The End of American Exceptionalism? - Part II
How Did It Come To This? A Meme Summary
Year to date, the Nasdaq is down -6%, the DAX is up +16% and the HSI is up +20%. Talk about an Uno Reverse Card!
Meanwhile, Bessent spelled it out that “there is no Trump Put”, Germany went full Fiscal, China’s Deepseek killed the AI Hype and not even Citadel is making money this year (Peak Pod™️)!
The “End of American Exceptionalism” is shaking things up and claiming many victims along the way!
Some may argue that Nature is Healing, that this was bound to happen anyway, but there were key Catalysts that accelerated this process, that Shrubscribers were aware of early on:
The Deflation of the AI Hype (“Nvidia must Die!”)
Trump’s Policies (“Bessent-as-a-Meme”)
Germany’s Fiscal Plan (“What If there is Ceasefire in Ukraine?” - Part I & II)
China’s Tech Revival (“Masaponzi Meme Top”)
Peak Positioning in US Assets and Peak Pod™️(“PTSD” and “BAG7” )
…all leading up to the Mother of All Uno Reverse Cards (“The End of American Exceptionalism?”).
Lets do a recap of these important Milestones:
1. The Deflation of the AI Hype
We called the “Meme Top in AI” when Masaponzi Son pledged $500bn for Stargate while at the same time Deepseek launched for a fraction of the cost, and ended up grinding the Mag7 into the BAG7 (The “Masaponzi Meme Top”).
Since the Deepseek news, Nasdaq is down >10% and NVDA is down >20%.
Deepseek was a Seminal Moment for the Markets, far more important that Trump’s Tariffs, which can be reversed on a whim…The Deepseek Moment is IRREVERSIBLE!
Forget about the Javons Paradox nonsense. The Deepseek Moment was about exposing the Misallocation of Capital by the Bag7..
…while the BAG7 account for HALF the Market Cap of the Nasdaq and ONE THIRD of the S&P. Talk about Concentration Risk!
But before you lose hope, remember:
“Nvidia Must Die”, if we are to have a proper Rotation to other parts of the Market and other parts of the World...it’s for the greater Good!
