:21] credit cycle. Uh we are in a different
[1:23] time period where credit cycle is
[1:25] weakening, and I think that'll continue.
[1:27] AI is a massively important theme, the
[1:30] most important investment theme, and
[1:31] compute is uh
[1:33] we don't have enough compute. It's
[1:35] insatiable, which means every time that
[1:37] we get one of these corrections, of
[1:39] which I'm sure there will be be many,
[1:41] because on the negative side, we are in
[1:43] stagflation. Um and you don't hear me
[1:45] use that word too much because I think
[1:47] it's just a narrative,
[1:48] but the market cares about that
[1:50] narrative, and I think going forward um
[1:52] even though Iran and ships are starting
[1:54] to flow through, which means we're
[1:56] through the worst of stage one. The
[1:58] impact in terms of how long the delays
[2:00] are going to be has not been priced in
[2:02] yet completely,
[2:03] but you need to see the impact that will
[2:05] show up. The other thing about the
[2:07] consumer that is just different is the
[2:08] insane amount of net worth that's been
[2:10] created, the insane amount of transfer
[2:13] receipts that have grown rapidly since
[2:14] before the great financial crisis, the
[2:16] demographic shift that's happened,
[2:18] and the fact that it's just very
[2:20] difficult to have a significant rise in
[2:23] unemployment. We do have a labor
[2:25] shortage and this is coming from someone
[2:27] who believes that labor will continually
[2:28] be disrupted at the knowledge worker
[2:31] level, but not the daycare level, not
[2:34] the nurse level, not the teacher level,
[2:36] not the blah blah blah, go through it.
[2:39] It may not be a job people want, but you
[2:40] have to separate the two and we live in
[2:43] a world where the extreme opinions of
[2:45] people will guide your emotions towards
[2:47] making big mistakes. So, that that said,
[2:51] thank you to all of the financial
[2:53] advisors and RIAs that have reached out,
[2:55] particularly on the back of the model
[2:56] portfolio I released a spotlight
[2:59] spotlight piece on one of the names
[3:02] within sight the move to Blackwell and
[3:04] Vera Rubin
[3:06] as an investment theme that
[3:08] for subscribers, you guys saw it, the
[3:10] stock did very well this week
[3:12] and had a big announcement. I think
[3:13] you're going to see more of this going
[3:15] forward and I have a lot of things
[3:17] happening on the edge side. This is all
[3:18] the bull market side that you want to
[3:20] invest in. Unfortunately for most
[3:22] financial advisors, they are positioned
[3:24] in things like private credit and things
[3:26] like the Mag 7 and the hyperscalers
[3:29] which have been underperforming. So, I
[3:30] think the portfolio construction
[3:32] changes, the model portfolio, the things
[3:34] I've talked about are going to be more
[3:35] important. I look forward to spending
[3:37] more time in visiting some of the
[3:38] financial advisors. So, if you haven't
[3:39] yet reached out, go sign up. I promise
[3:43] you this is a time where you need to be
[3:45] spending time on how AI can help, but
[3:47] also the themes that are going to be
[3:49] very difficult for people to get
[3:50] invested in because they're just not
[3:52] positioned that way. So, up week,
[3:54] transports continue to send an important
[3:56] signal, stagflation.
[3:59] I wrote a paper on playing around with
[4:01] doge, private credit, the memory panic
[4:03] that went on, all of this stuff. Coming
[4:05] up, S&P up 3.4%
[4:08] for the week, the biggest up week of the
[4:11] year, and it breaks the five-week
[4:14] down move in seven of the last eight.
[4:16] So, we were due for a bounce,
[4:18] particularly coming out of the first
[4:20] quarter, and particularly with everyone
[4:22] being hedged and gross exposure
[4:24] shockingly remaining high.
[4:26] Uh
[4:27] so, you can see here just from the
[4:28] movements,
[4:30] you know, oil traded to the highs, and
[4:32] yet the stock market was not only moving
[4:34] higher, but as we go into a new month,
[4:36] especially one where pension funds had
[4:38] to rebalance in a very big way because
[4:40] of the underperformance of stocks, but
[4:43] also because earnings continue to grow,
[4:44] and the economy right now is fine. More
[4:47] money went into the market, and you saw
[4:49] it each day, you know, a low at the
[4:50] open.
[4:51] This panic morning after the Trump
[4:53] speech
[4:55] came back to 200-day moving average,
[4:56] we're still below it. You can see we're
[4:58] still way below the 50-day moving
[5:00] average. I'll talk more about that, but
[5:01] overall,
[5:02] it still, you know, looks like a a
[5:06] downtrend, and I think it still will be,
[5:08] and I would not be looking for a repeat
[5:10] of last year, which I'll go through. Uh
[5:12] one of my favorite ways to look at
[5:14] markets for mean reversion and just for
[5:16] scenarios, particularly in in either a
[5:19] violent bear market where people start
[5:21] to drastically worry about a recession,
[5:23] and all earnings revisions go lower. We
[5:25] saw that last year. Uh
[5:28] other years, it's not as bad. So, this
[5:31] is the percent below or above the 50-day
[5:34] moving average. Uh the red line here is
[5:37] the bottom decile, meaning we went
[5:38] through a level that you know, you only
[5:41] go through 10% of the time. Here's the
[5:43] upside. That level is about 4.3%
[5:47] on the downside. We've now bounced back
[5:49] up uh
[5:50] It normally takes a while to get back to
[5:53] the 50-day in these types of scenarios
[5:54] unless you're in a situation like last
[5:56] year. So, I'm going to show you two
[5:58] different situations. This is the one I
[5:59] think we're more in.
[6:01] Uh and it's not to say that we will have
[6:03] uh a year that looks like this, but I
[6:05] think there's going to be a lot of these
[6:08] ebbs and flows during bad news.
[6:10] Remember, this is 2022.
[6:12] This is when inflation peaked. Um it
[6:14] peaked around here.
[6:17] Uh year-over-year CPI, and I've said
[6:19] this is when I think the peak will come
[6:21] the bottom will come in most likely, at
[6:22] least for this year, will be when we
[6:24] peak year-over-year CPI, which I think
[6:26] at this point is likely to happen May,
[6:29] June, maybe even later. We'll see, but
[6:32] as long as we haven't had a peak in CPI,
[6:34] I think that's going to be an issue. Uh
[6:36] but this is the way you look. You have
[6:38] these
[6:39] falls, rally, falls, rally. You're
[6:40] bouncing around the 200-day moving
[6:42] average. 2022,
[6:44] we never saw earnings go negative. Yes,
[6:46] we saw revisions move lower, and yes,
[6:48] people started to panic. It was a bad
[6:50] year for tech. Inflation fears were
[6:52] running high. The Fed was raising rates.
[6:54] This is not the same year, but you have
[6:56] that kind of year where every time you
[6:57] rally, you start to run into trouble.
[6:59] And then you have last year where people
[7:01] started calling for a recession.
[7:02] Everyone bailed out of the market
[7:04] because if there's a recession, you
[7:05] don't want to be in stocks cuz earnings
[7:06] are moving lower. Quant strategies go
[7:08] the same way.
[7:10] And then he rolled back the tariffs, and
[7:12] we got this immediate rise.
[7:14] And that's because the analysis was
[7:16] completely wrong by the street saying
[7:18] that we'd have high inflation and that
[7:19] there'd be a recession. They couldn't
[7:21] have been more wrong. They were using
[7:23] the information of 100 years ago to make
[7:25] their forecast and do some analysis,
[7:27] which again was 100% wrong.
[7:31] And now this year, they're not worried.
[7:33] So again, pick your poison. Um here's
[7:35] the reality.
[7:37] Last year, this is what 1-year TIPS
[7:39] breakevens did. They peaked before
[7:44] the tariffs and liberation day. And then
[7:46] they went down.
[7:48] This time when your inflation
[7:49] expectations
[7:51] are up high.
