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Ripple Effect

The Blow-Off Top Is Coming

Loading ...Addison Wiggin

September 26, 2025 • 1 minute, 26 second read


AIdotcom

The Blow-Off Top Is Coming

Soaring AI stocks aren’t just reminiscent of the tech bubble in 1998-2000. Rather, they feel much like a Hollywood remake, nearly beat-for-beat.

Like the fervor for anything with a “.com” after it back then, AI exuberance is pushing stocks to be valued far higher than the reality of what AI will ever be recouped by earnings.

The end result?

Turn Your Images On

Overlaying the AI and dotcom boom, there’ s still more room to run  (Source: Cheddar Flow)

If history continues to rhyme, we expect a final parabolic move higher to be in the works. One that may kick off near the end of the year and move into 2026.

A repeat of the dotcom bubble burst would be classic, too. The wheels will likely come off as soon as companies like Nvidia report a slowdown in their growth.

“In 2026, we could see a repeat of the 2022 bear market,” notes Portfolio Director Andrew Packer. “Some big pullbacks, a few strong counter-rallies to keep the hope alive, then a slow grind lower.”

~ Addison

P.S. Exuberance for AI has forced a historic concentration in a historically few stocks at the top. By definition, then, there are pockets of extreme value elsewhere in the market.

That includes materials, commodities, mining and energy stocks, as the Trump administration pushes for a stronger industrial policy and more domestic production.

Gold, firmly above $3700, will likely catch retail interest as central banks push prices higher and the Trump administration forces monetary changes. Our forecast for significantly higher gold prices continues to move in the right direction, and can play out even as the AI bubble meets its inevitable pin.

If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.com.


Off the Rails

September 26, 2025 • Bill Bonner

The gold standard came into being in the 18th century. It got gassed in WWI. Then, after WWII, it was re-established, sort of. The dollar was made the key financial reserve. And the dollar was linked to gold.

Then, in 1971, the last link with gold was cut. Since then, several efforts were made to re-install some sort of guardrails. In the ‘70s, we were personally part of the drive for a Constitutional Amendment that would make deficits illegal. In the ‘80s, our friend Grover Norquist succeeded in getting prospective members of Congress to sign The Pledge, crossing their hearts and hoping to die if they increased taxes

Off the Rails
When Good News is Bad News

September 26, 2025 • Addison Wiggin

It’s not a secret that Trump’s mercantilism looks backward. Making America great again is inherently nostalgic, fomenting into dreams of resurrected domestic factories, punishing imports, and using the American consumer as so many poker chips in some post-industrial game of five-card stud.

China’s mercantilism since Deng Xiaoping told his subjects that “getting rich is glorious” in 1978 has been looking forward: capturing tomorrow’s industries — AI, quantum computing, green tech — before anyone else can.

Adam Smith warned that mercantilism’s obsession with trade surpluses was “incompatible with the accumulation of wealth for citizens.”

Today, that warning rings fresh. Investors are no longer betting on markets alone, but on their marriage to state power. Lithium in Nevada, chips in Minnesota, sovereign gold in Shanghai — these are the dowries of the new era.

When Good News is Bad News
Powell’s Capitulation and the Road Back to Money Printing

September 25, 2025 • Lau Vegys

Remember what happened when they conjured $5 trillion out of thin air during the pandemic? Inflation ripped to 9% — the highest in forty years.

Kicking off the next money-printing cycle from $6.6 trillion instead of $4 trillion — with so much pandemic-era cash still sloshing around the system — all but guarantees double-digit inflation. We’re talking about potential currency destruction on a scale — and at a speed — America has never seen.

Position accordingly.

Powell’s Capitulation and the Road Back to Money Printing
Shutdown as a Weapon

September 25, 2025 • Addison Wiggin

The Harvard Business Review warns of “workslop.” Mandated AI tools produce bad slides and reports. Workers say 15% of what hits their desks is slop. For a company of 10,000, that’s $9 million a year in lost productivity.

Progress, or just noise?

You may recall similar confusion over actual productivity in the early days of the Internet.

Shutdown as a Weapon