AI's Giant Loop

 Michael Burry Stock Tracker, Oct. 6, draws attention to the giant loop that is AI  investment. There's been $573 billion of AI financing in the last year, all of it running through 8 companies: Meta, Oracle, Microsoft, Amazon, OPENAI, Anthropic, Broadcom, and Nvidia. "They lend to each other, guarantee each other's debt and buy from each other, so one company's loan is backed by another company's promise to keep spending." Burry says it'll all fall down "if AI  revenue disappoints for one season." 

Historic, Systemic Divergences in the Stock Market

 The Great Martis, Oct. 6, notes the extreme divergence that had developed in the stock market, the Nasdaq entirely disjoined from the indices that track the broader economic engine. If "the pillars of transport and banking give way, the tech sector cannot hold the line indefinitely." 

Rates Rising Worldwide

 Robin Brooks, Oct. 7, shows bond yields in sixteen different markets: 

Bonds Post Worst 10-Year Return in History

 Hedgeye, Oct. 6, bears the grim tidings: 

Talk about a Two-Tiered Market!

 Mac10, our favorite bear, notes incredible divergence between a market near all time highs with the New York Stock Exchange reaching for a record in new lows. 

Long-Term, Copper is Cheap (and Scarce)

 So says Value Seeker, Oct. 10, who notes that the all time highs in nominal terms reached this year are still below former tops, after you adjust for money supply. He's shown similar charts for other commodities. 

Look Out Below

 John Arnold, Oct. 9, notes that mortgage rates have increased from 2.7 percent in January 2021 to 7.4 percent today, and yet median house prices are up 33 percent in that time. Something's gotta give.