Claude’s Mythos causes cybersecurity stocks to plummet… The quantum threat to cybersecurity is coming fast… How Jonathan Rose plays it… Has the energy bull reached the top?… Where Eric Fry finds opportunity
Last week, Anthropic — the AI company behind Cloud — accidentally left a cache of unpublished documents in a publicly accessible data warehouse. What researchers found inside shook the world of cybersecurity.
The documents revealed that Anthropic was quietly developing and testing a new model called the Claude Mythos, which is codenamed Capybara internally.
According to an inadvertently revealed draft of a blog post, the Mythos represents a whole new level above Anthropic’s current Opus models — larger, more capable, and significantly more expensive. Anthropic described it as “the most powerful AI model we have ever developed” and a “breakthrough” in AI performance.
This alone was newsworthy. But here’s what sent shivers through the world of cybersecurity…
Anthropic’s own draft language described Mythos as “currently far ahead of any other AI model in cyber capabilities” and warned that it “heralds a coming wave of models that can exploit vulnerabilities in ways that far exceed the efforts of defenders.”
In other words, Anthropic has built something so powerful that it’s worried about what happens when it gets into the wrong hands.
Concern reached the highest levels of government almost immediately. according to Bloomberg Yesterday, Treasury Secretary Scott Besent and Federal Reserve Chairman Jerome Powell summoned the CEOs of major US banks to a meeting about the threat posed by Mythos to financial infrastructure.
David Solomon, CEO of Goldman Sachs, confirmed that the company already has the model and is working directly with Anthropic on its security implications.
As Solomon told analysts on Goldman Sachs’ earnings call yesterday:
We are familiar with the Mythos and its abilities. We have the model.
We work closely with Anthropic and all of our security vendors.
Leading Cybersecurity stocks I felt it immediately.
As you can see below, Palo Alto Networks (Bano) It immediately fell about 10%, while… Crowd Strike (Raw) Decreased 11% and ZeSkiller (ZS) 14% fall.
While all of them have recovered somewhat this week, they are still lower than they were before the Mythos titles.
But here the story becomes more nuanced than simple sell-offs suggest
Rather than releasing Mythos broadly, Anthropic says its plan is to give cyberdefenders early access first — specifically to help them harden their systems against the wave of AI-powered attacks it believes is coming.
This is basically what the Besent Bowl meeting was about: they encouraged banks to run Mythos against their own systems to stress-test their defenses.
This is a clear strategic choice. It acknowledges the threat while also pointing out who will survive it: companies are sophisticated enough to absorb a model like the Mythos as a weapon in their own arsenal rather than simply a threat to their business model.
Cybersecurity companies that are able to integrate this generation of AI capabilities into their platforms are in a radically different position than those that cannot.
Bottom line: Last week’s sell-off painted all cybersecurity leaders with the same brush. But over time, AI will continue to sort out the real winners from the losers.
We will continue to track this as the story develops.
The quantum threat hiding inside cybersecurity sales
Mythos isn’t the only story to highlight how cutting-edge technology carries great risks as well as its promise.
Over the weekend, our trading expert Jonathan Roseeditor Masters in Trading Liveguided his community with a 57-page white paper that most of the market didn’t even know existed.
The conclusion of the research is that quantum computers will be able to decrypt cryptocurrencies much sooner than anyone assumes. The gap between the “theoretical threat” and the “direct problem” is closing 20 times faster than the cryptocurrency industry expected.
Now, anyone can write a paper on such a topic and make bold claims to attract attention. So why should we give this particular paper any greater respect?
Because it’s the result of a collaboration between Google’s DeepMind research center, Google’s quantum AI division, Stanford University, and the Ethereum Foundation — not exactly a crew known for screaming wolf.
Here’s Jonathan with some numbers:
6.9 million Bitcoins across all protocols with reused public keys are at risk, i.e. 33% of the total Bitcoin in existence.
Non-spending attacks are possible: quantum computers with a fast clock can intercept transactions in real time.
At current valuations, this amounts to more than $2 trillion in assets potentially at risk.
The newspaper doesn’t mince words about what comes next. As the authors write:
It is possible that the existence of early quantum computers will be first discovered on the blockchain rather than announced.
In other words, the first sign of quantum computing’s arrival may not be a press release — but a theft.
Jonathan points out a bit of good news: proof-of-work cryptocurrency mining itself is safe.
The vulnerability lies in the cryptographic signatures that protect ownership, not in the mining process. But that’s cold comfort considering the extent of what was revealed.
So, what is an investment move?
Back to Jonathan:
What blockchain is actually designed for a post-quantum world?
Answer: Algorand (Something).
I’ll be honest – I wasn’t familiar with ALGO before I researched this piece.
