summary 1. llms are warping our cognition and markets: llms (especially at temperature 0) create predictable outputs due to mode collapse. these outputs shape narratives online, especially about companies or assets, leading to skewed market behavior. the result is flow-driven bubbles around “gambling stocks” and meme assets, fueled by these ai-generated narratives. 2. ai accelerates distraction while gdp decelerates: the rise of generative ai is shifting energy away from real productivity into attention economies and speculative behavior. gdp growth slows, debt becomes more unsustainable, and bearer assets (like btc, gold) outperform because fiat debt systems rely on growth. 3. mispriced narratives = alpha: betting against the idea that “ai = productivity” presents significant alpha. strategy: long distraction economy, short real economy. 4. predictable societal distortion → investment opportunity: ai-induced distortions create “punch holes” in society, areas of exaggerated focus or neglect. if you can anticipate where these holes will form, you can build investable assets around them. 5. the key is discipline: there’s enormous money to be made, but most will fail due to lack of self-control. avoid frying your own brain in the noise. stay focused. use your profits to do meaningful, interesting things.