Capital Misallocation

The Jim Morrison of Finance: Traffic in Macro / Markets / AI / Memes / Music / Philosophy / Co-Host of Benny & The Squirrel / Building

[Capital Misallocation @BenBrey]

GOLD - the only true money that has no liability side or need for miners. It is time tested & is what humans go back to in times of stress.

"Gold is money, everything else is credit"
- JP Morgan

A Gold Tweet Compilation In Anticipation of the Return of the King🧵

[Capital Misallocation @BenBrey]

NVIDIA sliced the 200-day and the China headline hit the same weekend. The market still hasn’t decided which one actually matters

Benny & The Squirrel Ep. 102 “What's Next?” Is live - enjoy the Unmissable Show!
@SquirrelMacro

https://t.co/IeXYgg9YJn

[Capital Misallocation @BenBrey]

@HochstatMichael https://t.co/aPKNKskvir

[Capital Misallocation @BenBrey]

@sidprabhu Hahahahahah

[Capital Misallocation @BenBrey]

You can’t fund consumption with a contingent gain. Your brokerage statement pretends you can. In Ep. 101 of Benny & The Squirrel, Daniel Peris explains why total return became the wrong yardstick once the market stopped paying a coupon.

“The Ownership Dividend” is live - enjoy!!!
@SquirrelMacro

https://t.co/JDSjNHIsLN

[Capital Misallocation @BenBrey]

Think that all those SK Hynix vests are going to be golden memorabilia just like https://t.co/lWvajBOPAI swag was back in the day.

[Capital Misallocation @BenBrey]

The game is over

[Clash Report @clashreport]

Rep. Ted Lieu on AI:

The Trump administration and House Republicans made a conscious decision to let the AI industry run wild.

That was a bad decision politically and on policy.

Next term, we will hold public hearings on AI and pass legislation with reasonable guardrails.

[Capital Misallocation @BenBrey]

The 🐐Steve Jobs actually told everyone what they need to know - “The story teller rules the world”.

It can’t be surprising that the guy who owns this platform and is the richest guy in the world is the best carrot 🥕 seller in the world.

Stories are long duration & carry a lot of risk. Remember that the story teller will be Adam Neuman til the last cent of creditably is used to keep the game going.

[Bill Gurley @bgurley]

AI hyperbole has consequences. "AI will take 50% of jobs" & "AI will cure cancer" are both overstatements. The positive overstatement promotes investor excitement, & the negative fear in citizens.

Combination is dangerous concoction driving a simultaneous bubble & revolution.

[David Dredge @ConvexityDredge]

A most enjoyable chat with @profplum99 at the Simplify @SimplifyAsstMgt Entering the Fall Conference at the NYSE a couple weeks back. Big thanks for the invite.
https://t.co/HCmGI4mTmq

[Capital Misallocation @BenBrey]

I guess it’s instructional to bring back Essay #1 today to remind people what happened to John Law after he lost his influence on the sovereign.

https://t.co/BzH8rsNemr

[Gary Marcus @GaryMarcus]

this is evil

[Capital Misallocation @BenBrey]

SHORT AT WILL

[Global Markets Investor @GlobalMktObserv]

Anthropic's finances are deteriorating ahead of its IPO:

Anthropic reported +$16.96 billion in Q3 2026 revenue, up +47% QoQ.

However, quarterly revenue growth slowed sharply from +144% in Q2, as price reductions and contractual discounts offset revenue by ~$600 million.

Meanwhile, Anthropic's operating profitability lasted just ONE quarter as the company swung back to a GAAP operating loss of -$567 million in Q3, following operating income of +$974 million in Q2.

This comes as compute and infrastructure expenses surged +77% QoQ to $9.9 billion, accounting for 58% of revenue, up from 48% in Q2.

In effect, every $1 spent on computing infrastructure generated just $1.72 in revenue, down from $2.08 in Q2, marking the first quarterly deterioration in this key efficiency metric.

Overall, Anthropic's net loss reached -$23.3 billion in Q3, bringing its cumulative net loss for the first 9 months of 2026 to a staggering -$104 billion.

While most of the quarterly net loss came from non-cash valuation adjustments, the underlying operating business also slipped back into the red.

Excluding the $21.9 billion in non-cash valuation adjustments, Anthropic's Q3 net loss was -$1.4 billion.

Anthropic's trillion-dollar AI ambitions are increasingly colliding with the financial reality of an infrastructure race where computing costs are rising faster than revenue.

[Capital Misallocation @BenBrey]

https://t.co/fkEntm4zwE

This is the accompanying website.

[Capital Misallocation @BenBrey]

Sorry - it was a crazy October.

BUT - The Causal Barbell Pt. 1 - The Multiplicative Indictment is now live.

Forewarning, sorry to all my buddies who run long/short funds.

Xx
Benny

https://t.co/8NZcfzMSTh

[Brandon Carl @brandonjcarl]

This is one of the gnarliest charts I’ve seen for a mega cap company.

[Rudy Havenstein, Senior Markets Commentator. @RudyHavenstein]

“Fundamental valuation is something that you can get fired for in most pod shops these days.”

Rupert Mitchell

[Capital Misallocation @BenBrey]

This Unmissable Sunday Show of Benny & The Squirrel was EPISODE 100 - thanks to all of you for your support over the last year.

“Make or Break Markets into MidTerms” is live - Enjoy!!
@SquirrelMacro

https://t.co/0DGS3HM20w

[David Dredge @ConvexityDredge]

Thought provoking discussion.

[Capital Misallocation @BenBrey]

This was a really fun panel and @HariPKrishnan2 & @profplum99 both were excellent as always.

[Hari P. Krishnan @HariPKrishnan2]

I recently appeared on a provocatively titled "The Economics of Intelligence" panel with the legendary @BenBrey and @profplum99 at the recent Simplify Entering the Fall conference in New York. Many thanks to Patrick Hennessy and @SimplifyAsstMgt 👍

https://t.co/ze0iaq4tGQ

[BlindSquirrelMacro @SquirrelMacro]

Honestly think that this is one of the best conversations that @BenBrey and I have had (with @brandonjcarl). A VERY rare combination of deep domain expertise of macro and AI 👇 watch it!!