[7:53] Not a little high either. We're up at 5
[7:55] and change percent where last year we
[7:57] went down the entire year. This is the
[7:59] difference between this year and last
[8:00] year's even when tariffs were going in,
[8:02] people were worried about a recession.
[8:04] This year, they're not worried about a
[8:06] recession. They don't think earnings are
[8:07] going to change and that's where the
[8:08] risk is is that the expectations haven't
[8:10] changed. Here's the correlation break
[8:12] between oil and S&P. You had every
[8:14] single person and especially every
[8:16] strategist who's bullish basically
[8:19] saying, well, it's all about oil and I
[8:21] I'm I don't have anything to do with
[8:22] this and blah blah blah. When the
[8:24] reality was again, the S&P was breaking
[8:26] down way before the war. Financials had
[8:28] already been hit. Software had been hit.
[8:30] Everyone was trying to excuse the AI
[8:31] trade. The AI trade is what's driving
[8:33] everything and and strategists and
[8:35] economists don't know how to deal with
[8:36] it and I think that's going to remain
[8:38] and that is the reason why you guys
[8:39] watch this. That is the reason why I
[8:41] spend all my time on AI. So hopefully I
[8:43] can bring you the news and not bring you
[8:45] something that's not based on people
[8:47] using it because the people who are
[8:48] telling you what to do that have a lot
[8:50] of experience, they have no idea what
[8:51] they're talking about when it comes to
[8:52] artificial intelligence because they
[8:54] don't use it. Um NDX, similar type
[8:57] story. Again, below the 200-day moving
[8:59] average but bounces. Uh these look like
[9:02] beginning of month flows. Uh but you've
[9:04] broken the correlation which means I
[9:05] think people are going to try and buy
[9:07] the dip uh unless we get some kind of
[9:09] new news. But oil price is going higher
[9:11] in the short term is clearly not new
[9:12] news at this point. So, we had a huge
[9:15] move of oil on Friday. Let's assume we
[9:16] come back on
[9:18] Tuesday morning and oil peaks and starts
[9:20] to trade even slightly lower. You know
[9:22] what stocks are going to do just because
[9:23] they didn't react to stocks being
[9:24] higher. Once you break that negative
[9:26] feedback loop uh from a bad news is good
[9:29] news or bad news is no longer bad news,
[9:32] usually there are dip buyers and I would
[9:34] expect that we're going to have this.
[9:35] So, uh in terms of levels for the S&P
[9:38] I'm definitely looking uh you know
[9:39] anything above 6600 which is where we
[9:43] are
[9:44] up to 6670 I think it's going to be a
[9:46] very challenging area to go the 50 days
[9:48] all the way up to 6750 so use those as
[9:51] barometers the Russell 2000 has traded
[9:53] much better than the rest of the market
[9:55] it did make one daily close below the
[9:56] 200 day
[9:58] but overall
[9:59] the PMI trades are still working now I
[10:01] want to take you through a little Dow
[10:02] theory um
[10:04] so I'm not going to go through the whole
[10:05] Dow theory but the Dow theory was
[10:07] basically to use the Dow industrial
[10:09] utilities the industrials utilities and
[10:13] the transports to get a sense as to how
[10:14] the economy was doing that was obviously
[10:16] during a time
[10:17] where the industrial revolution and
[10:19] everything was going on so it doesn't
[10:22] matter as much the Dow industrials now
[10:24] have tech names in it as well but here's
[10:26] the thing the Dow again
[10:29] is sitting right near the 200 day this
[10:32] has been a you know a a fall but it has
[10:34] not looked as scary as the tech world
[10:38] utilities um
[10:40] despite rates moving higher utilities
[10:42] have acted great
[10:43] this is uh data centers this is usage of
[10:46] AI this is electricity demand is going
[10:49] higher most importantly transports look
[10:52] great
[10:54] as long as transports are good nominal
[10:55] GDP is good end of story um transports
[10:59] are good and you know someone
[11:01] highlighted to me in my trip to Boston
[11:03] this week to look specifically at the
[11:05] transports and make sure I did some work
[11:07] on them and I've I've used them a lot
[11:09] it's one of the sectors that I think is
[11:10] going to surprise here is year-over-year
[11:13] transports with PMI PMI to me will
[11:16] remain high despite the oil situation uh
[11:20] and we will still head up towards 60
[11:22] over the course of the year in my
[11:23] opinion in terms of the PMI here's a
[11:25] year-over-year transports related to PMI
[11:28] more importantly uh
[11:30] the flatbed market was what I was
[11:32] pointed out.
[11:34] Including, you know, stocks like
[11:35] Landstar and things like that.
[11:38] Uh, in terms of just the flatbed, so
[11:41] big, big, big transport of materials and
[11:44] equipment related again to not only the
[11:47] data center build-out, but the mining
[11:48] side, the energy side, anything that's
[11:49] going on. We still have a nominal GDP
[11:51] story, and I just want you to look at
[11:54] So, this is uh, the the blue line here
[11:56] is during the tran- is during last year,
[11:58] and you could see that as inflation
[12:00] expectations went down, we also saw the
[12:02] PMIs go down until we got in towards the
[12:05] final quarter, and then it started to go
[12:06] higher. This red line here is 2026. We
[12:09] are way above this. This five This is
[12:11] the five-year
[12:13] average. So, you can see that flatbed
[12:15] rates are incredibly strong.
[12:18] And then you had Craig Fuller, who la-
[12:21] over the course of the last few years
[12:22] has called for, you know, a a transport
[12:24] recession or depression in cases, and he
[12:27] was on CNBC this week. Flatbed which are
[12:30] almost always industrial or raw
[12:32] materials are seeing some of the
[12:33] strongest volumes and str- and rate
[12:35] strength
[12:36] in history.
[12:38] So, how can you be bearish for a
[12:41] recession when you have that going on?
[12:43] These are not short-term duration
[12:45] things. These are not based on the
[12:46] consumer. This is based on nominal GDP.
[12:48] This is the AI trade, 100% related to
[12:51] it. I would not get negative on every
[12:54] part of the market. I think we're going
[12:56] to have some sectors that have trouble,
[12:58] and this is one of them. Financials,
[13:01] again,
[13:02] you've had a bounce, but not a big
[13:04] bounce, and you're way below a 200-day,
[13:05] which is pointed downward. No need to go
[13:07] in and pick that up. In terms of the S&P
[13:09] bounce, everyone talked about how
[13:11] historic it was and big, and they were
[13:13] It just shows how much
[13:15] memory changes. So, in 2022, during a
[13:17] bear market, look how many times we had
[13:20] jumps as big as the one we had on
[13:22] Tuesday. I mean, these were continuous.
[13:25] Uh, liberation day, obviously. Now, this
[13:27] was a low
[13:29] This was an important low in the market.
[13:32] Some of these in here in '09 were lows.
[13:35] The only reason I want you to be wary of
[13:37] that is when those lows have occurred
[13:40] we get big upside to downside volume
[13:43] days, and we did not get that on
[13:45] Tuesday. Upside to downside volume was
[13:47] shockingly low.
[13:48] These This is the S&P. You can see that
[13:50] the low was made on this line here. Big
[13:52] upside down. These are thrust days. Have
[13:54] you guys ever hear of thrust days where
[13:57] you get big volume expansion? That
[13:59] usually means that that is a time to
[14:01] basically go, and you can see how it's
[14:03] called every major bottom it did in
[14:05] 2022.
[14:06] So, when we make a bottom this year, I
[14:08] fully expect it will be an upside to
[14:10] downside volume blowout. You guys can
[14:12] look at that on your screen. What we
[14:13] have in a bear market is factor
[14:15] rotation. It has been destruction, and I
[14:17] believe this is the beginning of a
[14:19] massive long-term deleveraging phase.
[14:22] I've said it before. I said my surprise
[14:24] risk from last year would be that we
[14:25] would lose a very important hedge fund
[14:27] this year because of the leveraging. I
[14:29] do think we are going to be in that
[14:31] mode. If it does happen, you're going to
[14:32] see factor volatility stay high.
