Know Your Risk Podcast Market Downturn
14 snips
Dec 17, 2025 Zach and Chase tackle the current market downturn, analyzing key indicators and the impact of AI on stock performance. They debate the right timing for shorting AI stocks and dissect Tesla's stock disconnect. Inflation concerns loom as they explore Fed expectations and valuation worries. The resilience of the energy sector and mining stocks is highlighted, along with recommendations for precious metals allocation. Finally, they discuss Apple's competition in the wearable technology space and the implications of buybacks versus cash holdings.
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AI Names Drove The Down Day
- The market pullback was concentrated in AI leaders while equal-weight indices held up better.
- Oracle and Tesla led the decline as AI infrastructure and funding worries hit sentiment.
Wait To Short Until After New Year
- Avoid aggressive shorting in the final two weeks of December because end‑of‑year flows often support prices.
- Consider waiting until after the New Year to initiate larger short positions.
Tesla Moves Often Ignore Fundamentals
- Tesla's price can disconnect from fundamentals and spike violently, making shorting risky.
- The trade is location dependent; higher levels create a fatter pitch to short but with squeeze risk low due to reduced short interest.