From 2000 to 2009, the S&P 500 essentially went nowhere.

On Wall Street, it became known as “The Lost Decade.”

I remember it because I lived through it. Many of you did, too.

But here’s the funny thing. Because of the way our brains are wired, we tend to forget periods like this.

Those who forget history are likely to repeat it, and a similar danger is appearing on the horizon. So, let’s remember…

After the dot-com bubble burst, there was a prolonged period of market malaise where essentially nothing happened.

During the previous dot-com boom, companies like Microsoft Corp. (MSFT), Cisco Systems Inc. (CSCO), and Intel Corp. (INTC) became household names.

But during The Lost Decade, these stocks lost investors’ hard-earned money.

Cisco never regained its prior highs. Intel stagnated for years. Even Microsoft spent much of that decade treading water.

Meanwhile, things were happening under the surface – you just had to know where to look…

• An upstart beverage company, now known as Monster Beverage Corp. (MNST), dominated the energy drink market and delivered gains well over 1,000%.
• Rapid growth in China led to surging demand for copper, and mining company Freeport-McMoRan Inc. (FCX) soared 1,400% at its peak.
• A little-known company named Google Inc. (GOOG) debuted on the market in 2004. We all know what happened after that…

These weren’t lucky exceptions. Market leadership had quietly shifted.

I call periods like this Hidden Crashes — and they are far more dangerous than sudden selloffs.

During these stretches, investors who stay tethered to what worked before often find themselves stuck in dead money. (Dead money is when capital stays invested but fails to compound meaningfully, the most expensive mistake investors make.)

But investors who recognize where earnings momentum is accelerating are able to move on and make money.

Here’s the thing about crashes. Most investors remember the violent jolt that happens when the house of cards collapses. What they often forget is what comes afterward.

• Years of stagnation.
• False starts.
• And capital stuck in the wrong places while time keeps moving forward.

My research suggests the market may be setting up for a similar environment much sooner than most investors expect.

Let me explain…

The Hidden Crash Most Investors Don’t See

You see, folks, the risk forming in today’s market is not a traditional crash.

There is no broad collapse underway. Prices are not breaking down. Most portfolios still look intact on the surface.

But my research indicates a potential Hidden Crash is heading our way in 2026. Not a sudden drop in stock prices, but a slowdown in earnings momentum across many of the largest and most widely held stocks in the market.

Earnings momentum matters because it drives long-term returns. When growth is accelerating, stocks tend to move higher. When that acceleration begins to fade, the returns flatten out. Over time, portfolios stagnate, making little to no meaningful progress.

So, why does this matter now? Well, market leadership has become increasingly narrow.

A relatively small group of mega-cap companies carries an outsized influence over portfolio performance. As those companies mature, sustaining rapid growth becomes more difficult.

Capital spending rises. Margins come under pressure. Incremental gains shrink.

Stock prices may hold up for a while. Some may even drift higher. But without strong earnings acceleration beneath the surface, returns can stall for years… even a whole Lost Decade.

We are already seeing familiar signs. Growth is becoming more concentrated. A small group of mega-cap stocks dominates portfolios. Earnings acceleration is beginning to slow in some of those big names, even as investment spending continues to surge.

And just like last time, the biggest gains are unlikely to come from the stocks everyone already owns.

Let me be clear. I am not predicting that these companies will collapse. If history is any guide, many of them are more likely to become something else entirely.

Dead money.

Don’t think it can happen? I’ve got news for you – it already is…

The Danger Isn’t a Crash – It’s Getting Stuck

Take a look at the chart from Yahoo Finance below. It shows how, after years of strong gains, all but two of the Magnificent Seven have begun to lag the broader market.

Don’t get me wrong: The AI Revolution that propelled the Mag 7 to new highs is real. The risk isn’t AI — it’s assuming today’s leaders will remain tomorrow’s winners.

History shows this kind of environment can be just as damaging as a sharp decline. From 2000 to 2009, the market did not collapse and stay down. It simply went nowhere. Investors who remained fully exposed to stagnant leadership lost time they could never recover.

That is why this matters.

A hidden crash does not force decisions. It does not create urgency. It quietly traps capital in stocks that look stable, feel familiar, and fail to deliver.

Recognizing that risk early is the difference between staying stuck and staying in control.

Over the years, I’ve learned that navigating periods like this doesn’t require prediction or panic.

It requires a clear plan, like the one I tell you more about below…

Your Blueprint for the Hidden Crash

In my latest presentation, I’ve laid out what I call the Hidden Crash Blueprint, a simple three-step framework designed to help investors avoid stagnation and stay positioned for opportunity as market leadership shifts.

I walk through why this Hidden Crash is already forming, the specific signals my research is tracking as it develops, and what investors can do to prepare – and also profit.

While I can’t show you that full blueprint, here’s a brief rundown on how it works.

Step 1: Exit the Danger Zone

The first step is identifying which stocks in your portfolio are quietly becoming dead money.

These are widely held companies where earnings momentum is slowing and future returns are becoming increasingly difficult to achieve. They may not collapse, but they can trap capital for years.

Before you can move forward, you need to know where the risk is. That’s why I’ve put together a list of 20 well-known companies I’ve identified that are on the edge.

My system is telling me they’re dead money right now – and you don’t want to be caught holding these stocks in 2026.

Step 2: Position for Explosive Growth

Once stagnation is removed, the focus shifts to where growth is accelerating.

Capital leaving mature, overextended stocks does not disappear. It rotates into companies with improving fundamentals and expanding opportunities. This is where the next phase of market leadership emerges.

These innovators operate at the edges of major economic shifts – like the AI Revolution. They sit deep inside supply chains. They solve critical problems that the giants cannot efficiently handle themselves.

And in my new Hidden Crash 2026 broadcast, I explain how I identified five of these companies – and how they could deliver explosive gains as we enter 2026.

Step 3: Master the System

Markets change. Leadership evolves.

The final step is to use a disciplined system to continuously monitor stocks, identify new opportunities as they arise, and recognize when conditions begin to weaken.

That’s where my Stock Grader system comes in.

It’s based on a framework I’ve relied on for decades to identify stocks transitioning from stagnation to acceleration.

And in 2025, we used it to make triple-digit gains on under-the-radar stocks like:

• Sezzle Inc. (SEZL) – 555.57%
• SPX Technologies Inc. (SPXC) – 119.77%
• M-tron Industries Inc. (MPTI) – 102.06%
• UFP Technologies Inc. (UFPT) – 98.05%
• Powell Industries Inc. (POWL) – 93.76%
• And more…

I suspect that nine out of 10 investors haven’t heard of these stocks. But these are the kinds of under-the-radar opportunities Stock Grader is designed to surface early.

It’s also why I’m sharing a deeper look at this Hidden Crash right now – before it shows up in the averages and before most investors realize what’s happening underneath the surface.

In this presentation, I walk through the specific warning signs my research is tracking, how to identify which stocks are becoming dead money – and how to find the hidden innovators that will deliver outsized returns while most investors are treading water.

If you want to understand where the real risk is forming – and how to stay in control as market leadership shifts – I encourage you to watch now while this window is still open.

Sincerely,

�������°�

Editor, Market 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Cisco Systems Inc. (CSCO), Powell Industries Inc. (POWL) and Sezzle Inc. (SEZL)

The post Why the Next Market Crash Won’t Look Like a Crash appeared first on InvestorPlace.

Over the past several days, investors have been treated to endless variations of the chart below, regardless of their interest in oil markets. 

You see, Venezuela has the world’s largest oil reserves. And now, this past weekend’s geopolitical events seem to have a lot of investors salivating over these massive oil deposits. Shares of Chevron Corp. (CVX) –the sole American oil company still operating in the South American nation – spiked 6% earlier this week. 

But the real story is more complicated. 

So, in today’s Smart Money, I’d like to introduce three images – two charts and one map – that show why, even given the recent developments in Venezuela, I am not looking toward that country as an investment opportunity in oil.  

Instead, my favorite bet on energy markets remains right here in the United States, specifically in the Permian Basin.  

Let’s dive in… 

Chart #1: American Versus Venezuelan Oil 

One of the wonderful things about Permian Basin oil is that it’s considered “light.” There’s very little asphaltenes, heavy metals, or sulfur in the mix. Drillers essentially stick a bent straw into the ground, pump water and sand into the reservoir, and collect what comes back up. 

Most drillers (including one I recommend in Fry’s Investment Report) can do this for $12 per barrel or less. They’re printing money at current WTI crude oil prices of $57/barrel.  

However, not every oil reserve is so easy to access.  

Canadian oil sands contain so many asphalt-like contaminants that some deposits even require surface mining. (The sludge is mixed with hot water, and the bitumen is skimmed off the top.) Firms that own these unfortunate assets must spend between $20 to $40 to extract each barrel. Once you add in overhead costs, most Canadian oil sands firms are barely breaking even at current oil prices. 

Venezuela’s oil reserves are in even worse shape. The table below lists several oil deposits in the country, the type of oil found in the reserves, and their current status…: 

By some estimates, oil would have to reach $80/barrel for new steam-assisted projects in the Orinoco belt to break even. 

That’s a problem because futures markets currently expect the WTI oil benchmark to hover around $60 this year… and economists at the U.S. Energy Information Administration expect prices to fall to the low-$50 range.  

That means any would-be driller stands to lose $20 to $30 for every barrel of Venezuelan oil it recovers. 

Let’s take a look at that map… 

Chart #2: Location, Location, Location 

The second issue with Venezuelan oil is its geography… located smack in the middle of the country.  

That makes it far trickier for energy firms to access, because these fields require access to pipeline infrastructure, road networks, and security guarantees.  

In 2021, French oil major TotalEnergies SE (TTE) sold its remaining Venezuelan assets for an exceptional $1.38 billion loss after years of investment yielded little output. (At the time of sale, Venezuela made up less than 0.5% of TotalEnergies’ combined oil and gas production.) 

That contrasts greatly with countries like Nigeria, Angola, and Guyana that have vast offshore oil and gas reserves. For these fields, energy firms can simply ship in supplies by boat and take out the oil via shuttle tankers. It’s noteworthy that TotalEnergies has now turned its attention to Mozambique… a fragile country that nevertheless allows for profitable oil and gas exploration because it’s offshore. 

And last but not least… 

Chart #3: Time Value of Money (and Oil) 

Finally, the issue with new oil wells is that it takes time to build them… 

Not just weeks… or months…  

But years. 

Below is the third and final chart, which shows how long it takes to build a deepwater rig in the Gulf of Mexico… an area that’s already well explored. From initial lease to first production takes a full decade. 

That matters because Venezuela’s challenging oil fields could take even longer to re-commercialize. Here’s the base case from the consultants at Rystad Energy, in a bonus chart.  

Even in the most optimistic scenario, it will take 14 years to achieve Venezuela’s previous 2010 output of 3 million barrels per day. If you’re a professional investor, that’s essentially a lifetime. 

In addition, even reaching full production in 14 years would take an eye-watering $183 billion of investment by Rystad’s calculations. For comparison, that’s roughly 50% more investment per barrel than what Exxon Mobil Corp. (XOM) spent on its Liza Unity project in Guyana. Below is an additional chart that illustrates this issue… 

So, perhaps Venezuelan oil may someday alter my bet on oil. After all, the country does sit on the world’s largest known oil reserves, and there’s probably plenty more that is yet undiscovered. I expect a lot of attention will be showered on firms like Chevron that have experience working in Venezuela. 

Besides, Venezuela’s cheaper rivals will eventually run out of oil. No oilfield lasts forever. 

But all this will take time, money, and oil prices moving back to the $80 range. And I don’t know about you, but I can certainly think of more profitable ways to ride oil 40% higher without having to wait on a Venezuelan oil bonanza that may never come. 

Instead, my attention remains firmly focused on players in the Permian Basin… the ultra-low-cost producers in West Texas and southeast New Mexico that should print money over the coming decade. 

Betting on America 

You see, these oil companies sit on some of the easiest reserves in the world to extract. That means they generate a lot of excess cash that can be used to buy up even more cheap fields, and so on. There’s still a lot of untapped potential in the Permian Basin. 

In addition, these companies are cheap. The one I own in Fry’s Investment Report trades at just 9X forward earnings and produces a splendid 4% dividend yield. 

Best of all, these Permian firms are sitting on the cusp of a natural gas bonanza. Liquefied natural gas (LNG) terminals on the Gulf Coast are coming online all at once, and I expect my pick to perform splendidly in the coming years. 

For the name of this “best of the best” oil and gas pick that I believe will outperform, learn more about joining me at Fry’s Investment Report here. 

Regards, 

�������°� 

The post The Truth �������°� Venezuelan Oil  appeared first on InvestorPlace.

Buyers can’t afford the monthly payments. Sellers won’t give up their 3% mortgages. Inventory is frozen. Prices stay irrational. 

But while economists debate Fed policy, the White House is preparing a different playbook entirely – one that separates the home price from the payment and turns the mortgage itself into a tradable asset.

Since November, we’ve seen reports that the Trump administration is considering an “aggressive” intervention in the U.S. housing market. The president has been meeting with top housing officials, including FHFA Director William Pulte, to discuss structural financial reengineering, circulating notable buzzwords like “Assumable,” “Portable,” and “50-Year.”

If you think this is just more political noise, you’re missing the single biggest asymmetry in the market right now. 

Here’s why we think housing could become one of 2026’s biggest under-the-radar trades.

Why the Housing Market Has Become a Political Emergency

To understand the potential here, you have to understand the desperation.

We are now 11 months away from U.S. midterm elections. And if you look at the betting markets, like Kalshi and Polymarket, the writing is on the wall. The GOP is facing a potential wipeout in the House, as well as a close fight for the Senate.

Why? U.S. consumer sentiment is languishing at historical lows, driven almost entirely by the affordability crisis. 

The “American Dream” of buying a house is mathematically impossible for the median voter, locking out an entire generation from the market. Meanwhile, an older generation of voters are locked in, clinging to 3% mortgage rates from the pre-COVID era, refusing to sell and take on a 7% loan.

This ‘lock-in’ effect has frozen inventory, keeping prices elevated. High prices + high rates = angry voters.

President Trump knows he cannot wave a wand and make the Federal Reserve drop rates to zero tomorrow without reigniting inflation.

So, he has to do the next best thing: separate the home price from the monthly payment.

The Mortgage Reforms Washington Is Considering

The meetings at Mar-a-Lago represent an important shift. Instead of waiting for the Fed, the Trump administration is preparing to flood the zone with liquidity mechanisms that bypass the banks’ traditional underwriting models.

Here is what is on the table and why it matters:

The 50-Year Mortgage: Lower Payments, No Equity

Federal officials are discussing extending loan terms from 30 years to 50 years. 

• The Logic: It immediately slashes the monthly payment. 
• The Reality: It turns homeownership into a glorified rental. You build zero equity for the first 15 years; you are just servicing debt. 
• Why it happens: It’s the easiest lever to pull. The FHFA can simply direct Fannie and Freddie to buy these products. It creates an immediate talking point: “Under my plan, your monthly payment drops by 20%.”

Assumable Mortgages: Turning Low Rates Into Assets

This is the policy that allows a buyer to take over the seller’s existing mortgage rate. 

• The Logic: If I have a 3% mortgage, it’s an asset. Why should it die when I sell the house? I should be able to hand it to you. 
• The Reality: Banks hate this. When a 3% loan is paid off, the bank celebrates because they can lend that money out again at 7%. If the loan is assumed, the bank remains stuck with a low-yield asset. 
• Why it happens: It is populist gold. Trump vs. Wall Street.

Portable Mortgages: The Only Fix for Frozen Inventory

This allows a homeowner to sell their house, move to a new one, and take their 3% interest rate with them. 

• The Logic: This unlocks the supply side. The Boomer who wants to downsize but won’t give up their rate can finally sell. 
• The Reality: This is a logistical nightmare for the bond market (MBS), but it is the only thing that actually solves the inventory crisis.

Why Housing Reform Is a 2026 Election Trade

Why is this a 2026 trade? Because in politics, timing is everything.

The administration cannot afford a slow rollout. It needs a “sugar high,” so to speak – where voters see “Sold” signs and lower Zillow estimates before they walk into the voting booth in November.

As such, we can likely expect the following timeline:

• Q1: The leaks continue. Test balloons are floated to gauge the bond market’s reaction.
• Q2: Executive orders – Trump likely declares a “Housing Emergency” or utilizes the FHFA’s conservatorship over Fannie/Freddie to unilaterally launch the 50-year product.
• Q3: The push for portability – this will be the “October Surprise”: a program designed to unfreeze millions of homes right as campaign season peaks.

Who Benefits If the Housing Market Is Unfrozen

If the government decides to artificially lubricate the housing market, you do not want to be short housing. You want to be long the companies that facilitate the transaction.

Homebuilders: Direct Beneficiaries of Demand Stimulus

Stocks like Lennar (LEN) and D.R. Horton (DHI) are the obvious trades. If the government subsidizes monthly payments via 50-year terms, homebuilders can raise prices. They are the direct beneficiaries of any demand-side stimulus.

Mortgage Insurers: The Hidden Toll Collectors

Fifty-year loans are risky. Someone has to insure them. Private mortgage insurers – like MGIC Investment Corporation (MTG) and NMI Holdings (NMIH) – will see a boom in premiums as the government mandates coverage for these new, longer-duration loans.

Digital Settlement Platforms: The High-Beta Infrastructure Play

Here’s where we get specific. If you want the high-beta, potential 10x play on this thesis, you need to look beyond the obvious homebuilder trade.

The real asymmetry lies in the infrastructure layer: the companies that can facilitate what traditional finance cannot.

The administration’s biggest goals – portability and assumability – are nightmare problems for conventional lenders and title companies.

A local title officer cannot handle the complexity of transferring a mortgage collateralized by a bond from one property to another in real-time.

A traditional bank doesn’t want to facilitate an assumable loan because they lose money on it.

To make this work, the administration needs a centralized, digital clearinghouse – a platform that can:

The Infrastructure Layer the Housing Market Needs

Think of this as the Market Maker Function for mortgages. To make a mortgage portable, there’s often a timing gap. You sell your house on Monday, but don’t sign for the new one until Friday. The bank won’t let the loan “float” in the ether.

But a digital platform with sufficient balance sheet capacity can solve this. It buys House A (taking the asset onto its balance sheet), holds the mortgage structure temporarily, and facilitates the transfer to House B.

The Technical Requirements: Any platform positioned for this opportunity needs three things:

The Silicon Valley Angle: Look at who’s sitting at the table in Mar-a-Lago. The “Silicon Valley Right” views the housing crisis not as a lack of regulation, but as a lack of technology. They’re likely arguing: “Mr. President, the banks are too slow. Give the mandate to the tech companies. Let us build the digital exchange for American Homeownership.“

There’s a small handful of venture-backed prop-tech companies that fit this profile – companies currently trading like distressed assets that could re-rate overnight from “risky tech plays” to “critical financial infrastructure” the moment an Executive Order drops.

But there’s only one with the potential to become ‘the next Amazon’…

The post Washington’s New Plan for the Housing Market appeared first on InvestorPlace.

If you think the capture of Venezuelan President Nicolás Maduro was about oil, you’re right – but perhaps not totally right.

Over the last few days, I’ve done a deep dive into Maduro’s capture because the surface-level explanations left me with questions.

Consider the conventional narratives:

“The Trump Administration did this because it wants Venezuela’s oil.”

The United States already produces more oil than any country on Earth. We sit on vast domestic reserves, have ready access to Canadian heavy crude, and can tap Middle Eastern supply whenever needed.

Venezuela’s oil production, meanwhile, has collapsed to a fraction of its former output, its infrastructure is in ruins, and restoring it will take tens of billions of dollars and years of work (more on this in a moment).

“The operation was necessary to arrest Maduro for narco-terrorism and stop Venezuelan cocaine flows into the United States.”

By this logic, the U.S. should be preparing a full-scale military operation against Mexico right now, since most fentanyl and cartel violence that directly impacts Americans originates there.

“Maduro engineered mass migration and exported violent gangs like Tren de Aragua into the United States.”

Okay, but if that’s the case, why hasn’t the U.S. invaded Honduras, a country that has been a major source of illegal migration for years and has endured persistent gang violence from transnational organizations like MS-13 and Barrio 18?

Washington has consistently treated these challenges as law-enforcement and migration issues – not grounds for regime-removal war.

Given these inconsistencies, it seems likely there is more to the story.

Maybe something that ties directly into a huge investment story with major implications for your portfolio.

Before I jump in, let’s be clear: oil is a factor.

The U.S. has an abundance of light sweet crude (good for gasoline production). But many older refineries, especially along the Gulf Coast, are specifically configured to process heavy, sour crudes to capitalize on their lower cost.

Changing these facilities to process light sweet oil would require significant capital investment.

And while we get heavy crude from Canada, tankers from Venezuela are faster and cheaper than piping it down from our northern neighbor. So, there is some economic incentive to access Venezuela’s oil.

Plus, in the long run, abundant and inexpensive Venezuelan oil could be modestly disinflationary and supportive of global productivity.

The economic benefits wouldn’t materialize on a timeline that matters greatly to the man behind the Venezuela raid – President Trump.

Venezuela’s oil infrastructure is decades old, badly degraded, and in many cases barely functional. Plus, Venezuela is no longer the oil powerhouse it used to be.

Its oil output has plunged from 3.5 million barrels per day in the 1990s to roughly 700,000 today, according to OPEC data. According to an analysis by Rystad Energy, to return to those 1990s levels, we are looking at a decade-long timeline and an investment of $110 billion to $183 billion.

Sure, some Venezuelan oil will head our way – apparently, it already is. But restoring production and ramping back up to former glory will require massive capital investment and years of rebuilding. Trump will be out of office before the eventual payoff arrives.

So, is this really about something else?

How about China, strategic supply chains for AI and modern warfare, and Iran?

Years ago – think Bush 1.0 invading Iraq – oil was a huge point of leverage in geopolitics. Today, while oil is still important, that leverage flows through different channels.

One important one is the tightly linked system of critical materials and the supply chains that turn them into AI systems and advanced weapons.

Every modern economy – and every modern military – rests on a small group of minerals that simply cannot be substituted.

Coltan, rare earth elements, cobalt, tantalum, and related materials are the basis of advanced electronics, precision weapons, and high-performance computing. Without them, nothing from missile guidance systems to advanced sensors to AI hardware gets built.

Meanwhile, we’re also dependent upon the supply chains that refine, process, and convert these materials into usable technology.

As regular Digest readers know, the U.S.’s limited access to these materials is already a major strategic vulnerability.

China controls approximately 70% of rare earth mining globally, but more critically, over 90% of processing capacity, according to the U.S. Geological Survey. That processing stage is a huge chokepoint – where raw ore becomes the refined inputs required for AI systems, advanced electronics, and modern weapons.

That’s where Venezuela enters the picture.

Venezuela’s southern mining regions hold deposits of coltan, rare earth elements, cobalt, and other strategic materials. On paper, those resources should represent diversification away from Chinese control.

In reality, China got there first.

Chinese firms embedded themselves directly at Venezuelan mining sites, gaining operational control over extraction, transport, and export. So, those materials haven’t been entering global markets – they’ve been funneling directly into Chinese-controlled processing supply chains.

In other words, the strategic materials that could have reduced U.S. dependence on China instead deepened it.

Bottom line: U.S. AI infrastructure and next-generation weapons systems are increasingly reliant on supply chains that run through – and are ultimately controlled by – China, and in this case China via Venezuela.

While China was consolidating control over strategic materials, Iran crossed a different threshold – moving from weapons transfers to weapons production on Venezuelan soil.

This began around 2006 and has now grown to include the assembly and maintenance of drone technology.

Reports from sources such as the U.S. Treasury Department and satellite imagery have indicated the presence of Iranian hardware at Venezuelan facilities. Apparently, the Venezuelan state aeronautics firm EANSA is said to be working with Iranian specialists on Unmanned Aerial Vehicles (UAVs) – basically, attack drones.

From a security perspective, the concern here isn’t an imminent Iranian drone attack on the U.S. – but it’s the creation of the potential for that attack.

It’s likely Trump’s advisors concluded those liabilities needed to be removed before they matured into something far harder to unwind.

“If this is about minerals and supply chains, why not pursue diplomatic or economic pressure instead of regime change?”

I would guess timing.

Sanctions work slowly, and negotiations depend on voluntary compliance. So, by the time a diplomatic solution might have materialized, China’s grip on these rare earth supply chains could be irreversible.

And for a reason I’ll show you in a moment, timing might require decisive action now – not patient negotiation.

Additionally, diplomatic efforts wouldn’t address the Iranian issue I just discussed.

If so, then it could be just the first domino to fall.

In Monday’s Daily Notes in Innovation Investor, our technology expert Luke Lango made the case that we’re watching the end of the old neoliberal order.

As to what’s replacing it, here’s Luke:

We are now in the era of the Imperial Executive.

Look around. The White House is no longer just a regulator but an active, and aggressive, participant in every corner of economic life.

Foreign borders? Terrain.

Energy markets? Terrain.

AI infrastructure? Terrain.

Nuclear power? Terrain.

Corporate boardrooms? Also terrain.

Luke argues that the Maduro raid was simply the most kinetic expression of a governing mindset that treats everything as actionable.

But there’s a problem…

The predictive markets show that Democrats are likely to flip the House in November’s midterm elections. Flipping the Senate is also a possibility, though the odds aren’t as high.

If that happens, Trump’s ability to influence change hits a brick wall. So, according to Luke, we’re about to see this “Imperial Executive” go full bore to pursue his initiatives.

Back to Luke:

The Administration has an 11-month window of maximum power to do what it wants.

That includes:

• Imperial acquisitions
• Large-scale AI projects
• Nuclear energy development
• Defense expansion
• Economic stimulus by any means necessary

This is a full-court press moment.

So, what’s increasingly becoming our favorite investment theme for 2026? Simple.

Align yourself with the White House.

We’ve already seen how this plays out.

When Washington decides to buy, back, or build, stocks don’t grind higher – they gap.

Think about what we’ve seen since the summer: MP Materials Inc. (MP). Lithium Americas Corp. (LAC). Trilogy Metals Inc. (TMQ).

