11.4.25: Musk’s Shocking Final Move | Bonds & Fixed Income

The market hoo-ha in current weeks has been fairly deafening.

“There will be blood!” is the best manner of describing it.

It was a hell of a hammering yesterday. We had been down over 6% within the first hour. I haven’t seen a day like that for a long time.

I assume you would say issues improved barely from there. We ended up down 4%. We’re up at present.

Where to from right here?

Markets hate uncertainty. The media loves a disaster.

Here at Fat Tail, we like have a few rules we like to stay to.

One of them is that this…

When virtually each investor within the world is wanting in a single place…the best alternative within the world lies in ANOTHER place.

Which brings me to a new particular project we’re going to be specializing in within the speedy future.

It’s one I’ve been engaged on alongside my mercurial mate James Altucher.

A multifaceted entrepreneur, bestselling creator, enterprise capitalist, and skilled in rising applied sciences like AI and cryptocurrency…James has based over 20 firms, printed 20 books, and revolutionized personal development by means of his influential works resembling Choose Yourself.

Amid the chaos, James is spied one thing
huge on the close to horizon…

We’re going to be unwrapping this for you within the coming days.

First, a bit of background…

Last spring, whereas buyers had been celebrating report highs within the S&P 500, James was quietly sharing the blueprint for what he reckoned may very well be the largest wealth-creation alternative of the last decade.

His prediction centred round Elon Musk.

And him turning X (formally Twitter) into an “everything app” that might change money endlessly.

Well, it’s taking place. Faster than even James predicted.

The obsession that’s been driving Musk for over 25 years is lastly taking bodily type.

Building the Future of Finance

Last yr James wrote that Musk’s imaginative and prescient wasn’t nearly social media. He defined how his obsession dated back to 1999 when he first launched X.com with constitution #9840.

His authentic imaginative and prescient? To create a one-stop platform on your total financial life.

While most analysts targeted on Tesla’s struggles or SpaceX launches, James was connecting dots others couldn’t see.

He predicted Musk would leverage each artificial intelligence and financial technology to revolutionize how we deal with money.

Fast ahead to at present, and these predictions are unfolding with gorgeous accuracy.

In January 2025, X formally entered the financial companies enviornment by means of a groundbreaking partnership with Visa.

This isn’t simply one other cost characteristic.

It’s the primary concrete step towards Musk’s imaginative and prescient of making conventional bank accounts out of date.

X Money will quickly enable customers to maneuver funds between bank accounts and their digital wallets.

They will be capable of make prompt peer-to-peer funds with out leaving the platform.

Just like James mentioned would occur.

But that is only the start.

Musk’s Shocking Final Move…

Is all the things Musk has been doing for 25 years…the great things that received him plaudits, modified the world and made him wealthy…and the not so great things that’s made him look a bit like a Bond villain not too long ago…been a grasp plan?

One that’s about to return to fruition very quickly?

That’s a query we’ve been engaged on behind the scenes for some time. And you’ll going to see what James Altucher has come up with very quickly. The reply will possible shock you…

In March, Musk orchestrated a good company manoeuvre that few noticed coming.

Musk’s artificial intelligence startup, xAI, acquired X in an all-stock deal valuing the social community at $33 billion.

The new mixed entity, XAI Holdings, is now valued at over $100 billion (excluding debt).

This merger cemented what James has been saying all alongside – Musk’s social media and AI ambitions had been all the time two sides of the identical coin.

The worth proposition is obvious and precisely as James predicted.

X offers xAI with knowledge from billions of consumer posts.

Meanwhile, xAI provides X the technological spine to remodel from a easy social platform into the all the things app Musk has envisioned since 1999.

So the place is that this all main?

And what’s the investment angle for you?

You’re going to be amazed at what we’re going to show you within the coming days.

I imply, TRULY gobsmacked.

I don’t know anybody anyplace who has gotten maintain of this story.

xAI buying X was NOT Musk’s remaining transfer.

Something WAY larger is doubtlessly within the works.

Stay with us within the coming days as we journey down the rabbit gap…

Best needs,

Callum Newman,
Editor, Small-Cap Systems and Australian Small-Cap Investigator

***

US 10-year bond yields have been falling sharply as stocks nosedived.

Investors gave the impression to be switching out of stocks and into bonds as risk urge for food waned.

Bond yields fall because the price of the bond rises. So the chart above isn’t like a regular chart.

It is exhibiting you the yield on the 10-year bond. When the candles are going down it means yields are falling and the price of the bond is rising.

Last night time noticed a unusual transfer that’s price sitting up and taking discover of.

After an historic fall over the previous few weeks, stocks appeared to stabilise, however bond costs fell sharply.

The US-10 yr bond yield went up 30bps (foundation factors) from 3.90% to 4.20% in a single trading session. That is a enormous transfer and fairly surprising.

If growth projections are actually plummeting with expectations the US Fed will need to drop charges at a more speedy tempo within the subsequent few months, why did 10-year bond yields soar a lot?

Is it an underlying worry of a spike in inflation due to the coming tariffs?

Or maybe expectations that as growth dives the federal government will need to situation far more bonds than anticipated as deficits rise?

What ever the explanation, it’s one thing to keep an eye on as we transfer ahead. If US 10-year bonds begin promoting off aggressively it should probably add to promoting strain in stocks sooner or later.

That can be the worst of all worlds. A stock market and bond market promoting off would imply there may be actually nowhere to cover.

This could also be a in the future blip as a outcome of enormous volatility throughout all markets resulting in compelled liquidations of positions to raise money to cowl margins.

But if the promoting continues in US bonds it should have many analysts scratching their heads.

Regards,

Murray Dawes,
Editor, Retirement Trader and Fat Tail Microcaps