Video News/In Focus with Jeremy Szafron

(Kitco News) - The real stress in the AI boom is showing up in debt markets before stocks, according to short seller Laks Ganapathi, founder of Unicus Research, whose new fund Michael Burry advises. “When you hear it in the news, it’s already too late,” Ganapathi told Kitco News anchor Jeremy Szafron, arguing that companies paper over problems with new debt and private credit long before the trouble reaches share prices. She said the bond market is “flashing red” on AI borrowers even as tech stocks rally, and that her team’s tour of Texas data centers found sites under construction but still waiting on grid power. Ganapathi also warned that private credit can end up on the books of insurers that back retirees’ annuities. When an insurer fails, she said, it goes into receivership rather than bankruptcy, which can leave policyholders waiting years for their money. She said physical gold is the asset she leans toward in the current environment, and that she avoids paper gold because she cannot see or hold it.