The Market Huddle DOOM AND GLOOM SELLS (Guest: Kuppy)
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Aug 23, 2025 Harris Kupperman, known as Kuppy, is a hedge fund manager and blogger sharing insights on macroeconomics and trading. He discusses the economic future of AI, addressing the high costs and risks associated with tech stocks. Kuppy navigates through the impact of government tariffs on U.S. manufacturing and emphasizes the need for patience in investing during turbulent times. The conversation also includes a playful take on 'desert island investing,' revealing Kuppy’s favorite music and historical trader preferences, blending finance with fun!
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Trump Tweets Distract Traders Constantly
- Harris Kupperman describes how Trump's frequent tweets interrupt work and move markets every ten minutes.
- He says traders scramble to X to see the impact, creating constant distraction and volatility.
AI Buildout Mirrors Global Crossing
- Global Crossing built far more fiber than demand justified and funded it with junk bonds, then collapsed.
- Kupperman compares today's AI capex binge to that build‑out miscalculation and eventual write‑offs.
AI Revenue Falls Far Short Of Capital Needs
- Kupperman estimates AI firms will spend ~$400B this year and need much more revenue to justify depreciation.
- He argues current AI revenue is tiny versus required scale, implying large future losses or write‑downs.