Why This Short Seller Doesn’t Want to Short the AI Bubble | Russell Clark

This episode is brought to you by Sarmaya Partners. Learn more about Sarmaya’s LENS ETF, their full data and comparison, including performance here: sarmayaetf.com

Russell Clark, founder of Brumby, joins Other People’s Money to unpack the market fallout from the recent US midterm elections. They explore the systemic shift toward pro-labor policies and wage-driven inflation, which Clark believes will persistently drive bond yields into the pain zone. The conversation also tackles the massive AI data center build-out, with Clark breaking down exactly why betting against this exponential trend remains an incredibly dangerous game for short sellers. Finally, they discuss the shrinking pool of global capital, what it means for private equity and US homebuilders, and why he believes Japan is quietly emerging as the most attractive market for investors.

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Timestamps:

00:00 Intro

01:06 Midterms Blue Wave

03:00 Bond Market Fallout

05:17 Data Center Politics

09:08 AI Short Thesis

13:10 Equity Funding Still Flows

17:17 Sarmaya Partners LENS

18:44 Capital Scarcity Rising Yields

23:19 Short Ideas

26:38 Homebuilders

30:23 Fed Hikes And Sticky Inflation

33:11 Buybacks vs. Capex

42:14 Why Japan Looks Different

47:11 Which Trump Policies Persist

50:00 Iran War Politics and Risks

55:29 Conclusion