Skip to Content

Posts by Dark Stone Capital

The Great Rotation Is Here — And Most Investors Will Miss It

The Great Rotation Is Here — And Most Investors Will Miss It

The Russell 2000 just posted 13 consecutive sessions of outperformance against the S&P 500.

That's not a typo. Thirteen straight days where small caps beat the mega-cap-dominated index. The last time that happened? June 2008.

But here's the critical difference: In 2008, that streak was fear-driven — a desperate scramble for defensive positioning before the global financial crisis intensified. In 2026, it's the opposite. This is a proactive pursuit of value.

If you're still sitting in the Magnificent Seven waiting for the next leg up, you're fighting the last war.

The Setup: A 25-Year Valuation Gap Finally Snaps

By

The Great Rotation Is Here — And Most Investors Will Miss It Read More

Bitcoin Didn't Crash — It Got Liquidated: How Japan's Bond Market Broke Crypto

Bitcoin Didn't Crash — It Got Liquidated: How Japan's Bond Market Broke Crypto

The "digital gold" narrative is dead. Here's what's really moving Bitcoin.

Bitcoin is down to $88,000. It's given up nearly all of its 2026 gains. And if you're looking at on-chain metrics, whale wallets, or ETF flows for answers, you're looking in the wrong place.

This wasn't a crypto crash. It was an execution.

The Real Story: A Six Sigma Event in Tokyo

On Tuesday, something broke in Japan's bond market. U.S. Treasury Secretary Scott Bessent, speaking at Davos, called it a "six standard deviation move" — the kind of thing that isn't supposed to happen in a functioning

Bitcoin Didn't Crash — It Got Liquidated: How Japan's Bond Market Broke Crypto Read More

What Investors Could Expect If SpaceX Merged Into Tesla

What Investors Could Expect If SpaceX Merged Into Tesla

As of today, Tesla trades at approximately $445 per share, boasting a market capitalization of around $1.48 trillion. SpaceX, still privately held, is valued at about $800 billion in recent secondary market transactions, with ambitions to hit a staggering $1.5 trillion valuation in a planned mid-to-late 2026 initial public offering (IPO). However, recent buzz—fueled by investor Chamath Palihapitiya's bold prediction on the All-In Podcast suggests an alternative path: SpaceX opting for a reverse merger into Tesla instead of going public independently. Palihapitiya argues this move would allow Musk to consolidate control over his "seminal assets" under one

What Investors Could Expect If SpaceX Merged Into Tesla Read More

Why Porter Collins is Wrong: Tesla Isn't Overvalued—It's Undervalued Based on Its Transformative Potential

Why Porter Collins is Wrong: Tesla Isn't Overvalued—It's Undervalued Based on Its Transformative Potential

In a recent January 3, 2026, interview with Business Insider, Porter Collins—famous for his role in "The Big Short"—called Tesla (TSLA) the "poster child" for overvalued stocks, citing its nearly 300x forward 2026 earnings multiple compared to Nvidia's 45x. He dismissed it as a "meme stock" driven by hype around Elon Musk's visions for robotaxis, Optimus robots, and Full Self-Driving (FSD), rather than solid fundamentals, especially after Q4 2025 deliveries fell 16% YoY to 418,000 units.

But Collins' analysis misses the mark by viewing Tesla through a traditional auto lens. Tesla isn't just a car company, it's

Why Porter Collins is Wrong: Tesla Isn't Overvalued—It's Undervalued Based on Its Transformative Potential Read More

Dark Stone Capital Trading Rules: Dokkodo-Inspired Trading Rules

Dark Stone Capital Trading Rules: Dokkodo-Inspired Trading Rules

This is the way:

Miyamoto Musashi's Dokkodo (The Path of Aloneness) is a set of 21 precepts for living with discipline, detachment, and self-reliance. I've adapted them metaphorically into trading rules, drawing parallels between the samurai's mindset and the trader's need for emotional control, risk management, and strategic patience. These rules emphasize avoiding emotional biases, sticking to your system, and embracing market impermanence, perfect for volatile trading environments.

Here's the adapted list, with each precept rephrased as a trading rule:

#Original PreceptTrading Rule Adaptation
1Accept everything just the way it is.Accept market conditions as they are; don't
Dark Stone Capital Trading Rules: Dokkodo-Inspired Trading Rules Read More

Tesla's 2026 Horizon: Why Tomorrow's Delivery Numbers Are Just a Sideshow

Tesla's 2026 Horizon: Why Tomorrow's Delivery Numbers Are Just a Sideshow

As we kick off 2026, Tesla ($TSLA) investors are buzzing with anticipation. Tomorrow, January 2nd, the company is set to release its Q4 2025 delivery figures, a metric that often sends stock prices on a rollercoaster ride. But let's be real: these numbers, while important for short-term sentiment, are a minor distraction in the grand scheme of Tesla's transformative trajectory. With the recent dip in TSLA shares, from a high of $489.88 on December 16, 2025, to around $450 by year-end, the delivery impact is already priced in, as most investors expect the company to miss the mark with

Tesla's 2026 Horizon: Why Tomorrow's Delivery Numbers Are Just a Sideshow Read More