Big Macro Shifts

Macro is shifting fast, and the game is changing right in front of us.

The Biggest Macro Shifts You Can’t Ignore

Markets are moving fast, and the game is changing right in front of us. The West is showing cracks, tech stocks are creating asymmetric opportunities, and money is shifting in ways most investors aren’t paying attention to. If you’re not thinking ahead, you’re already behind.

Chris joined Danny on the CapitalCosm show for a deep dive into today’s biggest macro shifts—and more importantly, the moves you should be making now.

Here’s what they covered:

🔹 The Hidden Asymmetry in Tech Stocks – No, Chris hasn’t lost his mind over the Magnificent 7. There’s a deeper opportunity few are seeing.

🔹 The West’s Decline is Accelerating – Wars, tariffs, and political chaos always mark the end of an empire’s cycle. We’re seeing it play out now.

🔹 The Death of the Dollar is a Lie – With Europe collapsing, capital is flooding into the U.S. What does that mean for your portfolio?

🔹 Trump’s Bitcoin Pivot – The same guy who once called crypto a scam is now embracing it. What changed—and what does it signal?

🔹 Zuckerberg’s “Pro-Free Speech” Shift – Is this a genuine change or a strategic move to keep power?

🔹 The North-South Power Shift – Trump’s push for Greenland, Canada, and Panama isn’t random. It’s part of a massive geopolitical realignment.

🔹 How to Build a Portfolio for What’s Coming – Chris breaks down the best ways to position yourself now.

Everything is shifting—fast. The question is, are you ready to take advantage of it?

You can listen to the entire podcast by clicking on the video image above.

Venture Capital’s Day of Reckoning: The Bubble Has Burst

For years, venture capitalists were the rockstars of finance—throwing billions at flashy startups, chasing the next unicorn, and fueling the illusion that endless growth was inevitable. But what happens when the free money spigot gets turned off? When the tide of cheap capital recedes, who's left swimming naked?

Some thoughts on a topic we don’t often discuss in these writings — venture capital and early stage/startup investing.

If you’re a long-time reader of our Insider Newsletter, you’ll be familiar with our stance on venture capital.

We often talked about how the entire VC industry is merely a derivative of the “growth” bubble, which itself has been caused by central bankers pressuring bond yields lower and lower (the zero or even negative rate phenomenon), forcing more and more capital further and further down the risk curve.

It’s no coincidence that — with rates in an uptrend — VC as an asset class is not as hot as it was a few years ago.

We were reminded of an old Insider Newsletter issue from back in 2023, where Chris wrote on this very topic and said…

The coming implosion (give it 12 months or less) as the venture capitalists books are going to begin to be forced to mark-to-market their positions is going to be epic.

I say they’re going to be forced to do this because most VC funded firms have 12 months of runway, and pray tell, who’s going to keep lending money to mostly (not all mind) cash incinerating Silicon Valley startups?

So start your stopwatches and let’s clock back in 12 months from now or so (probably less).

Well, the timer has run out.

It’s been over a year since that prediction, and the cracks in the VC model are now too big to ignore. A recent deep-dive thread on Twitter X lays it all out—the carnage, the winners, the losers, and most importantly, what happens next in the VC world.

Sometimes, the best opportunities are hiding in plain sight—ignored, undervalued, and waiting for the right moment to explode. A few weeks ago, we pointed out something most investors were missing about China’s AI game.

Now, just days later, a major breakthrough is shaking up the tech world. Did we predict it? Not exactly. But we did see the signs… and the market is finally catching on. So, what happens next?

China’s AI Play: The Sleeper Trade No One Saw Coming

You might remember how a few weeks ago, we discussed China and made a case for owning Chinese tech stocks.

Among other things, we noted there’s something that most investors don’t appreciate enough. The fact that China has an edge when it comes to AI — purely on the basis that yuuuge amounts of energy are required to power AI applications… and China’s electricity costs are a fraction of those in the US.

Here’s how we wrapped it up:

We don’t think it would take a lot for Chinese tech stocks to go much higher than where they are today. Certainly, stranger things have happened in the markets.

Then, just days later, DeepSeek turned the tech world upside down…

In short, over in China, a group of geeks came up with an AI that beats the pants off ChatGPT (and most other competitors)… for a fraction of the cost.

Did we know all this was coming? No. After all, we’re just a small team of hedgies sitting in their underpants.

But we did see that, purely from a valuation perspective, Chinese tech stocks were dirt cheap (sporting earnings multiples that would be more appropriate for stodgy, low growth industries) while delivering record earnings.

Then, suddenly, more and more folks started waking up to this reality, too.

After years of being left for dead, Chinese tech stocks caught a bid and are now beating the pants off their US counterparts so far this year.

Of course, we don’t want to be patting ourselves on the back too soon. What we want to highlight here is something that has served us very well in the markets, time and again — and it’s this…

When you do your homework and buy what’s cheap, the market gods tend to smile upon you.

🤣 WEEKLY HUMOUR

With the elites having recently concluded their annual pilgrimage to Davos, here’s something to ponder on as you sip your latte (with almond milk, we hope!) through a mushy paper straw… you know, to save the planet.

Have a great weekend!

Sincerely,
The Capitalist Exploits Team

😉 Invest in the same asymmetric opportunities we are: