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Ripple Effect

And This Year’s Winner Is…

Loading ...Addison Wiggin

December 17, 2025 • 1 minute, 35 second read


FinancialsXLF

And This Year’s Winner Is…

Trick question: which stocks do best in a market bubble?

As we look to close out the year, financials, as measured by the SPDR Financial ETF (XLF) are on a tear:

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After touching the 200-day moving average during the private credit scare in the fall, financial stocks are in full Santa Rally mode (Source: Stockcharts.com)

Except for a minor blowup in the private credit markets, the only challenge financial stocks had this year was in April, when everything got whacked by Trump’s shock-and-awe tariff announcements.

Stands to reason, in a bull market for stocks, mergers, acquisitions and new issues, financial stocks are like the “brick and mortar” plays for Wall Street itself.

In our upcoming December Grey Swan Bulletin, available for paid-up Fraternity members, Andrew Packer digs into a growing trend in private credit that could cause the space to wreak havoc on the financial markets four distinct times in 2026.

For now? It’s smooth sailing into the new year.

~ Addison

P.S. Catch us tomorrow on Grey Swan Live! we’re joined by Dan Amoss — a forensic accountant by training and a market bloodhound by instinct. A short glance at the calendar reveals… this will be our last scheduled Grey Swan Live! in 2025.

To the casual observer, Dan’s work invites comparisons to Michael Burry of The Big Short fame. The difference is that Dan was practicing this brand of forensic investing long before Hollywood learned how to spell “CDO.” For the last decade, he’s been trading stocks and options for another friend you may recognize, Jim Rickards.

Dan’s going to walk us through several trades he’s made during the AI boom — and, more importantly, the accounting stress fractures beneath the surface that lead him to believe 2026 could prove even more treacherous for individual investors than 2000–01 or 2008–09.

It’ll be dense, unsettling, and refreshingly coherent. You won’t want to miss this one.

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The Confidence Paradox

January 6, 2026 • Addison Wiggin

This is the confidence paradox in motion.

The legitimacy of the action remains contested. The legality may be debated for years. Yet capital immediately priced the outcome as useful.

Pundits on Fox Business immediately began explaining the complexities of processing “heavy, sour” crude oil that the refineries in Texas and Louisiana used to be tooled up for, versus the “light, sweet” variety the shale boom gushed forth. 

The Confidence Paradox
A Tale of Two Countries

January 6, 2026 • Addison Wiggin

History is clear. The “warmth of collectivism,” as New York City Mayor Mamdani wants you to believe, doesn’t come from a healthy economy. Maybe from, burning books and buildings… but not from building a prosperous society.

A Tale of Two Countries
Seven Grey Swans, One Investment Strategy

January 5, 2026 • Addison Wiggin

The entire process of reviewing forecasts and then issuing new ones has made us more intensely focused on our purpose. We’re not actually trying to “predict the future” to parody the disdain with which so many lazy media pundits would dismiss our approach.

Rather, we’re examining trends in the news cycle and trying to separate the wheat from the chaff. What signals are coming through stronger than the nauseating cacophony of  Washington and Wall Street, amplified by legacy and social media alike?

There are years when markets feel confusing because they are volatile. And there are years when they feel confused because the old explanations no longer work.

Seven Grey Swans, One Investment Strategy
Debt Hangover? Nah…

January 5, 2026 • Addison Wiggin

To start the year, the U.S. government didn’t bother with a hangover, rather it continues to spend so profligately that if we compared it to a drunken sailor, we’d have to apologize to the sailor.

Closing out 2025, America managed to rack up over $38 trillion in “official” debt. Looking at debt relative to GDP, it’s back over 121%.

Debt Hangover? Nah…