[14:35] The covariance model the turbulence
[14:37] model that I built was meant to show me
[14:39] when the P&L is high. That still remains
[14:41] as having these blistering days, uh,
[14:44] which means you never get to take a
[14:45] break. It's tiring. It is exhausting,
[14:48] but gross leverage on every PB sheet I
[14:50] saw was shockingly still at the highs.
[14:52] Net leverage had come down rapidly. We
[14:54] had hedges on, which is why bounces are
[14:56] going to happen, but I have not seen
[14:58] gross leverage come down at the entire,
[15:01] uh, index level, especially for
[15:02] long-short hedge funds. I think that
[15:04] needs to come down because I think we're
[15:06] in a different regime.
[15:08] The pressure from AI will remain. The
[15:10] inflationary pressures will be there the
[15:11] entire year, although they will peak.
[15:14] And we're going to be in a point where
[15:15] the Fed's going to have to do something
[15:17] because the credit cycle is real. I will
[15:19] say this over and over again to you
[15:20] guys.
[15:21] You're not paying enough attention to
[15:23] the credit cycle. We haven't had a
[15:25] credit cycle honestly since 2007.
[15:28] You could say we had one in Europe, uh
[15:31] but in the US
[15:33] I don't consider 2015-16
[15:36] a uh
[15:37] a credit cycle. It's very isolated to
[15:39] energy.
[15:41] High yield, this one is different and
[15:43] this is 17-year build-up and we have
[15:46] people trapped trying to get out. This
[15:49] is a credit cycle and when a credit
[15:51] cycle is unwinding it will gradually
[15:53] have more and more news that will pop
[15:54] out. So, don't get caught uh thinking
[15:57] that these problems, AI's disruption,
[15:59] structural. Inflation, especially from
[16:01] commodities, structural.
[16:03] Nominal GDP, structural from the dollars
[16:06] of AI and the credit cycle unwind,
[16:08] structural. That is moving forces and
[16:10] it's going to put the Fed in a very
[16:12] challenging position uh as the year goes
[16:15] on. I didn't didn't describe this chart,
[16:17] but just so you see it. Even with the
[16:19] moves last week, S&P realized 60-day vol
[16:22] is still incredibly low. Until we get
[16:25] this moving higher, this is why the
[16:26] upside the downside volume is not high
[16:28] because it's a rotation. Here's the
[16:30] factor volatility. This is value, this
[16:32] is momentum, and this is growth.
[16:35] As as an equal weight, you're sitting up
[16:37] here. You haven't had not the move. This
[16:38] is about screwing long short and market
[16:41] neutral uh
[16:42] and it's going to continue because of
[16:44] the rotation that is fueling this.
[16:49] This is just highlighting something that
[16:51] I think means we're in now the back and
[16:53] forth. It's going to be very
[16:54] challenging. I don't think you can play
[16:56] and buy puts and just go through this. I
[16:58] think it is a very challenging time. Um
[17:00] this highlights that the bull-bear
[17:01] ratio. This is the one I care the most
[17:03] about. Uh this is the newsletter one.
[17:06] It has now gone to levels which indicate
[17:08] and Ed Yardeni does a great job with it.
[17:11] So, he's reducing his recession call
[17:12] because now everyone's getting bearish.
[17:14] I don't think there's a recession, so
[17:16] I'm not moving things around. But, I do
[17:18] think with this being down here,
[17:21] so much pessimism usually instigates a
[17:23] surprising bullish government policy
[17:25] response, an unexpected rebound in
[17:27] stocks.
[17:28] Again, I'm not saying the war stuff is
[17:32] that, but I do think Ed Yardeni's point
[17:34] is valid. When that ratio gets down
[17:35] there, it usually gets harder to play
[17:37] for the downside. It doesn't mean the
[17:39] the S&P can't be down 20% at some point
[17:41] this year, but it just means that to get
[17:43] to that point, you're probably going to
[17:44] be down 12, then only down eight, then
[17:47] down 13, then only down seven. It's a
[17:49] trader's market. You need to turn over
[17:51] your portfolio, have more cash on, and
[17:54] just move the portfolio around. The
[17:55] opposite of the way the position seems
[17:57] to be street with gross near highs. Uh
[17:59] Goldman pointed out the long-short ratio
[18:02] was down here. Uh Charlie McElligott,
[18:05] you know, said that they were hedged
[18:07] based on skew. Either way,
[18:10] I think everyone buying puts and trying
[18:12] to play this from the downside is going
[18:13] to have a hard time. Uh I think, and
[18:15] I've said this before, you can have vol
[18:18] convexity on.
[18:20] Uh that's the way I'm doing it for my
[18:21] own PA. I took As I said last week, I
[18:23] took off
[18:24] uh a quarter to a third of my VIX uh on
[18:28] the Friday before. I didn't do anything
[18:30] this week with it, except for buy more
[18:32] uh more stocks of the ones that I like
[18:34] cuz especially memory and the name that
[18:37] I referenced in the in the spotlight
[18:39] piece this week. Uh these are areas
[18:41] where you got in a good chance uh to buy
[18:44] stuff. Uh
[18:45] you know, the name that I talked about
[18:47] uh for the subscriber list was was down
[18:50] uh big on Monday and then finished the
[18:52] week up very big from there, over 15%.
[18:55] So, you do have opportunities to stay
[18:58] into things, and I think you're going to
[18:59] have that all year. Now, the stagflation
[19:01] signal. And just so you guys see this, I
[19:03] did this on my phone with Claude. Again,
[19:06] for those of you not using this and not
[19:07] building stuff, I didn't ask it to put
[19:09] it in this form. All I said was go back
[19:12] uh
[19:13] and give me all of the data of the ISM
[19:15] back to the PMIs back to
[19:18] uh 19
[19:19] 70.
[19:21] Go through it and show me how many times
[19:24] we've had a
[19:26] prices paid component above 75
[19:29] with an employment number below 50.
[19:32] Your classic stagflation
[19:34] signal. And I said exclude the COVID
[19:36] period uh because the signals were so
[19:39] messed up. And basically where we're at
[19:41] is uh there's been 32 matches, three
[19:45] errors. Okay? The oil shock, basically
[19:48] they were all in the 70s except for 2018
[19:50] when tariffs trade war went in.
[19:52] And it just says as you go in in that
[19:55] one the S&P fell 48% during this one it
[19:58] fell 30% more than 30% and it even in
[20:01] 2018 we've got down 20%.
[20:04] So, you guys can read it, but the
[20:06] problem is in stagflation you're worried
[20:09] about both the recession and you're
[20:11] worried about inflation. It makes it
[20:12] very challenging and you have a lot of
[20:15] rotation and a lot of winners and
[20:16] losers. Um
[20:18] it's an issue and I think it's going to
[20:19] be there.
[20:20] Uh Goldman cut their global growth
[20:21] forecast. As you're thinking about the
[20:23] economy in the US and I'm showing you
[20:25] the transports are great and nominal GDP
[20:27] is great. Remember a lot of the revenues
[20:28] that come in the S&P 500 come from
[20:29] overseas.
[20:31] Asia has a lot more problems from energy
[20:34] than we do and they've got shortages.
[20:36] They're having to already conserve
[20:38] things. It's a mini version of COVID and
[20:40] I think you're going to see revisions
[20:42] come down from companies that are
[20:44] global. 40% of the revenues in the S&P
[20:46] 500 come from overseas. So, even if we
[20:48] only see a mild reaction here in nominal
[20:51] GDP, we will definitely see a revenue
[20:54] hit from overseas.
[20:55] Uh JP Morgan and PIMCO both say the bond
[20:57] market is misjudging the slowdown risk
[21:00] saying that higher rates and the fear of
[21:03] the Fed reacting to inflation is
[21:05] probably going to be overdone. This is
[21:06] the confusion that we'll go in.