But when you dig deeper, the picture becomes clear.
Jonathan explains that ALGO was designed from the ground up by Silvio Micali, a Turing Award-winning cryptographer from MIT.
What’s unique is that since its founding in 2017, Algorand has been built with a post-quantum security architecture at its core. By the time it launched in 2019, it had already incorporated hash- and network-based cryptographic schemes — such as Falcon signatures — designed to resist exactly the attacks this paper describes.
Translation: While other blockchains seek to modernize their security, Algorand was created from day one to survive the quantum age. That’s why, when the paper fell, ALGO shares rose 20% in one session.
If you’re not a fan of cryptocurrencies, Jonathan points to Palo Alto, NXP Semiconductor (Nxby) and Cloudflare (network) Public companies are actively building post-quantum cybersecurity capabilities. I will point out that PANW and NET became much cheaper in the wake of last week’s Mythos-based cybersecurity sell-off.
However, you decided to play it, and here’s Jonathan with more numbers at the chance:
The post-quantum cryptography market is currently valued at approximately $400 million.
The paper expects the amount to grow to $2.8 billion, a compound annual growth rate of 46%. This is not a typo.
Who needs post-quantum security? Everyone is in danger. That’s basically everyone.
The world needs to change with the advent of quantum.
The world is changing…
The European Union has launched its own roadmap for post-quantum migration, and the US National Institute of Standards and Technology (NIST) has finalized the first post-quantum encryption standards in 2024. Meanwhile, the National Security Agency (NIST) hasNational Security Agency) And the Pentagon is reviewing their encryption infrastructure as we speak.
Here’s Jonathan’s summary:
No money will be made when quantum breaks cryptocurrencies. It will be made when the world begins to prepare for it.
This is a big deal – we will continue to track it with you.
By the way, if you want to understand how Jonathan recognizes such settings, here it is Master of Commerce challenge It walks you through this exact process over the course of seven days, using real settings in real time.
From Jonathan:
You’ll see how we identify triggers, interpret important signals, and translate them into real trades – all while managing risk in real time.
Are you thinking about selling your energy stocks?
As I write on Tuesday, oil is falling sharply. West Texas Intermediate crude fell about 5% to $93 a barrel. Brent crude fell 3%, trading at $96.
Three things that drive sales…
- Reports have emerged of a potential second round of peace talks between the US and Iran in Islamabad, giving traders a reason to price in some premium on the conflict.
- Both the International Energy Agency and OPEC lowered their demand forecasts. The International Energy Agency now expects global oil demand to rise a contract By 80,000 barrels per day this year, which represents a significant swing from its previous estimate of 640,000 barrels per day. growth.
- Yesterday, OPEC reduced its demand forecast for the second quarter by another 500,000 barrels per day.
But if this has you thinking about taking all your chips off the table, our global macro expert Eric Fryeditor Fry investment reportwill urge some caution.
He recently put forward five reasons why high energy prices are likely structural rather than temporary:
- The ceasefire is fragile.
- The tanker backlog in the Arabian Gulf will not be eliminated overnight.
- Iran has effectively become a toll collector in the Strait of Hormuz, charging shipping companies up to $2 million per tanker for safe passage.
- Physical energy infrastructure across the Gulf sustained significant damage over six weeks of strikes.
- Countries that have been hobbled by this crisis are now working aggressively to restock strategic reserves – and stabilize demand at high levels for months to come.
And let us not lose sight of how today’s “good news” comes with its own complications. The US blockade of Iranian ports – announced on Monday – directly threatens Iran’s exports of 1.7 million barrels per day through the Strait of Hormuz.
Whether peace talks take place in Islamabad or not, the actual oil and gas market remains severely constrained.
Which brings us to where Eric sees the real opportunity
While most investors arrive reflexively Oil stocks When prices rise, Eric believes the most pressing opportunity is one step away from the headlines:
While oil grabs all the headlines, the real strategic beneficiary of this crisis is American natural gas – and these prices are actually lower than they were when the war began.
The result is a historic and growing gap between cheap American domestic gas and the desperate global buyers who need it. This spread will not disappear. It is the foundation of long-term structural transformation.
U.S. natural gas prices are determined by domestic supply, which is at record levels — keeping costs under wraps at home. But European gas prices have more than doubled since the start of the war, while liquefied natural gas prices have risen in Asia (Liquefied natural gas) Standards have risen.
US producers sit right in the middle of this gap, with the largest additional LNG export capacity available in the world.
Eric has identified three specific energy companies that are able to leverage this dynamic at his company Fry investment report file. You can learn more about joining here.
We’ll keep you updated on all these stories here at digest.
I wish you a good evening,
Jeff Remsburg
