| Ripple Effect — September 29, 2025
Chipmaker Nvidia is up over 500% in the past five years. Its market cap, closing in on $5 trillion, boggles the mind. That’s just one reason why it reminds one of Cisco during the dotcom bubble.
Yet, shares trade at 50 times earnings — pricey even for a growth stock — but nowhere near the 500 times earnings of Palantir.
In 2020, you could have bought shares of Nvidia at 50 times earnings. And in 2025. The fact of the matter is, Nvidia’s valuation has held fairly steady – with its share price soaring as its earnings soar.
That’s also a big drive for the massive rally in the S&P 500:  There’ s still more room for stocks to run as prices haven’t yet exceeded earnings growth (Source: Carson) If history continues to rhyme, we expect a final parabolic move higher to be in the works for the stock market. One that may kick off near the end of the year and move into 2026.
That final push higher will finally see a divergence – with soaring stock prices amid a backdrop of slowing – or even evaporating – earnings.
When that happens, retail investors who would usually be cautious on stocks may throw that caution to the wind, just as cautious investors in 1997 and 1998 joined the relentless bull market mentality in 1999 – and the playout of our forecast for a terrifying bull.
~ Addison | Gold has hit all-time highs, breaking $3,600 an ounce - but history shows it could be on the verge of its biggest bull run in over half a century... triggered by a likely major event, eerily similar to what happened in the 1970s. (It's NOT inflation or anything you’re likely expecting.) And Stansberry Senior Partner Dr. David Eifrig believes you MUST own shares of his No.1 gold stock. He says it's likely better than any miner, explorer, or exchange-traded fund on Earth. It's the centerpiece of his full plan for this brutal market, with extraordinary upside potential. Click here for full details on this developing gold story. | P.S. Exuberance for AI has forced a massive concentration in a historically few stocks such as Nvidia. Fortunately, there are pockets of extreme value elsewhere in the market.
That includes materials, commodities, mining and energy stocks, as the Trump administration pushes for a stronger industrial policy and more domestic production.
Gold, jumping to $3,850 this morning, will likely catch retail interest as central banks push prices higher and the Trump administration forces monetary changes. Our forecast for significantly higher gold prices continues to move in the right direction, and can play out even as the AI bubble meets its inevitable pin.
If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.com.
How did we get here? Find out in these riveting reads: Demise of the Dollar, Financial Reckoning Day, and Empire of Debt — all three books are now available in their third post-pandemic editions. You might enjoy one or all three. 
(Or… simply pre-order Empire of Debt: We Came, We Saw, We Borrowed, now available at Amazon and Barnes & Noble or if you prefer one of these sites: Bookshop.org, Books-A-Million or Target.)
Please send your comments, reactions, opprobrium, vitriol and praise to: feedback@greyswanfraternity.com |
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