| Ripple Effect — August 6, 2025
We’ve tracked the slowdown in consumer spending for some time.
We know that consumers have long blown through their pandemic-era excess savings. And that credit card balances and financial stress are higher than ever.
But now, with the latest earnings report, we have a new trend emerging.
It’s no longer a consumer economy. It’s an AI economy:  AI spending now exceeds consumer-driven growth. For now, the contribution of AI to the economy is still a fraction of overall consumer spending.
If this trend continues, it’s a sign that the market may further concentrate into the big tech names, which already trade at rich and lofty valuations.
~ Addison | A critical warning from America's leading financial forecaster – Porter Stansberry: Last year, we met at Mar-a-Lago and I believed the plans he shared with me to revive our country… but I was dead wrong, because Trump just unleashed an unstoppable event that could destroy America… 
| P.S.: We know when stocks are overvalued – and we’re aware that an overvalued stock can continue going even higher.
But this time of year, markets are poised for a seasonal pullback – and many tech names will likely see some big swings lower in the coming weeks as earnings hype meets the reality of a slowing economy and renewed tariff and trade volatility.
Our most recent Grey Swan Trading Fraternity position, a trade opened yesterday on the back of hype, targets that kind of trade. But as today’s chart shows, we can’t be too bearish in the long-term just yet.
As always, your reader feedback is welcome: feedback@greyswanfraternity.com (We read all emails. Thanks in advance for your contribution.)
How did we get here? Find out in these riveting reads: Demise of the Dollar, Financial Reckoning Day, and Empire of Debt — all three books are now available in their third post-pandemic editions. You might enjoy one or all three. 
(Or… simply pre-order Empire of Debt: We Came, We Saw, We Borrowed, now available at Amazon and Barnes & Noble or if you prefer one of these sites: Bookshop.org, Books-A-Million or Target.)
Please send your comments, reactions, opprobrium, vitriol and praise to: feedback@greyswanfraternity.com |
Post a Comment
Post a Comment