Meanwhile, AI investments accounted for nearly 92% of the U.S. GDP growth this year. Without those AI investments, Harvard economist Jason Furman noted, growth would be flat. As Ruchir Sharma concluded in the Financial Times, "America is now one big bet on AI," adding, "AI better deliver for the U.S., or its economy and markets will lose the one leg they are now standing on." This concentration creates fragility, and how the end begins becomes more visible.

ICE & Wiping Grandma's Ass

I'm especially proud of the above header, and there is a connection. The S&P, Nasdaq, and DJIA are some of the most damaging metrics in modern history as they create the illusion of prosperity, even as depravity rages on. The cloud cover for a masked, secret police terrorizing communities is these indices. As long as your 401(k) is going up, then everything must make sense and be okay, no? No. Trump could not send troops into U.S. cities if the S&P were down, vs. up, 13%. AI stocks, and the sugar high they have inspired across the entire market, numb Americans from the nagging tooth pain that we are descending into fascism. Yeah, those evil people who wipe your grandma's ass, pick our crops, and build our homes can be treated inhumanely as long as Nvidia remains worth more than the entire German stock market.

Trillion-Dollar Question

Valuations for the Mag 10 — the original group of seven leading tech stocks, plus AMD, Broadcom, and Palantir — are high, but not yet at historic peaks. The 24-month forward P/E ratio of the Mag 10 is 35x. In 2000, at the height of the dot-com bubble, the top 10 stocks traded at 52x forward earnings. Implicit in these valuations, however, is an assumption that AI will help these companies cut costs, or grow revenues by $1 trillion in the next two years. I believe we're either going to see a massive destruction in valuations, infecting all U.S. stocks and global markets. Or we're going to see a massive destruction in employment across industries with the highest concentrations of white-collar workers. Both scenarios are ugly.