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Ripple Effect

Another Sign the Blow-Off Top Is Coming

Loading ...Addison Wiggin

September 29, 2025 • 1 minute, 43 second read


Earningsvaluation

Another Sign the Blow-Off Top Is Coming

Chipmaker Nvidia is up over 500% in the past five years. Its market cap, closing in on $5 trillion, boggles the mind. That’s just one reason why it reminds one of Cisco during the dotcom bubble.

Yet, shares trade at 50 times earnings — pricey even for a growth stock — but nowhere near the 500 times earnings of Palantir.

In 2020, you could have bought shares of Nvidia at 50 times earnings. And in 2025. The fact of the matter is, Nvidia’s valuation has held fairly steady – with its share price soaring as its earnings soar.

That’s also a big drive for the massive rally in the S&P 500:

Turn Your Images On

There’ s still more room for stocks to run as prices haven’t yet exceeded earnings growth  (Source: Carson)

If history continues to rhyme, we expect a final parabolic move higher to be in the works for the stock market. One that may kick off near the end of the year and move into 2026.

That final push higher will finally see a divergence – with soaring stock prices amid a backdrop of slowing – or even evaporating – earnings.

When that happens, retail investors who would usually be cautious on stocks may throw that caution to the wind, just as cautious investors in 1997 and 1998 joined the relentless bull market mentality in 1999 – and the playout of our forecast for a terrifying bull.

~ Addison

P.S. Exuberance for AI has forced a massive concentration in a historically few stocks such as Nvidia. Fortunately, there are pockets of extreme value elsewhere in the market.

That includes materials, commodities, mining and energy stocks, as the Trump administration pushes for a stronger industrial policy and more domestic production.

Gold, jumping to $3,850 this morning, will likely catch retail interest as central banks push prices higher and the Trump administration forces monetary changes. Our forecast for significantly higher gold prices continues to move in the right direction, and can play out even as the AI bubble meets its inevitable pin.

If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.com.


2025: The Lens We Used — Fire, Transition, and What’s Next… The Boom!

December 22, 2025 • Addison Wiggin

Back in April, when we published what we called the Trump Great Reset Strategy, we described the grand realignment we believed President Trump and his acolytes were embarking on in three phases.

At the time, it read like a conceptual map. As the months passed, it began to feel like a set of operating instructions written in advance of turbulence.

As you can expect, any grandiose plan would get all kinds of blowback… but this year exhibited all manner of Trump Derangement Syndrome on top of the difficulty of steering a sclerotic empire clear of the rocky shores.

The “phases” were never about optimism or pessimism. They were about sequencing — how stress surfaces, how systems adapt, and what must hold before confidence can regenerate. And in the end, what do we do with our money?!

2025: The Lens We Used — Fire, Transition, and What’s Next… The Boom!
Dan Amoss: Squanderville Is Running Out Of Quick Fixes

December 19, 2025 • Addison Wiggin

Relative to GDP, the net international investment claim on the U.S. economy was 20% in 2003. It had swollen to 65% by 2023. Practically every type of American company, bond, or real estate asset now has some degree of foreign ownership.

But it’s even worse than that. As the federal deficit has pumped up the GDP figures, and made a larger share of the economy dependent on government spending, the quality and sustainability of GDP have deteriorated. So, foreigners, to the extent they are paying attention, are accumulating claims on an economy that has been eroded by inefficient, government-directed spending and “investments.” Why should foreign creditors maintain confidence in the integrity of these paper claims? Only to the extent that their economies are even worse off. And in the case of China, that’s probably true.

Dan Amoss: Squanderville Is Running Out Of Quick Fixes
Debt Is the Message, 2026

December 19, 2025 • Addison Wiggin

As global government interest expense climbed, gold quietly followed it higher. The IIF estimates that interest costs on government debt now run at nearly $4.9 trillion annually. Over the same span, gold prices have tracked that burden almost one-for-one.

Silver has recently gone along for the ride, with even more enthusiasm.

Since early 2023, Japan’s 10-year government bond yield has risen roughly 150 basis points, touching levels not seen since the 1990s.

Over that same period, gold prices have surged about 135%, while silver is up roughly 175%. Zoom out two years, and the divergence becomes starker still: gold up 114%, silver up 178%, while the S&P 500 gained 44%.

Debt Is the Message, 2026
Mind Your Allocation In 2026

December 19, 2025 • Addison Wiggin

According to the American Association of Individual Investors, the average retail investor has about a 70% allocation to stocks. That’s well over the traditional 60/40 split between stocks and bonds. Even a 60/40 allocation ignores real estate, gold, collectibles, and private assets.

A pullback in the 10% range – which is likely in any given year – will prompt investors to scream as if it’s the end of the world.

Our “panic now, avoid the rush” strategy is simple.

Take tech profits off the table, raise some cash, and focus on industry-leading companies that pay dividends. Roll those dividends up and use compounding to your overall portfolio’s advantage.

Mind Your Allocation In 2026