They all surged after becoming aligned with U.S. strategic objectives.

History shows that when government priorities shift, markets reprice faster than most investors expect.

That’s where legendary investor �������°� comes in.

Louis has been warning that many portfolios are dangerously concentrated in the Magnificent Seven – just as money is now beginning to rotate into the infrastructure, materials, and defense layers that make the AI boom possible.

He saw it early with rare earths. In fact, this past July, Louis held a live market briefing during which he named MP Materials as a top idea. It was the next day that the Pentagon revealed it had become the company’s largest shareholder, sending the stock up more than 50% in that session alone.

Now, Louis believes this kind of rotation is accelerating. He’s laying out that case – and showing exactly where capital is moving next – in a new briefing that you can watch right here.

There’s more to the Venezuela story than oil.

Maduro’s arrest was also about leverage over materials, supply chains, and strategic capability. And it was a signal that the U.S. government is now willing to act decisively to secure that leverage.

In this environment, markets aren’t being left alone to “find equilibrium.” As Luke points out, they’re being directed. Capital is flowing where power, policy, and urgency intersect.

For investors, the takeaway isn’t ideological – it’s actionable.

The question isn’t whether this shift is comfortable or in line with your personal politics. It’s whether your portfolio is aligned with where Washington is already moving next.

We’ll keep you updated here in the Digest.

Have a good evening,

Jeff Remsburg

The post What’s Really Behind the Venezuela Raid appeared first on InvestorPlace.

In the essay below, Louis lays out his latest thinking on where the economy and markets will be headed in 2026, from interest rates and earnings to AI and economic growth.

Louis is also warning his readers about a lesser-known risk he calls the “hidden crash,” which he believes could quietly impact portfolios that appear diversified but aren’t. He explains this in much more detail in a new briefing, Hidden Crash 2026, which I recommend you watch after reading.

I think you’ll find Louis’ perspective both insightful and timely as we prepare for the next phase of the market cycle.

Wall Street is throwing out some big numbers for 2026.

One analyst says the S&P 500 is headed to 8,100.
Another says 7,000 might be a stretch.

Meanwhile, the market just wrapped up three straight years of double-digit gains.

So here’s the real question.

Are we about to pull off a rare “four-peat”… or are investors piling into the most crowded trade of their lives?

Here’s the thing. We all know the colorful saying about opinions, and how everybody has one.

Well, the same goes for market predictions.

I’ve been around the stock market a long time. I’ve seen bold forecasts come and go. And more often than not, they fade quietly once reality sets in.

That gap between lofty expectations and real-world results is exactly why I focus on data, earnings, and market structure – not noise.

Of course, I have made a few predictions of my own…

For example, in June of 2024, Nvidia Corp. (NVDA) surged to a $3.35 trillion market cap, surpassing Microsoft Corp. (MSFT) to become the largest publicly traded company in the world.

But I said the ride wasn’t over:

I expect Nvidia to blow through $4 trillion in market cap this year and then rise to a $5 trillion market cap in 2025.

That’s exactly what happened. Nvidia’s market cap quickly surpassed the $4 trillion mark – and by October 2025, it reached $5 trillion.

That experience shapes how I’m looking at 2026.

Because the next phase of this market won’t reward everything – only the right stocks.

That’s why today I’m sharing five of my predictions for 2026, developments I believe could help propel stocks higher in the year ahead.

But there’s also a sixth bonus prediction that may be even more important.

It has nothing to do with a sudden market crash and everything to do with a quieter risk building beneath the surface of today’s rally. A risk hiding inside portfolios that look diversified… but aren’t.

I’ll come back to that at the end.

First, here’s Prediction No. 1…

Prediction No. 1: The Next Federal Reserve Chair Will Boost Market Confidence

Federal Reserve Chair Jerome Powell’s final term ends in May 2026, and the president will likely name his replacement soon.

Several candidates have been discussed, but my money is on Kevin Hassett, Director of the National Economic Council.

Because the nomination requires Senate confirmation, the president will likely name his pick soon. Publicly, Hassett has emphasized his independence, telling The Wall Street Journal he would rely on his own judgment and not bow to political pressure when setting interest rates – language that’s all but required to secure confirmation.

At the same time, Hassett has made clear there is “plenty of room” to cut rates in the months ahead, aligning with the president’s view that lower rates are needed to support housing and other interest-sensitive sectors of the economy.

If confirmed, Hassett will likely strike a more optimistic tone than current Fed Chair Jay Powell – a “glass half full” approach that could help bolster market confidence in 2026.

Prediction No. 2: At Least Two More Interest Rate Cuts This Year

If Hassett is confirmed as the next Fed Chair, I expect at least two additional interest rate cuts in 2026.

The Fed already cut rates three times in 2025, including a 0.25% cut at its December Federal Open Market Committee (FOMC) meeting, which brought the fed funds rate to a range of 3.5% to 3.75%. While the Fed has signaled only one more cut in the year ahead, futures markets are pricing in at least two.

That expectation makes sense when you look at the data. Deflationary pressures are spreading globally, and we’re beginning to see early signs of lower prices in the U.S. housing market.

With inflation cooling, the Fed’s focus is likely to shift toward its second mandate: employment. The labor market continues to weaken, with unemployment rising to 4.6% in November and job growth remaining uneven.

Taken together, I believe the Fed will need to cut rates at least twice in 2026 as it moves toward a more neutral policy stance.

Prediction No. 3: AI Revolution and Data Center Boom Accelerates

There was no shortage of negative chatter around the AI Revolution and data center boom in 2025. At various points throughout the year, bearish bets piled up on AI-related stocks amid claims of a market bubble and fears that the aging U.S. power grid couldn’t support rising data center demand.

But the reality is far different.

The AI Revolution is very real, and the data center buildout continues to accelerate. As you can see in the chart below, construction activity has surged over the past two years, underscoring the magnitude of this infrastructure expansion.

At the center of it all is Nvidia Corp. (NVDA).

Nvidia’s latest earnings report already silenced many critics. And AI demand will remain robust, with Nvidia expecting 65% year-over-year revenue growth in its fourth quarter of fiscal year 2026. So, it’s no surprise that Nvidia remains the most valuable company in the world.

While valuations across AI-related stocks have risen, I continue to see opportunities in this space.

Following the short-covering rally in October and November, analysts have revised earnings estimates higher for many of these stocks.

With earnings and sales momentum still accelerating, this remains exactly where we want to be invested in the year ahead.

Prediction No. 4: The U.S. Economy Will Achieve 5% GDP Growth

The U.S. economy is already growing at a solid pace. Recent data show annual GDP growth running between 3.5% to 3.8%.

Looking ahead, key interest rate cuts and the ongoing data center boom, coupled with a shrinking trade deficit and increased onshoring, could converge to boost U.S. GDP growth to at least 5% in 2026.

The trade data already support this view. Onshoring is also accelerating, particularly in the pharmaceutical industry.

So, when you add it all up, U.S. GDP growth of 5% or more in 2026 is no longer a stretch – it’s a very real possibility.

Prediction No. 5: Earnings Momentum Hits the Gas

Taken together, my first four predictions suggest an environment that remains highly favorable for stocks – particularly for companies with strong fundamentals and earnings momentum.

We’re already seeing this play out. The S&P 500 achieved its strongest revenue growth in three years and its strongest earnings growth in four years in the third quarter.

Importantly, earnings momentum is expected to accelerate further. Fourth-quarter earnings are now forecast to increase 8.1%, up from estimates for 7.2% at the end of September.

After that, earnings and revenue are expected to accelerate in 2026, driven by higher guidance, especially from data center companies with a growing order backlog. FactSet currently projects earnings will accelerate to a 14.5% annual pace in calendar year 2026.

This is the kind of earnings environment that allows the strongest stocks to continue leading the market higher.

Bonus Prediction: Portfolios Will Be Devastated by a “Hidden Crash”

When you step back and look across all five of these predictions, a clear pattern emerges.

Growth isn’t disappearing – but it is becoming far more selective.

In 2026, productivity gains, AI-driven efficiency, and scale advantages will matter more than ever. Some companies will continue to accelerate. Others will quietly fall behind, even as headline indexes push higher.

That split is already underway.

And it’s why simply “owning the market” is no longer enough.

That’s where my Stock Grader system comes in (subscription required). My quantitative system zeroes in on the companies delivering explosive revenue and profit growth – that are also experiencing a tidal wave of institutional buying pressure.

That’s how, in 2025 alone, we’ve closed out gains like:

• 555% on Sezzle Inc. (SEZL) (1/3 sell)
• 105% on Alamos Gold Inc. (AGI)
• 120% on SPX Technologies Inc. (SPXC)
• 153% on Robinhood Markets Inc. (HOOD)
• 102.06% on M-Tron Industries Inc. (MPTI)

Plus, many more. But the thing is, most investors wouldn’t have found most of these picks on their own.

Today, more than half of American investors are unknowingly concentrated in the same handful of mega-cap stocks through index funds and retirement accounts. On the surface, portfolios look diversified. Underneath, they’re anything but.

This creates what I call a “hidden crash” — not a sudden meltdown, but a slow, grinding period of stagnation where capital goes nowhere for years, even as select stocks soar.

We saw this before. The same kind of market concentration helped trigger the lost decade from 2000 to 2009. And many of the same warning signs are flashing again today — including collapsing earnings momentum at trillion-dollar tech companies and massive insider selling that rarely makes headlines.

At the same time, a very different group of stocks is already breaking away.

As the $2.8 trillion AI infrastructure buildout accelerates, capital is rotating beneath the surface into what I call Edge Innovators — companies positioned to capture Big Tech’s spending without carrying Big Tech’s valuations. Some of these stocks are already up 200%, 300%, even over 1,000%.

The next 60 to 90 days may represent a critical window — before institutional money fully floods into this space.

In my brand-new Hidden Crash 2026 briefing, I break down:

• Where the hidden concentration risk really lies
• Why broad market funds may disappoint for years
• How smart money is quietly rotating right now
• And how investors can reposition without touching options, crypto, or high-risk speculation

I strongly encourage you to watch this briefing now to understand how I’m positioning for this next phase — and how you can avoid being caught on the wrong side of the market’s most overlooked risk.

Sincerely,

�������°�

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Alamos Gold Inc. (AGI), NVIDIA Corporation (NVDA), Robinhood Markets Inc. (HOOD) and Sezzle Inc. (SEZL)

The post �������°�’s 5 Predictions for 2026 — and a Bonus Warning appeared first on InvestorPlace.

And importantly, that was just a pilot episode for what’s ahead in 2026 and beyond.

For the last 50 years, we lived in “Pax Americana” – considered a time of relative global peace and stability upheld by the United States.

That era died last week in Caracas, replaced by something far more deliberate. We’ve now entered a new regime: Imperium Americanum.

In this new world order, the White House isn’t interested in nation-building or winning hearts and minds. It is interested in assets, supply chains, and threat elimination. 

The Venezuela raid was the ribbon-cutting ceremony for a year of absolute chaos. And if you understand how the political clock is ticking in the background, you know that the president will only pick up the pace. With Mexico and the Arctic in the government’s sights, Uncle Sam is zeroing in on its next targets.

Let’s take a look at the reality of this new regime – and the investment playbook for the most aggressive 11 months in U.S. history.

The 11-Month Window Driving U.S. Aggression

To understand why this shift is happening now – and why it will accelerate – you need to look at the calendar.

We’ve just entered January 2026. In November, only 11 months from now, we’ll have the Midterm Elections.

And the betting markets, polls, and historical trends are all signaling the same thing: The Democrats are favored to flip the House (~75% odds right now) and even have a chance at flipping the Senate (~30% odds and climbing). 

If the gavel passes to the opposing party in January 2027, this “Imperial Presidency” hits a brick wall. Investigations launch, funding freezes, and the latitude to enforce unilateral raids evaporates.

That means the Trump administration has an 11-month window of unchecked power to reshape the geopolitical map. It cannot afford to account for “diplomacy” or wait for “coalitions.” It has to move fast and break things now while it still controls the checkbook and the committee chairs.

That’s why we are likely about to witness a full-bore sprint into imperialism. The administration needs wins to show that it “fixed” the border, “secured” the supply chain, and “crushed” U.S. adversaries before voters go to the polls.

This urgency is the fuel for the fire. It means the “risk premium” in the market will stay elevated; but it also means the government spending spigot for certain military operations will be wide open.

So, where will that spending flow? The target list is already taking shape.

After Maduro: America’s Next Targets

Venezuela was the low-hanging fruit. The oil was there, the “narcoterrorism” warrant was signed, and the refugees induced a political headache. But the Imperial Playbook has other chapters, and the next is already being drafted.

Mexico and the Kinetic Border

In comments to Fox & Friends following the Venezuelan raid, President Trump signaled what comes next:

“We can’t take a chance, after having done this incredible thing last night, of letting somebody else take over… We have to do it again. We can do it again, too. Nobody can stop us. There’s nobody that has the capability that we do.”

For years, Republicans have floated the idea of designating Mexican cartels as Foreign Terrorist Organizations (FTOs). That is no longer a talking point; it is the likely next step.

This is the blueprint. Once you slap a “terrorist” label on the Sinaloa or CJNG cartels, the legal framework changes. You don’t need the Mexican president’s permission to strike them – just a drone and a target package.

The White House views the border crisis not as an immigration issue, but as a security issue driven by hostile non-state actors. The logical extension of the Venezuela raid is a campaign of “targeted strikes” against cartel infrastructure in Northern Mexico: a “sanitization” campaign.

Greenland and the Resource Grab

The target list doesn’t stop at Latin America. 

With that in mind, it’s no accident that Stephen Miller’s wife, Katie, made this post about Greenland around the time of Maduro’s arrest.

This is what I call the Resource Realism wing of the new regime – the faction that views geography as inventory and sovereignty as negotiable.

China controls 90% of the rare earth processing market; and Greenland sits on one of the largest undeveloped deposits of rare earths and uranium on the planet. 

In the old world, we would offer a trade deal. But under Imperium Americanum, we make an offer Denmark can’t refuse – like a heavy-handed “security partnership” that effectively cedes sovereignty over the mining districts to U.S. interests.

The White House sees the Arctic as the next South China Sea. Expect a massive push for U.S. corporate control over Greenland’s geology.

How to Invest In a High-Tempo Imperial Strategy

With the geopolitical landscape redrawn, the question becomes tactical: how do we trade this?

Most investors see ‘war’ and buy Lockheed Martin (LMT) or Northrop Grumman (NOC).

That is the wrong play for this situation.

Lockheed builds the F-35. It costs $100 million and takes years to build. That makes LMT a “Program” stock, great for a 20-year Cold War.

But we aren’t fighting a Cold War. We are fighting a “Shadow War.” We are doing raids, drone strikes, and surveillance, and we need things that are cheap, disposable, and fast.

As such, you want to own “Op-Tempo” (Operational Tempo) stocks. You want the companies that make the bullets, the drones that get shot down, and the satellites that find the targets.

There are a few names that fit the bill for this Imperial Basket.

Drones, Attrition, and the New Air Power

If the U.S. starts striking cartel labs in Mexico, it won’t send a piloted aircraft. It’ll send a Valkyrie drone made by Kratos (KTOS).

Kratos is the leader in “attritable” aircraft – high-performance drones that are cheap enough to lose. In a high-tempo conflict where you are flying constantly over hostile territory, you burn through these things like AA batteries.

Kratos is a high-beta play. If the news breaks that “U.S. Drones Strike Cartel Convoy,” Lockheed stock may move 1%. Kratos stock would pop 15%. This is the pure-play on kinetic action.

But drones are only as valuable as the intelligence guiding them.

The Eyes of the Empire: Surveillance as a Core Weapon

Imperium Americanum is an intelligence-led regime – because, of course, you cannot strike what you cannot see.

• BlackSky (BKSY) is the tactical play. It provides real-time, low-latency imagery. This company tells the situation room, “The target just moved to this compound.” And it’s already hunting cartels for “undisclosed Latin American customers.”
• Planet Labs (PL) is the strategic play. If the U.S. is taking over Greenland’s mining sector or managing Venezuela’s oil fields, we’ll need daily, global scans of the terrain. This is Planet Labs’ specialty.

These stocks have been beaten down as “unprofitable tech.” But we think that in 2026, they’ll become “critical national security infrastructure.”

Of course, collecting intelligence is only half the battle. You need a system to synthesize it.

The Software Running the Imperial State

If the White House is micromanaging the world – from Venezuelan oil yields to cartel movements to Greenland mining output – it needs a dashboard.

Palantir (PLTR) is that dashboard.

It is already deeply embedded in the Pentagon. But in this new regime, where the line between military and economic policy is erased, Palantir becomes the operating system of the imperialist agenda. It is the safest, strongest hold in the basket.

Who Profits When the Dust Settles

The stocks we’ve mentioned so far capture the machinery of this conflict. There’s one company that captures the spoils.

As we mentioned in a previous issue, Maduro’s ouster may have been veiled as a response to ‘narcoterrorism.’ But in truth, the U.S. seized Venezuela for its heavy crude. And Valero (VLO) is the company that refines it.

While defense stocks give you the growth from the conflict, Valero gives you the profit from the peace. Its margins are about to explode as cheap Venezuelan sludge hits U.S. refineries on the Gulf Coast. This is your cash cow.

The Rules of the Imperial Market

As we sprint through the next 11 months, you need to rewrite your mental model of the market.

The market only really cares about liquidity and earnings. And right now, the U.S. government is about to inject massive liquidity into the business of projecting power.

The Bottom Line

The raid on Caracas was the starting gun of a new era.

We face 11 more months of a White House that feels invincible, with a deadline that makes them desperate. That is a recipe for maximum action.

The U.S. is going shopping. We just bought a country in South America. We might browse the aisles in the Arctic tomorrow.

As President Trump boasted, “Nobody can stop us.” That’s not just rhetoric – it’s a market signal. So, don’t stand in the way of this momentum. 

Follow closely behind, and fill your basket with the stocks set to benefit most in this new era.

The post Maduro Is Gone – and the Age of American Empire Has Begun appeared first on InvestorPlace.

What if Warren Buffett’s one-time heir apparent showed you exactly where to put your money today… and he was going to back that roadmap with billions of dollars?

That’s not hypothetical.

In December, JPMorgan hired Todd Combs – one of Berkshire Hathaway’s key investment managers and the former CEO of Geico – to run a $10 billion investment fund focused on direct equity and venture capital investments in industries critical to U.S. economic security and national resilience.

JPMorgan and Combs have already effectively created a target list that we can follow.

Below are the major sectors they have explicitly flagged. For each, I’ve included a simple, one-click ETF idea to gain exposure.

After the list, we’ll go deeper into specific stock ideas in each sector that our experts are already highlighting.

Defense – ETF idea: The iShares U.S. Aerospace & Defense ETF (ITA) – it’s a straightforward way to get exposure to the major defense contractors.

Aerospace – ETF idea: SPDR S&P Aerospace & Defense ETF (XAR) – it tends to be more “equal-weight-ish” than some peers, often capturing more mid-tier suppliers.

Healthcare – ETF idea: the Vanguard Health Care ETF (VHT) – a broad healthcare sector fund that includes large-, mid-, and small-cap stocks.

Energy – ETF idea: the Vanguard Energy ETF (VDE) – it gives you diversified exposure across U.S. energy producers and services.

Those four aren’t the full story.

In its press release, JPMorgan also highlighted two additional areas that will receive direct equity investments as part of its broader $1.5 trillion initiative to address pressing national needs.

Here’s the first…

Critical minerals / Rare earths – ETF idea: the VanEck Rare Earth/Strategic Metals ETF (REMX) – a direct way to play the “inputs” side of industrial resilience.

And finally…

Frontier technologies (think AI, robotics, advanced manufacturing) – ETF idea: the Global X Robo Global Robotics & Automation ETF (ROBO). It offers pure-play exposure to robotics, automation, sensors, and industrial AI.

This Combs/JPMorgan framework overlaps significantly with themes our InvestorPlace experts have been flagging for months.

Let’s look at a few examples.

Beginning with Defense and Aerospace, our technology expert, Luke Lango of Innovation Investor, recently outlined why 2026 could be a breakout year for space and defense-related stocks.

As part of his analysis, he highlighted several companies that would likely sit high on any institutional target list:

Lockheed Martin (LMT), Northrop Grumman (NOC), RTX (RTX), L3Harris (LHX), and Leidos (LDOS) remain the core defense space plays.

These companies build the satellites, sensors, and integration layers that the “space security” and missile-defense portions of the EO will require.

These companies, being more established, offer exposure to multi-decade government spending cycles with relatively lower execution risk.

Last month, �������°� of Fry’s Investment Report and lead analyst Tom Yeung warned that many popular AI stocks are trading at stretched valuations.

Their solution?

Look where the market isn’t – healthcare.

As Tom noted in a recent update, the Trump Administration’s pledge to “deploy every tool in our arsenal” to lower drug pricing has pushed some healthcare valuations to historically low levels – even among top-tier stocks.

One example, and an idea for you, is Royalty Pharma plc (RPRX). This is a stock Eric has recommended to his Investment Report subscribers. They’re up 40% as I write on Tuesday.

If you’re less familiar with it, RPRX operates a unique model, buying royalty streams from blockbuster drugs. So, investors gain exposure to medical breakthroughs without incurring clinical trial risk. According to Eric and Tom, despite their gains, shares still trade at a low, attractive valuation.

This isn’t the only healthcare play in Eric’s Investment Report portfolio. In early December, he recommended a company that helps hospitals store, track, prepare, and dispense medications more safely, efficiently, and automatically. Subscribers are already up 13%, and Eric believes this is just the beginning:

I expect the company to fatten its margins and grow earnings at double-digit rates during the next three years. Despite that potential, the stock is trading for a modest 22 times next year’s estimated earnings, and less than 20 times the 2027 estimate.

Assuming this company maintains its current strong trajectory, the stock should outperform the broad market by a wide margin.

If you’d like to learn how to join Eric and Tom in Investment Report and add this company to your portfolio, you can do so here.

While headlines are currently focused on oil thanks to the Trump Administration’s actions in Venezuela, there is a more relevant energy story related to AI and next-gen technologies…

Uranium.

AI has an energy problem. Training and running large models requires massive, uninterrupted power. As tech giants increasingly turn to nuclear energy, uranium has quietly become a key enabler of the AI economy.

We’ve been tracking this trend in the Digest, and it’s one of the clearest long-legs investment themes available today.

Yesterday, veteran trader Jonathan Rose of Masters in Trading Live released a must-watch free episode on how to trade the uranium space in 2026.

He broke down:

• Why this uranium cycle is different
• How he’s positioned for 2026
• The specific stocks he likes

One of his favorite core holdings? Uranium Royalty Corp (UROY) – a Vancouver-based pure-play uranium royalty and streaming company with global exposure.

But that’s just the start. Jonathan also highlights four additional stock ideas in the episode.

By the way, if you’re not catching Jonathan’s free MIT Live shows each day, you’re missing great, actionable market research that many firms charge thousands for – yet Jonathan gives it away for free every market day.

You can learn more about signing up to join him right here.

Last week, Luke unveiled a handful of tech predictions for 2026, and one of them relates to one of the most exciting “frontier technologies” of all – humanoids.

Here’s Luke:

Prediction: By the end of 2026, humanoids will be visibly present in real operations – factories and warehouses first, then early access in homes.

They won’t be ubiquitous or perfect but real enough that “humanoids are coming” starts being a procurement question rather than a debate.

This isn’t science fiction.

Luke points to concrete examples already in motion:

• Figure AI’s BMW Spartanburg deployment, where robots progressed to 10-hour assembly-line shifts and contributed to the production of 30,000+ vehicles
• Agility Robotics’ Digit, now moving from pilot programs to paid, multi-site deployments
• 1X’s NEO home robot, with U.S. deliveries slated to begin in 2026 at a $20,000 early-access price

Luke has highlighted picks that dovetail with JPMorgan’s final target sector: rare earths. Here he is explaining the humanoid/AI connection to rare earths (and base metals):

Humanoid robots are systems of systems.

Without rare earth magnets, copper wiring, lithium, graphite, and specialty alloys – they don’t exist.

He flagged a basket of companies across the materials stack, including:

• MP Materials (MP)
• Freeport-McMoRan (FCX)
• Southern Copper (SCCO)
• Rio Tinto (RIO)
• Albemarle (ALB)
• Lithium Americas (LAC).
• Cleveland-Cliffs (CLF)
• ArcelorMittal (MT)

And this is just the materials layer – before even considering compute, sensors, energy systems, and integration.

Overall, Luke is “insanely optimistic on humanoid robots,” writing:

The companies that survive the validation phase – the ones that can actually ship humanoids that work, deploy robotaxis that scale, build chips that compete – become the next generation of platform companies.

The challenge is finding them before everyone else does.

But Luke has tackled this challenge for you. He’s just put together a detailed video presentation on the startups positioned at the center of these trends. It covers:

You can watch the full presentation here.

Every so often, big money leaves footprints.

Todd Combs and JPMorgan just left some very large ones – pointing to the industries they believe will define economic strength and national resilience in the years ahead.

Our experts aren’t guessing. They’re already identifying the companies positioned to ride those waves early.

But today’s Digest only begins to connect the dots. The opportunity set here is far bigger So, going forward, we’ll continue to fill in the details – bringing you timely, actionable ideas from our experts as these themes move from blueprint to reality.

Have a good evening,

Jeff Remsburg

(Disclaimer: I own ROBO.)

The post Your $10 Billion Investing Playbook for 2026 appeared first on InvestorPlace.

That’s certainly been true in the markets, where the past year seemed to unfold at breakneck speed.

As we turn the page to a new year, this is a good moment to step back, assess what 2025 revealed and think carefully about what could come next.

That’s why, in today’s Market 360, I’ll share five of my predictions for 2026 and explain why I believe these developments could help propel stocks higher. While I don’t have a crystal ball and I can’t predict the future with certainty, these are the trends and shifts I expect could take shape in the year ahead – and, in turn, positively impact the stock market.

Prediction #1: Kevin Hassett Should Be Named the Next Federal Reserve Chair

Federal Reserve Chair Jerome Powell’s final term ends in May 2026, and President Trump is expected to name his replacement soon.

