Ed Elson

There are two reasons why the price of a product falls.

Either one, demand goes down, or two, supply goes up.

This is Econ 101.

It's the most fundamental principle of economics, and it's what makes Chinese electronics.

So cheap and American houses so expensive.

Well, here we have a similar situation about to play out in the stock market.

And that is that the supply of new stock isn't just about to rise or increase.

It is about to explode.

We are about to inject the equivalent of the entire stock market of Italy into the U.S.

equity markets.

What does it mean?

to dramatically increase the supply of a product.

Well, it means dramatically reducing the price of that product.

The U.S.

stock market is about to get hit with a force more powerful than gravity, and that is the force of supply and demand.

I talk more about this in the latest edition of my newsletter on Substack, but the thesis is quite simple.

Supply is about to go way up, which means this is likely the top.

Look out below.

Okay, that's it for today.

This episode was produced by Claire Miller and Alison Weiss and engineered by Benjamin Spencer.