[21:08] Australia released their manufacturing
[21:09] data this week. Big reversal, posted its
[21:12] first contraction in 5 months as demand
[21:14] weakened and cost pressures surged. So,
[21:16] another PMI side. German inflation
[21:18] headed for the highest in more than a
[21:19] year.
[21:21] The global earnings revision ratio
[21:22] finally started to turn down. Important
[21:25] stuff for everyone. Um DOSE 2.0, debt,
[21:28] oil, growth, employment, and why Bitcoin
[21:30] was created. Uh for those of you who
[21:31] don't care about Bitcoin, I would still
[21:33] read the paper. Um and the reason is
[21:35] it's main point is that this is a
[21:36] completely unique situation for the Fed.
[21:39] Uh they're going to be in a very
[21:41] difficult position this year,
[21:42] particularly if the agentic world starts
[21:44] to increase the job losses, which I
[21:46] think it will.
[21:47] If we're having months with negative
[21:50] negative job creation,
[21:52] if we're seeing pressure from gas at the
[21:53] pump hitting consumers, which we're
[21:55] obviously going to see in the K-shaped
[21:57] economy,
[21:58] what are they going to do? Are they
[21:59] going to focus on the temporary side of
[22:01] inflation, or are they still going to
[22:02] cut rates? And then you add in that a
[22:03] new Fed chair is coming in, and you've
[22:05] got pressure from the White House. So,
[22:08] here's the reality.
[22:10] Every one of these red periods is a
[22:12] recession.
[22:13] Here's where we are in job creation.
[22:15] It's going back and forth. There's been
[22:17] many months of negative jobs.
[22:21] It's a very difficult situation cuz this
[22:23] is not a recession. Um
[22:26] but it is pressure. Uh
[22:28] and for everyone who's saying, "Well,
[22:30] this is immigration, blah blah blah." It
[22:31] is not just immigration. The jobs market
[22:34] is weak. I'm
[22:36] like sick to death of listening to
[22:38] economists look at Look, it's a little
[22:40] bit better than it was last time. So,
[22:42] this is the survey of jobs, plentiful
[22:45] versus hard to get. It's still in a
[22:47] downtrend. You've got temp employment,
[22:49] which is this line, making new cycle
[22:51] lows. The white line here is the quits
[22:54] rate. It cannot bounce. People are
[22:56] scared to quit their jobs for fear of
[22:58] not being able to get a job. The New
[23:00] York Fed, time it takes to get a job. I
[23:03] don't care what it is. This is the
[23:05] unemployment rate. Every pressure in the
[23:07] employment market is weak.
[23:09] But the problem is, remember,
[23:13] the Fed is in a unique situa- Here's
[23:14] stagflation.
[23:17] This is debt to GDP. The Fed can't raise
[23:20] rates this time, guys. It's just not
[23:22] going to be able to do it because of
[23:23] where we are. When they did it in 2022,
[23:26] we were creating 4 million jobs this
[23:27] year that year. We had a housing market
[23:30] that was running amok.
[23:32] Housing was going off the rails in terms
[23:35] of people buying.
[23:36] We have completely the opposite
[23:37] scenario, but we still have debt to GDP
[23:40] at 122% right now. So, when you're
[23:43] comparing this period, just remember, in
[23:45] the '70s when they were fighting
[23:46] inflation, when Paul Volcker made the
[23:47] decision, debt to GDP was all the way
[23:49] down here. 2022 does not count. They
[23:52] aggressively tightened, and then they
[23:54] started to aggressively ease the other
[23:56] direction. The reason they tightened,
[23:57] and remember, they stopped earlier than
[23:59] where you would have expected, is
[24:01] because they had the room to do it, but
[24:03] that was a quick thing. It's not the
[24:05] same situation. We still have a budget
[24:08] deficit sitting at the same level it was
[24:10] when they were doing this before. These
[24:12] are all issues that are very, very
[24:14] different than the past. And most
[24:16] importantly, the reason they can't raise
[24:18] rates if they raise rates, they increase
[24:20] the risk of a recession
[24:22] because it's going to hit the stock
[24:24] market. And we learned our lesson last
[24:26] year when this was happening in 2025,
[24:28] and I was on every single week saying,
[24:30] "They cannot
[24:32] do what he's saying. They cannot throw
[24:34] this into a recession because then the
[24:36] debt will get worse because they can't
[24:38] go in with this combination of leverage.
[24:40] Debt to GDP 122%. The stock market,
[24:43] which has allowed them to do what
[24:45] they're doing to continue to have this
[24:48] economy go forward, it has been about
[24:50] since the Great Financial Crisis when we
[24:52] were at 50%. Yes, we are now at 220% in
[24:56] terms of the market cap relative to GDP.
[24:59] The ownership of stocks, guys,
[25:02] here's household assets as a percentage
[25:04] of their owner like we're at 50 This is
[25:07] This is a dangerous level to be in. This
[25:09] is why
[25:11] I'm telling you the overall market is
[25:13] going to have headwinds. We are in this
[25:15] trap now
[25:16] and this is not a new trap. I said this
[25:18] would be a year of a physical upgrade
[25:19] and that we would have shortages. This
[25:21] is a bull market for commodities and as
[25:23] Jeff Currie says so eloquently, you
[25:26] can't print molecules.
[25:29] So, we're in a unique situation and the
[25:31] oil energy situation, regardless of your
[25:33] view, it has a new floor, guys. That is
[25:36] the reality of this is there's a new
[25:37] floor. We need energy independence
[25:39] regardless of how you think this will
[25:41] end. It is very It is impossible for the
[25:44] Strait of Hormuz to go back to what it
[25:45] was. It is impossible for every place
[25:47] that has been blown up and there were
[25:49] still bombs going off from Iran and into
[25:52] Iran at energy side. There is a delay.
[25:56] If we had a hurricane that came in and
[25:57] destroyed every single energy situation
[26:01] in Louisiana and Mississippi, we'd be
[26:03] talking about it. This is going on right
[26:05] now and it just means we're going to
[26:07] have a higher energy. Doesn't mean a
[26:08] recession, but it does mean we're going
[26:11] to have pressure on fertilizer and all
[26:13] kinds of things, helium as you've heard.
[26:16] It's going to have impacts in terms of
[26:17] price. So,
[26:19] this one, which is the physical world.
[26:22] So, forget the paper world, which is the
[26:24] futures. This is what's starting to
[26:26] happen. We're up to 141.
[26:28] In March,
[26:30] we were at 65. This is more than a 100%
[26:33] increase. So, yes, the futures closed at
[26:36] only 111, but if you notice the spread
[26:38] between Brent and WTI collapsed to zero.
[26:41] At the same time, this keeps going
[26:43] higher. This is the physical world.
[26:46] People are demanding and needing oil at
[26:49] any price. The futures market and that
[26:51] they need it now.
[26:53] So, the spot market is telling you that
[26:55] we're going to see inflation higher than
[26:56] what people think. The global wave of
[26:58] energy rationing, that means growth is
[27:00] going to suffer.
[27:02] South Korea weighs first driving curb,
[27:04] driving cutting off, these are
[27:05] COVID-like things.
[27:08] Here is diesel prices in the US.
[27:11] All the way back, look at this spike.
[27:13] This is bigger than 2020 than the COVID
[27:16] situation of the shortage and remember
[27:17] that a lot of this
[27:19] is the back of Russia. Here's gas at the
[27:22] pump which made it to 408, but diesel is
[27:25] up much much higher. So, again, just
[27:27] keep this in the back of your mind as
[27:30] you're thinking about things.
[27:32] We're going to have
[27:34] more inflation. Now,
[27:37] I completely agree with this, so you're
[27:38] not going to hear me talk about
[27:39] recessions cuz I don't believe it
[27:41] matters. The fact that oil is still
[27:44] lower than it was in before the great
[27:47] financial crisis in May of that year
[27:49] when the S&P was much much lower and the
[27:51] economy was much smaller.
