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Ripple Effect

Why the Market’s Still Obsessed With AI

Loading ...Andrew Packer

May 16, 2025 • 1 minute, 3 second read


Why the Market’s Still Obsessed With AI

Make no mistake: The stock market peaked in February, following the news that China had released a new AI program.

DeepSeek isn’t just a ChatGPT clone. According to China, it was able to train the AI with substantially fewer resources.

That’s a huge breakthrough. And a sign of a global “Cold War” in AI development.

That potential escalation still looks some time off. For now, investors love AI because it’s a pure growth story, by any metric.

For instance, ChatGPT’s total users now exceed those of Wikipedia:

Turn Your Images On

I remember when Wikipedia first launched. Several of my college professors said it shouldn’t be used as it wasn’t reliable. I also remember going on Wikipedia, ignoring the article, and going straight to the footnotes that could be used and were reliable.

Today, AI models are best used similarly: to get the creative juices flowing and to run through some ideas, not do all the work and turn down the human capacity to think.

Be mindful, though. As the saying goes, today is the worst AI will ever be.

Times and technology change, and ChatGPT’s rise shows that its fast growth comes at the cost of disrupting other industries – and that there’s more growth ahead.

-Andrew


The Grand Realignment Gets Personal

January 13, 2026 • Addison Wiggin

Sunday night, Powell addressed the probe head-on in a video post — a rarity. He accused the White House of using cost overruns in the Fed’s HQ renovation as a pretext for political interference.

The White House denied involvement. But few in Washington believed it.

What followed was bipartisan condemnation of the investigation. Greenspan, Bernanke, and Yellen co-signed a blistering rebuke, warning the U.S. was starting to resemble “emerging markets with weak institutions.”

The Grand Realignment Gets Personal
A Rising Sign of Consumer Stress

January 13, 2026 • Addison Wiggin

Estimates now indicate that the average consumer will default on a minimum payment at about a 15% rate – the highest level since a spike during the pandemic lockdown of the economy.

President Trump’s proposal over the weekend to cap credit card interest at 10% for a year won’t arrive in time to help consumers who are already missing minimum payments.

Not to fret, the other 85% of borrowers continue to spend on borrowed time. Total U.S. household debt, including mortgages, auto loans, student loans, and credit cards, reached record highs in late 2025, exceeding $18.5 trillion. This surge was driven partly by rising credit card balances, which neared their own all-time peaks due to inflation and higher interest rates.

A Rising Sign of Consumer Stress
Protest Season Amid the Grand Realignment

January 12, 2026 • Addison Wiggin

There’s an old Wall Street maxim: “Don’t fight the Fed.”

This year, you could add a Trump corollary.

A wise capital allocator doesn’t fight that storm. He doesn’t argue with it. He respects it the way sailors respect the sea: with preparation, with humility, and with a sharp eye for what breaks first.

In 2026, the things that break first are the stories. The narratives. The comfortable assumptions.

Protest Season Amid the Grand Realignment
Breaking: Government Budgets

January 12, 2026 • Addison Wiggin

Total municipal, state and federal debt service costs soared to nearly $1.5 trillion in the third quarter of 2025. Debt’s easy to accumulate when rates are low. Trouble is, you are obligated to refinance them even after rates go up.

It’s also a key reason why the Trump administration is demanding lower interest rates – even if it means reigniting inflation.

Breaking: Government Budgets