Thoughtful Money with Adam Taggart · Tuesday, July 14, 2026
Fred Hickey identifies an "earnings bubble" in the market, stating that current reported earnings and revenues may not reflect the full cost of massive investments. He highlights the significant spending on data centers as a potential cause, suggesting a large gap between reported financial figures and actual expenditures.
“And I think it means that we have massive over supply of over capacity, massive malinvestment here, of data centers that are being built.”
“And when I, when I say an earnings bubble, Um, right now the, the price to sales ratio, the ratio is of the market ratio, a major market ratios are show that this market is, uh, far greater in valuation than it was even in 2000.”
“So what's happening is is that uh, when companies are reporting, you know, these massive earnings increases, we've seen Microns, Microns, which is a cyclical company, a cycle you say you come, they have 85% gross margins.”