AI Hedge Fund Blows Up & Japanese Yen Intervention – Monthly Market Update Podcast – August 2026

So I think I might see some new faces here.

So for those of you that haven't been here before, what's on the screen is a heat map.

This is my favorite way to watch the markets.

A lot of people will maybe log into Yahoo Finance or Google Finance or whichever way that you're checking what the stock markets are doing and you look at indices.

and you'll see what the S&P 500 does.

And it's 500 companies and it's consolidated down to one number.

However, when you look at a heat map, you can see really what the market's doing.

So the heat map is sectioned into the 11 industries where you've got technologies, financials, consumer signals, and so on.

And then within each of the industries, you have sub-industries showing like software, semiconductors, aerospace, oil, and so on.

So it's organized by the type of company and the larger the box, the larger the company by market cap.

So the value of the company, the redder the box, the worse the company had for performance that over the period of time for this is the month of July.

The greener the box, the better the performance.

So for those of you that are also on podcasts, you can always go to YouTube, to our YouTube channel, and watch the replay if you want to see our pretty graphs.

But I'll try to explain it as best I can for those that are listening.

So you can see, definitely on the heat map, some bright red spots.

You see some of these semiconductors companies, bright red.

SpaceX doing its own thing, bright red.

Tesla being tied very heavily to SpaceX.

Some drug manufacturers falling.

You see some utilities and such.

All of these I would consider, so utilities, the semiconductors, the semiconductor equipment manufacturers and such, I would consider them all part of the AI trade.

So July was a little bit of sell off from the AI trade.

And there's some interesting news stories later on in the presentation that we'll get into.

What happens when a hedge fund goes too all in on AI and some bad things that can happen.

I'll quickly go through some indices on the side here.