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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 Hindenburg Five

February 24, 2026 • Addison Wiggin

The stock market “rebalancing” is a polite way to put it. Energy and health care are getting a healthy boost. But tech hardware and software makers are still getting dressed down and have been asked to report to the principal’s office.

The great rotation underway has triggered a series of “Hindenburg Omens.” Five have occurred in recent weeks.

The Hindenburg Five
Piercing The Veil

February 23, 2026 • Addison Wiggin

The S&P 500 has traded in a 3.7% range over the past two months — less than half the 20-year median of 8.6%. One of the tightest ranges in modern history.

In trader parlance, the indexes are “flat,” a setup that often materializes before a sell-off at the top after a multi-year bull market.

Goldman Sachs told its own traders to be aware that institutional trading activity resembles a VIX reading near 35. Rather than a reading of 20, where the VIX has been trading over that same 2-month period.

The U.S. software ETF, IGV, tested its April 2025 lows last week and trades roughly 35% below its peak. The “SaaS-pocalypse” in software companies reflects the fear of Citrini’s 2028 scenario happening in real time.   That divergence now exceeds the spread seen at the peak of the Great Financial Crisis.

Under the surface, the “great rotation” we wrote about last week is threatening to widen.

Piercing The Veil
Oh. Canada

February 23, 2026 • Addison Wiggin

Despite its overly-educated 40-million-plus population, on a GDP per capita basis Canada is null. Collectively, the Great White North would rank as America’s second-lowest state, coming in above Mississippi, but below Alabama.

Oh. Canada
Matt Milner: SpaceX + xAI: What It Means for You

February 20, 2026 • Addison Wiggin

SpaceX is the most valuable private startup in history — and if its success continues, it might become the most valuable public company in history.

After all, as Musk famously said in 2023, “I have never lost money for those who invest in me and I am not starting now.”

For investors, SpaceX has been a wild, joyful ride — and now the journey continues!

Matt Milner: SpaceX + xAI: What It Means for You