Several candidates have been discussed, but my money is on Kevin Hassett, Director of the National Economic Council.

Because the Fed Chair nomination is a big deal and requires congressional approval, President Trump is likely to announce his choice this month. Publicly, Hassett has emphasized his independence, telling The Wall Street Journal he would rely on his own judgment and not bow to political pressure when setting interest rates – language that’s all but required to secure confirmation.

At the same time, Hassett has made clear there is “plenty of room” to cut rates in the months ahead, aligning with President Trump’s view that lower rates are needed to support housing and other interest-sensitive sectors of the economy.

If confirmed, Hassett will likely strike a more optimistic tone than his predecessor – a “glass half full” approach that could help bolster market confidence in 2026.

Prediction #2: At least Two More Key Interest Rate Cuts in 2026

If Kevin Hassett is confirmed as the next Fed Chair, I expect at least two additional interest rate cuts in 2026.

The Fed already cut rates three times in 2025, including a 0.25% cut at its December Federal Open Market Committee (FOMC) meeting, which brought the fed funds rate to a range of 3.5% to 3.75%. While the Fed has signaled only one more cut in the year ahead, futures markets are pricing in at least two.

That expectation makes sense when you look at the data. Deflationary pressures are spreading globally, and we’re beginning to see early signs in the U.S. housing market.

With inflation cooling, the Fed’s focus is likely to shift toward its second mandate: employment. The labor market continues to weaken, with unemployment rising to 4.6% in November and job growth remaining uneven.

Taken together, I believe the Fed will need to cut rates at least twice in 2026 as it moves toward a more neutral policy stance.

Prediction #3: AI Revolution & Data Center Boom Accelerates

There was no shortage of negative chatter around the AI Revolution and data center boom in 2025. At various points throughout the year, bearish bets piled up on AI-related stocks amid claims of an AI bubble and fears that the aging U.S. power grid couldn’t support rising data center demand.

But the reality is far different.

The AI Revolution is very real, and the data center buildout continues to accelerate. As you can see in the chart below, construction activity has surged over the past two years, underscoring the magnitude of this infrastructure expansion.

At the center of it all is NVIDIA Corporation (NVDA).

NVIDIA’s latest earnings report silenced many critics. And AI demand will remain robust, with NVIDIA expecting 65% year-over-year revenue growth in its fourth quarter of fiscal year 2026. So, it’s no surprise that NVIDIA remains the most valuable company in the world.

While valuations across AI-related stocks have risen, I continue to see opportunities in this space.

Following the short-covering rally in October and November, analysts have revised earnings estimates higher for many of these stocks. And with earnings and sales momentum still accelerating, this remains exactly where we want to be invested in the year ahead.

Prediction #4: U.S. Economy on Track to Achieve 5% GDP Growth

The U.S. economy is already growing at a solid pace. Recent data show annual GDP growth running between 3.5% to 3.8%. Treasury Secretary Scott Bessent has also pointed to a “very strong” holiday season, which should help keep growth near 3% for 2025 overall.

Looking ahead, I believe economic growth could accelerate meaningfully in 2026. Key interest rate cuts and the ongoing data center boom, coupled with a shrinking trade deficit and increased onshoring, could converge to boost U.S. GDP growth to at least 5% in 2026.

The trade data already support this view. Onshoring is also accelerating, particularly in the pharmaceutical industry. So, when you add it all up, U.S. GDP growth of 5% or more in 2026 is no longer a stretch – it’s a very real possibility.

Prediction #5: Earnings Momentum Set to Hit the Gas in 2026

Taken together, my first four predictions suggest an environment that remains highly favorable for stocks – particularly for companies with strong fundamentals and earnings momentum.

We’re already seeing this play out. The S&P 500 achieved its strongest revenue growth in three years and its strongest earnings growth in four years in the third quarter. Also, earnings surprises in the third quarter were the strongest in four years.

Importantly, earnings momentum is expected to accelerate further. Fourth-quarter earnings are now forecast to increase 8.1%, up from estimates for 7.2% at the end of September. FactSet also projects that the S&P 500 will achieve 12.1% average earnings growth in calendar year 2025.

After that, earnings and revenue are expected to accelerate in 2026, driven by higher guidance, especially from data center companies with a growing order backlog. FactSet currently projects earnings will accelerate to a 14.5% annual pace in calendar year 2026.

In my view, this is exactly the kind of earnings environment that allows the strongest stocks to continue leading the market higher.

What Ties These Predictions Together

When you look across all five of these predictions, a clear theme emerges.

Growth isn’t going away. But it is becoming far more selective.

We’re entering a market environment where productivity gains, AI-driven efficiency and scale advantages matter more than ever. Some companies are accelerating. Others are quietly falling behind, even as the broader market moves higher.

That split is already underway.

And it’s why simply “owning stocks” is no longer enough. In the years ahead, returns will increasingly depend on whether you’re positioned on the right side of this shift – or stuck holding businesses that can’t keep up.

This is what I call the Economic Singularity.

It’s a full-scale reset in how companies grow and compete. Software is replacing labor. AI is compressing costs. What once took teams of people weeks to accomplish can now be done in minutes. Sometimes seconds.

That kind of change doesn’t just reshape industries. It reshuffles winners and losers inside the market.

And it creates a quiet risk for investors who don’t adapt.

Tomorrow, I’ll be sharing a short video briefing that digs into one specific development tied to this shift – something I believe investors should be paying close attention to as we move deeper into 2026.

But the broader framework matters even more.

I break this down in more detail during my Economic Singularity video, including how I believe investors can position for this transition, where I see the strongest opportunities emerging, which types of stocks are likely to struggle – and how investors can position themselves as this new phase of growth takes hold.

If you want to better understand the forces tying these predictions together – and how I’m thinking about the road ahead – I encourage you to watch the presentation now.

Sincerely,

�������°�

Editor, Market 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

NVIDIA Corporation (NVDA)

The post My Five Predictions for 2026 appeared first on InvestorPlace.

The official line from the briefing room is “Operation Ultimate Justice.” We’re told it was about narcoterrorism, liberation, and restoring the sacred flame of democracy to Bolívar’s cradle.

But let’s be real. You don’t send the 82nd Airborne to seize a head of state because you’re worried about traces of cocaine on banknotes. You do it because the geopolitical chessboard demands a violent rearrangement of the pieces.

This seizure is a geopolitical margin play. And more importantly, it is the loudest signal yet of a massive regime shift in how the world works – a shift where the invisible hand of the market is giving way to the very visible, very heavy hand of Pennsylvania Avenue.

Here is why this takedown marks the definitive end of the era where we could pretend politics and markets were separate spheres – and what that means for your portfolio.

Venezuela’s Heavy Crude Is the Real Prize

The reason U.S. boots are on the ground in Venezuela comes down to industrial chemistry and profit margins on the Texas Gulf Coast.

For 15 years, we’ve been told the U.S. is energy independent because of the shale revolution in the Permian Basin. That’s a half-truth that hides a costly logistical mismatch.

The U.S. pumps immense amounts of “light sweet” crude, comprising most of the 1.7 million barrels produced along the Gulf Coast daily. But the sprawling refinery complexes built there in the 1970s and ’80s – owned by Valero (VLO), Phillips 66 (PSX), and Exxon (XOM) – were designed to process ‘heavy sour’ crude: the opposite of what domestic wells produce.

When the U.S. began heavily sanctioning Venezuela, we cut off the premier source of that heavy sludge. Our refineries have been forced to import expensive replacements from Canada (which requires pipelines) or buy it from Russia (awkward, to say the least) or the Middle East (which means expensive shipping costs).

It created a ridiculous paradox: America, an oil superpower, couldn’t efficiently refine its own oil, while the perfect commodity source sat just across the Caribbean, locked behind a political wall.

Last week, the White House kicked down that wall.

In truth, the ‘narcoterrorism’ indictment was just a legal sledgehammer – the means, not the motive. The real objective is to unlock 300 billion barrels of the exact chemical grade of crude required to make the U.S. refining complex run at peak profitability. It’s about securing the feedstock that allows Valero to turn a barrel of sludge into diesel and jet fuel at maximum margin.

Geopolitically, it’s a bonus that we also seized the collateral for about $12 billion in Chinese loans and kicked Rosneft out of the Western Hemisphere. But make no mistake: this operation was underwritten by the ghosts of industrial capacity.

Market Fallout From the Venezuela Oil Shock

Now, let’s talk about what Maduro’s seizure – and potential U.S. occupation – means for markets, because the fallout will be massive. 

The Crude Reality: Short-Term Pop, Long-Term Drop

In the next 48 to 72 hours, expect Brent and WTI to jump $5 to $8. This is the “chaos premium.” There will be fears of colectivos blowing up pipelines or loyalist generals torching infrastructure on their way out, which is why insurance rates on tankers in the Caribbean just tripled.

But fade that rally.

If the U.S. military can secure the oil fields in the Orinoco Belt (a big “if,” but that’s the mission), the medium-term outlook is overwhelmingly bearish for global oil prices. Venezuela currently pumps less than 1 million barrels a day. With U.S. capital and expertise, that could hit 2.5 million within 18 months.

The world is already awash in supply. Dumping another 2 million barrels onto the global market daily puts a titanium ceiling over oil prices. We are looking at a long-term future of $60 to $65 oil – great for consumers and terrible for petrostates that aren’t us.

Gulf Coast Refiners Are the Biggest Winners

The cleanest trade on this entire operation is the U.S. refining sector.

If you own Valero, Phillips 66, or Marathon Petroleum (MPC), you just won the lottery.

Their input costs (heavy crude) are about to collapse relative to the price of the finished product (gasoline and diesel). Their “crack spreads” – the profit margin on refining – will blow out to historic highs. They are finally getting the feedstock they were built for, delivered cheaply from across a U.S.-controlled Caribbean Sea.

Chevron is likely the first mover here. It’s the only major U.S. player that never really left Venezuela. It kept a foot in the door, operating under special licenses even during the darkest days of Maduro’s governance.

Chevron is now the de facto operating arm of the U.S.’ reentry into Venezuelan energy. It has the maps, the geology data, and the personnel on the ground. While other major players are negotiating entry with the new transitional government, Chevron will already be pumping.

Who Loses When Venezuelan Oil Returns

If Gulf Coast refiners can get cheap Venezuelan heavy crude via tanker, they don’t need expensive Canadian heavy crude shipped via rail or controversial pipelines. This is a direct shot across the bow of Canadian oil sands producers like Suncor (SU).

Furthermore, if global oil prices stabilize lower because of Venezuelan supply, high-cost U.S. shale producers in the Permian – those who need $75 oil to break even – will feel the squeeze.

Venezuela Signals a New Era of State-Driven Markets

If you are just trading the oil pop, you are missing the forest for the burning trees. The Venezuela raid is a microcosm of a much larger, more significant dynamic that will define investing for the next decade.

We are witnessing the definitive end of the neoliberal consensus: the idea that the government sets the rules, then steps back to let the market play.

That era is dead. We are now in the era of the Imperial Executive.

The White House is no longer just a regulator. It is an active, aggressive participant in every facet of economic life. Maduro’s seizure is just the most kinetic example of a mindset that views everything – from foreign borders to corporate boardrooms – as terrain for executive action.

Consider the pattern over the last few years leading up to this moment:

• Trade: The White House is fundamentally managing trade flows, deciding which industries thrive based on “national security” imperatives that change with the political winds.
• Domestic Industry: We’ve seen the government taking direct equity stakes in critical companies, from semiconductor manufacturers to green energy firms, blurring the line between public interest and private profit. The State is now the ultimate venture capitalist.
• Foreign Policy as Economic Policy: America is using the Treasury Department as a weapon, the dollar as ammunition, and, now, the Marines to execute hostile corporate takeovers of sovereign nations.

Venezuela is the thesis statement of this new regime: There is no such thing as a “private market” separate from state power.

The Final Word

The White House has decided the invisible hand is too slow, too inefficient, and too unreliable to secure American interests. So, it’s donning brass knuckles instead.

What does this mean for you as an investor?

It means the old models of fundamental analysis – discounted cash flows, P/E ratios, competitive moats – are secondary to politics.

You cannot model a company’s future cash flows without first modeling its relationship with Pennsylvania Avenue.

• Is the company’s supply chain aligned with White House foreign policy? (If it runs through China, sell. If it runs through the new U.S.-occupied Venezuela, buy.)
• Is the industry considered strategically vital enough to receive massive state subsidies or protectionist tariffs?
• Is the CEO on the right email chains with the Commerce Department?

In this new world, alpha isn’t generated by finding an undervalued asset in a free market but by correctly anticipating where Washington’s eye will land next.

If the White House decides it wants heavy crude, it will kick down a door in Caracas to get it. If it wants chips, it will flood the zone with subsidies. And if it wants control, it will legislate competitors out of existence.

The State is armed. It’s hungry. And it’s not asking permission.

The best trade right now isn’t growth or value. It’s alignment.

The post Venezuela, Oil, and the End of Market Neutrality appeared first on InvestorPlace.

As I write on Monday, markets are digesting dramatic news from the weekend: U.S. forces carried out a high-stakes military operation in Venezuela, capturing President Nicolás Maduro and his wife.

Maduro is now in New York awaiting his first court appearance. He faces charges including narco-terrorism conspiracy, cocaine importation conspiracy, and weapons offenses.

President Trump has signaled a willingness to oversee Venezuela’s transition and potentially tap its vast oil reserves. For now, however, Caracas remains under interim leadership, and the day-to-day realities of U.S. involvement – let alone governance – remain murky.

As I write, the market is sharply higher. Energy and oil-service stocks are climbing as traders price in the possibility of eventual U.S. involvement in Venezuela’s oil patch. Gold, silver, and defense stocks are firmer as investors hedge geopolitical risk. But there’s not enough fear of additional conflict to weigh on risk assets, so even the Nasdaq is up nearly 1%.

Now, despite these gains, this news is unlikely to be a sustained driver of market returns. Rebuilding Venezuela’s energy complex would take years, and a broader regional conflict still appears unlikely.

That said, this news dovetails nicely into what will matter in 2026: volatility, positioning, and owning the right assets when headlines hit.

And that brings us to our experts and their 2026 forecasts…

A loose consensus emerges:

• Risk assets are going higher
• AI will change the market in 2026, as well as the idea of a “forever stock”
• Earnings growth driven by AI-powered efficiency will be the defining factor separating winners from losers
• But even if you own the right stocks, 2026 will test your conviction with sharp, frequent volatility

Let’s unpack what this means and how to prepare both your portfolio and your mindset for the year ahead.

Kicking off 2026, we have near-record-high valuations, a cautious Fed, and inconsistent confidence in the AI trade. Despite that, veteran trader Jonathan Rose of Masters in Trading Live sees a bullish setup that most investors are overlooking.

Why?

The short end of the yield curve.

To make sure we’re all on the same page, the yield curve shows the interest rates investors earn on U.S. Treasury bonds across different maturities – from short-term bills to long-term bonds.

Under normal conditions, longer-term bonds yield more than short-term ones, compensating investors for locking up their money longer.

Here’s our current yield curve…

Here’s Jonathan on why the short end has him bullish:

The Fed has quietly told us what they’re going to do at the front end of the yield curve in 2026. They’ve signaled they’ll be buying somewhere in the ballpark of $240–$300 billion in T-bills…

They’re effectively stepping in to absorb close to 70% of all the new supply at the short end.

They don’t want to call that quantitative easing. But functionally, it’s a form of targeted QE at the front end.

In short, the Fed has signaled it will buy most of the new short-term Treasury supply. This will put upward pressure on prices, downward pressure on yields, and ease volatility.

And this has important downstream effects for stocks.

Here’s Jonathan:

When the curve steepens and the Fed is actively supporting the front end, bond volatility tends to get sucked out of the system…

If bonds stop whipping around, investors who were hiding in “safe” assets start getting more comfortable reaching out on the risk curve.

They move further out in duration, further out in credit, further out into equities.

And that’s where you can see some pretty powerful risk-on moves that don’t look connected to the headlines at all.

As to that powerful risk-on move, Jonathan believes the S&P 500 could surge as much as 13% by the end of Q1. From today’s level, that would put the S&P near 7,800.

That’s an aggressive call – and he acknowledges it – but his message to investors is simple: don’t let emotion override what market structure is signaling.

Here’s his bottom line:

When I zoom out and look at the plumbing, this setup looks extremely bullish for risk assets into Q1.

Technology has always reshaped markets.

But in past decades, innovation moved slowly enough that dominant companies could remain leaders for years – even generations – rewarding patient, buy-and-hold investors.

According to our macro investing expert �������°� of Fry’s Investment Report, that old playbook is breaking down – and AI is the reason.

Companies are living, breathing organisms – they just so happen to subsist on a steady diet of market share gains and/or expanding profit margins.

And also, much like us fragile humans, companies enjoy a lifetime of indeterminate length. But their lifespans do eventually come to an end.

Most investors ignore or overlook this important reality. They tend to think of their core investments as “forever stocks.”

But that sort of perspective can be a dangerous one – especially now that artificial intelligence is running amok in the global economy.

AI is spawning thousands of such companies, many of which will conquer and replace established companies that may seem indomitable today, if not immortal.

The truth is that companies that fail to leverage AI for efficiency gains risk displacement by competitors who do. And the pace of disruption has accelerated beyond anything we’ve seen in previous technology cycles.

Given this, Eric urges investors to pressure-test both new investment ideas and existing holdings in 2026 by asking two critical questions (both related to AI):

• Is this company introducing a significant efficiency boost, relative to the established, market-leading product or service?
• Is this company applying new technologies to boost the efficiency of its operations?

And at the core of both questions lies one thing: earnings.

Which brings us directly to what may be the defining theme of the new year.

When it comes to AI, we’ve crossed a threshold. Companies will either leverage AI effectively or no longer be able to compete in today’s marketplace.

But – critically – the stage where all AI-related stocks rise is behind us. We’ve reached a new market environment that requires evidence that AI is boosting bottom lines.

Here’s how our technology expert Luke Lango of Innovation Investor frames this shift:

The first phase of the AI Boom was about one question: How fast can we get compute online?

The 2026 phase becomes: How much profit does this compute generate?

That shift doesn’t kill AI spending. It just concentrates it.

Like Eric, Luke says that the companies that effectively leverage AI for efficiency will be the winners this year, writing that they deliver…

Less waste, more returns, and more earnings concentration…

The punchline is simple: AI becomes the dominant engine of U.S. growth … and the stock market becomes even more concentrated around whoever owns that engine.

So, the question for investors looking ahead to 2026 becomes “how do we identify which companies will be at the center of this concentration?”

This is where legendary investor �������°�, editor of Growth Investor, provides us with a practical framework.

Louis has built his career around quantitative, fundamentals-driven stock selection. And in a recent issue of his free newsletter Market 360, he laid out exactly what investors should look for in fundamentally strong companies positioned to benefit from AI-driven efficiency:

• Invest in high-margin companies that dominate their business
• Along these lines, companies that have margin expansion tend to post bigger earnings surprises.
• Invest in companies with strong forecasted sales and earnings.
• Look for companies that see positive analyst revisions in the past three months, as these typically post earnings surprises.

These factors consistently point toward companies with durable earnings power – the kind best positioned to benefit from AI-driven efficiency gains.

So, if 2026 is about “show me the money” like Luke suggests, then Louis’ quantitative approach that identifies companies already demonstrating that profitability will be more important than ever.

If you want help evaluating your own holdings through this earnings lens, Louis’ Stock Grader is a great tool (a subscription to one of Louis’ services is required). You simply plug in your stocks, and it will instantly grade them from A to F based on Louis’ quantitative system.

If you have a Stock Grader account, log in here.

Finally, despite the bullish outlook, none of our experts expect a smooth ride in 2026.

Back to Luke:

Even if the S&P rips higher, 2026 is likely a stomach-churner. Not because the bull case is wrong … but because the market is entering the phase where everything matters again…

The market doesn’t need a recession to correct 10–15% when valuations are elevated.

It just needs a cocktail of rates backing up, one hyperscaler pausing a project, a financing headline, or a “profit margins are peaking!” panic from someone with a chart and too much confidence.

History backs this up.

In a typical year, markets experience at least one 10% correction. But Luke reminds us that during the late-1990s tech boom, the Nasdaq endured six separate 10%+ pullbacks – even as it marched higher overall.

Here’s Luke again:

We should assume multiple corrections [this year] because that’s just what happens at this point in the cycle. You get big steps forward and big steps backward.

Here’s the bigger point: volatility isn’t the enemy of the bull market. It’s the admission price.

Jonathan stressed this same takeaway in his 2026 forecast:

There will be scares, dips, ugly candles, and scary headlines along the way. That’s the cost of admission…

[But I’m] incredibly bullish into Q1 2026.

When you connect the threads from Jonathan, Eric, Luke, and Louis, a clear picture emerges.

There will be real opportunity to make money in 2026 – but likely in fewer stocks, and with more nerve-rattling price action along the way.

Expect the market to reward AI-driven efficiency, concentrating gains among a smaller group of companies that can demonstrate expanding margins and earnings power.

But brace yourself for sharp corrections that will shake out anyone expecting a straight line higher.

Luke captured many of these themes as he wrapped up his 2026 forecast, so I’ll let him take us out today:

The 2026 stock market in one sentence…

“The S&P rips higher on AI-led earnings and supportive policy — but it does it while violently shaking out anyone who expects a straight line.”

So, the correct emotional posture for 2026 is not “calm confidence.”

It’s more like: helmet on, eyes open, dry powder ready, and don’t confuse volatility with the thesis breaking….

2026 will reward the investor who understands the map… and can keep their hands on the saddle while the market tries to throw them off.

Have a good evening,

Jeff Remsburg

The post “Helmet On” for 2026 appeared first on InvestorPlace.

January is historically one of the strongest months of the year for the stock market, and some people like to say, “As January goes, the year goes.”

But so far, things are starting off with mixed signals.

On Friday, data center stocks surged higher.  This is a huge deal because we know that their order backlogs are growing, and earnings and sales are gaining momentum. So, it tells me the market was focused on the fundamentals.

However, in the background, geopolitical tensions were escalating. The new year began with major international developments, including a blackout in Moscow and escalating protests in Iran. Then, early Saturday morning, U.S. military forces captured and arrested Venezuelan President Nicolás Maduro, who is accused of conspiracy to transport drugs into the U.S.

This decisive action reshaped the geopolitical landscape, but the energy element of this story is what I’m watching closely.

In fact, in this week’s Navellier Market Buzz, which was filmed before Sunday’s news, I predicted that if we get a regime change in Venezuela, we could have permanently low energy prices. That’s because Venezuela has the biggest oil reserves in the world. And if we can help them boost production with other U.S. energy companies, that could be a game-changer.

Also, in this week’s Navellier Market Buzz, I gave my full January outlook. I talked about earnings expectations, deflation risk and what it means for the Federal Reserve’s policies. I also share my top stocks to watch this year.

Click the image below to watch now.

To see more of my videos, click here to subscribe to my YouTube channel.

Plus, the grades in Stock Grader (subscription required) have been updated this week! Click here to plug in your own stocks and see how they rate.

The Bigger Shift Taking Shape in 2026

While 2026 has started with dramatic headlines, it has already made two things clear. First, the U.S. is reasserting its leadership on the global stage. Second, fundamentals matter more than ever.

Saturday’s events were a reminder of that.

The reality is that energy security and supply chains are more important than ever – especially if the U.S. wants to win the artificial intelligence race.

Whether you are a fan or not, the Trump administration understands this.

That’s one of the reasons it created what I’ve been calling the MAGA Fund.

The goal is to boost economic security, energy independence and long-term national wealth, while ensuring that the U.S. remains the global leader in next-generation technology – like AI.

That’s why I put together a free briefing that explains what the MAGA Fund is, how it works, why it matters now and how you can profit from it as we head into 2026.

Click here to watch the briefing now.

Sincerely,

�������°�

Editor, Market 360

The post January Market Outlook – Earnings, Fed Policy, Global Risks & Top Stocks to Watch appeared first on InvestorPlace.

In the essay below, my colleague Luke Lango lays out a case for why AI isn’t just transforming technology or markets; it’s reshaping the labor economy itself. Luke connects history, data, and real-world corporate behavior to show why this moment feels different, and why the traditional relationship between productivity and wages is breaking down.

Just as important, he explains what investors and workers can do now to adapt – before this shift becomes impossible to ignore. If you want to go deeper into how to position for this transformation, Luke recently broke down the government-backed AI buildout and the specific companies he believes are best positioned to benefit in a special broadcast.

You can watch the replay and access the free briefing right here.

Now, here’s Luke.

In 1811, as England’s Industrial Revolution was gaining momentum, a group of textile workers decided to fight back.

Led by the mythical “General Ludd” of Sherwood Forest, what began as a concentrated movement in central England quickly spread across the nation. Traditional workers took hammers to the stocking frames and power looms – the machines erasing their jobs, their wages, and centuries of hard-won craft.

They weren’t irrational or anti-progress. They were simply watching their livelihoods evaporate in real time, and they understood that no one was coming to help them.

And it took generations of political struggle to rebuild something resembling dignity for working people.

Right now, a similar story is unfolding. This time, AI is the existential threat. 

While investors are worrying about if Big Tech is spending too much on AI, the ground beneath our feet – the very foundation of how we earn a living – is turning into quicksand.

The biggest risk we face isn’t a bear market or even a crash in the Nasdaq.

It’s the permanent devaluation of human labor…

The Iceberg Index: The Truth �������°� AI Job Loss in America

The latest research shows just how far this displacement has already advanced beneath the surface.

The Massachusetts Institute of Technology, partnering with Oak Ridge National Laboratory, recently released what it calls the “Iceberg Index” – and it’s terrifyingly blunt.

The study’s models suggest that roughly 12% of existing U.S. jobs could be replaced by AI right now.

That’s 1 in 9 people whose economic output can be matched by a software subscription that doesn’t need health insurance and doesn’t take bathroom breaks.

We aren’t even talking about what happens when the AI further matures.

When an AI agent can not only write the email but also plan the project and execute the code migration without human intervention, the need for human “managers” in the middle evaporates.

