Ripple Effect

The Big, Beautiful Sellout

Loading ...Addison Wiggin

June 5, 20251 minute, 28 second read


The Big, Beautiful Sellout

One of the most important data points to understand the coming years is debt-to-GDP.

Yes, you can argue about how to measure GDP. And there are some forms of debt, like those debts tied to entitlement programs, that aren’t even included.

But using the government’s own baseline numbers, things are getting ugly. And they’re getting worse, not better.

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History tells us that when a nation’s debt-to-GDP ratio reaches 130%, it is a point of no return.

Servicing that level of debt means lower systemic growth – making it even more challenging for those who want to ignore the debt and try to grow the economy out of the problem.

The latest spending boondoggle does nothing to change the trajectory, and the extension of the 2017 tax cuts and higher SALT deductions, among other goodies, will accelerate the timeline.

If the party of so-called “small government” is just looking to juice the private sector now rather than avert a crisis – then such a crisis has always been inevitable. Be prepared.

~ Addison

P.S. With out-of-control spending still the norm in Washington, two assets look attractive as safe havens: gold and bitcoin. With the dollar weakening on top of everything else, we see the potential for gold prices to soar far higher over the next 18 months. It’s also no surprise to see silver breaking higher, finally jumping past $35 and topping $36.

Meanwhile, with all the institutional interest in bitcoin, which is getting over 98% of the capital to the broader crypto market right now, it’s possible that bitcoin could also be on a similar trajectory in the months ahead as a crisis looks increasingly likely.

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


The Small Cap Breakout

September 19, 2025Addison Wiggin

The terrifying bull market broadened its base yesterday, driven by expectations of easy money.

Small caps tend to be more dependent on borrowing to finance operations than the cash-rich mega-cap players.

So it’s no surprise that as the Fed acquiesced to cutting interest rates Wednesday, small caps, as measured by the Russell 2000 Index (IWM) broke out of a four-year range.

The Small Cap Breakout
DASH and LOW Stock Have One Key Thing In Common

September 18, 2025Adam O'Dell

Sometimes, a compelling market trend flashes like a neon sign on the Vegas strip.

We’ve seen that a lot with mega trends like artificial intelligence (AI) over the last few years. Just last week, Oracle was rewarded with a 40% post-earnings pop in its stock price after a strong earnings outlook for its AI cloud business.

Other times, you’ve got to do a little work to find out what’s driving a stock’s price higher. And my “New Bulls” list each week is a great place to start.

DASH and LOW Stock Have One Key Thing In Common
The Carrot and The Stick

September 18, 2025Addison Wiggin

Incentives grow markets. Regulation stunts their fragile bones.

The Fed’s rate cuts are carrots. Markets are feasting on them. Over in the Grey Swan Trading Fraternity, Portfolio Director Andrew Packer added a long trade in the commodity market – in a small-cap player, producing a commodity domestically.

As a cherry on top, it might be the next MP Materials or Intel and get explicit government backing, which could really cause shares to take off.

Trump’s threats to the Fed, or the FCC’s jawboning of broadcasters, are sticks. Investors must decide which matters more.

As one market veteran told The Wall Street Journal: “Cheaper money is a carrot. But the bigger question is whether trust in our institutions can hold. Without that, the carrots won’t matter.”

The Carrot and The Stick
Nasdaq Enters Nosebleed Heights

September 18, 2025Addison Wiggin

If you follow technical indicators, the Nasdaq — a broad measure of tech stocks — is now “extremely overbought”… a level only seen in 0.4% of its history.

That’s less than half a percent, and it is likely the precursor to a correction when traders decide to take profits.

Our advice, “panic now, avoid the rush” and rotate your tech into hard assets such as gold , bitcoin, and commodities in general.

Nasdaq Enters Nosebleed Heights