Stealth Correction

Despite a stock market within 3% of its all-time highs, your portfolio likely feels a bigger pinch right now.

Fears of high spending on AI are leading to another pullback in the market’s biggest names. The Mag 7 stocks are collectively 10% off their peak, and now in correction territory:

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AI spending fears push the Mag 7 stocks down into to “correction” territory. (Source: Barchart)

“It’s tough to see the market making new all-time highs while tech stocks are coming down,” noted Andrew Packer to members of the Grey Swan Trading Fraternity this week. “As we’ve warned, the top seven stocks make up too much of the market.”

In the Grey Swan Trading Fraternity Mr. Packer added a put option trade to hedge against a market decline much like yesterday’s.

The market is throwing off more warning signs than usual right now. The all-clear sign? When bad news hits a market that’s been down and stocks trend higher anyway.

~ Addison

P.S. For the record, the names in the Grey Swan Model Portfolio continue to pay strong dividends outside roiling tech and we still like bitcoin and Dollar 2.0 digital asset plays. See the library of special reports in the members section on the website for more alternatives to tech stocks.

Yesterday, U.S. Global Investors founder Frank Holmes reviewed some of the trends today. Despite the short-term challenge to the stock market, economic fundamentals are in good shape right now.

Frank explained in detail how alternative data, like global airline demand, helps his team rebalance their portfolio of ETFs when market trends shift.

Washington is betting that crypto assets and stablecoins can create a bigger, more efficient market for U.S. debt, extending the dollar’s reserve-currency status.

Frank noted that the recent crash in crypto could easily reverse as regulatory conditions improve and market sentiment can return on a dime. And that many of the companies in our Dollar 2.0 wheelhouse are poised to benefit from that shift. We’ll have the replay up for members shortly.

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Despite a stock market within 3% of its all-time highs, your portfolio likely feels a bigger pinch right now.

Fears of high spending on AI are leading to another pullback in the market’s biggest names. The Mag 7 stocks are collectively 10% off their peak, and now in correction territory:

Turn Your Images On

AI spending fears push the Mag 7 stocks down into to “correction” territory. (Source: Barchart)

In the Grey Swan Trading Fraternity Mr. Packer added a put option trade to hedge against a market decline much like yesterday’s.

The market is throwing off more warning signs than usual right now. The all-clear sign? When bad news hits a market that’s been down and stocks trend higher anyway.

~ Addison

Yesterday, U.S. Global Investors founder Frank Holmes reviewed some of the trends today. Despite the short-term challenge to the stock market, economic fundamentals are in good shape right now.

Frank explained in detail how alternative data, like global airline demand, helps his team rebalance their portfolio of ETFs when market trends shift.

Washington is betting that crypto assets and stablecoins can create a bigger, more efficient market for U.S. debt, extending the dollar’s reserve-currency status.

Turn Your Images On

Through the first 41 trading days of 2026, the S&P 500 traded within a 2.7% range — the narrowest start to any year since 1928. The first 41 days of 2008 spanned roughly 35%. In 2020, the range ran near 15%. Even the placid 1950s never opened this tight…

Since the Iran attack began, global markets have been chaotic. Despite some wild intraday swings this week, the U.S. stock market has held up well. When bombs go flying, capital moves from frontier markets to safer shores. And even though the U.S. has been the one to aggressively move against Iran, capital that was going to foreign markets has shifted back to New York.

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