AI Summary
5 min readJim Iuorio, author of the Unfiltered Investor newsletter, joined Adam Taggart on Thoughtful Money to describe a market environment defined by two simultaneous, powerful forces: the relentless AI-driven stock rally and the troubling rise in 10-year Treasury yields. Iuorio argues that the coexistence of these two dynamics—a speculative mania in equities alongside a bond market signaling stress—creates a uniquely dangerous setup that demands a pragmatic, risk-managed approach rather than blind bullishness or outright capitulation.
The Double Threat: AI Mania and Rising Yields
Iuorio frames the current market through the lens of two concurrent trends. The first is the AI trade, which he describes as a "mania" and a "bubble" reminiscent of 2001 and 2008. He is quick to point out that identifying a bubble does not predict its peak; "you can identify a bubble as it's inflating and still be three years too early." The second, more disconcerting force is the relentless rise in 10-year yields. Iuorio lists four drivers: financing massive deficits and ongoing conflicts, lingering inflation concerns, foreign central banks attempting to move away from the dollar, and the AI buildout itself competing for investment capital.
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What you'll learn
- 1 (01:40) **Welcome & Guest Introduction** - Adam Taggart introduces Jim Iuorio for his first appearance on the show.
- 2 (02:25) **Jim's Two-Pillar View of the Market** - Jim identifies the two dominant forces driving the current environment: the relentless AI trade and the rise in 10-year yields.
- 3 (04:29) **The Pragmatic Trader's Dilemma** - Jim explains his strategy of staying in the market while actively managing risk, refusing to be greedy.
- 4 (04:50) **Four Drivers of Rising 10-Year Yields** - Jim breaks down the reasons for the persistent rise in long-term interest rates.
- 5 (05:57) **The Double-Threat: AI Mania + Rising Yields** - Adam asks how much more uncomfortable Jim is with both forces acting simultaneously.
- 6 (08:24) **The Risk of an Inexperienced Investor Base** - The conversation turns to the large number of investors who have never experienced a major downturn.
- 7 (10:51) **Anatomy of a Risk-Managed Trade** - Jim walks through a specific trade on the SMH (Chips ETF) to illustrate his cautious approach.
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Guests on this episode
Show Notes
LOCK IN YOUR TICKET FOR THOUGHTFUL MONEY'S FALL ONLINE CONFERENCE (OCT 17TH) at https://www.thoughtfulmoney.com/conferencevClear signs that AI stocks are in a major bubble, along with swiftly-rising bond yields, present a double-threat to investors right now warns Jim Iuorio.It's not (yet) time to exit the market, in his opinion.But it is time to boost downside risk management.To learn how Jim is positioning right now for these conditions, watch this video.#aibubble #interestrates #marketcorrection _____________________________________________ Thoughtful Money LLC is a Registered Investment Advisor Promoter.We produce educational content geared for the individual investor. It’s important to note that this content is NOT investment advice, individual or otherwise, nor should be construed as such.We recommend that most investors, especially if inexperienced, should consider benefiting from the direction and guidance of a qualified financial advisor registered with the U.S. Securities and Exchange Commission (SEC) or state securities regulators who can develop & implement a personalized financial plan based on a customer’s unique goals, needs & risk tolerance.All the details on Thoughtful Money's relationship with the financial advisors it endorses, many of whom regularly appear on this program, can be found in the following documents. We highly recommend you review these documents as they cover the terms that will apply should you choose to work with one of these firms at any time after watching this video.Thoughtful Money Disclosure Document: https://thoughtfulmoney.com/disclosureThoughtful Money Agreement: https://thoughtfulmoney.com/agreementIMPORTANT NOTE: There are risks associated with investing in securities.Investing in stocks, bonds, exchange traded funds, mutual funds, money market funds, and other types of securities involve risk of loss. Loss of principal is possible. Some high risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including a greater volatility and political, economic and currency risks and differences in accounting methods.A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.Thoughtful Money and the Thoughtful Money logo are trademarks of Thoughtful Money LLC.Copyright © 2026 Thoughtful Money LLC. All rights reserved.
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