Why This Short Seller Doesn’t Want to Short the AI Bubble | Russell Clark

This episode is brought to you by Sarmaya Partners. Learn more about Sarmaya’s LENS ETF, their full data and comparison, including performance here: https://sarmayaetf.com/

Russell Clark, founder of Brumby, joins Other People’s Money to unpack the market fallout from the recent US midterm elections. They explore the systemic shift toward pro-labor policies and wage-driven inflation, which Clark believes will persistently drive bond yields into the pain zone. The conversation also tackles the massive AI data center build-out, with Clark breaking down exactly why betting against this exponential trend remains an incredibly dangerous game for short sellers. Finally, they discuss the shrinking pool of global capital, what it means for private equity and US homebuilders, and why he believes Japan is quietly emerging as the most attractive market for investors.

Read Russell’s Substack: https://www.russell-clark.com/

Follow Russell on X: https://x.com/rampagingruss

Follow Max on X: https://x.com/maxwiethe

Follow Other People’s Money on:

Apple Podcast https://bit.ly/4e7QJ1M

Spotify https://bit.ly/3Yhaazi

YouTube https://bit.ly/3C63VXR

X https://x.com/opmpod

Important Information

The Fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. This and other important information are contained in the prospectus, which may be obtained by following the links Prospectus and Summary Prospectus or by calling +1.215.330.4476. Please read the prospectus carefully before investing.

There is no assurance that the fund will achieve its investment objective. The Fund may not be suitable for all investors. Investors should continue to review their investment objectives and risk tolerance periodically.

An investment in the Fund involves risk, including possible loss of principal. Exchange traded funds (ETFs) trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETF’s net asset value (NAV), and are not individually redeemable directly with the ETF. Brokerage commissions and ETF expenses will reduce returns.

ETFs are subject to specific risks, depending on the nature of the underlying strategy of the Fund, which should be considered carefully when making investment decisions. For a complete description of the Fund’s principal investment risks, please refer to the prospectus at https://sarmayaetf.com

Metals and Mining Companies Risk. Metals and mining companies can be significantly affected by events relating to international political and economic developments, energy conservation, the success of exploration projects, commodity prices, tax and other government regulations. Investments in metals and mining companies may be speculative and may be subject to greater price volatility than investments in other types of companies.

Management Risk. The Fund is actively managed and may not meet its investment objective based on the Adviser’s, Sub-Adviser’s, or portfolio manager’s success or failure to implement investment strategies for the Fund.

Shares of the Fund Are Not FDIC Insured, May Lose Value, and Have No Bank Guarantee.

The Fund is distributed by PINE Distributors LLC. The Fund’s investment adviser is Empowered Funds, LLC, which is doing business as ETF Architect. Sarmaya Partners LLC serves as the Sub-Advisor to the Fund. PINE Distributors LLC is not affiliated with ETF Architect or Sarmaya Partners LLC.

Timestamps:

00:00 Intro

01:06 Midterms Blue Wave

03:00 Bond Market Fallout

05:17 Data Center Politics

09:08 AI Short Thesis

13:10 Equity Funding Still Flows

17:17 Sarmaya Partners LENS

18:44 Capital Scarcity Rising Yields

23:19 Short Ideas

26:38 Homebuilders

30:23 Fed Hikes And Sticky Inflation

33:11 Buybacks vs. Capex

42:14 Why Japan Looks Different

47:11 Which Trump Policies Persist

50:00 Iran War Politics and Risks

55:29 Conclusion