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Ripple Effect

The Calm Before the Terrifying Bull

Loading ...Addison Wiggin

December 16, 2025 • 1 minute, 56 second read


Advance/Decline ratio

The Calm Before the Terrifying Bull

The major indexes have been trading sideways since the end of November.

But there is one tiny indicator showing the broad market is ready to push higher:

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While the S&P 500 index has been flat the past few weeks, more stocks have been rising than falling. (Source: Market In Out)

The advance/decline ratio looks at the percentage of stocks in an index that are rising compared to the number that are falling.

While the index has been flat the past few weeks, the advance ratio has been improving. Only A few names – notably Oracle – have been keeping a lid on markets.

“A rising advance/decline ratio is a sign of a healthy market that isn’t dominated by just a few names,” notes Andrew Packer. “And it’s a good sign that the market isn’t just dependent on a handful of tech stocks.”

The pre-Santa Rally setup shows a rotation out of Mag 7 tech stocks and into the broader market through the end of the year.

Under our terrifying bull market forecast – when investors buy stocks to beat inflation rather than for fundamental value – the advance/decline ratio will go into overdrive.

We’re not there yet.

~ Addison

P.S. Last week, we broke bread with an old friend of the house, Dan Amoss—a forensic accountant by training and a market bloodhound by instinct.

Dan was early to the tech wreck, earlier still to the rot in mortgage-backed securities, and famously short Lehman Brothers when that trade exploded 470% overnight on September 15, 2008. For the last decade, he’s been trading stocks and options for another friend you may recognize, Jim Rickards.

To the casual observer, Dan’s work invites comparisons to Michael Burry of The Big Short fame. The difference is that Dan was practicing this brand of forensic investing long before Hollywood learned how to spell “CDO.”

I’ve invited Dan to join us on Grey Swan Live! this Thursday, December 18, 2025 to share his findings directly.

Dan’s going to walk us through several trades he’s made during the AI boom—and, more importantly, the accounting stress fractures beneath the surface that lead him to believe 2026 could prove even more treacherous for individual investors than 2000–01 or 2008–09. It’ll be dense, unsettling, and refreshingly coherent. You won’t want to miss this one.


“Dispersion Rising”

January 16, 2026 • Addison Wiggin

Economists at Goldman Sachs said this morning they expect core inflation to finish the year around 2% even while GDP rises at a “surprisingly strong” 2.5% clip.

In our view, their inflation forecast is optimistic. Their GDP call? Modest.

The last time we pumped this much liquidity into the system — 2020 through 2022—the result was a manic asset bubble, runaway inflation, and an epic hangover at the Fed.

Goldman’s optimism has triggered a fresh round of bullish bets: cyclical stocks are rallying, “dispersion” in the S&P 500 is spiking, and the Fed is expected to cut interest rates twice before Jerome Powell gets kicked out of Washington at the end of his term on May 15.

“Dispersion Rising”
The Boom Behind the Data

January 16, 2026 • Addison Wiggin

Anecdotally, we’re hearing stories of warehouses full of GPUs sitting unused for lack of energy to power them. It’s a natural feature of the heavy capital investment in new machines. The grid has to catch up!

While Trump’s great reset rolls on in 2026, keep an eye on modular nuclear reactors and increased demand for uranium, natural gas and related resources.

The Boom Behind the Data
The Economics of Precious Metals Stocks Today

January 15, 2026 • Shad Marquitz

These PM producers are literally printing the most ‘hard money’ that they ever have at these metals prices and record margins here at the midway point in Q4.

If there ever was a time for this sector to get overheated and frothy, this would be it… only that isn’t what we’ve seen playing out.

PM producers are still insanely profitable at even at current metals prices and should be far more valuable based on their margins, revenue generating potential, and their resources still in the ground.

The Economics of Precious Metals Stocks Today
The Passing Parade and the Price of Admission

January 15, 2026 • Addison Wiggin

Who stipulated that politics and money have to be serious?

We do, in fact, write about money, the economy and financial markets. It’s to our own peril if we ignore the “passing parade” and its impact on them.

Populism as practiced by President Trump and the MAGA crowd is equally as pernicious, in our view, as the open worship of collectivism as expressed by Mamdani, AOC, and the progressive snollygosters gaining momentum among younger voters.

The system, as it were, is broken in all kinds of interesting ways. But we still have to live in it. And make decisions about our lives… our money… our families and our future.

The Passing Parade and the Price of Admission