Monetary Matters with Jack Farley The AI Capex Bubble, Gold & Silver on the Rise, and Signs of Market Froth | Jack & Max
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Oct 5, 2025 Jack and Max dive into the buzz around AI capital expenditures, questioning if it’s a bubble or a sustainable trend. They dissect the recent rally in gold and silver, explaining market implications and industrial demands. The duo also explores investment opportunities in Chinese stocks and semiconductors, while providing insights on short positions, including concerns over Smith & Wesson. With a look at the Fed's potential policy shifts and market predictions for the S&P and gold, this discussion keeps investors on their toes.
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AI CapEx: An Industrial Bubble With Real Demand
- Tech giants are pouring enormous capital into AI data-center CapEx, creating an "industrial bubble" with real fundamentals.
- Jack believes AI CapEx rally has durable earnings upside and warns against shorting this cycle now.
Bubbles Can Endure — Don’t Be Overconfident
- Bubble dynamics can persist for years and punish those on the wrong side for a long time.
- Max emphasizes recognizing speculation and avoiding believing your own story in bubble climbs.
Pick Your Role In Speculative Races
- Avoid assuming you're the smartest during a speculative arms race; prioritize being first-mover if that fits your style.
- Max suggests not needing to be first as an individual investor and to pick your preferred risk posture.