Oil Shock Meets AI Bubble - Jim Welsh

Kerry Lutz and Jim Welsh discuss how sustained high oil prices could impact the global economy, noting that the duration of elevated prices matters far more than short-term spikes. They examine recent market reactions to oil moves, regional supply risks such as Qatar’s natural gas force majeure, and why stronger U.S. production today may provide more economic insulation than during the 2008 energy shock. The conversation also places current energy prices in historical context, explaining why a true 1970s-style crisis would require dramatically higher oil prices.They then turn to precious metals, where Jim outlines gold’s recent parabolic rally and sharp correction. While the pullback may continue in the short term, he believes it could ultimately set the stage for the next leg higher in the longer-term bull market.The discussion closes with a look at AI and market structure risks. Massive hyperscale spending on artificial intelligence is expected to boost GDP this year, but it may also distort market psychology and push equity valuations higher than fundamentals justify. At the same time, that spending could reduce corporate buybacks as companies redirect cash flow toward AI infrastructure. With technical cracks appearing in the S&P, the group notes that downside risks for equities may be building.Find Jim here: https://www.macrotides.com/Find Kerry here :https://khlfsn.substack.com and here: https://inflation.cafe   Kerry's New Book “The Armstrong Economic Code: The 5 Truths Investors Must Never Forget” is out now on Amazon!Get your copy here:  https://a.co/d/bvYbZOz“The World According to Martin Armstrong – Conversations with the Master Forecaster” is a #1 Best Seller on Amazon. .Get your copy here: https://amzn.to/4kuC5p5  This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit khlfsn.substack.com/subscribe