The recent enforcements on China to levy “massive tariffs” was the triggering event for repercussions we are about to see in the stock market for the next 2 years. The stock market has been on a historic tear for the past 5 months, dating back to April 4th when the market tanked as a result of the tariff introduction. The real question we have to ask ourselves is: Did we really resolve the fear of the tariffs dating back to early April or did we just “kick the can” for 5 months and let AI enthusiasm dictate the market surge? No more room to kick the can when you’ve kicked it as far as it can go on a dead end ally. As Jamie Dimon correctly predicted, a major correction is in store for the stock markets. Time to face the music!
Author: ShortPirate
-
Market Crash Wolf Totem
Stock and Bond Market crash coming Halloween 2025. Spreading Into 2026 and beyond
-
Federal Government employees to be laid off
With the birth of AI bots taking over the private sector and more federal government employees being laid off the Unemployment rate will rise.
-
Is NVDIA overpriced?
Was NVIDA exposed yesterday by Oracle’s revelation that the AI chip essentially added no value after a $100M investment?
-
Bottom of the 9th Inning
Leon Coopermann stated we are in the bottom of the 9th inning of this AI bull market. Citing a quote from Warren Buffet in the late 90’s before the first tech crash:
““Once a bull market gets under way, and once you reach the point where everybody has made money no matter what system he or she followed, a crowd is attracted into the game that is responding not to interest rates and profits but simply to the fact that it seems a mistake to be out of stocks,”
The Buffet indicator – ratio of US stock market to GDP has far exceeded its overvalued threshold of 217%.
Hope you got your shorts in this summer!
-
GrimReeper Coming
Government Shutdown occurring in hours.
Stock Market crashes in Q4.
-
Fed Undecisive on Interest Rates
The Federal Reserve stating that stocks were “fairly highly valued” should provide some insight into the trajectory of the stock market. The Fed is cognizant that Inflation is increasing, unemployment is increasing and the further rate cuts will further destabilize the economy.
The cornerstone of the decision to cut interest rates is the Fed’s opinion on BOTH Inflation and Unemployment statistics, both of which are going in the wrong direction. The nomenclature spewed by the Federal Reserve today showcased nervousness, indecisiveness and the component the markets hate the most….
UNCERTAINTY!
-
Time to pay the piper
Suns Up, Funs Up. This ingloriious overinflated stock market sham is about to be exposed.
AI is not helping the broader economy, it’s hurting the few vulnerable customer support roles that can be replaced by machines.
in 2008 didn’t we learn what happens when the unemployment rate and inflation risks catch up to the Stock market?
The brokers and retail traders danced all summer long to an AI – artificially inflated stock market, and the manifestation of their actions will force them to reflect on their self-indulgant behavior…..
IT’S TIME TO PAY THE PIPER!
-
Artificial Intelligence or Artificial Earnings?
The recent AI bubble has me questioning whether the stock market is really acting in a prudent matter to all the inflated stock prices.
Is Artificial Intelligence taking over the world or are these artificial earnings?
Do you need AI to conduct any of the basic core necessities in life? Eating, drinking, housing, mating, driving…. Even non-essentials like searching the internet or writing a paper for school or work?
AI is great for accomplishing repetitive tasks by a machine that human beings have normally completed. AI does not solve any of the core necessities of life. It’s a nice to have, not a need to have.
AI is currently the prettiest girl in the ballroom with the stock market ogling anything AI related. As our economy starts to lose permanent jobs replaced by machine robots, we will quickly realize that none of our core essentials were solved with AI and in contrast the core essentials of life were damaged by AI due to the labor loss. The prettiest girl in the ballroom will morph into an old, wrinkled witch with tons of complaints before our very eyes during the Halloween season and the stock market will crash.
-
“Bad News” Cuts Injected
The “bad news” interest rate cuts were injected into the economy today decreasing the federal fund rate to 4%-4.25%.
Why would an interest rate cut be bad for the economy and soon the stock market?
-A 25 basis point cut won’t impact Borrowing much, but it does signal that the Fed is nervous about the economy, effectively promoting a rate cut.
-Inflation is still increasing. The decision to cut the federal fund rate as inflation is rising is an oddball move that will have cascading impacts to our economic balance.
-We are at an inflection point that we are at a crossroads where the bad economy is about to catch up to the stock market.
-The AI bubble can’t will burst, and China pushing back on adopting NVDIA’s chips are the turning point.
-Most important! The unemployment rate is gradually climbing, most likely a result of AI stealing customer support and repetitive task jobs. Blue collar jobs are now the stable labour market.
The end of the 3 rd quarter is when the economy is going to catch up to the artificially inflated stock market.
Let your Love Flow – Bellamy Brothers
NoFluffBizRants 