We are already seeing the results…

• HP Inc. (HPQ) just announced it is cutting up to 6,000 jobs by 2028 to “fund AI investment.”
• United Parcel Service Inc. (UPS) cut 12,000 corporate roles earlier this year, explicitly stating that automation means those jobs aren’t coming back.
• Amazon.com Inc. (AMZN) is undergoing its biggest corporate layoff ever.

This isn’t recessionary. This is a capital pivot. Companies are trading variable-cost, high-maintenance human workers for fixed-cost, exponentially improving silicon ones.

AI Is Breaking the Link Between Productivity and Wages

For the last century, as technology improved, productivity went up. As productivity went up, wages did, too. A rising tide lifted all boats, even if some boats were lifted higher than others.

But AI is breaking that link.

When a company deploys an AI system that allows it to double its output without hiring a single new employee, where does that extra value go?

It does not go to the remaining workers. It goes to the company’s bottom line, and then to dividends, buybacks, and a higher share price.

And that doesn’t even take an economic downturn into account.

Right now, we have historically low unemployment (around 4%). The economy is showing cracks but is still fairly stable. And yet, companies are aggressively automating.

Imagine what happens in a recession.

Economists call it the “cleansing effect.” When revenue dips, companies are forced to cut costs and jobs mercilessly.

The recession will be the accelerant. The recovery will be jobless.

Workers Must Shift From Labor to Capital to Survive the AI Era

So, if the value of labor is crashing and the value of capital is skyrocketing, the solution is uncomfortably simple.

You need to stop thinking like a laborer and start thinking like a capitalist.

This brings us to the “stock bubble.” You might be worried that Nvidia Corp. (NVDA) is overpriced at its current valuation. Fair enough.

But if you have zero exposure to the companies building the infrastructure of the future, you are betting your entire financial existence on your ability to outwork software that doubles in ability every 18 months.

That is a terrible bet.

The only true hedge against the devaluation of your labor is to own stock in the companies that are benefiting from labor devaluation. You need to be on the receiving end of that wealth transfer.

If the AI boom continues, these companies will generate unprecedented cash flows. If the “AI bubble” pops, the tech doesn’t go away. It just gets cheaper for companies to deploy, accelerating the labor displacement even faster.

In either scenario, capital wins.

How to Protect Yourself From AI Job Loss: A Two-Part Strategy

Now, I know what you’re thinking. “Great advice. I’ll just take this spare $3 million and buy a diversified portfolio of AI infrastructure stocks so I can live off the dividends when my job is automated.”

Indeed, replacing an entire salary with capital returns requires a massive amount of money that most of us simply don’t have.

So, you need a two-part “barbell strategy” for survival.

Immediate Financial Exposure: You cannot afford to sit this market out because it’s “frothy.” You need exposure to the picks and shovels of this gold rush – the chip designers, hyperscale cloud providers, foundational model companies, etc.

Become ‘Human Capital’: Until you have enough capital to retire, your labor is still your primary asset. You have to upgrade it.

The labor market is bifurcating into two categories: commodity labor versus agency labor.

You need to be the latter. Stop writing copy. Start orchestrating the brand voice that AI brings to life.

The people who will thrive in the transition period aren’t just the ones owning Nvidia stock. They are the ones who can walk into a panicked C-suite and say: “I can replace your inefficient 20-person department with myself, three sharp lieutenants, and a fleet of AI agents – and save you 40%.”

Wield AI as a weapon for your own advancement.

The Labor Market Is Approaching a Breaking Point

Exponential curves look flat for a long time … and then, suddenly, they go vertical. 

We are right at the knee of that curve. The window to prepare is closing faster than most think.

It’s best to stop agonizing about whether we are in a 2000s-style stock bubble. A stock market crash hurts your portfolio temporarily. A structural shift in the value of human labor hurts your family permanently.

As automation accelerates and data centers explode in size, the U.S. is quietly executing what many insiders are calling a modern “Manhattan Project for AI.”

And Washington isn’t just funding this initiative. It’s partnering directly with select American companies it views as essential to winning the AI race — and those stocks are erupting.

This year alone, several smaller U.S. firms surged 200%… 300%… even 400% in a matter of days after government investment or contract news broke.

These aren’t hype-driven rallies. They’re the early winners of America’s AI buildout — the companies being positioned at the center of a multiyear national transformation.

And while millions of workers brace for AI-driven disruption, investors who understand where Washington is placing its strategic bets could be on the receiving end of one of the last great wealth transfers of our lifetime.

That’s why I’ve been working on something urgent, which you can now see for yourself.

I’ve identified a handful of overlooked American companies that I believe are next in line for government backing — and each has the potential to soar 10X as this new AI buildout accelerates.

I reveal the first one — 100% free — in my new briefing.

Click here to learn how to position yourself before the next government-backed breakout.

Consider it the first plate on your barbell.

Regards,

Luke Lango

Editor, Early Stage Investor

The post America Is Sleepwalking Into an AI Labor Collapse appeared first on InvestorPlace.

This Week’s Ratings Changes:

Upgraded: Strong to Very Strong

Downgraded: Very Strong to Strong

Upgraded: Neutral to Strong

Downgraded: Strong to Neutral

Upgraded: Weak to Neutral

Downgraded: Neutral to Weak

Upgraded: Very Weak to Weak

Downgraded: Weak to Very Weak

To stay on top of my latest stock ratings, plug your holdings into Stock Grader, my proprietary stock screening tool. But, you must be a subscriber to one of my premium services.

To learn more about my premium service, Growth Investor, and get my latest picks, go here. Or, if you are a member of one of my premium services, you can go here to get started.

Sincerely,

�������°�

Editor, Market 360

The post Eli Lilly Upgraded, NVIDIA Downgraded: Updated Rankings on Top Blue-Chip Stocks appeared first on InvestorPlace.

In today’s Sunday Digest takeover, our technology expert Luke Lango lays out a case for why AI isn’t just transforming technology or markets — it’s reshaping the labor economy itself.

Luke connects history, data, and real-world corporate behavior to show why this moment feels different, and why the traditional relationship between productivity and wages is breaking down. Just as important, he explains what investors and workers can do now to adapt — before this shift becomes impossible to ignore.

And if you want to go deeper into how to position for this transformation, Luke recently broke down the government-backed AI buildout and the specific companies he believes are best positioned to benefit in a special broadcast. You can watch the replay and access the free briefing right here.

I’ll let Luke take it from here.

Have a good weekend,

Jeff Remsburg

In 1811, as England’s Industrial Revolution was gaining momentum, a group of textile workers decided to fight back.

Led by the mythical “General Ludd” of Sherwood Forest, what began as a concentrated movement in central England quickly spread across the nation. Traditional workers took hammers to the stocking frames and power looms – the machines erasing their jobs, their wages, and centuries of hard-won craft.

They weren’t irrational or anti-progress. They were simply watching their livelihoods evaporate in real time, and they understood that no one was coming to help them.

And it took generations of political struggle to rebuild something resembling dignity for working people.

Right now, a similar story is unfolding. This time, AI is the existential threat. 

While investors are worrying about if Big Tech is spending too much on AI, the ground beneath our feet – the very foundation of how we earn a living – is turning into quicksand.

The biggest risk we face isn’t a bear market or even a crash in the Nasdaq.

It’s the permanent devaluation of human labor…

The Iceberg Index: The Truth �������°� AI Job Loss in America

The latest research shows just how far this displacement has already advanced beneath the surface.

The Massachusetts Institute of Technology, partnering with Oak Ridge National Laboratory, recently released what it calls the “Iceberg Index” – and it’s terrifyingly blunt.

The study’s models suggest that roughly 12% of existing U.S. jobs could be replaced by AI right now.

That’s 1 in 9 people whose economic output can be matched by a software subscription that doesn’t need health insurance and doesn’t take bathroom breaks.

We aren’t even talking about what happens when the AI further matures.

When an AI agent can not only write the email but also plan the project and execute the code migration without human intervention, the need for human “managers” in the middle evaporates.

We are already seeing the results…

• HP Inc. (HPQ) just announced it is cutting up to 6,000 jobs by 2028 to “fund AI investment.”
• United Parcel Service Inc. (UPS) cut 12,000 corporate roles earlier this year, explicitly stating that automation means those jobs aren’t coming back.
• Amazon.com Inc. (AMZN) is undergoing its biggest corporate layoff ever.

This isn’t recessionary. This is a capital pivot. Companies are trading variable-cost, high-maintenance human workers for fixed-cost, exponentially improving silicon ones.

AI Is Breaking the Link Between Productivity and Wages

For the last century, as technology improved, productivity went up. As productivity went up, wages did, too. A rising tide lifted all boats, even if some boats were lifted higher than others.

But AI is breaking that link.

When a company deploys an AI system that allows it to double its output without hiring a single new employee, where does that extra value go?

It does not go to the remaining workers. It goes to the company’s bottom line, and then to dividends, buybacks, and a higher share price.

And that doesn’t even take an economic downturn into account.

Right now, we have historically low unemployment (around 4%). The economy is showing cracks but is still fairly stable. And yet, companies are aggressively automating.

Imagine what happens in a recession.

Economists call it the “cleansing effect.” When revenue dips, companies are forced to cut costs and jobs mercilessly.

The recession will be the accelerant. The recovery will be jobless.

Workers Must Shift From Labor to Capital to Survive the AI Era

So, if the value of labor is crashing and the value of capital is skyrocketing, the solution is uncomfortably simple.

You need to stop thinking like a laborer and start thinking like a capitalist.

This brings us to the “stock bubble.” You might be worried that Nvidia Corp. (NVDA) is overpriced at its current valuation. Fair enough.

But if you have zero exposure to the companies building the infrastructure of the future, you are betting your entire financial existence on your ability to outwork software that doubles in ability every 18 months.

That is a terrible bet.

The only true hedge against the devaluation of your labor is to own stock in the companies that are benefiting from labor devaluation. You need to be on the receiving end of that wealth transfer.

If the AI boom continues, these companies will generate unprecedented cash flows. If the “AI bubble” pops, the tech doesn’t go away. It just gets cheaper for companies to deploy, accelerating the labor displacement even faster.

In either scenario, capital wins.

How to Protect Yourself From AI Job Loss: A Two-Part Strategy

Now, I know what you’re thinking. “Great advice. I’ll just take this spare $3 million and buy a diversified portfolio of AI infrastructure stocks so I can live off the dividends when my job is automated.”

Indeed, replacing an entire salary with capital returns requires a massive amount of money that most of us simply don’t have.

So, you need a two-part “barbell strategy” for survival.

Immediate Financial Exposure: You cannot afford to sit this market out because it’s “frothy.” You need exposure to the picks and shovels of this gold rush – the chip designers, hyperscale cloud providers, foundational model companies, etc.

Become ‘Human Capital’: Until you have enough capital to retire, your labor is still your primary asset. You have to upgrade it.

The labor market is bifurcating into two categories: commodity labor versus agency labor.

You need to be the latter. Stop writing copy. Start orchestrating the brand voice that AI brings to life.

The people who will thrive in the transition period aren’t just the ones owning Nvidia stock. They are the ones who can walk into a panicked C-suite and say: “I can replace your inefficient 20-person department with myself, three sharp lieutenants, and a fleet of AI agents – and save you 40%.”

Wield AI as a weapon for your own advancement.

The Labor Market Is Approaching a Breaking Point

Exponential curves look flat for a long time … and then, suddenly, they go vertical. 

We are right at the knee of that curve. The window to prepare is closing faster than most think.

It’s best to stop agonizing about whether we are in a 2000s-style stock bubble. A stock market crash hurts your portfolio temporarily. A structural shift in the value of human labor hurts your family permanently.

As automation accelerates and data centers explode in size, the U.S. is quietly executing what many insiders are calling a modern “Manhattan Project for AI.”

And Washington isn’t just funding this initiative. It’s partnering directly with select American companies it views as essential to winning the AI race — and those stocks are erupting.

This year alone, several smaller U.S. firms surged 200%… 300%… even 400% in a matter of days after government investment or contract news broke.

These aren’t hype-driven rallies. They’re the early winners of America’s AI buildout — the companies being positioned at the center of a multiyear national transformation.

And while millions of workers brace for AI-driven disruption, investors who understand where Washington is placing its strategic bets could be on the receiving end of one of the last great wealth transfers of our lifetime.

That’s why I’ve been working on something urgent, which you can now see for yourself.

I’ve identified a handful of overlooked American companies that I believe are next in line for government backing — and each has the potential to soar 10X as this new AI buildout accelerates.

I reveal the first one — 100% free — in my new briefing.

Click here to learn how to position yourself before the next government-backed breakout.

Consider it the first plate on your barbell.

Regards,

Luke Lango

Editor, Early Stage Investor

The post America’s AI Overhaul Has Begun — and Workers Aren’t Prepared appeared first on InvestorPlace.

As cliché as it feels to make a New Year’s resolution, I believe they can be helpful – especially for your finances.

It’s a new year, which means we’ll be encountering new opportunities, and threats, in the market.

And in order to be more successful this year, I have three resolutions I suggest making as we tread carefully into 2026.

Let’s dive in…

Resolution No. 1: Allocate Your Assets Wisely

Consider the catastrophic losses suffered in the early 2000s by some employees of Enron, who were encouraged to put most – or even all! – of their 401(k)-retirement savings in Enron stock.

These folks did not use “Intelligent Asset Allocation” — and they paid a heavy price.

In the late 1990s, Wall Street considered Enron to be one of the world’s most innovative companies. Its executives were the superstars of Corporate America, and the Houston-based company received endless accolades.

In early 2001, all 15 Wall Street analysts who followed the stock rated Enron a “Buy.” Meanwhile, the financial press also was heaping praise on the stock.

In August 2001, the Houston Chronicle lauded Enron as “a company with innovative people who have shown they can turn ideas into profitable businesses.”

In its September 2001 issue, Red Herring magazine insisted: “Forget about Microsoft. America’s most successful, revered, feared — and even hated — company is no longer a band of millionaire geeks from Redmond, Washington, but a cabal of cowboy/traders from Houston: Enron.”

Less than three months after Red Herring’s glowing endorsement, Enron filed for bankruptcy. As its stock plummeted to zero, the “cabal of cowboy/traders” gained infamy as some of the biggest fraudsters in American history.

The employees who bet everything on Enron were wiped out. When the company went under, they didn’t just lose their jobs. They lost their savings, too.

It was easy to be taken in by all the hype surrounding Enron — and to be seduced by the stock’s seemingly limitless promise and potential. It was easy to believe that Wall Street and the financial media knew what they were talking about.

Enron seemed like a sure thing, especially to the folks who worked for this high-flying success story. That’s why so many employees placed all of their retirement savings in Enron stock. Their asset allocation was 100% Enron.

Not good.

If you devote a huge portion of your wealth to a single asset class — whether it’s stocks, bonds, oil, gold, real estate, or whatever — you are financially fragile. You expose yourself to serious harm.

Resolution No. 2: Just Say “No”

To outperform the market, an investor must maintain the discipline of saying “no” to bad risks… and then keep on doing that until good risks come along.

Marginal opportunities are what I call “bad risks,” or “asymmetrical risks.” That’s when the potential upside is much smaller than the potential downside.

Here’s an extreme example to illustrate the concept…

Riding in a barrel over Niagara Falls for a $20 prize. If everything works out perfectly, you win $20. If not, you perish.

Here’s another example…

Running red lights to get to Disneyland 10 minutes early. If everything works out just right, you make it to the “Happiest Place on Earth” and have to wait 45 minutes instead of an hour for Space Mountain. Or you might get into a horrible accident.

These examples of asymmetrical risk are so obvious that they seem ridiculous, but many asymmetrical risks are less obvious.

Disciplined investors understand the dangers of these risks. That’s why they begin their analysis by asking “What can go wrong?” rather than “What can go right?”

Disciplined investors understand that investing is optional and that they must be selective.

It’s OK to say “no” to bad risks. Unfortunately, many investors grow impatient. We justify buying richly valued stocks by comparing them to stocks that are even more richly valued. But it is still dangerous to buy stocks that are “less risky.”

It’s no different than camping 40 feet away from a pride of lions because a few other folks are camping only 20 feet away. You might wake up every morning 40 feet away from the lions, just like the morning before. But getting eaten is also possible, if not probable.

Avoiding bad risks is the essential first step toward outperforming the market.

Resolution No. 3: Stay Patient

Eagle-eyed readers may recognize this example because I have mentioned it a couple of times previously.

Let’s call this example “Stock X.”

If you had purchased Stock X 36 years ago (which is when the Bloomberg records on it began), you would have endured the following setbacks…

• 21% of the time, your stock would have produced an annual loss…
• 7% of the time, your stock would have produced a three-year loss…
• And on one occasion during those 30 years, your stock would have spent an entire decade producing a loss.

Think about that! How would you feel about holding a stock for an entire decade without making one single penny on it?

If that stock had been “Stock X,” you might have been OK with that particular setback.

“Stock X” is Berkshire Hathaway Inc. (BRK-A), the investment vehicle that made Warren Buffett a multibillionaire… and made millionaires out of many ordinary investors.

Berkshire produced its success over a multidecade span that included numerous setbacks, or “slumps,” along the way.

It’s true.

If you had purchased Berkshire Hathaway 36 years ago and held that stock until the present moment, you would have endured numerous rough patches. Based on rolling 12-month calculations, BRK-A produced a negative annual return 21% of the time.

But those uncomfortable one-year episodes would have seemed like a day at the beach compared to the nearly 11-year stretch from June 1998 to March 2009 when BRK-A produced a loss!

One decade is a very long time to wait for a payday. It’s a very long time to be wondering why you hadn’t done something else with your money. Anything else.

And yet, during the last 36 years, combined, Berkshire shares have delivered a staggeringly large return of more than 18,000%!

During the identical timeframe, the S&P 500 index produced a total return of about 3,900%. In other words, BRK-A produced more than four times the gains of the S&P 500!

Berkshire’s extraordinary investment results would not have been possible without a long-term time horizon. As Warren Buffett himself famously explained, “Our favorite holding period is forever.”

No one wants to endure a 10-year slump of zero returns. In fact, no one wants to spend any time at all losing money. But that’s an unavoidable part of the investment process.

But without patience, a wonderful business will never deliver a wonderful stock market gain. Some things are worth waiting for.

However, you won’t have to wait any longer to find incredible stocks worth investing in…

My Fry’s Investment Report portfolio holds a range of compelling investment opportunities, both in technology sector and far beyond it. This leads to a more balanced and resilient portfolio.

All of my recommendations have strong fundamentals, attractive prices, and solid growth potential. And I want you to have access to them.

As a Fry’s Investment Report member, you will receive access to my latest recommendations, which include a range of diverse and under-the-radar finds. You will also receive my latest research, updates, and alerts, where I keep you informed of any major market moves and timely opportunities.

Click here to join me at Fry’s Investment Report today.

Regards,

�������°�

Editor, Smart Money

The post The 3 Resolutions to Make Now for a Wealthy 2026 appeared first on InvestorPlace.

In today’s final pick from our retrospective, we revisit a late-November Digest that explored a fundamental tension inside the AI boom…

Companies can use AI to replace human workers (boosting bottom lines), but AI cannot replace the consumer spending that ultimately supports corporate revenues (which requires paychecks).

I chose this Digest because that paradox has become one of the most important macro questions heading into 2026 – especially given the scale of AI-driven capital expenditures and the reliance on long-term revenue assumptions to justify them. I hope you’ll find it to be a thought-provoking look at why the AI story is both a massive opportunity and a genuine economic stress test.

Have a good evening,

Jeff Remsburg

AI has a problem no one is discussing.

I’m waiting for someone on Wall Street to highlight this, but so far, no one is touching it…

AI may be fantastic at replacing workers… but AI is terrible at replacing consumers.

It’s the paradox hiding beneath this groundbreaking technology. And when you follow the money far enough through the AI economy, it raises uncomfortable questions about the AI narrative.

Stepping back, in yesterday’s Digest, we walked through the warning about private credit from �������°�, editor of Growth Investor, and Jeffrey Gundlach, CEO of DoubleLine Capital.

But the risk in private credit is just a small part of a bigger, interconnected story. Today, let’s begin to unravel this story by picking up where we left off, exploring how the AI boom is intertwined with the leveraged lending system.

Then we’ll redirect to look at the other end of that pipeline – the revenue side – and explore what happens when we forget that while AI is great at cutting costs, it’s terrible at buying products – and that’s a massive problem.

AI isn’t immune to risks in the private credit sector

As we’ve been tracking in the Digest, the infrastructure behind artificial intelligence requires truly staggering sums of money. This is a historic scale-up of global computing infrastructure that will require trillions of dollars over the next decade.

Some of the largest projects in the world today – such as Meta’s $27 billion Hyperion data center in Louisiana – are being financed not through traditional bank loans but through private credit lenders. And Meta is hardly alone. As the hyperscalers pursue their AI ambitions at full speed, they’ve increasingly been tapping private credit.

The borrowing is justified by one big underlying assumption…

Today’s massive up-front spending will lead to tomorrow’s avalanche of profits from AI initiatives.

So far, few people have raised concerns about this because the entities doing the spending – basically, the Magnificent Seven stocks – are the most cash-rich corporations in history.

Now, because the infrastructure spending is very real, the companies receiving that money – Nvidia (NVDA), Broadcom (AVGO), chip suppliers, data-center builders – are reporting very real, very large profits. To many investors, this confirms the AI boom is “real.”

But infrastructure supplier profits are not the same thing as long-term ROI for the hyperscalers themselves. The massive cost side of the AI equation is clear. The revenue side is still extremely blurry.

On that note here’s Axios from last month:

It remains unclear how all that debt will be paid back: AI is not making any money (yet), and each new chip cycle brings costly upgrades.

This financing binge could pop the AI bubble.

Which brings us to the first uncomfortable part of the story.

Beyond profits for infrastructure builders, does AI math pencil out?

What do you pay for AI today?

For ChatGPT Plus, Claude Pro, Gemini Advanced, and so on, maybe $20 a month? Or maybe you don’t even pay.

Now, hyperscalers do not expect $20 chatbots to cover the cost of their trillion-dollar infrastructure investments. They expect the real payoff will come from enterprise AI adoption – corporate customers paying tens of thousands of dollars a month (or more) to integrate AI across their entire workflows.

But here’s issue #1…

So far, even when you include the early enterprise revenue, the revenues coming in are tiny compared to the capital going out.

From a different Axios article:

MIT researchers studied 300 public AI initiatives to try and suss out the “no hype reality” of AI’s impact on business…

95% of organizations found zero return despite enterprise investment of $30 billion to $40 billion into GenAI, the study says.

The “real” AI value proposition – the one after this infrastructure buildout phase – is murky at best. Revenue remains tame compared to the firehose of spending. So, unless AI monetization grows far beyond today’s numbers, the math becomes increasingly strained.

And remember, because a meaningful portion of the buildout is financed through private credit, any revenue disappointment doesn’t just affect hyperscaler earnings. It could feed back into the credit system, creating a domino effect of pain:

• If AI spending slows, liquidity tightens…
• If liquidity tightens, refinancing becomes harder…
• If refinancing becomes harder, capex slows…
• Lower capex leads to slower earnings growth…
• Slower earnings growth drags down the market’s valuation multiples…
• Lower market valuation multiples ding stock prices…
• Lower stock prices create panic in Upper-K investors who sell, accelerating the unwinding of the wealth effect

I’m not predicting a collapse. I’m recognizing that a highly leveraged boom assumes highly reliable future cash flows – but those cash flows are not a certainty.

Now, let’s pivot to issue #2 – the deeper, more complex question that almost no one wants to confront…

The risk of excluding Lower-K Americans from the economy

As noted above, the hyperscalers don’t plan to make trillions of dollars from chatbots. Rather, they’re banking on million-dollar contracts with Fortune 500 companies.

But that thesis rests on some very large assumptions. Here are three:

• The enterprise adoption will be enormous
• The AI tools that companies buy will generate measurable, solid ROI
• AI won’t be commoditized into a low-margin utility like cloud storage or broadband.

All possible – but not guaranteed.

As of today, outside of the companies on the receiving end of the hyperscaler firehose of money, most businesses experimenting with AI still can’t show a clean bottom-line return.

Yet even if those assumptions do play out exactly as the bulls expect, we run straight into an even bigger, more foundational issue – the one that surfaces when you follow the money one layer deeper:

Where do the enterprise customers get the revenue to pay the hyperscalers for all this AI?

I’m talking big picture – across the next decade.

When you trace that revenue pathway back to its origin, you land in the same place every time…

The U.S. consumer.

And that’s where today’s closed-loop economy may come back to haunt us.

What AI can’t do well – consume

The bullish narrative around AI’s enterprise value focuses on cost savings – and those savings are real. AI doesn’t demand raises. It doesn’t need health care. It doesn’t go on strike or take vacation…

From a corporate cost structure standpoint, AI is an efficiency dream.

But there’s a problematic flip side…

AI doesn’t buy anything.

In other words, AI doesn’t drive consumption – and consumption is still nearly 70% of U.S. GDP.

Source: Fed data

So, let’s follow a new potential doom loop:

• If AI reduces the need for human workers in large enough numbers, we are implicitly reducing wage income for a significant portion of consumers…
• If consumer income weakens, consumer spending weakens…
• If consumer spending weakens, corporate revenues weaken…
• If corporate revenues weaken, enterprise software budgets weaken…
• And if enterprise budgets weaken, cloud and AI spending weakens – the very spending hyperscalers depend on to justify their infrastructure.

This ties into the “closed-loop economy” we’ve been discussing: the cycle in which AI boosts productivity, companies need fewer workers, profits rise, more money flows to AI, and even fewer workers are needed – all while the consumer base becomes less central to economic growth.

“But Jeff, I remember a recent Digest when you wrote that the top 10% of American earners were spending as much as the rest combined! You’re being inconsistent!”

That stat is true – but it doesn’t apply evenly across all categories of the economy.

Yes, the Upper-K consumer can support high-margin discretionary spending – travel, restaurants, even big-ticket items like homes and cars. In those areas, one wealthy household can spend as much as several middle-income households.

But there are enormous parts of the real economy where demand cannot be concentrated among the top 10%.