[27:53] Oil is lower than it was then. This is
[27:56] not going to take down the economy.
[27:58] Don't listen to what you're reading on
[28:00] TV and if you go out to a macro dinner
[28:01] and someone says, "This is just like
[28:03] COVID." This is not just like COVID, but
[28:06] it is inflationary and it will lead to a
[28:08] slowdown. It's not a stopping, it's a
[28:10] slowdown.
[28:13] Blue Owl, if you thought it was over,
[28:16] it's not over. Um
[28:18] So, this was the big news on Friday.
[28:21] They're It's hard to see here, but uh
[28:24] they Investors asked to pull 22% out of
[28:27] one fund and 40% out of another.
[28:32] Here are the numbers, guys.
[28:34] You don't need to be a math wizard to
[28:36] see what's happening. This all started
[28:38] in terms of people wanting their money
[28:40] back from these private credit funds.
[28:42] Here are the redemption notices. Now,
[28:44] remember, they have a 5% limit. So, the
[28:46] reason this became such a big story is
[28:48] because we've had to halt redemptions
[28:50] and actually they've had to step in and
[28:53] provide their own capital. So, that's
[28:55] what was going on. Blue Owl then put in
[28:57] more capital, but what they did is they
[28:59] sold off 1.4 billion dollars
[29:02] to an insurance company they're
[29:03] connected to and two pension funds who
[29:05] already have invested in some of their
[29:06] funds as the Wall Street Journal pointed
[29:08] out. Here are the numbers. They're not
[29:10] getting better and I don't see this is a
[29:12] run that's happening. These numbers are
[29:14] staggering. It will lead to them now
[29:17] needing to sell bonds. So, in the same
[29:19] way that in the energy market you've
[29:20] heard what was eight what kept the
[29:22] futures from breaking out was we had a
[29:24] lot of oil on the water. We went through
[29:26] all of the excess capacity of stuff that
[29:28] was there, but now we're at the point
[29:30] where we're starting to go through
[29:31] inventories. Starting to release things.
[29:33] That's why you're starting to see
[29:35] curbing you're starting to curb the
[29:36] demand side. Well, in this case
[29:39] they're going to have to sell some of
[29:41] these bonds off. When you sell the bonds
[29:42] off you're taking marks on them. When
[29:44] those marks happen, other funds take
[29:46] marks. Pension funds take marks.
[29:48] Insurance companies take marks or
[29:49] they're supposed to at least and you
[29:51] start to get something that reminds me a
[29:53] lot of every credit cycle. So, don't
[29:55] minimize the credit situation. The Wall
[29:58] Street Journal is another financial
[29:59] crisis lurking private credit. It's by
[30:01] Greg Ipp. You should read all of these
[30:03] ones that I'm pointing out.
[30:05] This is starting to become a bigger
[30:07] story. I've talked about it here.
[30:08] Everyone I talk to on the credit side
[30:10] who's smart knows about it.
[30:13] Many, many, many of the names that I
[30:14] just showed you on the private equity
[30:16] side completed purchases of insurance
[30:18] companies over the course of the last
[30:19] five years. They have captive insurers.
[30:21] Part of their distribution is through
[30:23] private wealth channels and part of
[30:25] their distribution is to insurance who
[30:26] stick these on their balance sheet.
[30:28] Well, the IMF warned
[30:31] in the fall on inflated credit ratings
[30:34] on life insurers private credit holdings
[30:36] which could result in default far
[30:37] exceeding predictions in a downturn.
[30:39] The Treasury started to meet with
[30:41] insurance regulators. You have to
[30:43] connect these dots and just realize that
[30:45] this is going on. Treasury smart,
[30:48] Fed is smart. I'm sure some of the Fed
[30:49] people are watching this.
[30:51] This is a mess. Um
[30:53] it's not systemic, but it is a mess and
[30:55] it is a credit cycle and it comes at a
[30:57] time when inflation's going higher.
[31:00] Uh the banks, we start have earnings
[31:01] coming out. We'll see what gets
[31:03] released. We'll see if they can make it
[31:05] through without a problem, but these are
[31:07] some of the chain reaction risks as as
[31:10] uh DZ Bank in Germany talked about this
[31:13] week. The European Central Bank will
[31:14] begin checks on banks it supervises as
[31:16] concerns intensify over loan quality in
[31:18] the private credit sector.
[31:21] Remember the private credit sector has a
[31:23] lot of loans out to the K-shaped
[31:24] economy. It has a lot of loans out to
[31:27] SAS companies. It is ridiculous to me
[31:29] that people can say to my face with
[31:31] total conviction, this is blown out of
[31:33] proportion. A credit cycle is a credit
[31:35] cycle. They always go further than what
[31:38] their logic is because we live in a
[31:40] levered Ponzi scheme fractional reserve
[31:43] banking system where we are seven to 10
[31:45] times the size of the money that exists.
[31:48] If people are forced to sell assets in
[31:50] any asset class, but in particular in
[31:52] credit, the credit may be mispriced
[31:55] relative to the current fundamentals,
[31:56] but we just learned with the software
[31:58] side that that is happening more because
[32:01] AI is a headwind. AI is a disruptive
[32:04] force which will make terminal value out
[32:07] three years impossible to judge
[32:09] including getting paid from companies.
[32:13] KPMG faces allegations of blown audit in
[32:15] private credit collapse.
[32:18] Exposure to ailing software industry is
[32:20] bigger than advertised. Private credit
[32:22] wobbles could prove perilous for Trump.
[32:26] Great podcast. Um never met Kieran
[32:28] Goodwin. I've read some stuff in X. This
[32:30] was a great podcast. Um and it's great
[32:33] for two reasons. One is he gives a very
[32:35] clear picture of everything, but most
[32:37] importantly, he does not do it with any
[32:39] drama. He talks about it from a credit
[32:42] credit cycle perspective. He is part of
[32:44] the Boaz Weinstein team, meaning they
[32:46] are the ones that have made a bid down,
[32:48] whatever it is, 30 to 40% on on
[32:52] some of these situations. And this is
[32:54] important.
[32:56] He's talking his book, meaning what he
[32:58] wants to be able to do, but I think the
[33:00] thing that's important in a visual, and
[33:02] you guys I'll move my face out of the
[33:04] way so you guys can take a snapshot. You
[33:06] can go look at it. You can I would, you
[33:08] know, upload it into uh chat GPT or
[33:11] whatever your favorite LLM is, but the
[33:13] point is, when you guys look at this,
[33:15] he covers this very, very well. So, this
[33:18] is a schematic and infographic uh
[33:22] look at it. This is all happening, and
[33:25] there are so many issues, but they go
[33:27] from asset-liability mismatch to a
[33:28] liquidity crunch. We're seeing that. It
[33:31] turns to a credit crunch. It's going to
[33:33] have impacts on things that need money,
[33:35] which obviously gets somewhat into AI. I
[33:38] don't think there's a risk there, but I
[33:39] do think it pushes meta type deals with
[33:42] Blue Owl for $27 billion, the largest
[33:45] bond issuance, I think, ever. Uh or at
[33:48] least one of uh for that type of product
[33:51] done through an SPV. It kind of
[33:52] restricts that from going on. So,
[33:55] there's going to be financing, and meta
[33:57] was doing that to avoid it on their
[33:58] balance sheet.
[33:59] You put it on the balance sheet, bad for
[34:01] the multiples of the hyperscalers. So,
[34:02] just remember, credit cycle matters when
[34:07] people are borrowing money regardless of
[34:09] who is borrowing money.
[34:11] It's still showing up um
[34:13] it's very hard to see this, but this is
[34:15] the triple C versus the lowest part of
[34:17] high yield. And again, this is using the
[34:19] OAS, the options adjusted spread.
[34:22] We continue to widen out. Um it's
[34:24] happening.
[34:25] With the rally, the massive rally we
[34:27] saw, you didn't even get a bump in this
[34:29] stuff. That is usually the sign of a
[34:30] bigger problem.
