It's hard to say Friday was a relief rally, but it felt like one. Communication Services (XLC) and Consumer Discretionary (XLY) led the way, but some individual companies took a hard hit. The other growth sector that followed was Technology (XLK).

Heat Map

It was a tough week, but it ended with a bounce despite the Consumer Price Index (CPI) number triggering a spike in rate-hike expectations.  There seems to be a shift in those who think a rate hike could be one and done (dovish) rather than the start of a series of hikes. That said, a few firms have added two hikes for the remainder of the year. I don’t think a rate hike makes insurance cheaper, gives a manufacturer pricing power, or will trigger a mad dash for ice cream in Erie, Pennsylvania.

AI Doomsday Madness

The artificial intelligence (AI) doom campaign is shifting into overdrive, as Frontier AI players make their move to have Congress create a competitive moat that not only ensures their profits but also keeps them in control, as the key part of their cult believes they have the solutions and should marshal the future. 

It's anti-American and transparent. I only hope we don’t let this lead slip to China because they are the real terminator waiting for America to fumble the lead.

Today’s Session: Setting the Record Straight

The AI race between global powers began long ago, but like unfair trade practices that hollowed out our manufacturing base, we have been sleepwalking.

Putin called it in 2017.

China announced its intentions to win it the same year.

Recent developments are said to have sparked a sense of urgency.

Hugging Face Attack

Recursive self-improvement and the development of Astra.

An Anthropic founder released an essay over the weekend and laid out three courses of action.

1. Embedded Evaluators. Each frontier AI company commits to giving ongoing, employee-like access to a team of embedded third-party evaluators (such as METR), whose role is to verify adherence to safety practices and commitments, report incidents, and help assess the alignment of not just completed AI models but training pipelines and processes.

The third-party Dario mentioned has deep roots in the so-called altruistic community and Anthropic itself - not independent.

2. Democratic Coordination. Frontier AI companies within democratic countries coordinate to establish common safety standards as well as limits on the rate of unchecked AI progress.

The recycled climate change and ESG crowd is in the mix – a huge red flag. This is a one-world government crowd and they do not have America’s interest at heart.

3. Global Coordination. The US and other democratic governments attempt to coordinate with authoritarian governments, to the extent this is possible, while taking seriously the challenges of verifying compliance.

China isn't even going to act like it is ready to collaborate.

Pushback

Lina Khan headed the FTC under Joe Biden and says laws are already in place.

Slow Down?

David Sacks made the obvious observation – nobody is stopping Anthropic and OpenAI from slowing down.

Competitive Moat

Open Source AI is making huge strides.  And there are stark differences.

Meta is opening up even more, riding the wave of “Muse,” and another improved open-source AI project called Watermelon is still in the pipeline.

Interestingly, the co-founder of Hugging Face has chimed in and says – open source won’t pace.

Anthropic and OpenAI Won’t Pace

Anthropic has announced compute capacity commitments of 11.55 GW with a number of companies, up from just 1-2 GW now.

These deals add up to $517 billion – management had guided for only $180 billion.

OpenAI has at least a trillion dollars in compute deals in the pipeline as well.

This plan isn't for the masses, but for the elites.  A handful of people who see themselves above the rest. If they really cared and were so afraid they could pull the plug, nobody is stopping them.

Their demands are so far-fetched that it could never happen.

Imagine putting the UN in charge of America’s military and nuclear arsenal.

This dovetails with all the data center hysterics which have forced some Republicans to adjust their message. This is beyond economic suicide.

Putin told the world almost a decade ago about the need to win the AI race.

I believe we will win because the White House will push back.

Stocks are oversold and looking lower, but this is the time to prepare to pounce – a ton of these names will be significantly higher in a few months, with windfalls over the next couple of years.

Comments

Sounds like the Democrats are looking for their AI “Fauci” mouthpiece to keep power and control of our freedom and our prosperity William Albea on 9/14/2026 10:31:12 AM

It is so wonderful that you always add the voice of calm, experience, and wisdom to the conversation. C. Raymond Weldon on 9/14/2026 10:59:34 AM

Remember panikins fear sells All those news channels have to fill their time with something In the end good always triumphs over evil Make sure you vote right in next election Mark Schneeberger on 9/14/2026 4:23:33 PM

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