The wealthiest Americans can’t eat ten meals a day… or buy forty times the amount of deodorant, detergent, or toothpaste… or pay for thirty streaming subscriptions…

Bottom line: Wealth can concentrate – but consumption can’t.

Stepping back from the doom-and-gloom

Let’s be measured…

History gives us plenty of reasons for optimism.

Technological revolutions have a way of creating entirely new job categories no one could have predicted…

The top tier of U.S. consumers – the “Upper K,” as I often refer to them – has enormous spending power and continues to anchor demand…

Governments can soften transitions through transfers, taxes, and safety nets…

And the global middle class remains a massive and growing consumer base for U.S. companies.

But…

AI is different than past technological breakthroughs. Its ability to replace – well, just about all of us – creates a fundamentally different type of technology adoption curve. It’s one that shifts the balance between labor, capital, and consumption in ways we need to monitor carefully.

This is precisely why our macro expert �������°�, editor of Fry’s Investment Report has been focused on what he calls “AI infrastructure plays with pricing power” – companies that can maintain margins even as AI commoditizes.

This is a lengthy Digest, so I won’t go into all the details, but to help investors navigate what to sell – and where to reinvest profits – Eric recently released a “Sell This, Buy That” research package.

It lays out which AI (and non-AI) plays still have the earnings strength to thrive in today’s AI economy. You can see three tickers – free of charge – in Eric’s special presentation here.

Another portfolio action step to consider

Despite the long-term issues I’ve highlighted today, the next 12 to 18 months or so are likely to be a period of booming profits for AI infrastructure companies.

Hyperscalers have immense resources and powerful incentives to continue expanding. Capex pipelines are massive and growing. AI infrastructure orders are accelerating. And many businesses are in the early stages of exploration, which tends to drive continued spending.

So, this is still a moment of opportunity – even as we keep an eye on the underlying structural red flags out on the horizon. And this brings us to our hypergrowth expert, Luke Lango, editor of Early Stage Investor.

Luke has spent the past several months in Silicon Valley meeting with the engineers and founders behind the next AI wave.

His conclusion is that we are entering what he calls the “Hyperscale Revolution,” a period in which digital-first companies can scale revenues exponentially without physical assets limiting their growth. Think early Shopify or Copart – but now amplified by AI.

Luke believes one small company (in a completely unexpected sector) could become the next “Amazon of its industry” as AI reshapes every corner of the economy.

We’ll have more on that company from Luke soon. This is just a heads-up to keep your eye out.

Wrapping up

The explosion of AI capex – much of it financed through private credit – is real, spectacular, and enormously profitable for the companies supplying the infrastructure.

And despite our recent jittery market, the next 12–18 months could continue to deliver outsized gains as the hyperscalers race to build the digital backbone of the next era.

But long-term profitability depends on something we seem to be forgetting…

A healthy, well-funded consumer.

Bottom line: AI can automate, optimize, and replace – but it cannot spend.

So, as our economy leans harder into automation and robotics, funded by massive spending and heavy private credit borrowing, perhaps it’s time we ask an uncomfortable question…

With AI, are we unwittingly sawing off the economic tree branch that we’re sitting on?

Have a good evening,

Jeff Remsburg

The post AI’s Flaw That Could Sink the Hyperscalers appeared first on InvestorPlace.

My friend and colleague Luke Lango points to one of the biggest changes we’ve seen – AI. Most of the attention from it focuses on what it means for tech stocks, but Luke is looking at something bigger – how it’s reshaping the economy and the job market, and what it means for all of us.

To do that, he put together a special presentation explaining what makes this opportunity different, why it matters for investors and the steps you can take now to stay ahead.

You can watch his special briefing right here, where he breaks down the specific companies he believes are best positioned to benefit – including one he names for free.

Here’s Luke with more…

**

In 1811, as England’s Industrial Revolution was gaining momentum, a group of textile workers decided to fight back.

Led by the mythical “General Ludd” of Sherwood Forest, what began as a concentrated movement in central England quickly spread across the nation. Traditional workers took hammers to the stocking frames and power looms – the machines erasing their jobs, their wages, and centuries of hard-won craft.

They weren’t irrational or anti-progress. They were simply watching their livelihoods evaporate in real time, and they understood that no one was coming to help them.

And it took generations of political struggle to rebuild something resembling dignity for working people.

Right now, a similar story is unfolding. This time, AI is the existential threat. 

While investors are worrying about if Big Tech is spending too much on AI, the ground beneath our feet – the very foundation of how we earn a living – is turning into quicksand.

The biggest risk we face isn’t a bear market or even a crash in the Nasdaq.

It’s the permanent devaluation of human labor…

The Iceberg Index: The Truth �������°� AI Job Loss in America

The latest research shows just how far this displacement has already advanced beneath the surface.

The Massachusetts Institute of Technology, partnering with Oak Ridge National Laboratory, recently released what it calls the “Iceberg Index” – and it’s terrifyingly blunt.

The study’s models suggest that roughly 12% of existing U.S. jobs could be replaced by AI right now.

That’s 1 in 9 people whose economic output can be matched by a software subscription that doesn’t need health insurance and doesn’t take bathroom breaks.

We aren’t even talking about what happens when the AI further matures.

When an AI agent can not only write the email but also plan the project and execute the code migration without human intervention, the need for human “managers” in the middle evaporates.

We are already seeing the results…

• HP Inc. (HPQ) just announced it is cutting up to 6,000 jobs by 2028 to “fund AI investment.”
• United Parcel Service Inc. (UPS) cut 12,000 corporate roles earlier this year, explicitly stating that automation means those jobs aren’t coming back.
• Amazon.com Inc. (AMZN) is undergoing its biggest corporate layoff ever.

This isn’t recessionary. This is a capital pivot. Companies are trading variable-cost, high-maintenance human workers for fixed-cost, exponentially improving silicon ones.

AI Is Breaking the Link Between Productivity and Wages

For the last century, as technology improved, productivity went up. As productivity went up, wages did, too. A rising tide lifted all boats, even if some boats were lifted higher than others.

But AI is breaking that link.

When a company deploys an AI system that allows it to double its output without hiring a single new employee, where does that extra value go?

It does not go to the remaining workers. It goes to the company’s bottom line, and then to dividends, buybacks, and a higher share price.

And that doesn’t even take an economic downturn into account.

Right now, we have historically low unemployment (around 4%). The economy is showing cracks but is still fairly stable. And yet, companies are aggressively automating.

Imagine what happens in a recession.

Economists call it the “cleansing effect.” When revenue dips, companies are forced to cut costs and jobs mercilessly.

The recession will be the accelerant. The recovery will be jobless.

Workers Must Shift From Labor to Capital to Survive the AI Era

So, if the value of labor is crashing and the value of capital is skyrocketing, the solution is uncomfortably simple.

You need to stop thinking like a laborer and start thinking like a capitalist.

This brings us to the “stock bubble.” You might be worried that Nvidia Corp. (NVDA) is overpriced at its current valuation. Fair enough.

But if you have zero exposure to the companies building the infrastructure of the future, you are betting your entire financial existence on your ability to outwork software that doubles in ability every 18 months.

That is a terrible bet.

The only true hedge against the devaluation of your labor is to own stock in the companies that are benefiting from labor devaluation. You need to be on the receiving end of that wealth transfer.

If the AI boom continues, these companies will generate unprecedented cash flows. If the “AI bubble” pops, the tech doesn’t go away. It just gets cheaper for companies to deploy, accelerating the labor displacement even faster.

In either scenario, capital wins.

How to Protect Yourself From AI Job Loss: A Two-Part Strategy

Now, I know what you’re thinking. “Great advice. I’ll just take this spare $3 million and buy a diversified portfolio of AI infrastructure stocks so I can live off the dividends when my job is automated.”

Indeed, replacing an entire salary with capital returns requires a massive amount of money that most of us simply don’t have.

So, you need a two-part “barbell strategy” for survival.

Immediate Financial Exposure: You cannot afford to sit this market out because it’s “frothy.” You need exposure to the picks and shovels of this gold rush – the chip designers, hyperscale cloud providers, foundational model companies, etc.

Become ‘Human Capital’: Until you have enough capital to retire, your labor is still your primary asset. You have to upgrade it.

The labor market is bifurcating into two categories: commodity labor versus agency labor.

You need to be the latter. Stop writing copy. Start orchestrating the brand voice that AI brings to life.

The people who will thrive in the transition period aren’t just the ones owning Nvidia stock. They are the ones who can walk into a panicked C-suite and say: “I can replace your inefficient 20-person department with myself, three sharp lieutenants, and a fleet of AI agents – and save you 40%.”

Wield AI as a weapon for your own advancement.

The Labor Market Is Approaching a Breaking Point

Exponential curves look flat for a long time … and then, suddenly, they go vertical. 

We are right at the knee of that curve. The window to prepare is closing faster than most think.

It’s best to stop agonizing about whether we are in a 2000s-style stock bubble. A stock market crash hurts your portfolio temporarily. A structural shift in the value of human labor hurts your family permanently.

As automation accelerates and data centers explode in size, the U.S. is quietly executing what many insiders are calling a modern “Manhattan Project for AI.”

And Washington isn’t just funding this initiative. It’s partnering directly with select American companies it views as essential to winning the AI race – and those stocks are erupting.

This year alone, several smaller U.S. firms surged 200%… 300%… even 400% in a matter of days after government investment or contract news broke.

These aren’t hype-driven rallies. They’re the early winners of America’s AI buildout – the companies being positioned at the center of a multiyear national transformation.

And while millions of workers brace for AI-driven disruption, investors who understand where Washington is placing its strategic bets could be on the receiving end of one of the last great wealth transfers of our lifetime.

That’s why I’ve been working on something urgent, which you can now see for yourself.

I’ve identified a handful of overlooked American companies that I believe are next in line for government backing – and each has the potential to soar 10X as this new AI buildout accelerates.

I reveal the first one – 100% free – in my new briefing.

Click here to learn how to position yourself before the next government-backed breakout.

Consider it the first plate on your barbell.

Regards,

Luke Lango

Editor, Early Stage Investor

The post How to Survive the AI Labor Crash That’s Already Accelerating appeared first on InvestorPlace.

The S&P just closed out the year near record highs…

But while we toast another good year, new questions loom:

• Will narrow leadership broaden out in 2026?
• Stock valuations sit near historic extremes – will earnings rise to justify them, or will prices need to reset?
• How quickly will the Fed cut rates this year – if at all?
• Will bond markets stabilize, or will shifting inflation expectations and Treasury issuance keep yields volatile?
• Will tariff policy shift – especially with a major Supreme Court case set to determine how much power the White House has over trade?
• How will the midterm elections reshape fiscal priorities?
• Can the jobs market stay resilient?
• Will AI’s rapid advancement continue to boost productivity – or introduce new disruptions?
• Will the U.S. dollar find its mojo again?
• Will gold and silver continue their historic rallies?

We could go on, but we’ll jump to the bottom line…

We’re heading into a year defined by crosscurrents and critical unknowns.

Now, we’re excited to navigate them with you, but we’re going to hold off on analysis today. Instead, we’re turning to the one thing that will have the ultimate impact on your net worth in 2026…

Your investment plan.

We begin each new year with a version of today’s Digest because it’s far more important than any single piece of analysis. None of us can control what the market throws at us this year. We can only control how we respond – and that’s where a plan is crucial.

So, we’ll pick back up with all the headlines on Monday. Today, let’s get our investment ducks in a row.

Don’t make this investment plan mistake…

Research shows that 43% of people expect to give up on their New Year’s Resolutions this year. In fact, this 43% “quit” rate is expected to kick in by February.

Not too encouraging.

I would guess that results are equally bad – if not worse – when it comes to New Year’s investment resolutions.

A big reason why many investment resolutions are flawed is because they focus on binary goals.

“Did I beat the market?”

“Did I earn 15% on my portfolio?”

“Did my investments generate enough cash flow to cover the down payment on the new house?”

These are all reasonable goals, but they focus exclusively on the result rather than a process – the “payoff” rather than the “playbook.”

Unfortunately, the truth is that the only thing we can control is the process.

Think about it. Myriad influences will impact your returns in 2026 – far beyond the questions we raised at the top of today’s issue. Here are a few additional potential curveballs:

• the trajectory of housing affordability and its spillover into consumer confidence
• how quickly companies adopt – and monetize – AI tools
• the resilience (or lack thereof) of the U.S. consumer
• how sovereign debt loads shape policy decisions worldwide
• the stability of emerging markets as the dollar fluctuates
• unexpected regulatory shifts in technology, energy, and financial services
• and, inevitably, whatever “black swan” headlines no one is talking about today…

We have no control over these factors – and yet any one of them could have a massive impact on our portfolio value.

So, let’s forget all the absolute “I will make X%” type resolutions, and instead, focus on what we can control, which is a well-executed process.

With that in mind, here on this first trading day of 2026, let’s turn our attention to making an investment plan.

What follows isn’t “the right way” to accomplish this. A good plan can be created in a million different ways. But the central idea is: “you know what you own, why you own it, and how you’ll handle your positions in response to all sorts of market conditions.”

Even if you’re only moderately successful in creating and implementing a plan this year, that small effort will still put you light-years ahead of most investors who just wing it.

Let’s jump in.

Creating the perfect portfolio for you

Step 1: Open your calendar and pick a day/time when you’ll be able to dedicate 100% of your focus to your portfolio. Say at least 30-60 minutes.

Step 2: Before you analyze your current portfolio, think about what investments would go into a “perfect” portfolio today, looking forward.

For this step, what you presently own is irrelevant. This is a mental exercise to help you identify a “best of” portfolio based on your investment goals and needs.

As you consider this, ask yourself…

What’s the portfolio’s primary goal? Capital growth? Income? A mix? Why?

Over what timeframe? Is it a defensive orientation, or are you looking to grow aggressively?

How much volatility can you stomach?

Next, narrow down.

Given your answers so far, what asset classes need to be in this portfolio? From which global markets? Which trends do you want represented? In what allocations? What else? What other considerations need to be reflected in this perfect portfolio?

Continue to get more granular…

Within each of your chosen asset classes, or markets, or trends, which stocks and/or other investments do you believe offer you the best exposure?

This process can be as simple or detailed as you want, tailored to your unique situation.

For instance, say you generally outsource your portfolio selection to experts, so you have an assortment of picks from our stable of analysts…

Perhaps some long-term buy-and-hold stocks from �������°�, �������°�, and Luke Lango… short- and/or medium-term trades from each of these analysts as well… altcoins from Luke… various commodity plays from Eric and Louis… perhaps opportunistic trades or hedges from Jonathan Rose…

In this situation, you might consider how much weight you want to give each analyst’s picks within the framework of your overall portfolio.

Whatever feels appropriate for your specific financial situation and goals, write it down.

Whether you’re highlighting specific stocks or allocations toward the picks of specific analysts, it can be helpful to detail why you’ve made this choice – which will tie it back to your overall portfolio goal.

For instance, “I will weight 10% of my overall portfolio to small- and medium-cap AI plays from Luke Lango, because it will offer diversification from the mega-cap component of my portfolio, while also giving me exposure to AI.”

Or “With 15% of my portfolio, I will make shorter-term trades following �������°�’s Accelerated Profits system because it will limit my exposure to volatility in 2026 while still enabling me to shoot for double- or triple-digit gains.”

Basically, document the reason for all your choices and how they support your investing goals.

As part of this, be realistic about your desire to swing for the fences.

Most of us harbor a fantasy of throwing a few bucks at, say, a penny stock, and watching it explode in value. Three months later, we’re driving that new Porsche, or taking the European vacation, or putting the kids into the elite private school …

So, let’s honor this fantasy in a responsible way.

Pick a percentage of your investable assets you’re willing to gamble with. The amount should be no greater than what you could completely lose without having it affect your sleep. Whether that’s 0.05%, 1%, or 15%, be honest with yourself.

It often helps to turn your chosen percentage into an actual dollar amount based on your portfolio size. Then, imagine burning that cash.

Are you still comfortable? If so, great. If not, lower your gambling percentage until you are.

What’s working, and what needs changing?

Step 3: Now, it’s time to review your existing portfolio.

Line up your current portfolio next to this “perfect” portfolio you just created.

Note any discrepancies.

Is there a stock in your existing portfolio you wouldn’t include today with new money?

It gets the axe.

Do you have 95% of your stocks in U.S.-centered companies when you want it to be just 65%? You need to do some trimming.

Is there zero exposure to small-cap AI plays in your current portfolio and yet this is an investment theme you want to own? Time to buy.

“But wait!” you say. “It’s not that easy. I have major capital gains in some of my current stocks that I’d otherwise sell” (or you have some other reason to avoid making a portfolio change).

Okay, there are always complications. But if so, at least identify when and how you’re going to make the necessary change – regardless.

Consider why…

Allowing an underperforming investment to stay in your portfolio year-in-year-out to avoid paying a capital gain carries a huge opportunity cost. Yes, you’ll suffer the short-term pain of a tax-hit from a capital gain, but consider the negative possibilities…

What if that investment suffers a big earnings disappointment? What if it nosedives and your unrealized paper loss is far greater than the actual loss that you’d have suffered had you just sold it and paid taxes?

On the other hand, even if it doesn’t perform poorly, but just trades sideways, consider the opportunity cost you’re suffering compared to being in a much stronger investment. Even a money market fund at 3.75% would be a better use for your capital than a stock that goes nowhere (or down).

So, if you have a reason why you don’t want to sell a legacy holding, okay. But at least be intellectually honest with yourself about why you won’t sell, recognizing the opportunity cost.

And remember, you don’t have to sell an underperforming legacy holding all at once. Perhaps you’d stomach it better if you sold it in chunks, offsetting some of those gains with some dogs in your portfolio that turned into losses.

Be creative about how you might address the problem. Just don’t let a toxic investment drag down your portfolio without being intentional about it.

Next, look at all your positions (old ones and prospective new purchases) and decide if they are trades or long-term holds

Step 4: For each holding in your portfolio, categorize it as either a low-conviction and high-conviction hold.

A high-conviction stock is a holding that you believe is a multi-year (or multi-decade) portfolio cornerstone. You believe its long-term merit makes its current valuation irrelevant. You have no qualms about holding it here in 2026, even if it’s overvalued by historical standards.

You recognize that such a stock will lose value in a bear market, but you’re fine with that. You can imagine this holding imploding, say, 40%, and you would still hold without batting an eye.

A low-conviction stock is anything that doesn’t fit this description.

After sorting your stocks (and intended stock purchases) along this binary, forget your high-conviction stocks. Delete them from whatever app you use to monitor the market. After all, their price movements are irrelevant. You don’t want to be tempted to sell them if you see a major decline and your emotions tempt you to act rashly.

But for your low-conviction stocks, a different approach is mandatory. Decide how big of a position size you’ll use, and what trailing stop loss percentage you’ll apply to the position.

This is a critical step for preserving your capital. It prevents small, reasonable losses (which all investors endure) from snowballing into massive portfolio-busting losses.

As to incorporating a stop-loss system, you can do it yourself, but I’d point you toward our corporate partner, TradeSmith. They’re one of the leading quant shops in the investment industry.

Unlike how most investors use trailing stops (a blanket “20%” lower), TradeSmith’s trailing stop system factors in the specific volatility of any given stock/ETF to help investors answer a crucial question…

When you’re in a pullback, how do you know whether it’s just normal volatility to ride through, versus a “this time is different” drawdown to avoid immediately?

You can learn more about it here.

Putting everything all together

Step 5: At this point, write down your entire investment plan.

It can be as detailed as you want. But in general, it’s going to have the following features:

• Your overall portfolio goal. Growth? Income? A mixture?
• Your desired “perfect” holdings (and an awareness of how each of those individual holdings will support your overall portfolio goal)
• Your current holdings (some of which might be getting axed over the new few weeks/months based on your analysis today)
• The strategy (and timeframe) you’ll use to transition from your current, legacy portfolio to your new perfect portfolio (including the reality of taxes and whatnot)
• Your plan to scratch your gambling itch – will you let those investments ride all the way to $0 if necessary? Or will you sell at some stop-loss? What about profits? Will you sell when you’re up “X%” or let it ride? Think through these scenarios
• A clear understanding of the difference between your high-conviction “buy-and-hold portfolio pillars that don’t need price monitoring” versus lower-conviction “shorter-term trades that need deliberate position sizes and stop losses”
• The specific position sizes and stop-loss amounts for all your lower-conviction holdings
• The future date upon which you’ll rebalance and/or re-evaluate your broad portfolio
• The criteria by which you’ll remove an asset from your portfolio. (Did it hit a stop-loss? Has it quadrupled, and you’re taking profits? Did your reason for owning it change due to various reasons? And so on…)
• How you’ll use new money to add to your portfolio this year. For instance, will you increase the size of each of your existing stocks? Or will you add more to only those stocks that are down, trading at lower valuations? Or will any new money go toward buying brand-new stocks as recommended by Louis, Eric, or Luke? Maybe trading with Jonathan?

Your investment plan obviously can be far more granular, but if you do just this, you’ll be miles ahead of 99% of other investors.

I hope 2026 is fantastic for you and your family. And one way to make it “financially” fantastic is by creating your own investment plan – today.

We don’t know what this year will bring, but we do know that a little planning today will prepare you to ride through whatever comes our way.

Have a good evening and a great 2026,

Jeff Remsburg

The post Crafting Your Best 2026 Portfolio appeared first on InvestorPlace.

But when we’re talking about an industry, business or resource that’s critical to the national interest – rather than a bailout – investors should take notice.

We’ve seen that pattern play out repeatedly this year, as federal involvement has sent select stocks soaring virtually overnight. And here’s the thing… by the time the headlines hit, the biggest gains are usually already gone.

As my colleague Luke Lango explains, this isn’t the first time the government has picked winners in a strategically important industry.

To help investors understand how these moves actually form – and how to spot them before they hit the news – Luke recently put together a new briefing. In it, he explains why Washington is stepping in again, why energy has become a national-security issue and how one overlooked company could sit at the center of the next major government-backed push.

In the following essay, Luke lays out the evidence behind this shift, the signals he’s watching now, and how investors can position themselves ahead of the next “shock” announcement.

Here’s Luke with more…

**

In the early 1950s, Washington faced a problem it couldn’t solve with speeches or market forces.

While the Cold War inflamed tensions globally, energy demand was surging. And the technologies needed to win the next era simply didn’t exist at scale. So the U.S. government did something profoundly un-American …

It picked winners.

The federal government poured money, talent, and political capital into a handful of strategic industries. It took equity stakes. It steered outcomes. And it rewired the economy in the process.

The result was the Interstate Highway System… the nuclear age… Silicon Valley… and some of the greatest fortunes ever made.

We are watching that same playbook unfold again in real time.

And most investors are missing it.

That bottleneck – the one threatening to stall the entire AI revolution – is power.

Modern AI data centers don’t sip electricity. They devour it. OpenAI and Nvidia (NVDA) alone are planning infrastructure that requires 10 gigawatts of constant, uninterrupted power – the equivalent of ten nuclear reactors running 24/7. Goldman Sachs projects data-center energy demand will rise 165% by 2030. The grid can’t handle that. Neither can renewables or fossil fuels, which are boxed in politically.

Which leaves one option…

While markets obsess over rate cuts and AI valuations, Washington has quietly decided that energy, minerals, and compute infrastructure are now matters of national security. And when Washington makes that decision, stocks surge higher.

We’ve already seen it four times this year alone. MP Materials (MP). Intel (INTC). Lithium Americas (LAC). Trilogy Metals (TMQ). Each surged triple digits, some overnight, after federal involvement became public.

But those headlines didn’t mark the beginning of the move… They marked the end of the easy money.

Because before every “shock,” there’s a pattern. A leak cycle, followed by subtle accumulation and rising volume. Quiet positioning by people who know what’s coming.

In fact, I’ve recorded a brand-new urgent briefing detailing exactly what could be coming next. But before you watch that, I want you to understand why this is happening so that when the news breaks, you aren’t one of the thousands of investors stuck standing on the sidelines.

In this issue, I’ll show you why the next shock is forming right now…

Why it centers on nuclear power…

And why a little-known, deeply connected company could sit at the center of the AI energy buildout — with 10X potential if Washington makes its next move.

How Government-Backed Stocks Create Overnight “Shocks”

Let me show you exactly what I mean with the most dramatic example.

Earlier this year, copper and zinc miner Trilogy Metals was a boring company. It had potential; but most Americans had never heard of it. The stock was sleepy, largely trading around $2 per share.

Then, after the closing bell on October 6, 2025, the White House dropped a bomb, announcing a 10% equity stake in the company for $35.6 million.

The next morning, the stock opened at $7.

If you held shares the night before, you woke up to a 211% gain in a single trading session. That is more than the “Magnificent 7” stocks usually make in an entire year, delivered before you’d even finished your morning coffee.

And this wasn’t the first time this year that moves like this sent stocks soaring.

• Shock #1 (July 2025): The Pentagon took a 15% stake in MP Materials to secure rare earth minerals. The stock surged 111% in the week following the news.
• Shock #2 (August 2025): The Pentagon poured $9 billion into Intel. The stock almost doubled over the next three months.
• Shock #3 (September 2025): The government announced it was seeking a 10% stake in Lithium Americas. Shares jumped 194% in the following two weeks.
• Shock #4 (October 2025): The Trilogy Metals explosion – 211% in a day.

Four massive, life-changing stock moves in the span of a few months, all thanks to federal intervention.

The Trump administration has decided that certain assets – like lithium, rare earths, and copper – are too critical to national security to be left to the whims of the open market.

And this federal ‘land grab’ is still in its early stages.

Treasury Secretary Scott Bessent has signaled that the administration has identified at least seven industries it wants to build up. The Financial Times is reporting that “The U.S. is not finished.” And the “One Big Beautiful Bill Act” that just passed earmarked $7.5 billion specifically for critical strategic assets.

My research indicates a massive chunk of that money is heading toward one specific sector…

A sector that is currently facing a crisis so severe, it threatens to derail the entire AI revolution.

The AI Energy Crisis – and Why Nuclear Is the Only Real Solution

I’m on the phone with tech folks constantly. We talk about AI – the opportunities, the headwinds, the bottlenecks.

