1. The AI Bubble Is Getting Louder
The headlines around AI stocks and the AI sector bubble are growing bolder and louder. There’s so much noise out there.
Even the Bank of England came out swinging yesterday, warning that there could be a sharp market correction if the AI bubble bursts.
I talked about this yesterday too — AI stocks have all the classic signs of a bubble. But predicting when a bubble pops? That’s a fool’s game.
What to do?
- Use a trailing stop and let your winners run until your stops are hit.
- Feeling FOMO? Fine — but only allocate a little.
- Going short? It could be the biggest payoff, but the risk of being early (and wrong) is massive if this frenzy keeps going.
2. Quiet Flight to Safety
There’s a flight to safety happening — and hardly anyone’s talking about it.
How so?
- The U.S. dollar is catching a bid.
- Utilities are rising.
- Staples are starting to bounce.
- Discretionary stocks are falling.
- Yields are sliding.
When investors sense the economy might be slowing down or markets are getting frothy, they naturally move into defensive assets.
This could be an early sign of caution creeping back in — but as always, time will tell.
3. Silver Hits All-Time Highs — What’s Next?
As I write this, silver spot is trading just below $51, with December contracts closing in on $50.
Target achieved.
Now, what’s next? Silver is at all-time highs after sleeping for years. It’s exploded in the past few months.
Historically, silver tends to surge near the end of a cycle — it doubles fast, and few notice until it’s already up big.
I don’t think this move is done yet. No one’s even talking about silver.
If it closes above $50, we could see wild moves that take it much higher.
4. Canada’s Jobs Data: The Random Number Generator
Tomorrow, we get Canadian job numbers.
Economists expect 2,800 jobs added in September, following a 65,000 job loss in the previous month.
But let’s be real — StatsCan often feels like a random number generator when it comes to employment data.
The broader picture? The Canadian economy continues to struggle.
This morning, the Bank of Canada’s Deputy Governor talked about the country’s poor productivity and how our banking system is overly concentrated. She’s not wrong.
5. Investing 101: Take the Win
Taking profits is never a bad idea. Why? Because your worst-case scenario is still a profit — even if prices go higher afterward.
A smarter approach? Scale out gradually.
- Own 1,000 shares? Sell 300 at your first target.
- Another 300 at your second.
- Hold the rest until the trade feels over. All the while, raise your stop-loss to lock in gains.
That way, you: book profits, stay in the game, and protect your capital.