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Ripple Effect

Corporate America Adds Fuel to the Stock Market Flame

Loading ...Addison Wiggin

May 12, 2025 • 1 minute, 4 second read


Corporate America Adds Fuel to the Stock Market Flame

With trade deals lighting a fire under the stock market, corporate America is also bringing out some more fuel for the flames.

Corporate buybacks are on the rise – to all-time highs. In the past three months alone, companies have announced hundreds of billions of dollars in commitments to buy their own shares.

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Companies have plenty of options for what they do with their cash. By engaging in share buybacks, they’re effectively saying their own shares are the best game in town.

In reality, that’s rarely the case. A wise company would only buy back shares when they’re an extreme value.

As Andrew notes:

Today, share buybacks usually do two things. They increase earnings per share by reducing the total number of shares – not increasing earnings. And they usually help to offset the shares granted to executives. Neither of those is real growth in the underlying business.

Given this shell game, it’s clear that most companies buying back shares are signaling that they don’t know how to employ their cash better.

Can investors get good returns with companies buying back shares? Absolutely. But if it’s hollowing out the balance sheet, it’s creating riskier conditions as share prices rise higher.

Until that crisis hits, traders see buybacks as bullish.

-Addison


The Hindenburg Five

February 24, 2026 • Addison Wiggin

The stock market “rebalancing” is a polite way to put it. Energy and health care are getting a healthy boost. But tech hardware and software makers are still getting dressed down and have been asked to report to the principal’s office.

The great rotation underway has triggered a series of “Hindenburg Omens.” Five have occurred in recent weeks.

The Hindenburg Five
Piercing The Veil

February 23, 2026 • Addison Wiggin

The S&P 500 has traded in a 3.7% range over the past two months — less than half the 20-year median of 8.6%. One of the tightest ranges in modern history.

In trader parlance, the indexes are “flat,” a setup that often materializes before a sell-off at the top after a multi-year bull market.

Goldman Sachs told its own traders to be aware that institutional trading activity resembles a VIX reading near 35. Rather than a reading of 20, where the VIX has been trading over that same 2-month period.

The U.S. software ETF, IGV, tested its April 2025 lows last week and trades roughly 35% below its peak. The “SaaS-pocalypse” in software companies reflects the fear of Citrini’s 2028 scenario happening in real time.   That divergence now exceeds the spread seen at the peak of the Great Financial Crisis.

Under the surface, the “great rotation” we wrote about last week is threatening to widen.

Piercing The Veil
Oh. Canada

February 23, 2026 • Addison Wiggin

Despite its overly-educated 40-million-plus population, on a GDP per capita basis Canada is null. Collectively, the Great White North would rank as America’s second-lowest state, coming in above Mississippi, but below Alabama.

Oh. Canada
Matt Milner: SpaceX + xAI: What It Means for You

February 20, 2026 • Addison Wiggin

SpaceX is the most valuable private startup in history — and if its success continues, it might become the most valuable public company in history.

After all, as Musk famously said in 2023, “I have never lost money for those who invest in me and I am not starting now.”

For investors, SpaceX has been a wild, joyful ride — and now the journey continues!

Matt Milner: SpaceX + xAI: What It Means for You