And the biggest threat is no longer about chips or code. It’s power.

The AI data centers being built right now are ‘energy vampires.’ For example,OpenAI recently announced a $100 billion partnership with Nvidia to build computing infrastructure that requires 10 gigawatts of electricity.

That’s roughly the output of 10 large nuclear power plants – just for one partnership.

Goldman Sachs predicts data center power demand will jump 50% by 2027 and 165% by 2030.

The grid cannot handle this.

AI facilities need 24/7 baseload power, which, unfortunately, means that renewable energies like solar or wind can’t solve this. They’re intermittent sources that don’t work when the sun sets and the wind dies down.

Battery technology isn’t close enough to bridging the gaps. Fossil fuels are politically difficult for Net-Zero commitments.

That leaves one option – nuclear.

And Big Tech is going all-in.

• Microsoft (MSFT) signed a 20-year power purchase agreement to restart Three Mile Island’s Unit 1 reactor (yes, that Three Mile Island), which will supply 835 megawatts – enough to power roughly 800,000 homes
• Amazon (AMZN) anchored a $500 million investment in X-Energy, a small modular reactor developer, with plans to bring more than 5 gigawatts of nuclear capacity online across multiple projects in Washington and Virginia.
• Alphabet (GOOGL) inked the world’s first corporate agreement to purchase nuclear energy from multiple small modular reactors, ordering up to 500 megawatts from Kairos Power, with the first reactor targeted for 2030.

The government sees this. That’s why, in May 2025, President Trump signed executive orders to “Make Atoms Great Again,” aiming to quadruple nuclear capacity to 400 gigawatts by 2050.

But traditional nuclear plants take 10-plus years to build – and AI can’t wait.

Realistically, we need a solution that deploys in two to three years, while also solving the issue of nuclear waste.

And I have found the one company that does both.

Washington’s Open Secret �������°� Nuclear Power

The United States has 90,000 metric tons of nuclear waste sitting in storage. That’s a major liability.

But thanks to its next-gen tech, the company I’ve identified turns spent nuclear waste into fuel. That liability becomes 150 years of clean energy.

Though, as the old saying goes, it’s often not what you know but who you know.

And this company is the most politically connected I have ever seen…

All of these connections matter.

But if history is any guide, the real money comes to those who get positioned before any official announcement.

The Leak Cycle That Signals Government Investment Ahead of Time

Here is the most urgent part of my message to you today.

When Trilogy Metals popped 211%, it looked like an overnight success. But if you zoomed in on the chart, you saw that in the weeks leading up to the announcement, the stock had already climbed 30%.

When Lithium Americas popped 194%, the stock had drifted up 20% in the 45 days prior.

Why? The Leak Cycle.

Deals this big don’t stay secret. Lawyers talk. Board members position themselves. The “smart money” quietly accumulates shares before the press release hits the wire.

We are seeing those signals right now with this nuclear company:

• A multibillion-dollar partnership with European allies to build fuel infrastructure on American soil
• The largest corporate power agreement in the nuclear sector – 12 gigawatts across hundreds of planned reactors
• A groundbreaking ceremony at a federal research facility attended by cabinet secretaries, governors, and senators

The stock is starting to drift. The volume is picking up.

My analysis suggests an announcement could come in the coming weeks.

And if I’m right, we could be looking at a move that dwarfs Trilogy Metals’ gains – because Trilogy was a $35 million investment in a copper mine. This could be a multi-billion-dollar stake in the foundational energy source for the entire AI economy.

I’m predicting 10X potential here.

Waiting for the Headline Means Missing the Trade

Most investors will wait until they see the headline on CNBC: “White House Announces Billion-Dollar Stake in Nuclear Firm.”

By then, the stock will be up 100% or more. The easy money will be gone.

You have a choice. You can be part of the crowd that gets shocked or part of the group that gets positioned.

My firm identified MP Materials before the Pentagon stake. We identified Lithium Americas before the 194% jump and Trilogy Metals before its 211% explosion.

Now I’m pounding the table on the next move.

When Washington decides something is too important to leave to chance, markets don’t drift higher. They break out.

The smart money doesn’t wait for the official announcement. It positions before the market reprices the entire sector…

Sincerely,

Luke Lango

Editor, Early Stage Investor

The post Why Washington Is Quietly Creating the Biggest Stock Winner of 2026 appeared first on InvestorPlace.

Which is why the setup for space stocks in 2026 is starting to look less like a speculative fever dream and more like a classic convergence trade: where policy tailwinds + new infrastructure narrative + a generational capital-markets catalyst combine to send space stocks into orbit.

And there are three catalysts that matter most:

Put those together, and you get a rare and bullish setup: a theme that has government urgency, private capital ambition, and public-market oxygen all at the same time.

Let’s break it down.

Catalyst 1: The White House Space Executive Order

The new White House EO signed in mid-December, titled “Ensuring American Space Superiority,” is straightforward with its goals:

• Crewed U.S. Moon landing by 2028
• Progress toward a more sustained lunar presence (with outpost elements around 2030)
• Commercial pathway to replace the ISS by 2030
• Faster procurement and a harder push toward “commercial-first” contracting
• A stronger “space security” posture and missile-defense demonstrations
• A long-term signal: space-based nuclear power 

And the most investable part of the EO is the mechanisms it’s setting forth, basically telling agencies: “Buy faster. Buy commercial. Stop overpaying for slowness.”

This is important because the fastest way to create winners is to change how contracts are awarded. When Washington shifts from cost-plus, bespoke contracting to commercial-first, fixed-price models, a different set of companies starts to win – and the public-market space sector becomes far more investable. 

The timeline is also set (and markets love deadlines).

With the EO signed December 18, 2025, the countdown has already begun:

• ~60 days: nuclear initiative guidance
• ~90 days: integrated plan package to the president (including program ‘health checks’)
• ~120 days: transportation policy revisions and spectrum actions
• ~180 days: implementation of acquisition reforms and national security space strategy/architecture plan 

Throughout early-to-mid 2026, we can expect recurring progress updates that act as stock catalysts: policy memos, implementation plans, procurement tweaks, pilot programs, and (importantly) contract momentum.

This is how the stocks start moving before the fundamentals show up in quarterly revenue.

Catalyst 2: Orbital Compute – AI Infrastructure Beyond Earth

Let’s address the elephant in the room: data centers in space sound absurd. And they are – until the first demos show up. Then markets do what they do – sprint 18 months ahead of reality and price in a world that doesn’t yet exist.

Orbital compute is now reaching that ‘demo threshold.’

• Nvidia (NVDA) has publicly profiled startups pursuing space-based data centers, explicitly framing the pitch as lower energy constraints relative to Earth-based infrastructure and highlighting the engineering effort around thermal/power systems. 
• Starcloud‘s own materials describe an in-space GPU cluster concept and a first commercial satellite (Starcloud-2), aiming for operational status in 2026. 
• Elon Musk has talked about using his SpaceX company to provide data centers in space for his AI company, xAI, and has loudly proclaimed that orbital computing is the future. 
• Alphabet (GOOGL) is teaming up with Planet Labs (PL) in what they call “Project Suncatcher,” which involves launching space-based Google AI data centers by 2027.

Now, will orbital compute replace terrestrial hyperscale in 2026? Of course not. But if ‘compute in orbit’ becomes a credible narrative, the market immediately starts bidding up the enabling stack: launch networks, space-grade power and thermal management, radiation-tolerant electronics and resilient systems, optical links/laser comms, in-orbit servicing and in-space manufacturing.

The recent EO also addresses exactly the areas that become relevant as space becomes more commercial and more crowded – space traffic management, orbital debris, cislunar operations, spectrum leadership, and commercial “as-a-service” approaches. 

Orbital compute doesn’t need to work at scale to move stocks in 2026. It simply needs to be credible enough to ignite investment, partnerships, prototypes, and pilot program procurement.

Because Wall Street buys optionality – and overpays for it.

Catalyst 3: A SpaceX IPO Could Reset the Entire Sector

Now, here’s the big one.

If SpaceX goes public in 2026 (via traditional IPO or a creative structure), it would likely become the benchmark asset for the entire space category. In terms of mindshare, it’s the Tesla of space; and markets love a narrative anchor.

SpaceX is discussing a 2026 IPO that could raise $25 billion-plus and value the company above $1 trillion, with timing discussed around mid-year. 

That’s great for SpaceX, but this is about more than one company.

A SpaceX IPO doesn’t just create a new stock. It:

And there are already public-market ‘SpaceX adjacency’ theories floating around – everything from suppliers to more exotic routes – because markets hate waiting. 

The hype is building quickly.

Why 2026 Could Be the Space Stocks Re-Rating Year

Individually, each catalyst is meaningful. Together, they’re combustible.

The EO generates government urgency, contract velocity, and a national narrative. Orbital compute creates the next ‘AI infrastructure’ storyline, with a fresh frontier. The potential SpaceX IPO inspires liquidity, benchmarking, attention, and multiple expansion.

This is the same recipe that has driven so many prior theme cycles:

Then everything in the ecosystem trades like it’s a pure-play winner.

Of course, sometimes that ends badly – like in 2021, when Virgin Galactic (SPCE) crashed from $1,100 to $267 as reality replaced hype. But in 2026, we’ve got one additional ingredient that matters: the AI boom is still the dominant macro narrative, and orbital compute is basically AI infrastructure with a spacesuit. 

If you’re looking for a way to keep playing AI upside while everyone fights over the same data center trades… space is a natural new hunting ground.

Who Might Benefit: The Top 2026 Space Stock Plays

We’ve compiled a watchlist for where capital and contracts could flow as the three catalysts converge:

If orbital compute and lunar goals both accelerate, launch cadence becomes the bottleneck – and bottlenecks become profit pools.

Rocket Lab (RKLB) just landed an $805 million contract in December 2025 to deliver 18 missile warning and tracking satellites for the Space Development Agency – the company’s largest deal yet, nearly 50% larger than its entire 2024 revenue. The company has also been selected for the U.S. Air Force’s $46 billion EWAAC contract and the U.K.’s £1 billion hypersonic development framework, both running through 2031. Rocket Lab’s space systems business has grown from 6% of revenue in 2020 to nearly 75% today, with third-quarter 2025 space systems revenue alone hitting $114 million. The company’s evolution from pure launch provider to end-to-end space systems integrator positions it squarely in the “commercial-first” procurement wave the EO is pushing.

The EO explicitly leans into security strategy, architecture, and deterrence language – and that typically means primes/integrators get steady demand even when commercial cycles wobble.

Lockheed Martin (LMT), Northrop Grumman (NOC), RTX (RTX), L3Harris (LHX), and Leidos (LDOS) remain the core defense space plays. These companies build the satellites, sensors, and integration layers that the “space security” and missile-defense portions of the EO will require. While less volatile than pure-play space stocks, they offer exposure to multi-decade government spending cycles with lower execution risk.

A commercial pathway to replace the ISS by 2030 is a headline goal – and an early pipeline of contracts, partnerships, and prototypes can show up well before then.

Redwire (RDW) was awarded a contract in September 2025 to provide roll-out solar arrays (ROSA) for Axiom Station’s first commercial space station module. Redwire has delivered eight IROSA wings for the ISS (six currently deployed), with each providing 20-plus kW of power for over 10 years. The company also secured a $25 million NASA IDIQ contract in August 2025 for biotechnology facilities and on-orbit operations, plus additional NASA contracts for pharmaceutical drug development in space using its PIL-BOX platform. Redwire’s positioning across power systems, in-space manufacturing, and microgravity research makes it a core infrastructure play for the post-ISS era.

EO language favoring fixed-price, as-a-service models is a tailwind for companies selling data products rather than bespoke hardware builds.

Planet Labs secured a $260M contract from Germany in July 2025 – one of its largest ever – for satellite services supporting European defense and security. The company also won a $7.5 million contract renewal with the U.S. Navy in October 2025 for vessel detection over the Pacific, plus a $12.8 million NGA contract for AI-enabled maritime domain awareness. Planet Labs’ contract backlog surged 245% year-over-year, driven by major defense and intelligence wins. The stock has responded accordingly, up over 267% year-to-date through Q4 2025.

BlackSky (BKSY) won a $100-plus million seven-year contract in January 2025 from an international defense partner for real-time monitoring capabilities, and added a $30-plus million multi-year international defense contract in Q3 for Gen-3 tactical ISR services. The company’s backlog stands at $322.7 million, with 91% from international contracts. BlackSky’s bet on high-cadence, AI-enabled analytics is paying off as governments prioritize real-time intelligence, though the company faces near-term headwinds from U.S. budget uncertainty.

Spire (SPIR) rounds out the Earth observation trio with its focus on weather data and maritime tracking, though it operates at a smaller scale and with less recent contract momentum compared to Planet Labs and BlackSky.

This is the speculative bucket. If ‘compute in orbit’ becomes investable, the first winners will be providers of enabling hardware – especially around power/thermal, radiation-hardened systems, and optical communications.

This is also where you’ll want to watch for ‘surprise’ beneficiaries as partnerships are announced. Companies providing space-grade components, cooling systems, and laser communication links could see sudden revaluations if orbital compute moves from concept to funded programs. The EO’s emphasis on space-based nuclear power is particularly relevant here – if that pathway opens up, it changes the economics of power-hungry orbital infrastructure entirely.

The Risks Space Investors Need to Watch

We’ve got to be honest about the hazards here:

• Execution risk and budget politics are real. Even Reuters coverage notes that NASA has been dealing with workforce reductions and budget pressure in the broader policy environment, and timelines can slip.
• Orbital compute faces serious challenges – radiation, cooling, latency, launch economics. The story can run ahead of the engineering.
• Space stocks are volatile by nature. They’re small-cap heavy, sentiment-driven, and allergic to risk-off macro tape.

These risks don’t necessarily prevent a 2026 rally. They just mean you should expect a trade that looks like this: rip higher on narrative, contracts, and valuation re-rating → correct violently when reality shines through.

The 2026 Playbook: What to Track

If you want to track whether this theme is viable in 2026, don’t just watch stock prices. Watch the signposts:

• Q1-Q2 2026: EO implementation documents (especially procurement reforms and security architecture plans)
• Throughout 2026: Orbital compute demos/partnerships (GPU-in-space, optical comms announcements, payload customers) 
• Mid-2026: SpaceX IPO newsflow (bank selection, timing, structure rumors, Starlink narrative, and whether orbital compute is part of the pitch) 
• Ongoing: Defense and civil space contract velocity (who’s winning, and whether “commercial-first” shifts the usual winners)

When those signals align, investors start reassessing their positioning.

The Bottom Line On Space Stocks In 2026

In 2026, space could be funded, incentivized, and liquid – all at the same time.

If you’ve been looking for the next investment theme that can capture attention while the rest of the market argues about the same five mega-cap AI stocks, space is starting to look like it’s next in line…

Because apparently the only thing Wall Street loves more than an AI boom is an AI boom in orbit.

Every great technological leap follows the same curve.

First comes disbelief… then adoption… then acceleration.

We’re seeing it in space right now – and we’ve seen it before in every breakthrough that reshaped the economy.

Phones. Computers. The internet. AI.

Each one moved faster than the last – and created fortunes for those who recognized the pattern early.

That’s why I just held a brand-new briefing about the next technology poised to follow that same exponential path – one small company at the center of a trillion-dollar industry that’s about to be disrupted from the inside.

See the name and ticker symbol of this top tech play before it takes off.

The post 2026 Could Be the Breakout Year for Space Stocks appeared first on InvestorPlace.

As a reminder, InvestorPlace offices, including Customer Service, will be offline today, December 31, through January 2. Regular hours will resume on Monday, January 5, at 9:00 a.m. Eastern Time.

We wish you a prosperous New Year!

Hello, Reader.

If you were to compare human beings to companies, there aren’t many similarities to hang your hat on.

For starters, we are, obviously, alive, and companies are not.

However, companies are living, breathing organisms – they just so happen to subsist on a steady diet of market share gains and/or expanding profit margins.

And also much like us fragile humans, companies enjoy a lifetime of indeterminate length. But their lifespans do eventually come to an end.

Most investors ignore or overlook this important reality. They tend to think of their core investments as “forever stocks.”

But that sort of perspective can be a dangerous one – especially now that artificial intelligence is running amok in the global economy.

AI is spawning thousands of such companies, many of which will conquer and replace established companies that may seem indomitable today, if not immortal.

That’s the process an Austro-Hungarian economist by the name of Joseph Schumpeter called “creative destruction”… and it is an inescapable facet of economic lifecycles.

As investors, therefore, we cannot afford to bemoan new technologies like AI; we must embrace them. Companies will come and go, whether we like it or not.

So, in today’s Smart Money, I’ll share how I choose the strongest companies to invest in… and give away some stocks that pass the test.

Ask Yourself These Two Questions…

Remember Blockbuster Inc.?

It was the king of the hill in the movie rental business. But then along came rental channels that provided a measure of efficiency, like when Netflix began offering DVDs by mail.

So, our mission is to cozy up to the up-and-comers and steer clear of the down-and-outers.

Unfortunately, because the process of creative destruction resembles a chaotic war zone, we cannot always identify the winners or the losers immediately. But this essential two-part test can help cut through the fog of war to provide clarity and insight, long before the hostilities end.

The test relies on one word: efficiency.

Since the process of creative destruction is a war of efficiency, the creator-victors of this war provide efficiency gains, or utilize them. The “destroyee”-victims do not.

It is the secret sauce that converts upstart companies into world dominators.

Recent geopolitical events – like the U.S.’s strikes against Iran’s nuclear sites over the weekend and Iran’s missile attack on a U.S. base in Qatar today – also work to highlight the importance of efficiency, as companies that can quickly adapt or secure their supply chains using advanced technologies like AI will become victors.

So, when analyzing new investment opportunities, or evaluating existing positions in your portfolio, ask yourself these two questions…

If the answer to either question is “Yes,” congratulations – you’ve probably got a creative winner on your hands.

If the answer to both questions is “Yes,” you’ve definitely got one.

The inverse is also true, of course. Companies that elicit a “No” answer to both questions are heading for the “destroyee” side of the creative-destruction spectrum.

Efficiency gains do not always show up immediately in financial statements, but they do show up eventually in various ways: Expanding profit margins, a growing market share, rising revenues, or all of them at once.

One of America’s earliest success stories illustrates the power of efficiency…

Looking Back… and Looking Ahead

I’m talking about Ford Motor Co. (F).

During its formative years in the early 1900s, this company’s profile would have provided a resounding “Yes” to both of my efficiency tests.

When Henry Ford sold his first Model T vehicles in 1908, the sticker price was $850. But after he and his team had developed an efficient moving assembly line in 1913, he was able to price the Model T at just $440.

Thanks to additional refinements, Model T prices continued falling for several years, until finally bottoming out at $260 in 1925. Not surprisingly, as sticker prices dropped year by year, annual sales skyrocketed.

Case studies of corporate successes like Ford inform my investment process at Fry’s Investment Report. Up and down the portfolio, we find companies that are either introducing new efficiencies, applying new efficiencies, or both.

Take Corning Inc. (GLW), for example.

The company’s market-leading products across several high-demand categories provide dramatic efficiency gains. Its fiber-optic components significantly boost data-transmission capacity in numerous end uses, like data centers.

Then there’s another one of our holdings, a Korean company that emulates the Amazon-like business model to revolutionize retail commerce in the country – i.e., the goods come to your door, rather than you going to where the goods are sold.

I reveal the name of this company in my special presentation, which you can watch here for free.

To learn more about the rest of my efficiency plays at Fry’s Investment Report, click here.

Regards,

�������°�

The post Best of 2025: Ask These Two Questions to Find the Next World-Dominating Companies appeared first on InvestorPlace.

But 2026 looks different.

A handful of long-brewing technology curves – robotic embodiment, autonomy, ambient AI, custom silicon, and next-gen nuclear – are all hitting their first real-world validation phase at roughly the same time.

That’s when the conversation shifts from ‘cool demo’ to ‘wait… this is deployed?’

The question isn’t whether these technologies will arrive. The prototypes already work. 

The question is whether 2026 becomes the year they escape the lab and enter the economy at scale.

Here are five predictions where I’m willing to put stakes in the ground – written with full awareness that the internet will screenshot this and dunk on me if a robot trips in a warehouse on January 3.

1. Humanoid Robots Clock In for Real Shifts in 2026

For the last decade, humanoid robots have been the technological equivalent of vaporware.

But I think that changes in 2026 – because the minimum viable product for humanoids is now obvious: do a small set of repetitive tasks in controlled environments, reliably, for long shifts, with measurable ROI. 

We’re already seeing real industrial proof points that the ‘humanoid worker’ is graduating from concept to deployment.

Figure‘s November 2025 update on its BMW Spartanburg deployment details an 11-month program that progressed to active assembly-line work, with robots running 10-hour shifts Monday through Friday and contributing to the production of 30,000+ X3 vehicles.

Meanwhile, Agility Robotics‘ Digit is already moving through the pilot → paid deployment → multi-site expansion arc. Agility has demonstrated Digit’s commercial operations with GXO (a robots-as-a-service model) and has announced additional commercial agreements (like with Mercado Libre). And Amazon (AMZN) has been testing Digit for a while, focused on tote handling and item consolidation – repetitive tasks where Digit’s humanoid form makes it more advantageous than traditional wheeled robots in navigating human-designed spaces.

Next up? Homes.

Not to the extent that everyone will have a humanoid that folds the laundry, walks the dog, makes dinner, and mows the lawn. But 2026 is likely the year we’ll see true early consumer shipments (limited volume, supervised autonomy).

1X has announced that U.S. deliveries of its NEO home robot will start in 2026, with an Early Access ownership price point of $20,000. That may be more of a ‘rich early adopters as product testers’ wave than ‘mainstream consumer’ wave. But it’s still the first time the home humanoid story feels like an actual product and not a sci-fi storyboard.

Prediction: By the end of 2026, humanoids will be visibly present in real operations – factories and warehouses first, then early access in homes. They won’t be ubiquitous or perfect but real enough that “humanoids are coming” starts being a procurement question rather than a debate. 

2. Robotaxis Scale to 20-Plus U.S. Metros

Robotaxis have been operational in the United States for several years now, ever since Waymo began offering public driverless rides in Phoenix back in 2020. 

Today, the robotaxi footprint is still relatively small but expanding. Waymo offers rides in Phoenix, the San Francisco Bay Area, Los Angeles, Austin, and Atlanta. And Zoox opened a public robotaxi service in Las Vegas (alongside operations in San Francisco). Altogether, that’s about six major metro areas.

I expect that 2026 is when that city count starts to climb fast. And there are two ways to make it happen – one ambitious, one practical.

If you define a “robotaxi city” as paid, on-demand, driverless rides available broadly to the public, then getting to 20-plus by the end of 2026 is… ambitious. That takes fleet scale, mapping, remote ops, depots, local regulatory alignment, etc.

If you define “robotaxi city” the way most people would experience it – AV ride availability in a meaningful area, via a mainstream app, with expanding hours/coverage – then 20-plus metros is very plausible by late 2026.

Waymo has already announced it’s introducing fully autonomous operations in Miami, Dallas, Houston, San Antonio, and Orlando. That’s five incremental metros right there, plus its existing five.

Zoox is also signaling expansion beyond Las Vegas and San Francisco, including “coming soon” markets like Austin and Miami on its “where to ride” materials. 

And then there’s the sleeper catalyst: Uber (UBER) as the robotaxi distribution layer. Uber’s CEO has said the company expects robotaxi services in more than 10 markets by the end of next year – meaning 2026 – via partnerships. Even though many of those launches will begin as limited geofenced areas, the city-count math starts compounding quickly.

Prediction: By the end of 2026, the U.S. will have 20-plus metros where consumers can order robotaxi/AV ride services – some fully driverless and scaled, many limited-but-real, most expanding quarter by quarter. The shift won’t be “national” in the literal sense. It will be “national” in the cultural sense, where everyone knows someone who’s ridden in a robotaxi. 

3. AI Glasses Bring Ambient Intelligence Mainstream

2026 is when AI stops being something you pull out of your pocket and becomes something that’s simply present – ambient, always-on, hands-free, and aware of what you’re actually doing.

The only form to make that feel natural is wearables, especially glasses. And we’re lining up for a year where multiple platforms push real product timelines:

• Google + Warby Parker: Reuters reports the duo plans to launch AI-powered smart glasses in 2026, built around Android XR and Gemini, with variants that may be screen-free or include an in-lens display. The report also indicates these devices will leverage real-time translation, visual search, and navigation features, building on Google’s existing Glass Enterprise learnings.
• Apple (AAPL): Bloomberg reports Apple is planning smart glasses by the end of 2026, with suppliers beginning to mass-produce prototypes in late 2025. Apple’s approach reportedly focuses on seamless iPhone integration and all-day battery life, addressing the key pain points that limited earlier smart glasses adoption.

Now, none of this means that smartphones will vanish in 2026. But they likely will stop feeling like the center of our universe.

The first wave of AI wearables won’t replace phones the way iPhones replaced BlackBerrys. Instead, they’ll replace the most frequent phone behaviors:

• Quick questions
• Messaging shortcuts
• Navigation and reminders
• Translation and identification
• Capturing and summarizing real life (meetings, errands, etc.)

Once you have a wearable that can see what you see, hear what you hear, and help you in real time, the ‘pull out slab → unlock → type → search → scroll’ workflow starts to feel archaic.

Prediction: 2026 is the year AI wearables (especially glasses) hit enough product-market fit that they become an exciting tech category again, and early adopters genuinely start leaving their phones in their pockets for long stretches of the day. 

4. Big Tech’s Custom Silicon Breaks Nvidia’s Lock

Nvidia‘s (NVDA) chip dominance over the past several years has been born of two moats: best-in-class GPUs and CUDA – the software ecosystem that makes those GPUs the default. CUDA’s decade-long head start has created an estimated $1 trillion in switching costs across the AI ecosystem, as developers, tools, and optimization pipelines are deeply CUDA-native.

But Big Tech is about to attack both at once.

On the hardware front, the direction is clear: hyperscalers want custom silicon to reduce cost, secure supply, and tailor chips to their workloads.

