The Savage Take: What Charles Is Watching This Week

You’re in for something special. Ever wondered how our CEO reads the markets? Charles shares what he’s learning, what he’s watching, and what long-term investors should be thinking about.

From Charles

One of the privileges of leading EasyEquities is having a front-row seat to how markets are evolving — and how our community is participating in them.

I spend a great deal of time studying where capital is moving and what structural shifts are taking shape. I wanted to create a space where I can share those observations openly, so you can see what I see and think through it with me.

Our community invests with discipline and intent. That deserves openness in return.

The Savage Take is my way of sharing how I am thinking about what is actually changing and what deserves attention.

Three Things That Matter This Week

1. AI has moved from hype to infrastructure and data, not models, will define the winners.

2. Markets are not breaking. They are repricing, with significant dispersion beneath calm index headlines.

3. South Africa must think bigger about ownership, including expanding TFSA limits to unlock compounding at scale.

1. AI Has Crossed the Line

AI no longer feels like a sector you can opt into or ignore. It is becoming foundational infrastructure.

What stands out to me is that AI is beginning to accelerate itself. Tools are improving tools, and the innovation cycle is tightening. That kind of velocity tends to concentrate capital, especially toward hyperscalers with the balance sheets to dominate.

The deeper opportunity may not sit at the model layer, but at the data layer. As models commoditise, proprietary data and trusted environments become the edge.

If you are allocating capital, it helps to ask: who owns the data, not just who builds the model?

2. Stock Moves: What the Tape Is Really Saying

Indices look calm. Underneath, they are not.

US equity indices finished Friday modestly positive:

• S&P 500 circa +1% for the week

• Nasdaq circa +1.5%

• Dow modestly higher

But dispersion is elevated.

Notable Movers Over Recent Weeks

• Coinbase circa +16%

• Robinhood circa +7%

• Airbnb circa +5%

• Gold circa +2%

• Silver circa +3%

• Platinum circa +3%

• Palladium circa +4%

• Utilities sector circa +3%

• DraftKings circa -13%

• Several cybersecurity stocks sharply lower on fresh AI disruption concerns

More importantly:

• Amazon circa -23% from recent highs

• Microsoft circa -27% from recent highs 

That is repricing inside the largest names in the world. Capital is rotating into both cyclicals and defensives, which suggests conditional conviction. This is increasingly a stock picker’s market.

3. Institutions Matter More Than Presidents

4. Prediction Markets and the Blurring of Finance

The 13% drop in DraftKings reflects more than volatility.

Prediction markets increasingly resemble exchanges. They price probabilities transparently, operate continuously and settle like financial instruments. The boundaries between trading platforms, crypto exchanges and bookmakers are narrowing.

Behaviour evolves first. Infrastructure follows.

5. Commodities: The Physical Backbone of AI

AI feels digital, but its foundation is physical.

Copper, silver, steel and energy underpin data centre expansion and electrification. There is a credible multi-year commodities case, although valuations have closed historic discounts.

The structural thesis remains intact. Entry discipline matters.

6. Defensive Stocks Are Not Defensive From Valuation

Defensive sectors have re-rated as investors search for yield and stability.

However, volume growth is moderating and pricing power is normalising. Cost pressures remain. Defensive positioning does not eliminate valuation risk.

Crowded trades require careful scrutiny.

7. The South African Lens

Locally, positioning is also interesting.

Mining, real estate, telecoms and insurers appear under-owned. Discretionary retail remains crowded.

Consensus is comfortable. Markets rarely reward comfort for long.

There may be a case for selective financials, under-owned insurers and businesses with durable pricing power. Not because they are fashionable, but because expectations are already low.

8. TFSA Limits: We Are Thinking Too Small

South Africa does not have a speculation problem.

We have a savings problem.

When Tax-Free Savings Accounts were introduced, the annual limit of R36,000 and lifetime cap of R500,000 were progressive.

Today, they feel modest.

If broadening ownership and strengthening household balance sheets is a serious goal, we need to think structurally. Increase the limits. Index them. Encourage long-term equity participation at scale.

TFSA reform is not simply a tax discussion. It is a growth discussion.

Compounding works best when ceilings allow it to.

What I Am Watching

• I am paying attention to copper’s behaviour

• To credit spreads

• To AI capital expenditure commentary

• To developments in enterprise AI security

• And to how hyperscalers allocate capital

   

The deeper question remains: Who captures the economic rent of AI?

 The Edge That Matters 

You do not need to predict every macro move to build wealth.

Over time, what tends to matter more is diversification. An awareness of valuation. Patience. And time in the market.

Remember, noise compounds anxiety and time compounds capital.

This is The Savage Take.

Stay Savage everyone.

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