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Ripple Effect

Another Bubbly Sign Hits the Markets

Addison WigginAddison Wiggin

July 22, 2026 • 1 minute, 32 second read


Alphabetbig techEarningsMagnificent Sevenprice to earningsprice to salestech

Another Bubbly Sign Hits the Markets

There are many ways to value a stock. The best known is the price-to-earnings (PE) ratio, which divides a company’s price per share by its earnings per share. 

On a PE basis, markets are near prior levels that have marked a short-term peak.

However, a company’s PE ratio can be influenced by accounting gimmicks, such as aggressive depreciation, one-time investments or divestments and a myriad of other ways that make up Generally Accepted Accounting Principles, or GAAP. 

Another valuation metric is price-to-sales, which looks at the company’s price per share divided by sales per share. 

Currently, half of the market index trades at over 10X sales:

Turn Your Images On

Over half of the stocks in the S&P 500 are now trading at more than 10 times their sales. (Source: WisdomTree)

That’s troubling.

In 2002, after Sun Microsystems crashed 90%, CEO Scott McNealy famously said this about his own stock at 10X sales:

“At 10X revenues, to give you a 10-year payback, I have to pay you 100% of revenues for 10 straight years in dividends. Zero costs. Zero R&D. Zero taxes. Zero employees. What were you thinking?” 

Right now, we have to wonder what the markets are thinking. For now, optimism is in the air ahead of Alphabet’s (GOOGL) earnings announcement after the bell today, which will provide some sense of how the AI hyperscalers are performing. 

Once the Big Tech names start to show a year-over-year slowdown in earnings and revenues, particularly related to AI, it’s possible that investors will realize the silliness of paying 10X sales for a high-flying company.

Today’s Grey Swan Pro looks at one of the largest companies on the market today, yet sports a price-to-sales ratio of less than 1 — details here.  

~ Addison

P.S. As a reminder, no Grey Swan Live! this Thursday. We’ll be back next week.


Copper’s Clear Signal

August 17, 2026 • Addison Wiggin

Copper and resources are sending us a cleaner market signal than AI stocks.

Channeling Ludwig von Mises, we observe this morning that price is not just a number; it’s information. Price reflects what buyers and sellers collectively believe: demand, scarcity, fear, speculation, disappointment, future expectations and available supply.

When prices rise, and inventories fall at the same time, the message is usually straightforward: buyers need the stuff, and there is not enough of it.

Copper’s Clear Signal
Market Crash Insurance Is Cheap

August 14, 2026 • Addison Wiggin

A low VIX does not predict disaster. It measures complacency. A serial skeptic will read it as the calm before a storm. We shook off that feeling this morning and opted to pursue an opportunity instead.

Here goes:

A VIX reading below 15 means the market is not pricing in much near-term trouble, even though there are obvious risks still sitting in the room: Iran, oil prices, memory chip speculation, circular financing, high valuations, epic high concentrations, spiking long-term interest rates, a regime change at the Fed, a meltdown in Japan and a historic deficit and rising national debt.

Market Crash Insurance Is Cheap
Beware: Financial Innovation In AI

August 13, 2026 • Addison Wiggin

Money is not flowing in a clean, straight line from outside investors to productive businesses. The firms at the top are investing in and buying from each other.

Microsoft and OpenAI are the easiest examples to follow.

Microsoft says OpenAI has contracted to purchase an additional $250 billion in Azure services, while Microsoft continues to account for $13 billion in funding commitments to OpenAI as an investment.

Beware: Financial Innovation In AI
Signs of a Late-Stage Bull Market

August 12, 2026 • Addison Wiggin

At this stage, it’s a stock picker’s market.

We expect space, robotics and some more visible tech startups to remain sources of speculation. After weakness in the first half of 2026, we’re also due for a strong rotation of capital into natural resources, precious metals, critical minerals and energy.

Signs of a Late-Stage Bull Market