[34:32] So, this is the BDCs. This is the
[34:34] private equity names relative to the
[34:37] S&P. So, the BDCs are down, but so are
[34:40] the private equity names relative to the
[34:42] S&P.
[34:43] I don't think that's going away. And
[34:45] here is Blue Owl making and I didn't
[34:47] include Friday. Friday it made new lows.
[34:49] It rallied back.
[34:51] And I don't know anyone was buying it,
[34:52] but it seemed to me a little bit like
[34:54] maybe there was deleveraging on Friday.
[34:57] That would be my gut telling me that
[34:59] that's someone was taking down stuff,
[35:01] but we'll see as time goes on. Here is
[35:03] private equity relative to software. You
[35:05] cannot separate the two guys. The white
[35:07] line is private equity, software led
[35:09] deflation.
[35:11] Software hasn't bounced. IGV. Remember
[35:13] everyone telling you step in? Remember
[35:15] all the things I highlighted 7-8 weeks
[35:17] ago of people trying to go in and go for
[35:19] dead assets?
[35:21] We could get a bounce to 90 in IGV. I
[35:24] doubt it, but we could. The pressure
[35:26] from AI is getting bigger by the day. I
[35:29] will go through this.
[35:31] And this is the main point. The Mythos
[35:33] signal. Again, for the subscribers, read
[35:35] this. If you don't know what recursive
[35:37] self-improvement is,
[35:38] computers are starting to teach
[35:40] themselves in Mythos. If you go through
[35:42] the details,
[35:43] is scary. Anthropic confirmed that it's
[35:46] testing a new model Claude Mythos
[35:47] describing it as a step change but
[35:50] beyond even Opus and calling it the most
[35:52] capable model. Opus is what caused the
[35:54] software collapse as it was. We've had
[35:56] so many releases since that time.
[36:00] Along with Open Claude, along with
[36:01] Cohort, along with computer. I can't
[36:03] even keep up with it.
[36:05] You have to start listening to some of
[36:06] the podcasts I'm showing. This one, AI
[36:09] Daily Brief, should be on your regular
[36:10] listening. Usually it's 15 to 30
[36:12] minutes. They went through the Mythos
[36:14] side.
[36:15] The Artificial Intelligence Show, the
[36:17] same thing.
[36:18] Lex Fridman with Peter Steinberger of
[36:21] Open Claude fame.
[36:24] Andrej Karpathy.
[36:26] The reason I brought that up. Oh, one
[36:28] more, Dara from Uber, the CEO.
[36:31] AI will replace 9.4 million jobs
[36:34] at Uber.
[36:37] The reason I took I showed you all of
[36:38] those I uploaded all of those
[36:40] transcripts because all of them are
[36:42] getting into the impact that we are at
[36:44] now. The agentic world is rising fast.
[36:48] The reason all of you need to spend time
[36:51] getting the information at this point
[36:53] from me is the agentic world is going
[36:55] fast and people are still talking about
[36:58] the GPU world. They're still talking
[37:00] about the brain getting up to 140 IQ.
[37:02] They're still talking about the data
[37:03] center build-out. We've moved past that
[37:06] at the end of last year and we've moved
[37:07] into the things that I've been
[37:08] highlighting. All of my model portfolio
[37:11] is geared in some way towards this next
[37:13] phase of the agentic world. And what I
[37:15] went through with those five, this
[37:17] continues to happen every week. All of
[37:18] those people mentioned there have been
[37:20] involved in describing what is happening
[37:22] with the agentic world. So, what I did
[37:23] is I just put them up went through it.
[37:26] Everything is there now for adoption to
[37:29] replace labor because once agents are
[37:32] working, once agents are learning on
[37:35] their own, once recursive
[37:36] self-improvement is here, and the model
[37:39] mythos is a model that isn't released
[37:41] yet because it is too scary.
[37:44] We have reached a level that you have to
[37:46] adapt to a world where we will be hiring
[37:49] millions of digital employees and even
[37:52] if the humans don't get fired initially,
[37:55] it's only a matter of time before the
[37:56] pressure grows, but we're at a point
[37:58] where an agent can learn the workflows
[38:00] on their own.
[38:01] That's where we are.
[38:04] I don't think people understand what
[38:05] this actually means. Every application
[38:07] on Earth can now build an agent that
[38:08] teaches itself how to use the
[38:10] application through the UI. You define
[38:11] what success looks like in eval. You
[38:14] point Claude at your application via
[38:15] computer usage. Claude tries to complete
[38:17] the task and it keeps going until it
[38:21] reaches it.
[38:23] Even if it takes hundreds of times.
[38:26] Again, think about when you get a piece
[38:28] of software. Think about your own
[38:29] experience with using some of the tools
[38:32] in Claude code.
[38:34] It takes a human a long time because you
[38:36] have to unlearn what you already know,
[38:38] which is I just want to press a button.
[38:40] How do I just press a button?
[38:42] Agents don't work that way. They learn
[38:44] everything quickly.
[38:45] This is why This is why I have my open
[38:47] claws to make sure that I'm ready for
[38:49] the agentic world. This is happening.
[38:51] Claude computer usage was out this week.
[38:53] Alex Finn, the velocity in which
[38:55] Anthropic ships is like any unlike
[38:57] anything I've ever seen. We have to
[38:59] assume they have access to an AGI like
[39:01] AGI like model that nobody else in the
[39:03] world has, correct?
[39:05] That is the whole point of Mythos. That
[39:07] is the whole point of what's going on is
[39:08] everyone assumes that this is going.
[39:11] This story, and this is
[39:13] an Anthropic person, is becoming more
[39:15] common face, which means
[39:17] you're getting more and more agentic
[39:19] side. People are hitting limits there. I
[39:21] hit my first limit usage this week. As
[39:24] someone who pays the max, this was only
[39:27] for people who weren't paying the max. I
[39:29] hit it this week. Not on Claude,
[39:32] on Perplexity computer.
[39:35] Still a great GPU shortage. So, rental
[39:37] capacity is going up, and that's because
[39:39] now you're getting millions of new
[39:40] employees. So, you have to think of it
[39:42] as
[39:43] we are now hiring hundreds of thousands
[39:46] of digital employees
[39:50] a month.
[39:51] So, if you went back to the payroll and
[39:52] they would show you how many agents are
[39:53] there and you got released, that is not
[39:55] a positive GDP story from a consumption
[39:58] perspective. It is from a velocity of
[40:01] money perspective.
[40:03] That will continue, and this is why
[40:04] nominal GDP is going to be fine, guys.
[40:06] We need more GPUs, so the rental
[40:08] capacity keeps going higher. We have a
[40:10] shortage,
[40:11] a complete shortage. Mustafa Suleyman
[40:14] from Microsoft recently moved down, even
[40:17] though they won't call it a demotion,
[40:18] but sure seems to be that way to me,
[40:20] formerly of Google.
[40:22] Um
[40:24] For the next couple years, the entire AI
[40:26] industry is going to be defined by this
[40:27] fact. Demand is going to wildly outstrip
[40:29] supply.
[40:32] Which is what matters. Companies'
[40:34] products have to pay margin for tokens.
[40:36] Again,
[40:37] compute power, silver, commodities,
[40:42] GPUs, CPUs,
[40:44] uh optical fiber, all of that stuff is a
[40:47] necessity to try and get enough compute.
[40:51] This guy, Zinsner, Zinsner, who I've
[40:54] referenced before, continues to talk
[40:56] about the shortages in
[40:59] server CPUs.
[41:01] Remember the whole rack, guys? One of my
[41:03] thematic pieces. Just continue to stay
[41:05] on it, particularly for those
[41:07] interested in the edge. Uh
[41:10] Anthropic, this is just again going
[41:11] through that they released their most
[41:12] powerful
[41:14] model.
