In WTHIH: August 2025 we analysed the broader setup and the increasing divergence between markets and reality. We noted that this was a cause for great concern.
With a further discussion on:
The state of the economy and how it connects to Trump 2.0
Stock market valuations from the POV of the AI hype phase
The piece explains the setup right now with insights on Mag 7, AI and Hyperscalers, Chatbot economics, Crypto, Trump’s Economy, Biden’s Techno-Imperial Cycle and more.
Last Friday we had Jerome Powell’s speech at Jackson Hole 👇
Markets reacted positively to Jerome’s words — as if he said something unexpected!
I went to Philochat 👆 to express my thoughts on the market’s reaction.
“This market responds to rates and rate expectations, but it should not as much. This isn’t Caterpillar, Citigroup and AMEX. This market is underpinned by non-economy-sensitive stocks and themes like AI Buildout etc….”
I then went on to proclaim my bearishness on Crypto and Mag 7-type stocks, and more.
On the Monday post-Jackson Hole, I posted this Philochat 👇
Where are we now?
This week saw 3 catalysts that I consider material — especially considering where we are in the cycle.
The majority will disregard them as minor and insignificant, but remember, that’s how all major reversals begin.
Let’s deconstruct them one by one and muse on potential effects.
SECRET: if you were thinking of becoming a subscriber, now is probably the time.
1. Mark’s Troubles
Zuckerberg was practically squeezed into “acquiring” Scale AI just this June. He had to push on META’s AI strategy and he knew no other way how.
For our AI tech stack guide, starting from the infrastructure layer and moving up to the app layer - refer to this two-part series.
We will publish a third part to discuss Edge AI, tweet.
What did he achieve?