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Ripple Effect

Overbought Territory, Day 70

Loading ...Addison Wiggin

August 11, 2025 • 1 minute, 21 second read


overboughtStock Market

Overbought Territory, Day 70

August has been a tumultuous month for each of the past 10 years.

Today, one-third of the way through the month, that trend is holding strong. And stocks have now posted their 70th consecutive day without dropping below  the 50-day moving average:

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Markets are having one of their longest periods of technical strength since the start of 2024.

Last week, rising odds for an interest rate cut in September extended the S&P 500 rally.

Fed chair Jerome Powell remains stalwart. So far, only two members of the Fed board of governors have registered dissent and voted for a cut. One of them, Christopher Waller, tops Trump’s list to replace Powell.

Under Trump, anything can happen…

For now, the August surprise is to the upside for stocks.

~ Addison

 

P.S. While stocks continue to trend higher on a potentially weakening economy (jobs report), there’s a good reason. Even without Fed rate cuts, global M2 money supply — aka cash — is also hitting historic highs. Central banks around the world have been printing money like we’re already in a debt crisis.

That bodes well for assets like bitcoin, which jumped back over $120,000 over the weekend – and gold, which broke $3,500 briefly last week.

Hard assets have more room to run – gold is still nowhere near our price estimate.

Keep an eye out, both gold and  bitcoin will likely hold up well in a garden-variety market pullback. In a massive drop, which tends to lead to liquidations across the board, however, all bets are off.

As always, your reader feedback is welcome: feedback@greyswanfraternity.com (We read all emails. Thanks in advance for your contribution.)


The Money Printer Is Coming Back—And Trump Is Taking Over the Fed

December 9, 2025 • Lau Vegys

Trump and Powell are no buddies. They’ve been fighting over rate cuts all year—Trump demanding more, Powell holding back. Even after cutting twice, Trump called him “grossly incompetent” and said he’d “love to fire” him. The tension has been building for months.

And Trump now seems ready to install someone who shares his appetite for lower rates and easier money.

Trump has been dropping hints for weeks—saying on November 18, “I think I already know my choice,” and then doubling down last Sunday aboard Air Force One with, “I know who I am going to pick… we’ll be announcing it.”

He was referring to one Kevin Hassett, who—according to a recent Bloomberg report—has emerged as the overwhelming favorite to become the next Fed chair.

The Money Printer Is Coming Back—And Trump Is Taking Over the Fed
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December 9, 2025 • Addison Wiggin

Here we sit — investors, analysts, retirees, accountants, even a few masochistic economists — gathered beneath the leafless monetary tree, rehearsing our lines as we wait for Jerome Powell to step onstage and tell us what the future means.

Spoiler: he can’t. But that does not stop us from waiting.

Tomorrow, he is expected to deliver the December rate cut. Polymarket odds sit at 96% for a dainty 25-point cut.

Trump, Navarro and Lutnick pine for 50 points.

And somewhere in the wings smiles Kevin Hassett — at 74% odds this morning,  the presumed Powell successor — watching the last few snowflakes fall before his cue arrives.

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With U.S. stocks trading at about 24 times forward earnings, plans for capital growth have to go off without a hitch. Given the billions of dollars in commitments by AI companies, financing to the hilt on debt, the most realistic outcome is a hitch.

On a valuation basis, global markets will likely show better returns than U.S. stocks in 2026.

America leads the world in innovation. A U.S. tech stock will naturally fetch a higher price than, say, a German brewery. But value matters, too.

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The arbitrage, once triggered, became self-reinforcing. Traders were not participating in theory; they were responding to the physical incentives in front of them.

The United States had quietly become the marginal buyer of the world’s most important industrial metal. China, long the gravitational center of global copper demand, found itself on the outside.

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