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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:

Turn Your Images On

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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Dan Amoss: Fixing the Resource Curse

December 17, 2025 • Addison Wiggin

The dollar-centric system and its bubbles may have given the U.S. economy a form of Dutch disease. This system has many rarely debated costs that go along with its benefits.

Deficit spending and stimulus inflated prices for stocks, real estate, and consumer goods. Trillions in savings remain in accounts from stimulus bills.

Without this spending, prices would be lower, a point lost on the Biden administration’s hyper-Keynesian economists, who never met a spending bill they did not cheer.

Dan Amoss: Fixing the Resource Curse
Repricing Legitimacy

December 17, 2025 • Addison Wiggin

As we round out this year, what’s being repriced is more than the market task of assessing risk. Legitimacy. That’s what is under scrutiny right now.

Seen through a cyclical lens, that makes sense. The Fourth Turning, popularized by Howe and Strauss, is upon us. So are Dalio’s long and short debt cycles.

We watch the Fed meetings, minutes and press conferences with the same intrigue as always. But long cycle is telling us the short-term one doesn’t have the gumption that the markets once believed.

It’s actually amusing, if you think about it. We spend a lot of our lives believing there’s a narrative that ties this ol’ ball spinning free in space together in some coherent pattern.

Repricing Legitimacy
Dan Amoss: A Golden Opportunity In the Currency Wars

December 16, 2025 • Addison Wiggin

What would a return to gold look like? Jim presents multiple scenarios, including a partial gold backing of new international reserve currencies. He notes that prior attempts to stabilize the global economy – such as the Genoa Conference in 1922 and the postwar Bretton Woods system – centered on gold’s role in anchoring currency values.

As history has shown, when trust in paper currencies erodes, gold emerges as the ultimate safe haven. The world looks to be on the cusp of another monetary realignment, and this time, gold will play a critical role.

Dan Amoss: A Golden Opportunity In the Currency Wars
A Tale of Three Americas

December 16, 2025 • Addison Wiggin

Our task here at the Grey Swan HQ, as we head into year 250 of this American experiment, is not to choose a tribe or a slogan — but to recover clarity.

To understand what is being offered, what is being denied, and what quietly slips away when arithmetic, history, and human nature are treated as inconveniences.

That work is slower. Less satisfying. And far more necessary.

Because when the idea of America becomes unmoored, it’s not necessarily yielding to an improvement on the original, is it? The news cycle, for today at least, just reveals it’s being replaced… by something louder.

Louder is rarely wiser.

A Tale of Three Americas