[41:17] I wanted to give you guys an example of
[41:19] what is starting to happen
[41:21] because this was on that podcast. And
[41:23] one of the things they talked about is
[41:25] how the frontier labs are under extreme
[41:27] pressure from the ability of
[41:31] using some of these efficiency gains,
[41:33] but also using things like auto
[41:34] research, and basically take cheap
[41:36] models and make them more powerful. This
[41:38] is the way that Cursor is getting around
[41:40] the massive amounts of dollars. So,
[41:41] Cursor is a coding tool, and they
[41:43] basically, think of them as a wrapper
[41:45] that is using the models cuz they don't
[41:47] own the models.
[41:49] But if they keep raising their price,
[41:50] and other people have models, then their
[41:52] business is under pressure, which I've
[41:53] talked about. So, these guys are trying
[41:55] to find ways to get cheaper models, but
[41:57] get performance that is almost as good.
[42:00] So, the one thing in there is arguing
[42:02] the frontier labs won't be able to
[42:03] charge the top dollar forever in
[42:04] domain-specific workflows because
[42:06] specialized post-trained models
[42:08] can increasingly undercut them on price
[42:11] price and performance. This is a
[42:12] commoditized thing and this again is bad
[42:14] for the frontier model companies in
[42:16] terms of how are they going to monetize
[42:17] this? I do not know how any of them are
[42:19] going to monetize it. Um, the AI cost
[42:22] war is over. The best models are
[42:23] becoming free.
[42:25] Gemma 4 was released. This has huge
[42:27] implications. I will do a paper on this
[42:29] for subscribers, but Gemma 4 was came
[42:32] basically came to the market on Friday.
[42:35] Agentic skills to the edge with Gemma 4.
[42:38] Remember Gavin Baker holding up a phone
[42:40] saying the most dangerous thing for the
[42:42] capex buildout is when we start moving
[42:44] to the edge. It is getting easier every
[42:46] day. Turbo Quant last week and now Gemma
[42:49] 4. Gemma 4 basically an open source
[42:51] model that you can download and use
[42:53] locally on your Mac mini. Uh, don't need
[42:55] to use Chinese open source models.
[42:58] Also leads to ability to get it on your
[42:59] phone. Uh,
[43:01] the data centers. So, this would scare
[43:03] everyone. The data center's not get
[43:04] Maybe maybe they're not going to get
[43:06] built out. Well,
[43:07] that's not the case. Uh, even though the
[43:10] news is so sensationalized, almost half
[43:12] of the US data centers planned for this
[43:13] year are expected to be delayed or
[43:15] canceled.
[43:17] Okay. So, you read a story like that. I
[43:19] spend
[43:21] I
[43:21] If you guys want to call up 22V and and
[43:26] get the data on the data centers, you
[43:28] can make it you know, strike someone. I
[43:30] do this type of stuff to keep track of
[43:32] what's going on in the data centers.
[43:34] Um, I run it every single month through
[43:37] every LLM that I have to get all of the
[43:39] most recent data. Basically, the data
[43:42] center side is actually gone higher in
[43:44] terms of the expected numbers and this
[43:45] includes everything that they reference
[43:47] in there. So, my model puts out the
[43:51] terawatts at risk.
[43:53] Every single one of these, whether it's
[43:55] the grid, whether it's the processing,
[43:56] whether there's labor and construction,
[43:58] all of these things fit in with what's
[44:00] happening. We've got, you know, gas
[44:02] turbine issues that are going to be here
[44:04] for the next 3 years. All of this stuff
[44:06] is there. So, in the same week though,
[44:10] or a week ago, Meta ordered 10 gas-fired
[44:13] to expand its Hyperion one. So, my
[44:15] numbers went up because they're building
[44:16] bigger. Oracle was able to
[44:20] get 16 billion financing after Blue Owl
[44:23] bailed out of some stuff. They were
[44:24] still able to get it. The question is
[44:27] what was the cost?
[44:28] In terms of token factories, you got to
[44:31] spend some time with Eli Lilly. This is
[44:32] on my model portfolio. I've talked about
[44:34] Eli Lilly before. Um
[44:37] you have to go see what they're going
[44:39] through, but they um one of the reasons
[44:40] that I've been very bullish on it was
[44:42] the relationship with Insilico, which is
[44:43] also connected to Google DeepMind.
[44:46] And also Eli Lilly is connected to
[44:48] Nvidia. You can't have a better
[44:51] connection, DeepMind, Nvidia, Insilico.
[44:53] And if you go through
[44:54] the whole mapping of this, it is
[44:56] unbelievable that they now have their
[44:58] own token factory. If you want to
[44:59] understand what is going on, you need to
[45:02] go read more about the supercomputer
[45:06] could change the future of medicine. We
[45:07] are in that stage right now where the
[45:09] token factories are going, guys. It is
[45:11] happening.
[45:12] While everyone's seeing that, they are
[45:13] getting worried about memory chips, and
[45:15] now the headlines are coming out. I love
[45:17] that cuz I love all this stuff. Um this
[45:19] was a good article if you want to go go
[45:21] through as to you know, what caused
[45:24] Micron to go from 470 to 330, which
[45:28] again is part of a correction that
[45:30] should be expected, especially something
[45:31] that's up four times where it was.
[45:34] DDR prices face a complete collapse. I
[45:37] got this from a few people.
[45:40] Here's a reality. Go read something like
[45:42] this. Um pricing is soft, demand isn't.
[45:45] Here's what buyers should understand.
[45:46] Nice, calm, all Turbo Quant. Let's go
[45:49] through it. I completely agree with
[45:51] this, and as someone who still has a
[45:53] very large position in Micron, my belief
[45:56] has always been that sometime towards
[45:57] the middle of next year, and I say
[45:59] believe, I'm looking that the memory
[46:02] stuff will start to build in a peak in
[46:06] some sort of the demand side a year to a
[46:09] year and a half beforehand,
[46:11] and the news will still be good at that
[46:12] point. Well, I still believe that we're
[46:15] going to make it into 2027 with things
[46:17] still being incredibly tight. Uh that
[46:20] being said, it's no longer my biggest
[46:21] position after this week because of the
[46:23] name that I highlighted uh because I
[46:25] think the agentic side is now more
[46:27] important and even though memory is a
[46:28] part of it, memory has already been a
[46:29] big part and everyone is focused on
[46:31] bringing supply to memory and focused on
[46:33] efficiency. Here is why this move in
[46:37] memory should not be a surprise.
[46:39] Magically, here's Micron. Here is the
[46:41] price of DRAM. And again, it peaked.
[46:44] It's been declining. That's where it
[46:47] was. Guess what? The SMH, same thing.
[46:50] All you got to do, guys, is pay
[46:51] attention to what's happening cuz
[46:53] remember, when this started to go
[46:54] higher,
[46:55] well, guess what? Micron, that's when
[46:57] people finally started to bail in. It
[46:58] was still 100 You still could have
[47:00] bought this name at 175 when memory
[47:02] started to go higher. So, just follow
[47:04] the DRAM prices and you'll find out
[47:06] whether it should be going up as fast or
[47:08] not.
[47:09] This is again for Gemma 4.
[47:12] I just want to highlight this is where
[47:13] my brain is moving to. It's for the edge
[47:16] across the hardware stack, okay?
[47:21] Memory to non-memory semiconductor
[47:23] prices rising across the board. We are
[47:25] at the agentic phase. This is why
[47:27] all of my baskets
[47:29] have far more in them than memory. They
[47:33] are all about the packaging, the
[47:35] advanced packaging, the move to analog,
[47:37] the move to cars, the move to phones,
[47:39] the move to computers, the move to the
[47:40] agentic side.
[47:42] Go get the model portfolio names.
[47:44] They've all They're all on the website.
[47:46] The model portfolio itself is not there
[47:48] yet, guys, but all of the names and the
[47:50] themes are there. There's 100 There is
[47:54] I believe 95 in total, plus I added five
[47:56] in there. The five I added role names I
[47:58] referenced here on the videos. They are
[48:01] all part of it including Brazil, silver,
[48:04] some other things.
