“I've been a long-term energy bull in part related to this whole AI related capex boom which requires a lot of energy to power it... I would probably do a combination of the two.”
Artificial intelligence spending is driving massive power demand just as oil prices surge past November, forcing a trillion dollars into hard assets.
“rare earths, uh, getting into that, you know, on this pullback here. um and some other sort of you know uh strategic resources... I just again I think there's a a global uh cold war for resources that”
With oil prices set to spike after November, the accelerating global cold war is triggering a massive structural bid to hoard rare earths.
“I'm still very bullish energy and I think this is a tremendous buying opportunity right here... I definitely want exposure to the commodity.”
Oil prices will surge after the November midterms as governments are forced to aggressively rebuild their completely depleted strategic petroleum reserves.
“companies are now starting... to say we want to bring back humans... we thought we could replace all of our employees with you know, automation.”
Hyperscalers just burned through 100% of their free cash flow to fund an AI enterprise push that corporate clients are actively rejecting to rehire humans.
“employment in AI related... has been declining... normally if you're investing in capex in AI you would expect to see a like increase in the employment.”
Tech giants are burning through all their free cash flow to fund AI projects while simultaneously shedding jobs as their order books dry up.
“maybe they've already seen their order books dry up and so they're starting to to uh adjust to that process.”
Hyperscalers like Amazon are torching 100% of their free cash flow to fund AI capex just as their order books are starting to dry up.
“they are burning through their free cash flow... they went from inc, you know, being cash cows to basically now they're tapping the credit markets to raise money.”
Tech giants are burning through all their cash to fund AI and tapping credit markets, ending the era of trillion dollar stock buybacks that propped up prices.
“massive competition for capital because you've got a corporate sector... competing with the federal government who's got 10 dollars in tea bills... expect yields to start rising... Yeah, absolutely.”
Corporations shifting from buying back a trillion dollars in shares to borrowing heavily will flood the market with debt and drive Treasury yields higher.
“I definitely worry more about the top of the K because I, you know, when I look at how extended the markets are right now and this idea that, you know, they've been priced for perfection with regard t”
Tech giants are burning through cash, ending the era of $1 trillion in annual stock buybacks that artificially propped up their shares and earnings per share.
“central banks that had been building gold reserves depleted those and we'll need to rebuild those. and you're already seeing some of that start to happen. So I I just again I think there's a a global ”
With the US rolling over $10 trillion in debt, central banks are aggressively hoarding gold to rebuild reserves in a cold war, sparking a massive run.
“I feel like a schmuck for sitting through a 25% pullback in the precious metals and an even more brutal pullback in the miners. Um, but you know, I'm that's how confident I am about the long-term traj”
With the government rolling over 10 trillion in paper and crowding out capital, scoop up battered gold miners as the precious metals bull market resumes.
“when we were in that meltup phase like the BDC index... it never got a bid... looks like it's continuing to move to the downside.”
Private equity firms are sitting on over 10,000 portfolio companies failing to generate income, forcing a wave of distressed debt implosions onto BDCs.