On the surface, markets still look remarkably durable. Underneath, Will Brown and Adam Eagleston see a much more complicated picture. In Episode 107 of Tea & Crumpets, they start with the forces keeping interest rates elevated, including persistent inflation, heavy government borrowing, rising oil and diesel costs, and a global bond market that is showing increasing signs of strain. From there, the conversation turns to what may be hiding beneath strong index-level performance. Will and Adam dig into narrow market leadership, weakness across financials, widening high-yield spreads, and the possibility that credit markets could provide the first real warning if conditions begin to deteriorate. They also examine how higher Treasury yields are changing the relative appeal of corporate debt and putting more pressure on companies that have borrowed aggressively. AI remains a major part of the story, but the discussion shifts from the technology itself to the economics behind it. The hosts look at massive hyperscaler spending, increasingly creative financing, steep private-company valuations, data-center bottlenecks, rising electricity demand, and the difference between a transformative technology and a consistently profitable business. The market may still have momentum, but this episode is a reminder that resilience at the top of the index does not mean risk has disappeared underneath it. In this episode: Why inflation, fiscal deficits, oil prices, and global bond selling continue to matter for interest rates How geopolitical conflict is filtering through diesel, transportation costs, consumer prices, and the bond market Why record or near-record index levels can mask much weaker market breadth beneath the surface What widening credit spreads and stress in private credit could be signaling about the next phase of the market How AI spending, debt financing, leasing structures, and extreme valuations are changing the economics of the technology boom Why grid capacity, permitting, electricity costs, earnings growth, and the 2026 midterms could all influence where markets go next Learn more about Formidable Asset Management, Will Brown, and Adam Eagleston by visiting www.formidableam.com.