[48:05] Uh
[48:06] This is from SemiAnalysis, the best of
[48:08] the best. And again, I had to do work
[48:11] and someone I remember someone asked me
[48:12] and said, "What do you mean memory is
[48:14] now
[48:15] on a $50 thing? It's 15 to 20 billion of
[48:18] it. That's not right. It's
[48:20] People are not keeping up with how
[48:21] quickly things change." So,
[48:23] 7 to 8 billion on a $50 thing of memory
[48:27] on a on a data center. That's what it
[48:29] was. Now for the hyperscalers, they
[48:30] spend 30% of their spend
[48:33] going up to 36% is on memory. We have
[48:36] insatiable demand.
[48:39] This story is growing. OpenAI is falling
[48:41] out of favor with secondary buyers. They
[48:42] completed their $122 billion Say that
[48:45] number again. $122 billion raise.
[48:48] And that's before the IPO where they're
[48:50] going to raise a hell of a lot more
[48:52] money by the end of the year. Think
[48:53] about how much money they need to raise
[48:55] and just realize they need to start
[48:56] getting some revenues in the door
[48:58] quickly or their equity multiple is
[49:00] going to start to take it. I'm sure once
[49:02] they go public that will become clear to
[49:03] people. Uh this is the story I keep
[49:06] talking about. I think it's a major
[49:07] macro story. Artificial intelligence is
[49:09] being misapplied by executives who treat
[49:11] it as a technology rollout rather than a
[49:13] fundamental rethink of business. I could
[49:14] not agree more. And this is coming from
[49:16] someone who's spending time with these
[49:18] people.
[49:19] Absolutely the problem. This is why
[49:21] adoption is moving slow. The more people
[49:23] I talk to at institutions, they have no
[49:25] idea how to deal with this. I'm sure
[49:28] that 5% or 10% of the companies in the
[49:30] S&P 500 are doing it this way, but
[49:33] viewing it as a technology rollout means
[49:36] you will by definition miss. How many
[49:38] firms have ChatGPT Enterprise?
[49:41] And Claude has taken over. I will tell
[49:44] you that if I talk to 10 people, I would
[49:46] say at least five of them at this point
[49:48] if not six are stuck in ChatGPT
[49:51] Enterprise.
[49:53] Infra rushes to limit leak of code
[49:55] Claude code. I want to just a few more
[49:57] slides here, but I want this I'm going
[49:59] to keep talking about the move to the
[50:01] edge in the enterprise. The reason you
[50:02] want to focus on the move to the edge is
[50:04] not just the cost side, it's the
[50:06] security side. And we're getting more
[50:07] and more of these stories. Now, this was
[50:09] a a leak.
[50:11] But Claude code source code was leaked.
[50:14] You have to go read the stories. I
[50:16] choose the VentureBeat one. When you
[50:17] read through it, this is like if
[50:19] Kentucky Fried Chicken released the
[50:21] recipe by mistake.
[50:23] The rush to
[50:25] to basically do what they did because
[50:28] they released their source code. This
[50:29] was a major news story from a
[50:31] competitive basis. It will accelerate
[50:33] the ability, I'm sure, of other places
[50:35] to do similar things.
[50:37] This is just unbelievable at this stage.
[50:42] But a looming cyber nightmare. So, not
[50:44] only is Mythos being held back because
[50:47] they wanted to give it to the government
[50:48] and cyber companies because of their
[50:50] fear on cyber. This is becoming bigger.
[50:53] So, the AI government officials tell
[50:55] Axios that Anthropic, OpenAI, and other
[50:58] tech giants will soon release the new
[50:59] models that are scary good at hacking
[51:02] systems at scale.
[51:05] Systems mean
[51:07] your bank account. It means everything,
[51:09] guys. So, again, as someone who follows
[51:11] cryptography for Bitcoin, and every time
[51:13] a quantum thing comes out, I get just
[51:15] raced with people. It's a long way away
[51:17] from quantum to cryptography. It is days
[51:20] away from Claude code and the things
[51:23] that a kid can use on their computer,
[51:25] having the ability for $200 a month to
[51:27] break into almost anything using AI
[51:30] agents.
[51:32] Five actions enterprise security leaders
[51:34] should take now based on the source code
[51:37] leak.
[51:40] First, the Claude code leak, and now
[51:42] this. In the same week, AI safety by way
[51:44] of will lock it up is just totally dead
[51:46] kaput, pushing up daisies.
[51:49] I mean, I again,
[51:51] everything was released to China. I
[51:54] Guys, this is Marc Andreessen saying
[51:55] this.
[51:56] Mercur was hacked. I've mentioned Mercur
[51:58] many times on here. They are
[52:01] a software place doing specialized
[52:04] models. They are doing
[52:06] human feedback reinforcement learning
[52:08] through have hiring people. So, if you
[52:10] go on LinkedIn and say Mercur, you will
[52:12] find job offers for bankers, for
[52:15] lawyers. They are training models based
[52:16] on experts to get through the nuances of
[52:19] particular professions. They are clients
[52:21] of all the major LLMs, which are trying
[52:23] to sell these specialized models at a
[52:25] very high price to get revenues in the
[52:26] door.
[52:28] They were hacked.
[52:30] Hackings are going to accelerate. So, to
[52:33] finish up the last two slides,
[52:35] Morgan Stanley's head of head of digital
[52:36] asset strategy dropped a bomb. On the
[52:38] institutional security side, we are
[52:40] turning our dark pools to support
[52:42] tokenized equities by the end of 2026.
[52:45] Again, I know crypto is in the doldrums.
[52:48] I know it's hanging out. Read this in
[52:50] Substack.
[52:52] Read it for the 22V people. I sent it
[52:54] out this week. Bitcoin will be the best
[52:56] performing asset once we get through the
[52:59] point where the government has to get
[53:01] involved. The point may be when the Fed
[53:03] has to cut rates despite inflation being
[53:05] higher or at least say that they're
[53:06] keeping a dovish bias. Whatever it is,
[53:09] we have a new Fed chair coming in in
[53:10] May. We will eventually make a bottom in
[53:12] here. The credit cycle will force the
[53:13] government to do what they always have
[53:15] to do, which is protect the voters. The
[53:17] voters are going to be angry as we go
[53:18] into the midterms cuz they're trapped
[53:19] inside all these assets. You can see
[53:21] where all this is going, but in
[53:22] particular, if it gets to the insurance
[53:24] industries and it hurts the annuities.
[53:26] Thanks again for those of you who liked
[53:27] this. Please subscribe. It helps me. It
[53:30] helps my business. It helps me keep
[53:32] getting this content out. I do need to
[53:34] make a little bit of money off some of
[53:36] this, and I'm not charging you for it.
[53:38] So, if you can help me out, you're part
[53:39] of the community, great. I will keep
[53:41] trying to help you guys feel empowered
[53:42] by making money and keep you on top of
[53:44] things and give you some AI names. Go
[53:46] subscribe at the paywall, especially if
[53:48] you're a financial advisor or a RIA. I'm
[53:50] working with them trying to build things
[53:52] and I will have things coming out
[53:54] regularly.
[53:55] Uh and overall for your kids
[53:59] have them watch this. Uh I will do a
[54:01] YouTube soon where I'll release some
[54:02] kind of video on a basic training
[54:04] ground. Maybe I'll release one of the
[54:06] videos, the five videos I've put up on
[54:08] the paywall, just so people can see
[54:10] what's going on, but I'll probably make
[54:12] a new one. I'll put it up on YouTube.
[54:14] It'll be a basic thing related to how to
[54:16] use one of the agentic sites. Thanks,
[54:18] guys.
[54:19] Have a great long weekend and I will see
[54:21] you next week. And by the way, I did
[54:23] this uh before the payroll number came
[54:25] out on Friday, so whatever's happened, I
[54:27] don't know. See you.