Ripple Effect
Finding Deep Value Despite the “Everything Bubble”
November 11, 2026 • 2 minute, 39 second read
Nvidia (NVDA) is next in line to report third-quarter earnings. The chipmaker reports next week following the reveal of a personal scandal involving founder and CEO Jensen Huang.
For years, the question has been whether the AI boom can survive without Nvidia. Now the question being asked is: can Nvidia survive without Huang? Although no one is asking that one very seriously.
In the meantime, earnings season has highlighted investor angst over stock valuations.
One measure used by deep value guru Warren Buffett is his eponymous calculation of the stock market’s total valuation relative to gross domestic product (GDP).
The current Buffett Indicator suggests we’re in the mother of all bubbles:
By Buffett’s measuring stick, all is not so great for individual investors who have systemically removed “value” from their own litmus test.
Among historic stock market bubbles, this one has made “unwitting speculators” out of even the most passive investors in exchange-traded funds (ETFs) and other Wall Street products.
Indeed, you have to wonder where the U.S. version of capitalism is taking us when there are more ETFs in the market than productive companies.
One of many mentors, Dr. Kurt Richebacher, lamented the paper trading — which people confuse with actual investing — that comes with the Late Stage Capitalism bundle.
There’s no doubt that something is askew in the stock market. Not that your average, diligent 401(k) or IRA retirement planner can put their finger on.
This era’s tech bubble has been driven higher by central bank policy from 2008 to 2022, when interest rates were largely at zero percent and never rose above 2.5%.
Free money? Sure! Might as well speculate with it…
AI tech stocks? Sure! Give me seven!
The surge in stocks for the balance of 2026 has been driven by AI spending.
The most fascinating thing about Nvidia isn’t that it trades around 40 times earnings. Rather, its shares have traded around that earnings level for the past five years.
The share price increase has simply matched the company’s soaring revenues… much of which it has financed itself.
We’re preparing for a rough patch in the markets in 2027, followed by a late-year rally. The year-over-year numbers for AI spending will curl lower at some point.
And when they do, the easy double-digit returns of the past few years even for index investors may slow to a crawl.
That’ll be the momentum when mom and pop investors go: “Hmnn, maybe I’m not such a hot shot investing genius. Where the [expletive deleted] did my retirement go?”
Today’s Pro recommendation takes a different tack. It’s a company trading at a reasonable valuation, with real-world assets not tied to the AI trade. Bonus kicker: It’s a centerpiece of American strength in the energy space.
~ Addison
P.S. Tomorrow, Grey Swan Live! returns with Zoltan Istvan.
We’ll review Zoltan’s February analysis on the backlash against AI development – which was on full display during last week’s midterm elections.
We’ll also cover what comes next in AI – including where the next round of AI winners are.
See you tomorrow at 2 p.m. ET for the latest in the AI trade.
