Everybody Sold Their Hedges Right Before This

The most original explanation of this cycle yet. Kevin Muir of The MacroTourist argues this isn't a price bubble like the dot-com era, when multiples ran to absurd levels on companies making nothing. It's an earnings bubble. When a company borrows a hundred billion to build a data centre, the revenue and earnings register immediately while the expense gets amortised over seven years. The more you inflate the spending, the better the earnings look, which is why valuations seem reasonable. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 Kevin Muir returns on the perfect day 00:31 Why he won't take the credit 01:25 Why the news gets read bearishly now 03:55 The narrative shift in capex numbers 05:01 Price bubble versus earnings bubble 06:19 How the accounting actually works 07:31 Why the spending got pulled forward 09:51 An economy leaning on one thing 12:22 The Fed tightening into weakness 21:21 Why the downside distribution changed #tastylive #kevinmuir #macrotourist #earningsbubble #capex #datacenters #valuation #negativegamma #optionstrading #stockmarket tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.