I just wanted to write a quick note to my paid subscribers about the crash that is taking place…my thoughts, what I see next, and my early response to the sell-off.
For all intents and purposes, **this is exactly what I have been expecting since I started calling for a crash in August. **
Every step along the way, the signs have presented themselves: credit markets collapsing in AI, last-ditch cash grabs for AI companies at crazy rates, the bond market keeping yields high, and most recently, a catalyst I have been harping on… Democrats winning the midterms.
As my paid subscribers know, this was my most likely scenario: that Democrats would win the midterms, and the ensuing pressure on data centers, along with the forthcoming pressure on industries like crypto and banking, would be a decisive headwind for markets.
Right now, everybody is figuring that out all at once.
Hopefully, you have had that in the back of your mind for some time now and were able to sidestep today’s move a little bit. Here’s how I view the picture going forward.