We’re now seeing credible reports of real ‘cross-pollination’ between Big Tech chip stacks:

• Meta (META) ↔ Google TPUs: Meta is in talks to spend billions on Google’s TPUs, potentially renting via Google Cloud as early as 2026, with larger-scale use discussed starting 2027. 
• OpenAI ↔ Amazon Trainium: Amazon is in talks to invest in OpenAI, and the arrangement includes OpenAI using Amazon’s Trainium chips. 
• Microsoft’s (MSFT) Maia: Mass production of Microsoft’s next-gen Maia chip was delayed into 2026, which highlights how hard this is – but also how committed hyperscalers are to doing it anyway. 

Yet, the real plot twist is the software front.

Reuters just reported that Google is working on ‘TorchTPU‘ to make its TPUs run PyTorch more smoothly, with Meta’s help (Meta is the primary backer of PyTorch). The goal is to reduce switching friction away from Nvidia’s CUDA-centered world by making the dominant developer framework perform beautifully on non-Nvidia hardware. PyTorch commands roughly 60% of AI research frameworks (per Papers With Code), making CUDA-to-TPU portability critical for Google’s cloud chip ambitions.

That’s the tactical shot – because the way Nvidia loses share is when inference workloads migrate to cheaper custom chips, training becomes more heterogeneous across TPUs, Trainium, and GPUs, and the software stack gets more portable.

Then, suddenly, Nvidia is competing on price/performance like a normal company.

Prediction: In 2026, Nvidia will remain enormous, but the ‘default Nvidia’ assumption will break. Custom silicon becomes a real, visible, multi-platform ecosystem – and software portability initiatives like TorchTPU start shaving down CUDA’s switching-cost advantage. Nvidia’s monopoly doesn’t die; it gets unbundled. 

5. Nuclear SMRs Hit Criticality: Proof Over Promises

Nuclear has been ‘back’ so many times, it should have a punch card.

But 2026 could be the first year we get a very specific kind of validation: multiple advanced reactor projects achieving first criticality.

The U.S. Department of Energy’s Reactor Pilot Program aims to reach criticality for at least three advanced reactor concepts outside national labs by July 4, 2026 – America’s 250th anniversary. The DOE pilot program has awarded approximately $900 million in funding across seven selected projects, including X-energy’s Xe-100, Kairos Power’s Hermes, and TerraPower’s Natrium demonstration.

Now, there’s an important nuance here: criticality is not the same as commercial grid power. But it is the moment the technology moves from design documents and PowerPoints to actual fission.

This matters because the market doesn’t need a hundred SMRs online to reassess the nuclear complex; just proof that the new wave of designs can hit milestones, in the real world, on something resembling a schedule.

Prediction: By late 2026, at least some of these pilot efforts achieve criticality, and we see a much clearer path for follow-on deployments. Even if the July 4 goal delivers one or two successes rather than the full cohort, it proves the technology works – and that’s what changes the conversation.

2026: The Year Tech Leaves the Screen

For all five of these predictions, there’s one major throughline: 2026 is when software starts crawling out of the screen and into physical reality.

• Robots that do work
• Cars that drive themselves
• Glasses that make AI ambient
• Chips that challenge incumbents
• Nuclear that powers this AI-driven transformation

And if 2026 really is the year these trends are validated, then 2027 is when the folks who got positioned early reap the rewards.

I’ve been tracking these five technology curves closely, and the pattern is clear: the companies that survive the validation phase – the ones that can actually ship humanoids that work, deploy robotaxis that scale, build chips that compete – become the next generation of platform companies.

The challenge is finding them before everyone else does. Once BMW announces Figure robots are running full production lines, Waymo hits 50 cities, or Meta’s custom chips are outperforming Nvidia on cost, the ‘early investor’ window is closed.

That’s why I put together a detailed video presentation on the startups positioned at the center of these trends. It covers:

Watch the full presentation here if you want to see which companies are actually positioned to win in 2026.

The post Tech Predictions 2026: The Year Software Crawls Into Physical Reality appeared first on InvestorPlace.

Before we jump in, a heads-up that we’ll be taking off tomorrow, New Year’s Eve, and Thursday, New Year’s Day, here in the Digest. We’ll return on Friday, January 2. Now, today’s Digest…

This piece from November examines the wealth-effect dynamic at the heart of today’s K-shaped economy and asks: Have asset prices begun playing a larger role in sustaining consumer spending than wage income?

This topic has increasingly dominated mainstream coverage as we approach 2026, raising important questions about market fragility, earnings sensitivity, and who is actually driving consumption. It’s a timely, structural lens on an economy where prosperity isn’t evenly shared.

Have a good evening,

Jeff Remsburg

What if the economy wasn’t being lifted by paychecks anymore – but instead, by brokerage statements?

On Sunday, The Wall Street Journal ran a piece highlighting the “haves” versus “have-nots” split in our economy that co-Digest writer Luis Hernandez and I regularly spotlight.

The article noted that the “wealth effect” is behind so much of today’s spending from Americans with assets.

From the WSJ:

Investors’ rosy feelings about having a lot more money—at least on paper—are powering spending on restaurant meals, business-class airline tickets, home improvement and more, keeping the broader economy humming…

The phenomenon of people spending more when assets they own go up in value is known as the “wealth effect.”

Meanwhile, in the lower spoke of the “K” of this K-shaped economy, Americans without assets face high retail prices and paychecks that aren’t keeping up with inflation. The result is that sentiment has sunk to near its lowest reading on record, according to the latest University of Michigan survey.

Is the wealth effect changing the traditional relationship between the economy, the investment markets, and the labor force?

What if it’s no longer the economy that’s making people rich, but instead, “feeling rich” is critical for a robust economy?

If there’s anything to this idea, there are significant implications for this bull market, our social cohesion, and your portfolio.

Why the wealth effect is today’s new growth engine

Historically, we’ve understood the market as a general mirror of the economy.

When businesses hired more workers, paid better wages, and saw rising productivity, those fundamentals translated into stronger corporate earnings, which in turn pushed stocks higher.

In that world, a strong labor market was the foundation of everything.

But as we’ve highlighted over the last few months, AI is breaking the link between employees and profits. We’re entering a new era where a company can grow earnings without growing payroll.

Yesterday’s model: Healthy job market → higher wages → more spending → stronger earnings → rising stock prices.

Today’s “wealth effect” model: Rising stock prices → wealth effect spending → resilient GDP → “healthy” economy…

From a “yesterday’s model” perspective, today’s job market isn’t all that healthy. While we’re not seeing massive layoffs yet, they’re rising fast. At best, we have what Federal Reserve Chairman Jerome Powell calls a “low hire, low fire” market.

Meanwhile, if you do have a job, wages aren’t keeping pace with inflation, and Americans’ wallets are hurting.

Yesterday, a new Bank of America report found that 29% of lower-income households are living paycheck to paycheck. That’s up from 28.6% last year and 27.1% in 2023. Bank of America blamed the increase on slowing wage growth.

Turning to the “wealth effect” model, evidence suggests that Upper-K consumers are feeling stronger than ever, exhibiting a greater influence on our economy than in recent decades.

Here’s Oxford Economics, a global economic advisory firm, from last month:

Since the onset of the COVID-19 pandemic, significant gains in net wealth have driven almost a third of the increase in consumer spending.

Despite an unfavorable backdrop, consumer spending will grow at a decent pace this year, largely thanks to the stock market rally that started in April…

Wealth effects have strengthened over the past 15 years, with stocks becoming a bigger driver of consumption than housing.

Mark Zandi, chief economist for Moody’s Analytics, reports that the top 10% of wealthiest Americans accounted for 49% of consumer spending at the end of Q2.

Think about that: just one out of 10 Americans wields the same economic power as the other nine combined.

This K-shaped economy helps explain one of the puzzles of our time – why median Americans feel squeezed while the overall economic data looks healthy.

The first issue with this new model – a closed-system economy

If the economy increasingly runs on spending by asset owners, then Americans without meaningful assets become less integral to the growth story. And that creates a new risk–exclusion.

To what extent are we slipping toward what you might call a “closed-system economy?” One where the loop circulates among the Upper-K cohort – and largely bypasses half the country, who don’t own stocks or significant assets?

When prosperity bypasses giant swaths of the population, political and social consequences often follow. History tells us that if the situation becomes dire enough, we can expect rising disenfranchisement, frustration, and eventually, pushback.

The election of democratic socialist Zohran Mamdani to mayor in New York City last week (which we profiled in this Digest) may be a tiny signal of that broader shift.

The next big problem with this new model – chicken or egg?

If spending is primarily dependent on asset wealth, and asset wealth depends on market performance, we’ve entered what I’ll call a Reflexive Economy – a system that feeds on its own success – maybe even if that success hasn’t materialized…or can slip away.

In my October 10^th Digest, I highlighted an example of this “betting on the come” – the partnership between Advanced Micro Devices (�������°�) and OpenAI (disclosure: I own �������°�).

On the surface, it was a blockbuster: OpenAI committed to buying tens of billions of dollars’ worth of �������°�’s AI-focused chips. �������°� gets massive new revenue, OpenAI gets diversified computing power – win-win.

But as our macro investing expert �������°� of Fry’s Investment Report and his lead analyst Tom Yeung explained, the deal’s structure raises eyebrows.

Instead of writing �������°� a $60 billion IOU for the chips, OpenAI persuaded �������°� to issue 160 million stock warrants – essentially options to buy �������°� shares – for a penny each. Those warrants become valuable only if �������°�’s stock price rises to certain key levels.

So, notice the reflexivity:

• OpenAI’s ability to pay for �������°�’s chips depends, in part, on �������°�’s stock price rising enough to make those warrants valuable.
• �������°�’s stock price rising depends, in part, on optimism about the OpenAI deal and the future revenues from OpenAI.

And what’s the common ingredient for both �������°� and OpenAI?

Confidence.

Confidence that OpenAI will pay… confidence that �������°�’s stock will rise.

In the same way that the wealth effect is based on confidence that unrealized wealth won’t disappear (so let’s keep spending!), this kind of circular deal is based on confidence that both parties will live up to their end of the bargain.

Neither is guaranteed.

And this means one thing…

Today, tangible earnings are more important than ever

Earlier this week in his Innovation Investor Daily Notes, our hypergrowth expert Luke Lango explained why nervous tech investors should be watching earnings, not pricy valuations:

If we look back at the Dot Com Boom…we can see that rich valuations didn’t pop the bubble.

The S&P 500 traded >20X forward earnings throughout essentially all of 1998, 1999, and 2000 – yet…it wasn’t until EPS estimates started to fall, in the second-half of 2000, that the Dot Com Boom turned into the Dot Com Bust…

Big picture readthrough: If you’re looking for a top, follow earnings, not valuations. 

Luke’s point is critical.

Today’s lofty valuations reflect the “wealth effect” powering this Reflexive Economy. And earnings are the bridge connecting these inflated assets to real-world spending.

Now, yes, valuations are high. But today’s earnings are real and strong – and that’s keeping today’s new wealth effect model at least partially grounded in reality. At a minimum, it means the inflation bubble doesn’t have to pop.

But when earnings fall, watch out.

Here’s how that loop looks:

Bottom line: Luke is right – valuations aren’t the trigger we need to be watching. They can stretch. But when lower earnings result in kneecapped confidence, that’s when the fragility of today’s new model will become apparent.

The good news is…

We’re nearing the end of Q3 earnings season, and we’ve seen strong earnings numbers. As importantly, forecasts remain solid.

Here’s FactSet, the go-to earnings data analytics group used by the pros:

• For Q4 2025, analysts are projecting earnings growth of 7.5% and revenue growth of 7.1%.
• For Q1 2026, analysts are projecting earnings growth of 11.8% and revenue growth of 7.7%.
• For Q2 2026, analysts are projecting earnings growth of 12.7% and revenue growth of 6.8%.

If these figures play out, the Wall Street party will continue. But recognize the reality…

If Lower-K Americans play less of a role in today’s economy… and if the wealth effect is playing an outsized role… then the moment earnings roll over, the feedback loop unwinds – painfully.

That’s why investors today can’t afford to treat this as theory. This feedback loop runs straight through your portfolio.

So, what’s the action step?

We play smarter offense and defense.

For defense, let’s return to Eric. He’s urging investors to take profits on potentially overextended names, such as Amazon, Tesla, and even Nvidia (disclosure: I own AMZN). They’re great companies, but not necessarily great investments at today’s prices.

He also just told subscribers to lock in a 106.7% gain on �������°� after analyzing its complicated OpenAI deal – Eric is adamant about owning only certain AI plays today.

To help investors navigate what to sell – and where to reinvest profits – he recently released a “Sell This, Buy That” research package. It lays out which AI (and non-AI) plays still have the earnings strength to thrive in this Reflexive Economy.

Inside, he spotlights three under-the-radar stocks he believes are “Buys” – companies with the real cash flow and growth potential to protect and multiply your money as this late-stage bull evolves.

You can see all three tickers – free of charge – in Eric’s special broadcast.

For offense, look to veteran trader Jonathan Rose

A former professional trader who’s trained more than 100 pros, Jonathan now helps everyday investors trade the same setups used on Wall Street.

He focuses on short-term momentum and disciplined risk control, and his results speak for themselves. Here are just a handful of his recent trade returns and the hold periods:

• 209% in 13 days – LYFT 
• 275% in 25 days – ETHA 
• 700% in 15 days – MP 
• 227% in 49 days – Unity 
• 534% in 3 days – MP 

Last month, Jonathan – joined by Eric, Luke, and �������°� – held his Profit Surge Event. They discussed today’s most lucrative investment trends and how they’re playing them.

While Eric, Luke, and Louis tend to focus more on medium- or longer-term holds, Jonathan zeroes in on the short-term “surge points” that occur inside those same trends. Look again at the list above to get a sense for how quick these trades can be.

For more information on exactly how Jonathan trades at his Advanced Notice service, click here.

Wrapping up

Are we in a new model today? One where prosperity flows less from paychecks and more from portfolios?

If so, we need to recognize that the wealth effect works in reverse, too, which makes this bull more fragile than we might want.

To be clear, we’re still riding it – but we’re increasingly watching earnings. If/when they go, we don’t want to be around for what comes next.

We’ll keep tracking this here in the Digest.

Have a good evening,

Jeff Remsburg

The post Is “Feeling Rich” Propping Up the Economy? appeared first on InvestorPlace.

After all, trading volume is light this week, and paying too much attention to the day-to-day action can do more harm to your stress levels than all those holiday sweets combined.

That’s why, before we step into the New Year, I’d like to share my most important investing tips to prime your portfolio to flourish in the coming months. Let’s get right to it.

1. Invest in high margin companies that dominate their business. A company that’s able to expand its operating margins is usually a company that has a dominant position – such as a monopoly – in its industry. This company can raise prices without seeing a drop-off in sales, and that’s a nice place to be, especially in the current inflationary environment.

2. Along these lines, companies that have margin expansion tend to post bigger earnings surprises. This is one reason why I like the oil refiners right now. They have dramatic profit margin expansion and are also profiting from rising natural gas and crude oil prices.

3. Invest in companies with strong forecasted sales and earnings. Do you really want to buy stock in a company that’s expecting its growth to slow? As sales and earnings dwindle, so will Wall Street’s interest in the stock. You want to invest in companies that are expecting to be even bigger and better quarter after quarter. Ultimately, these are the ones that will see an increase in institutional buying pressure. As that buying pressure increases, so will the stock price.

I am a stickler about this in Growth Investor. As I write this, our Growth Investor stocks are characterized by an average of 26.7% annual sales growth and 90.4% annual earnings growth.

4. Look for companies that see positive analyst revisions in the past three months, as these typically post earnings surprises. If a stock beats Wall Street’s earnings forecast by a significant amount, share prices can rally dramatically. When I find an unsung stock that has regularly performed better than the “experts” have predicted, I recommend it on the premise that it should top expectations again – and see shares surge when it does.

5. If you’re a dividend investor, focus on companies that are consistently raising their dividends. You want to be sure you’re investing in dividend stocks that have the ability to increase their dividend payments. I check this by looking at the company’s last four dividend payments. Are they increasing? Are they decreasing? Are they staying the same? Decreasing dividend payments are a bad sign (it often means the company isn’t doing well), and you want to avoid those stocks.

Where to Invest First

For all investors, old and new, my Stock Grader (subscription required) is a great tool to keep in your back pocket. You simply plug in a stock you like and it will automatically grade that stock for you. An A-rating is “Very Strong,” a B-rating “Strong,” a C-rating “Neutral,” a D-rating “Weak” and an F-rating is “Very Weak.” You’ll know right away whether the stock you’re interested in is one worth buying or one you shouldn’t touch with a ten-foot pole.

If you’re not sure where to invest, I encourage you to check out Growth Investor. This service is chock-full of fundamentally superior companies across a variety of sectors to ensure that you’re investing in stocks that will “zig” when others “zag” – which will give your portfolio an extra boost when the broader market rallies, as well as protect if it the broader market turns south.

And the time to position your portfolio is now. Fundamentally superior stocks should benefit from new pension funding in the upcoming weeks and the overall seasonally strong time of year.

My Growth Investor subscribers have the odds in their favor with stocks with phenomenal sales and earnings growth. Join Growth Investor today so you do, too.

Sincerely,

�������°�

Editor, Market 360

The post My 5 Tips to Set Your Portfolio Up for the Long Haul appeared first on InvestorPlace.

Because the U.S. market is still standing on a very simple foundation — earnings growth, liquidity, and narrative. And in 2026, all three of those pillars are still very much alive.

Earnings should keep grinding higher because the AI Boom is not a fad … it’s the biggest capital spending cycle since the internet buildout.

Liquidity should improve because inflation is cooling and the Fed has every reason to cut rates as unemployment rises and the political temperature climbs.

And the narrative? Please. Wall Street is not going to suddenly stop falling in love with a story that involves trillion-dollar capex budgets, sci-fi tech, and the promise of making every company on Earth “more efficient” by replacing humans with algorithms.

So yes, I think the S&P 500 can rally more than 20% in 2026. But I also think the market will be very volatile next year, with lots of twists and turns, and a few surprise mega-winners along the way.

With that in mind, here are my five predictions for the U.S. stock market next year…

Prediction #1:

The S&P 500 rises 20%+, because earnings grind higher, multiples stay elevated, and Washington discovers stimulus again

Let’s start with the thing everyone is thinking but only half the market is willing to say out loud: a 20%-plus year for the S&P 500 in 2026 is not only possible — it’s mathematically boring. It’s not some exotic prediction that requires aliens, perpetual motion machines, or a sudden outbreak of fiscal responsibility in Congress.

It requires three things:

The EPS math is the cleanest way to express it:

• Street-ish 2027 EPS estimates sit around $350 (give or take, depending on the source and whether you’re using operating vs GAAP).
• If those estimates just “do what they usually do” in a functioning economy—drift higher as time passes and companies execute—you get $360 without breaking a sweat.
• The market multiple? Call it ~23x forward. That’s not a wild assumption in today’s regime — it’s basically where we’ve been living for the past two years.

Now do the world’s least sexy calculation:

23 × $360 = 8,280

That’s your year-end 2026 target — and it’s 20%-plus upside from the neighborhood we’re currently trading in.

Will it feel “reasonable” when we get there? Absolutely not. Bulls never feel reasonable in real time. That’s the whole point. The market climbs a wall of worry, and in 2026 the wall will have Wi-Fi, an AI agent, and a Congressional hearing.

The fundamental logic is that the U.S. economy in 2026 likely remains a weird beast: growth holds up, earnings hold up, and the Fed is cutting because inflation is cooling and the job market is wobbling. If the Fed is easing and earnings are rising, the market’s default setting is not “panic.” It’s “re-rate.” Even if the multiple doesn’t expand, it can stay high.

And yes, midterms matter. It’s not a conspiracy theory to say the White House wants a better economy and a happier electorate heading into a midterm year. That’s not politics. That’s just… Tuesday.

Prediction #2:

The ride is not smooth: 2026 delivers multiple 10%+ corrections, and you’ll hate it while it’s happening

Now for the part nobody puts in the glossy year-ahead deck: even if the S&P rips higher, 2026 is likely a stomach-churner. Not because the bull case is wrong … but because the market is entering the phase where everything matters again.

We are in Year Four of the AI Boom. And Years Four and Five of transformational booms tend to be the “best years” and the “most abusive years” at the same time.

By Year Four:

• the narrative is dominant,
• positioning is crowded,
• expectations are sky-high,
• and every small crack in the story gets treated like an earthquake.

And the market doesn’t need a recession to correct 10–15% when valuations are elevated. It just needs a cocktail of rates backing up, one hyperscaler pausing a project, a financing headline, or a “profit margins are peaking!” panic from someone with a chart and too much confidence.

That’s why – although stock market history says 10%-plus corrections only happen about once a year, if that – we got six different 10%-plus corrections in the Nasdaq in 1998 and 1999 (Years Four and Five of the Dot-Com Boom).

We should assume multiple corrections in Year Four of the AI Boom, too, because that’s just what happens at this point in the cycle. You get big steps forward and big steps backward.

Here’s the bigger point: volatility isn’t the enemy of the bull market. It’s the admission price. If you want 20%-plus upside in a year that’s built on a concentrated AI-led growth engine, you don’t get that upside without intermittent “what if this is 1999?” episodes.

Ironically, the more right you are about the trend, the more violent the countertrend moves become — because the trade gets crowded.

So yes: up big, but with punches. Multiple of them. Possibly in clusters. With no warning label.

Prediction #3:

AI stocks stay the hottest stocks on Wall Street, but the boom becomes brutally selective

AI is still the center of gravity. Not “one of the themes.” Not “an interesting growth area.” AI is the industrial buildout of this decade — the thing that reorganizes capital spending, labor markets, and competitive strategy.

That’s why, in 2026, I expect AI stocks to remain the leadership cohort — even as the boom gets more selective.

This is the transition from “Spend at all costs” to “Spend efficiently, or get yelled at on earnings calls.”

In other words, the market stops rewarding capacity and starts rewarding utilization.

The first phase of the AI Boom was about one question: How fast can we get compute online?

The 2026 phase becomes: How much profit does this compute generate?

That shift doesn’t kill AI spending. It just concentrates it.

The winners in 2026 will increasingly be the companies that:

• sit at the bottlenecks (performance per watt, networking, memory, cooling, power delivery),
• have clear demand signals (contracts, usage, revenue attach),
• and can fund expansion with cash flow rather than “vibes and a bond deal.”

Meanwhile, the vulnerable names are the ones that require the market to stay in a permanent state of generosity:

• levered balance sheets,
• thin margins,
• customer concentration,
• “we’ll monetize later” stories,
• or business models that break if the cost of capital stays high.

The punchline is simple: AI becomes the dominant engine of U.S. growth … and the stock market becomes even more concentrated around whoever owns that engine.

That’s why the S&P can rally strongly even if large parts of the economy are… let’s call it “fine.” The index doesn’t need everything to be great. It needs the biggest weights to keep printing earnings.

And that’s exactly what efficient spending delivers: less waste, more returns, more earnings concentration … and therefore a more top-heavy market.

Prediction #4:

Space stocks are among the best performers, powered by a SpaceX IPO vortex and “orbital compute” as the next sci-fi-to-capex bridge

This one has major “this sounds insane until it’s suddenly the only thing anyone talks about” energy.

Space in 2026 gets two catalysts that rhyme:

(A) SpaceX IPO

Reuters has reported that SpaceX is preparing for a potential 2026 IPO, and the surrounding reporting/letters have pointed to massive valuation numbers and substantial capital-raising ambitions (with the standard caveat that timing and valuation can change).

If that stays on track, it does what mega-IPOs always do:

• creates a category spotlight,
• drags generalist money into the theme,
• lifts “space-adjacent” public names by association,
• and triggers an arms race of “what’s the next SpaceX?”

The market loves a flagship.

(B) Orbital compute

At the same time, “orbital compute” starts to smell like the kind of narrative that markets price early and monetize later — which is basically the stock market’s favorite business model.

As terrestrial data centers run into constraints (power, permitting, cooling), the notion of pushing some compute workloads to orbit becomes increasingly discussable — not because it’s easy, but because the bottlenecks on Earth make people willing to explore weird solutions.

JPMorgan has explicitly discussed “bubble watch” dynamics and dot-com comparisons in the current environment, underscoring how fast narratives can become self-reinforcing when capital is chasing a transformational theme. J.P. Morgan And orbital compute has all the ingredients of a narrative asset:

• futuristic,
• capital-intensive,
• dependent on a few platform enablers,
• and tied to the biggest private company catalyst in the space ecosystem.

Will orbital compute be a meaningful revenue driver in 2026? Probably not in aggregate.

Will it be a meaningful stock narrative in 2026? Oh, absolutely. And in markets, narratives are often the first derivative of money.

So I expect space stocks — especially those linked to launches, satellites, space infrastructure, communications, and “bits in space” — to be among the best performers as this theme matures from curiosity to “portfolio sleeve.”

And yes: this will be volatile too, because space stocks were invented specifically to remind you that beta is a lifestyle choice.

Prediction #5:

Housing stocks break out because Washington decides the housing market can’t stay dead heading into midterms

Housing is the other 2026 setup I like … not because housing fundamentals are magically fixed, but because political incentives are powerful, and the housing market is one of the most visible sources of economic pain right now.

If the White House wants to juice sentiment going into midterms, housing is an obvious target. Not the only one … but one of the most emotionally potent.

And we’re already seeing credible smoke around the exact tools you mentioned.

There’s been meaningful reporting and discussion around the idea of 50-year mortgages and other structural adjustments, with the FHFA and its leadership tied to exploring these options (and, importantly, plenty of criticism from experts who view it as a band-aid that doesn’t solve supply).

That’s the point: these are the kinds of policies that can revive activity (transactions, mobility, credit availability) even if they don’t “solve affordability” in the purest sense.

And for housing stocks, activity is the whole ballgame.

If policy pushes:

• longer-duration mortgages,
• assumability / portability concepts,
• down-payment assistance,
• easier access to credit,
• or any incentive structure that reduces the “lock-in” effect,

…the market can thaw quickly.

