Equity Bond Theory

I think we are currently at the top of the market… A few years ago “AI” was the magic word that could make any stock chart go vertical. Well, that spell might be finally wearing off. On November 4, 2025, two major things hit the tape: Michael Burry — yes, the guy who called the 2008 housing collapse — revealed huge short positions against two of the most overhyped AI darlings: Nvidia ($NVDA) and Palantir ($PLTR). The CEOs of Goldman Sachs and Morgan Stanley both warned that stocks could see a 10-20% correction within the next 12-24 months. That’s like the market equivalent of a smoke alarm and a barking dog going off at the same time. You don’t have to panic, but you’d better look around. Burry’s Back — and He’s Betting Big Against AI Burry disclosed $1.1 billion worth of put options on Nvidia and Palantir. He’s calling out what many are too giddy to admit — that AI mania might have gone full-bubble. Think about it: Nvidia has been treated like the only company capable of pro...

The A.I. Rally is Being Led by the "I AIN'T MAMA" Stocks

The new bull market is being led by just a few stocks relating to Artificial Intelligence (AI). Hence, the new acronym for these stocks would be I AIN'T MAMA. I - IBM A - Apple I - Intel N - Nvidia T - Tesla M - Microsoft A - AMD M - Meta Platforms (formerly Facebook) A - Alphabet (formerly Google) Out of these 9 stocks, we believe IBM and Intel are the cheapest. The others are fairly priced such as Apple (AAPL), Microsoft (MSFT), Meta (META) and Alphabet (GOOG), and some are overvalued such as Nvidia (NVDA), Tesla (TSLA), and AMD (AMD). So we added a few more shares to our existing holdings of IBM (IBM) and included Intel (INTC) to our portfolio. This rally has been driven by a number of factors including: The growing adoption of AI by businesses across a wide range of industries. The increasing investment in AI research and development. The rising public awareness of the potential benefits of AI. Overall, the AI rally is a sign of the growing importance of AI in the global econom...

Nvidia (NVDA) is too Expensive. Insiders are Selling Shares. We are not Buyers of this Stock.

Nvidia (NVDA) is leading the rally in Artificial Intelligence (AI). However, NVDA is one of the most expensive stocks on Earth. It is currently trading at a P/E ratio of 200 and a Forward P/E ratio of 50. It is extremely expensive. We generally like stocks with a P/E ratio of less than 18. Thus, we are not buyers of this stock. Nvidia makes computer chips that are used in gaming, artificial intelligence, and other applications. The company has been growing very quickly in recent years, and its stock price has gone up a lot. However, the stock is now trading at a very high price-to-earnings (P/E) ratio, which means that it is too expensive. A P/E ratio is a measure of how much investors are willing to pay for a company's stock relative to its earnings. A high price-to-earnings ratio means that investors are expecting the company to grow very quickly in the future. However, if the company does not grow as quickly as expected, the stock price could fall. In the case of Nvidia, the...