Mind the Death Jaws

Last night, Nvidia reported earnings. The AI bellwether doubled its net income from $22 billion to $43 billion in the fourth quarter of 2025.

Good news, right? Nope. The stock dropped like a stone at the open today, down 7%.

For AI-linked companies — Nvidia foremost among them — investor expectations continue to rise along with their valuations. At this point, even billions in profit are not enough.

Like the fiber optic spending plans that dominated the 1990s at the height of the dotcom bubble, AI spending is squeezing the cash flows for the S&P 500’s biggest companies:

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Soaring AI spending is hitting Mag 7 balance sheets and will risk capital gains for individual investors across the indexes going forward. (Source: Crescat Capital)

The market has a logic all its own. Despite record profits, the Mag as a group is down 12% from its October 28, 2025, high.

~ Addison

P.S. Grey Swan Live! this week will be coming to you live from inside the Rarcoa Vault in Chicago.

Our interest: Rare coins offer a unique way to protect your wealth with precious metals – and they carry the added value of rarity, mint, condition and historical significance.

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Please join us while we visit with family founder, Wayde Milas, inside the Rarcoa vault to check out the 2025 Eagle Privy Silver Eagle graded NGC MS70 from the first group of 50,000 pristine minted coins. Brand new sets will be available to attendees of the Zoom at a steeply discounted event price.

The live Zoom event will air on Friday, February 27, 2026, at 2 p.m. EST/11 a.m. PST.

P.S. Is Banyan Hill Publishing legitimate? Check out real subscriber reviews and testimonials here.

Last night, Nvidia reported earnings. The AI bellwether doubled its net income from $22 billion to $43 billion in the fourth quarter of 2025.

Good news, right? Nope. The stock dropped like a stone at the open today, down 7%.

For AI-linked companies — Nvidia foremost among them — investor expectations continue to rise along with their valuations. At this point, even billions in profit are not enough.

Like the fiber optic spending plans that dominated the 1990s at the height of the dotcom bubble, AI spending is squeezing the cash flows for the S&P 500’s biggest companies:

Turn Your Images On

Soaring AI spending is hitting Mag 7 balance sheets and will risk capital gains for individual investors across the indexes going forward. (Source: Crescat Capital)

The market has a logic all its own. Despite record profits, the Mag as a group is down 12% from its October 28, 2025, high.

~ Addison

P.S. Grey Swan Live! this week will be coming to you live from inside the Rarcoa Vault in Chicago.

Our interest: Rare coins offer a unique way to protect your wealth with precious metals – and they carry the added value of rarity, mint, condition and historical significance.

Turn Your Images On

The live Zoom event will air on Friday, February 27, 2026, at 2 p.m. EST/11 a.m. PST.

P.S. Is Banyan Hill Publishing legitimate? Check out real subscriber reviews and testimonials here.

Debts and deficits will eventually cause a crisis. Treasury Secretary Scott Bessent’s effort to help bail out the Japanese Yen this week is entirely motivated by self-preservation. The contagion signal flashing in Japanese bonds since late ‘25 is infecting the BOJ, which may be forced to sell U.S. Treasurys to stabilize its own currency.

The copper price is no doubt benefiting from inflation driven by money printing. But the doc don’t lie. Copper’s new all-time highs, while gold and silver still languish, are a sign the AI growth story is also that of the global economy itself.

Many miners were profitable with gold around $2,000 and silver near $50. At sustained prices closer to $4,000 gold and $60 silver, the arithmetic changes dramatically.

The stock market is getting an unexpected boost to kick off August, bucking the historically weak summer session for the U.S. stock market.

What’s happening? The Bank of Japan and the U.S. Treasury are making a coordinated effort to support Japanese yen; a move last attempted nearly 30 years in the height of the Asian Financial contagion (1998).

Many miners were profitable with gold around $2,000 and silver near $50. At sustained prices closer to $4,000 gold and $60 silver, the arithmetic changes dramatically.

The stock market is getting an unexpected boost to kick off August, bucking the historically weak summer session for the U.S. stock market.