CDS MARKET FLASHING WARNING SIGNS:
CDS spreads continue to surge for AI companies. Oracle, CoreWeave 10Y CDS spreads are up over 30% in the past month alone, with other major players also up double digits.
We are seeing a ton of heavy, upfront “capex” spending by these companies. Not only that, but these hyperscalers are tapping the credit market for this capital at a scale we haven’t truly seen before. The ultimate return on these investments is becoming more uncertain, hence investors are bidding up protection against the credit.
🇺🇸 CDS MARKET FLASHING WARNING SIGNS:
CDS spreads continue to surge for AI companies. Oracle, CoreWeave 10Y CDS spreads are up over 30% in the past month alone, with other major players also up double digits.
We are seeing a ton of heavy, upfront "capex" spending by these… pic.twitter.com/vOaWfKpQsD
— Coffee Capital (@Coffee__Capital) November 13, 2025
Imagine if Oracle went poof ala Enron style? https://t.co/jVJC5Bh3ko
— QE Infinity (@StealthQE4) November 14, 2025
CNBC just laid it out clearly:
🇺🇸 US tech giants are expected to spend $700B on AI infrastructure by 2027.
🇨🇳 Chinese cloud firms? Less than $80B combined.
And yet, Chinese models like Kimi, Tongyi Qianwen, and Qwen are already neck-and-neck with top US models on standard benchmarks.
US model: borrow heavily, build big, scale fast.
China’s model: focus on efficiency, optimize infrastructure, iterate lean.
This isn’t a spending race, it’s a strategy duel.
And the smarter player may not be the one who spends the most.
CNBC just laid it out clearly:
🇺🇸 US tech giants are expected to spend $700B on AI infrastructure by 2027.
🇨🇳 Chinese cloud firms? Less than $80B combined.And yet, Chinese models like Kimi, Tongyi Qianwen, and Qwen are already neck-and-neck with top US models on standard… pic.twitter.com/8WBzSG0Dp5
— 𝘊𝘰𝘳𝘳𝘪𝘯𝘦 (@OopsGuess) November 14, 2025
WHY YOU’RE GOING TO LOSE MONEY ON STOCKS THIS DECADE!
Legendary investor Howard Marks puts it bluntly:
“When you buy the S&P 500 at a 23x P/E, your 10-yr annualized return has always fallen between +2% and –2%, IN EVERY CASE, EVERY CASE.”
Today the market sits at a 25x P/E.… pic.twitter.com/N3AoGS7Hj2
— Common Sense Investor (CSI) (@commonsenseplay) November 14, 2025