For More Information on How to Subscribe Visit: ai.22vresearch.com Contact Mwhaling@22vresearch.com In this week's video, I address the biggest question I'm hearing from RIAs and institutions post-situational awareness: how do you hedge AI going forward? The backdrop makes the question urgent , the rally has continued into all-time highs, with the 4-day surge in the Qs approaching 10%, a move seen only at famous bottoms (COVID, Liberation Day) since the financial crisis ended. The three-month pennant broke out with a rally larger than the entire range, the IWM, NYSE Composite, and equal-weight S&P all made new all-time highs, and factor volatility has collapsed indicating funds are hedged and gross is down. That is not something to fade. The core argument: AI is compressing economic time, and market structure is never going back. Ubiquitous AI access means more momentum, more crowding, and more bubbles, parabolas, and speed crashes. Index puts won't work when factor vol structurally breaks away from index vol, the new hedging framework combines the rate of change on my 100-name thematic portfolio with breadth deterioration inside it. Gavin Baker's must-listen interview confirms the demand side: not a single metric decelerating, Nvidia at its lowest forward PE in ten years, and an acute compute shortage with only ~250–500K people using agentic AI today. Meanwhile, the US intervened to support the yen, the first coordinated move since 1998, gold posted its third-biggest week in 16 years, and the weakest aggregate payrolls since 2012 (ex-COVID) confirm AI's impact on labor. Two printing presses are running at once, and it all leads back to Bitcoin. Timestamps • (00:00–02:18) Setup: Rally continues into all-time highs, volatility falls sharply, and the #1 question from RIAs and institutions — how to hedge AI going forward. • (02:18–05:47) Follow-through confirmed: The 4-day Qs rally near 10% matches famous bottoms since the GFC; the three-month pennant breakout exceeded the entire range; S&P +3.6% on the week, thematic portfolio +6.5%; new all-time highs in IWM, NYSE Composite, and equal-weight S&P. • (05:47–09:02) Volatility mean reversion: Factor vol, tech momentum vol, and single-name vol all collapse — funds are hedged; VIX at its lowest since January; no credit stress in CDX despite hyperscaler CDS chatter. • (09:02–12:24) Earnings engine: ~50% earnings growth, 15% revenue growth, margins expanding from 13% to 17%, PMI approaching 60, durable goods confirming, the AI capex certainty is driving everything. • (12:24–15:07) Structural regime change: AI compresses economic time; digital employees are coming fast; terminal value gets harder to estimate; ubiquitous AI creates crowding, bubbles, parabolas, and speed crashes. The speed crash has occurred, the bottom is in on a probability basis. • (15:07–20:51) The new hedging toolkit: Factor vol is structurally higher and index puts are broken; the framework combines a 50-day rate of change threshold on the 100-name thematic index with breadth breakdown the same signals that flagged the top before the Micron sale and rotation into silver, Bitcoin, and Lilly. • (20:51–23:18) Agents and tools: The earnings mosaic prompt for subscribers, plus a real-world example, my son spinning out sub-agents from his AI chief of staff at his internship. If you're not using agents, you're falling behind. • (23:18–28:58) Gavin Baker (must listen): No negative demand metric anywhere; Nvidia at its lowest forward PE in 10 years; B200 rental prices nearly doubling from ~$2 to ~$4/GPU-hour in seven months; acute compute shortage with only 250–500K agentic AI users out of 8 billion people. There will never be enough compute. • (28:58–34:44) Hyperscalers, memory, and disruption: The capex math, negative free cash flow for years means eventual utility-style multiples; Google's talent frustration (Jeff Dean) signals the bureaucracy problem; Palantir's 149% commercial revenue growth shows adoption; new business formations go parabolic; and per Elon Musk, memory is the limiting factor supply +20%/year vs. demand +200%. • (34:44–44:48) The debasement trade: 30-year yields at highs globally; the US props up the yen in the first coordinated intervention since 1998; nothing stops this fiscal train; gold's third-biggest week in 16 years (+7.2%) breaking above the 50-day, with silver and platinum following. • (44:48–50:18) Labor weakness and Bitcoin: Weakest six-month aggregate payrolls since 2012 ex-COVID, no job creation outside healthcare, wages back at 2019 levels; Bitcoin holds firm despite Clarity Act odds collapsing, Saylor selling, and a cold storage exploit resilience ahead of the agentic kick-in.