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Below are some of the most interesting things I came across this week.

INTERVIEW

In a fascinating and wide-ranging interview, Russell Napier tells The Market,

“In order to do well in the big structural change that I see coming, you have to be radical in your portfolio. No bonds, no S&P 500.”

QUOTE

In its latest cover piece, Barron’s takes an entirely different approach telling readers, “Investors should embrace the expanding bubble.”

CHART

Clearly, they have already done so. As Bloomberg points out, “Assets in leveraged long ETFs exceed inverse products by a record.”

STAT

Much of this enthusiasm is focused on the Magnificent 7 which now trade at an average of 41 times earnings. Outside of Nvidia, however, “the rest of the group is expected to post a measly 3% increase in profits in 2025.”

CHART

Into this stampede of animal spirits, the Fed is expected to cut interest rates again next week. Meanwhile, inflation remains a very persistent and pernicious problem for the most vulnerable of society for whom prices are still rising at a rate of more than 6% this year.

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