In that scenario, the biggest equity beneficiaries are typically:

• housing transaction ecosystems (mortgage originators/servicers, title/closing, brokerages/portals),
• homebuilders (if demand rises while existing-home inventory stays tight),
• building products/materials (if starts tick up).

And the interesting irony is this: the same people who will complain these policies “inflate prices” are also the reason these policies get political traction — because the pain is immediate, visible, and widespread. So the pressure to “do something” rises.

Which means housing stocks get a 2026 narrative tailwind that investors are currently underpricing because the housing market feels dead.

Dead markets are where reflation trades are born.

The 2026 Stock Market in One Sentence

“The S&P rips higher on AI-led earnings and supportive policy — but it does it while violently shaking out anyone who expects a straight line.“

So the correct emotional posture for 2026 is not “calm confidence.”

It’s more like: helmet on, eyes open, dry powder ready, and don’t confuse volatility with the thesis breaking.

Because if these five predictions are right, 2026 won’t be a year where you win by being the smartest person in the room.

You’ll win by being the person who can stay bullish… while the market does its best impression of a mechanical bull.

If there’s one thing to take from these five predictions, it’s this: 2026 won’t reward the “perfect entry.” It’ll reward the investor who understands the map… and can keep their hands on the saddle while the market tries to throw them off.

That’s why I put together a short presentation that ties this whole outlook together — the why behind the 20%-plus S&P case, the where the AI boom turns brutally selective, and the how to position for the bottlenecks (power, cooling, networking, energy) and the next narrative vortex (space, housing, Washington’s “do something” incentives).

Because in this market, the biggest gains rarely come from reacting to headlines.

They come from seeing the pattern before the headline hits.

Watch the presentation now – and get the full game plan for 2026 while the opportunity is still forming, not after it’s already priced in.

The post My 5 Big Stock Predictions for 2026 appeared first on InvestorPlace.

This October Digest was a natural follow-up to the Crazy Map we shared yesterday – shifting from big-picture late-cycle dynamics to the practical question every investor eventually faces…

What’s the plan when the market does roll over?

It introduced the “ABC Exit Framework” from Senior Analyst Brian Hunt. It’s a simple, rules-based approach for avoiding the guesswork (and stress) of trying to identify the exact top.

I chose it because it pairs well with yesterday’s Crazy Map Digest and offers a clear, actionable structure at a time when many investors begin thinking ahead to the new year.

Have a good evening,

Jeff Remsburg

Don’t worry about China, it will all be fine!

That social media post from President Trump is triggering a big rebound on Wall Street as I write on this Monday.

It’s a welcome relief after Friday’s sell-off, also triggered by Trump, when he accused China of “becoming very hostile” and threatened new 100% tariffs.

Wall Street remains hypersensitive to anything that could rattle the AI trade. Indeed, AI stocks are doing the heavy lifting of today’s bull market. So, any hint of calm – especially from Trump – quickly restores confidence in the sector driving most of 2025’s gains.

Speaking of AI and gains, AI chip supplier Broadcom Inc. (AVGO) announced a new multibillion-dollar deal this morning (as I write, it’s a mystery company – not OpenAI). It’s up 10%, and another sign that the AI boom is still driving big-money moves across tech.

Also from this morning, JPMorgan said it plans to invest in companies deemed “critical” to U.S. national security, many of which sit squarely in the AI supply chain.

Bottom line: From chipmakers to data infrastructure to big banks, the message is clear: The AI investing juggernaut isn’t slowing down.

Still, last Friday’s meltdown put one question front-and-center for investors…

How will I know when to get out?

Let’s answer it.

To help, we’ve already introduced our “Crazy Map.” It’s a list of five milestones that often line the path to a bull market’s eventual peak/bust. We’re tracking them with a “green, yellow, red” scoring system (today, three are yellow, two are already red).

But while the Crazy Map is helpful for signaling when the broad market is likely in its final innings, those innings can last far longer than expected. So, we need another tool – something more precise even once we conclude we’re in the ninth.

This brings us to Senior Analyst Brian Hunt… some easy-to-follow technical analysis… and a guide to help you sidestep the worst of whatever market collapse might be lurking ahead.

Today, let’s dig into exactly how to navigate the end of this bull market. Depending on your financial situation, this issue could save you millions of dollars and loads of sleepless nights.

Your “sleep in peace” game plan for navigating the end of a bull market

For newer Digest readers, Brian used to helm InvestorPlace as CEO, but his first love has always been trading and investing.

So, after choosing to hand over the CEO reins, he’s now one of our leading senior analysts, dissecting the markets and teaching other investors how to consistently put wads of trading cash in their pockets.

Recently, in an internal InvestorPlace email, Brian detailed how he plans to navigate “the top.” It’s based on how he sidestepped the worst of the market collapse in 2008/2009, along with an analysis of how his approach performed when tested against the 2000 crash.

It involves basic trend analysis that Brian writes “can help you avoid every major stock crash for the rest of your life.”

From Brian:

The chart below shows how the stock market enjoyed a strong rally from late 2004 to late 2007.

But then, way before the market meltdown, the S&P began exhibiting terrible price action behavior. These behaviors were bright red warning flags.

In the chart below, you’ll see that in early 2008, the S&P 500 undercut two of its major 2007 lows. This was a 6-month downside breakout. The lowest low in six months (A). This is a major negative for any market.

Then, the S&P’s 200-day moving average turned lower (B). This is a major negative for any market. Then, the S&P staged a downside breakout to new 12-month lows (C).

This bearish move was accompanied by a clear series of bearish “lower highs and lower lows.” This is a major negative for any market.

Source: StockCharts.com

Put it all together, and by early 2008 – six months before the worst of the market’s collapse – Brian had spotted clear signs that it was time to get defensive:

To me, this horrid action is not obvious only in hindsight. It was obvious at the time.

And you didn’t need one ounce of mortgage market insight to know the market was sick.

You just needed a basic knowledge of stock trend health that can be learned in a variety of entry-level books.

Sure enough, here’s how it played out (notice how much you saved if you’d acted after Brian’s “A, B, C” warning system):

Source: StockCharts.com

Back to Brian:

The majority of one of the worst bear markets in history could have been avoided by using basic technical analysis.

The same “A, B, C” warnings were evident in the Dot-Com Crash

As you’ll see below, from mid-1998 to mid-2000, the market provided the same warnings:

• A six-month downside breakout (A)
• Trading below a declining 200-day moving average (B)
• A new series of lower highs and lower lows on the way to a new 12-month low (C)

From Brian:

All major negatives by themselves. Combined, they were hugely negative.

That was the time to get out.

Source: StockCharts.com

And then this happened:

Source: StockCharts.com

Where this leaves us today

So, first, we have the Crazy Map signaling when we’re in the neighborhood of a potential crash. Our latest analysis suggests we’re turning into that neighborhood, but not squarely in it today.

Second, we have Brian’s technical framework that helps us identify, let’s call it, the specific street to be cautious about. We’re definitely not there yet.

As you can see below, we’re nowhere close to trading at six- or 12-month lows, trading below the 200-day MA, or establishing “a new series of lower highs and lower lows.”

Source: StockCharts.com

Let’s now throw in one final wrinkle to help us with our conviction. We’ll factor in one of the most important yet underutilized indicators in investing.

Volume: the truth-teller before price

Price tells us what is happening, but volume tells us how real it is.

Near major market tops or changes in trend, that distinction becomes crucial. After all, how many times have you bought into what you believed was the start of a new market uptrend, only for it to reverse and leave you sitting on sudden losses?

In healthy bull markets, rallies are confirmed by expanding volume – more buyers piling in, more conviction behind each advance.

But as a market begins to tire, that relationship quietly flips…

On “up” days, you’ll start to see shrinking volume. This means fewer investors are willing to chase prices higher. This is followed by sharp “down” days where volume suddenly swells.

That’s often institutions unloading their positions. It’s the “smart money” exiting while retail investors are still celebrating new highs.

This subtle shift in participation is one of the clearest tells of a topping process.

When the heaviest trading sessions start clustering around down days rather than up days, the baton has passed from the “accumulation” phase of a rising market to the “distribution” phase of a market that’s topped out.

Today, we’re seeing some signs that bullish buying volume is slightly softening, but nothing significant enough for us to pronounce a true pivot.

Now, let’s fold this into Brian’s “A, B, C” framework

When we do, volume becomes the force multiplier that validates each technical breakdown:

• When the market posts its first 6-month downside breakout (“A”), check if that drop comes on surging volume, far outpacing volume on recent bullish days. If so, that’s a red flag that the selloff has conviction. And as importantly, if there’s an ensuing rebound rally, how much buying volume is driving it? If it’s light, watch out.
• When price slips below a declining 200-day moving average (“B”), heavy volume confirms the long-term trend has turned. Does the new status quo bring heavier selling volume days than buying days?
• And when a fresh 12-month low arrives (“C”) with a series of lower highs and lower lows, rising volume on down days locks in the verdict: The bulls have lost control.

So, integrating price and volume in this way gives you an early, objective framework to exit with confidence (not panic).

By the time the headlines catch up, you’ll already be on the sidelines, watching the chaos from cash.

But recognize what this means – you won’t get out at “the top”

Here’s the truth that most investors don’t want to hear: This framework won’t get you out at the exact top.

But that’s not a flaw, it’s a feature of disciplined investing. You’ll always “pay” something for prudence – unless you get incredibly lucky and sell at the exact top, which almost never happens.

And even selling at the top would bring a cost. For example, if you sell today – basically at the market’s all-time high – your “cost” is opportunity. You risk watching stocks sturdy themselves from recent wobbles and explode higher, leaving you on the sidelines for the final leg of this bull. Who knows how much higher we’ll go?

On the other hand, if you wait for Brian’s “A, B, C” signals to confirm that the market has truly broken down, your cost is real portfolio drawdown – the decline between the peak and the point where “C” triggers your exit.

In Brian’s examples, depending on exactly where you exit, that could be between 15% and 20% lower.

Either way, there’s a cost. It’s your call as to whether you’d prefer to pay in “potential missed opportunity” or “realized drawdown.” The right answer will be unique to you and your financial situation/goals. Fortunately, you can dial it up or down.

Whatever you choose, recognize the bigger goal: avoiding the worst of a real bear market crash to prevent catastrophic portfolio damage.

So – putting it all together – how will you know when to get out?

Between the Crazy Map’s broad warning signs, Brian’s A, B, C framework, and the confirming story told by volume, you now have a practical roadmap for a specific exit based on a plan – not emotion.

It’s not so much about perfection but, rather, protection. Following this type of framework will help you sidestep the kind of massive losses that can erase years of hard-earned gains and keep your capital intact for the next great buying opportunity.

Speaking of opportunity…

Brian’s roadmap prepares you for the end of the bull. And as the market may be treading toward unstable territory, I’d like to share with you an investment strategy built to thrive in moments of volatility.

Throughout 2025, veteran trader and Investor Place Senior Analyst Jonathan Rose has used this strategy to produce returns like…

• 209% in 13 days – Lyft
• 183% in 14 days – QXO
• 175% in two days – ALTM
• 959% in 31 days – ALB

All these winners happened in Jonathan’s trading service, Advanced Notice, and his average winning gain this year was 267% in only 36 days.

But due to a unique market window opening, he believes 2026 will be his best year yet.

If you want to learn how Jonathan applies his framework to find huge winners, I encourage you to tune into his Profit Surge Event.

During the broadcast, he’s joined by fellow senior analysts �������°�, Luke Lango, and �������°�, and Jonathan shows how investors can strengthen their portfolios by combining each of Louis’, Luke’s, and Eric’s strategies with his.

But you have to act fast – the presentation goes offline at midnight.

Click here to watch the replay.

Have a good evening,

Jeff Remsburg

The post Trump Soothes the Bull appeared first on InvestorPlace.

That’s exactly what we discussed during The Profit Surge Event, where I joined Jonathan Rose, �������°� and Luke Lango to share our highest-conviction ideas and explain how we’re positioning for the opportunities ahead. Jonathan also broke down how he applies his trading framework to our picks to help manage risk and improve timing. You can watch the full replay here.

I invited Jonathan here to pull back the curtain on how he formed that mindset. From the chaos of the Chicago trading pits to a real trade that looked nearly lost before turning around, he shows why conviction and discipline are often the difference between short-term panic and long-term success.

It’s a lesson worth keeping in mind as we move into a new trading year…

**

I had just graduated from the University of Miami, but the Chicago Mercantile Exchange was calling louder than any beach could.

The smell hit me first — sweat, paper, burnt coffee — then the sound.

A wall of voices shouting bids and offers, phones ringing, bells clanging, paper tickets flying like confetti.

I was 22, standing shoulder-to-shoulder with men who had been trading longer than I’d been alive. I was nervous, tie too tight, but exactly where I wanted to be.

Those first steps into the Chicago trading pits would shape everything that came after, teaching me what separates traders who survive from those who wash out.

That’s where I learned The Trader’s Mindset.

Any trader can catch a lucky break, but long-term survival depends on process, conviction, and discipline.

These are the principles that keep traders steady when markets turn volatile.

It all starts with process…

The Framework That Carries You Into the New Year

If you can’t explain why you’re in a trade, you don’t belong in it. This isn’t a gut feeling we get from some squiggly lines on a chart. We’re on the hunt for objective reasons to believe that an asset is mispriced.

Sometimes it’s as simple as spotting some unusual trading activity, or mispriced earnings volatility. Maybe we find a divergence between two highly correlated assets.

Even the strongest process doesn’t spare you from volatility — especially in the final weeks of the year, when volume dries up and emotion replaces information.

A trade can look perfect on paper and still go against you — that’s where conviction steps in. It’s the belief born from research and preparation that allows us to remain confident when things don’t go as planned.

While conviction is what carries us through the rough patches, it’s even better if you can avoid those patches altogether. That’s where discipline comes in.

Discipline is about setting the rules of the trade before you even put in your first offer. I’ve seen plenty of sharp traders self-destruct. And in every case, they made the same mistakes…

They chase hot trades, oversize positions, micromanage every tick, and break their own rules.

Discipline is the patience to wait for your setup, even when the market feels dull and your inner voice is screaming for action.

Without discipline, you’re swinging at every pitch. With it, you’re defending the strike zone long enough to capitalize on the right opportunities.

This singular strategy is what my Masters in Trading community uses to track hidden stock plays with confidence and pair them with a simple tweak that can multiply the payoff on great ideas.

Now, let’s look at a real-world example that brings it all together…

Process in Action

This wasn’t our biggest win of the year — but it might be the most instructive.

Back in July, we took aim at Lyft Inc. (LYFT). The rideshare company was set to release its next earnings report on August 6.

We came into earnings with a simple observation: The options market was underpricing any potential move. The market was implying around a 16% swing, but Lyft’s history told us the stock typically moves closer to 20% after earnings.

Even better, we also saw the company was lagging top competitor Uber Technologies Inc. (UBER), which gave us conviction that LYFT stock still had room to catch up.

That was the edge. We weren’t guessing or chasing a theme. We were playing the math and stacking reasons for the trade.

Because earnings are binary events, we traded volatility instead of direction.

We structured the trade as a straddle — buying bullish and bearish positions with the same expiration.

Discipline Over Emotion

Then earnings hit.

Lyft sold off on the news, but not far enough outside of the market maker’s expectations. That meant we were able to take profits on our bearish puts, but it wasn’t enough to cover the total cost of the strangle. Meanwhile the calls were close to worthless, which put us in a tight spot.

A lot of traders see red on one side of their trade and panic. It’s easy to react emotionally, cash out, and try to preserve capital. But doing so would have locked in a loss without changing the underlying setup. Even then, we would still have been underwater on the trade.

The situation didn’t look good, but this is where conviction and discipline come into play.

We knew the research. Sure, the earnings catalysts didn’t pan out. But that wasn’t our only reason to believe LYFT could move to the upside.

That conviction and discipline kept us from second-guessing the setup when the stock went against the calls.

Conviction Rewarded

And then, right at the last minute, the payoff came.

On Friday, August 15, LYFT started moving after announcing co-founders Logan Green and John Zimmer would down from the board in 2026.

That meant their Class B shares would turn into common stock, killing the dual-class structure and bringing our calls back from the brink. As a result, shares jumped more than 10% and brought our calls back in the money.

The straddle returned about 5% — a clean win built on process, conviction, and discipline.

Soon after Lyft’s run, I saw yet another opportunity to turn its short pop into a fresh win.

I told members of one of my Masters in Trading services to go all in on a bullish Lyft trade at the end of August.

In just two weeks, we netted over 200%.

Both trades on LYFT came from the same approach…

We found a setup with edge, trusted the research, and managed risk with discipline. That’s The Trader’s Mindset in action — and that’s how you stay alive long enough to hit the big ones.

This isn’t the only comeback story we’ve seen over the last year.

Consider Antero Resources Corp. (AR) and Coterra Energy Inc. (CTRA).

2025 tested a lot of traders’ patience. Energy was one of those areas where conviction mattered more than comfort.

Luckily for us, we never wavered in our conviction with these trades.

While The CTRA trade required patience – 91.6% gains in four months – our AR play paid off for 145.5% profits in just a month.

The lesson is simple: Don’t mistake short-term noise for a verdict on your trade.

If your process is sound and your discipline is intact, you don’t have to flinch when a position goes red.

It’s about trusting the framework you’ve built, leaning on conviction when the waves hit, and letting discipline decide the exit.

Train Your Mind to Think Like a Pro

The truth is, no one is born with The Trader’s Mindset. It isn’t some gift you’re handed when you open a brokerage account or read a book.

But you don’t have to spend years in the Chicago pits to build it.

I did – and that knowledge is what I teach in my Masters in Trading services.

That’s why I recently went live with my “Trade of the Decade” at The Profit Surge Event.

During that presentation, I and my InvestorPlace colleagues – �������°�, �������°�, and Luke Lango – go over how to pair their top picks with a simple tweak that can multiply the payoff on great stock ideas.

Plus, I show how to get ahold of my “Trade of the Decade” and three more trades that I believe could be home runs based on my market forecast and unusual trading activity.

You can watch a full replay of our free event for a limited time.

As one year winds down and another approaches, this is when process matters most. Thin markets, fewer catalysts, and emotional decisions can do more damage than a bad trade ever could.

The traders who come back stronger each year aren’t the ones chasing every headline — they’re the ones who refine their framework, trust their research, and stay disciplined when it’s hardest to do so.

Remember, the creative trader wins,

Jonathan Rose,

Founder, Masters in Trading

The post The One Trading Habit That Matters Most in a New Year appeared first on InvestorPlace.

Happy Holidays!

Hello, Reader.

In the late 1980s, the U.S. Army War College created the acronym “VUCA.” It stands for…

Volatility, Uncertainty, Complexity, and Ambiguity

It was initially used to describe the post-Cold War international environment, although it gained wider recognition after the 2008 financial crisis. 

And I think it appropriately describes the financial environment today.

At this moment in history, two giant economic forces are slamming into the U.S. stock market at the same time…

Volatility? Check.

Uncertainty? Check.

Complexity and ambiguity? Check, check.

This means that knowing which companies to run from and which to run toward will become more difficult than ever in the age of exponential progress and mind-warping technological advances. 

So, in today’s Smart Money, I’ll detail why many of the companies poised to potentially fail will be household names you are already familiar with – and maybe even own.

(Hint: Like Amazon.com Inc. [AMZN])

Then, I’ll share how you can find the lesser-known and highly misunderstood stocks that I recommend instead… And how you can “buy Amazon like it’s 2005”… in 2025.

The Writing on the Factory Wall

Let’s take a quick trip to 2122 Broening Highway in Baltimore, Maryland. The industrial Baltimore property pictured below hosts a one-million-square-foot Amazon distribution center.

However, it was once home to a sprawling factory owned by a business many believed was too big, too iconic, and too “All-American” to fail: General Motors Co. (GM).

When the old GM plant opened in 1935, the state-of-the-art facility covered 40 football fields and included test tracks for new cars and rail lines to transport vehicles to market. Nearly 7,000 people worked there at its peak. 

But eventually, this formerly cutting-edge plant became too obsolete to build cars profitably. In 2005, this iconic Baltimore landmark was razed to the ground… just a few years before General Motors filed for bankruptcy.

When the GM plant shut down, 1,100 employees lost their jobs. The event shocked investors and long-time employees of the plant.  

But I saw the writing on the wall well in advance.  

While two-thirds of the analysts on Wall Street were rating the stock a “Buy” or a “Hold,” I knew it was going to fail… months before the plant closed down.

GM wasn’t so much a car company anymore as it was a house of cards, propped up by wishful accounting. 

And despite Wall Street’s optimism, I knew we would soon see GM run out of cash.  

So, I doubled down and called GM a “Strong Sell”. And sure enough, the unraveling I predicted came to pass: On June 1st, 2009, General Motors disintegrated in what Forbes referred to as “The most important bankruptcy in U.S. history.”

More importantly, when I recommended selling General Motors in 2005, I also recommended buying Metal Management, a large metal recycling company.

Today, the company is known as Sims Metal. And it’s one of the largest full-service metal recyclers in the country – with 53 locations.

At the time I recommended it, most people had never heard of Metal Management.

Unlike GM, this company was not an American icon. It didn’t build cars. It crushed them for scrap metal on dirt lots. However, steel prices were soaring, which made Metal Management extremely profitable.

And sure enough, GM tumbled more than 50% on its way to going completely bankrupt…

While Metal Management nearly doubled in price. 

Like I said, it is equally important to know which companies to run from as it is to know which to run toward.

This leads me back to Amazon…

Sell That, Buy This

General Motors and Amazon have more in common than a shared history at 2122 Broening Highway.

Like GM, Amazon has been the stock to own for many years. I even recommended it to my Fry’s Investment Report subscribers in February 2023.

However, Amazon is going to be one of the prime (no pun intended) victims of the current administration’s trade war. Up to 70% of what you see on Amazon comes from China. Tariffs on those goods means that Amazon could lose their competitive edge entirely. 

Plus, Amazon’s cloud service division missed analyst expectations for three straight quarters, from Q4 2024 to Q2 2025. That’s the part of Amazon’s business that they consider to be their “growth driver.”  That is why CEO Jeff Bezos is panic-pumping $100 billion into this lagging part of their business. However, that investment is bleeding the company dry.

Like General Motors, I was dubious of Wall Street’s optimism about the tech giant’s profit growth.

So, I recommended that my Fry’s Investment Report subscribers sell the company in October 2024, while pocketing a nice triple-digit gain.

But as I suggest turning away from Amazon, there is another company I suggest turning toward…

It is a virtually unknown, fast-growing online retailer that could be like buying Amazon twenty years ago, but with an even bigger competitive advantage.

And the smart money is already moving away from Amazon and toward this online retailer. Projections are showing that it could become 700% more profitable by 2027.

I put all of the details of this under-the-radar company in my free special broadcast.

I also share stocks I believe every investor should buy now – and what stocks everyone should drop immediately.

Click here to access all of the details.

Regards,

�������°�

The post Best of 2025: How to “Buy Amazon Like It’s 2005″… Right Now appeared first on InvestorPlace.

A productivity boom that makes the economy look fantastic on paper… while making the labor market feel increasingly hostile.

2026 will likely be the year the U.S. economy becomes a two-speed machine, where:

• The top half of the income/asset stack rides an AI-driven productivity rocket
• And the bottom half gets a crash course in ‘skills mismatch,’ ‘workforce optimization,’ and other corporate euphemisms for “we replaced you with software.”

And in the middle: confusion, political noise, and a Federal Reserve trying to cut rates into a world where the rates that actually matter don’t want to cooperate.

So, what does a “two-speed economy” look like in practice, and why would 2026 be the year it crystallizes?

The answer lies in five interconnected predictions – each one reinforcing the others like gears in a machine. They explain how we get strong GDP with rising unemployment, how inflation falls while the Fed cuts but long rates stay sticky, and why the stock market could thrive while millions of workers feel left behind.

Here’s how I see things playing out.

1. AI and Unemployment in 2026: Why Joblessness Hits 6% Despite Strong Growth

The labor market has been remarkably resilient through this entire boom cycle. But 2026 will be when the ‘AI impact’ shifts from conference panels and press releases to payrolls…

Because AI is moving through three acceleration gates at the same time:

In other words, AI is graduating from productivity tool to labor substitute.

The layoffs won’t come from one dramatic moment. They’ll come from a thousand small decisions: choosing not to backfill roles, consolidating teams, automating first-layer support, shrinking ops functions, reducing contractors.

One company doing that is noise. Ten is a trend. A thousand is a macroeconomic statistic.

AI doesn’t need to replace every job – just enough marginal headcount that the labor market stops absorbing normal churn. Once that happens, unemployment rises faster than people expect.

A spike to 6% only requires a few million extra people spending longer between jobs – and a corporate sector that suddenly feels emboldened to ‘harvest productivity.’

That’s 2026’s vibe: the great productivity harvest.

2. The Two-Speed Economy: How AI Drives GDP Growth While Eliminating Jobs

This is where the story gets spicy.

Most people hear “unemployment rising” and automatically assume “GDP crashing.” But that’s the old mental model, where labor drives output, and fewer workers means less production.

In an AI economy, that relationship weakens because capital and software begin substituting labor at scale.

If you can produce the same output with fewer labor hours, GDP can remain strong even as unemployment rises. That’s not just plausible – it’s arguably the most likely equilibrium for a maturing automation wave.

That’s because GDP is not a happiness index. It doesn’t matter if the output comes from 100 million workers or 80 million workers plus machines. GDP just counts output, which means we could see something like this:

• Weak or negative employment growth
• Strong productivity growth
• Strong investment (AI capex, software spend, automation equipment)
• Surprisingly robust GDP

In that world, the economy starts to look like a tech company’s income statement:

• Output rising
• Labor expenses shrinking
• Margins expanding
• But… fewer people invited to the party

That’s the bifurcation. 

AI doesn’t distribute prosperity evenly. It tends to concentrate in the owners of capital (stocks, businesses, real assets), the people who can direct AI (high-leverage skill stacks), and the firms that can scale AI across workflows.

Meanwhile, workers whose jobs are heavily task-based and repeatable face a harsh reality: the economy is producing more… it just isn’t producing more jobs.

So, yes, 4- to 5% GDP growth is feasible in 2026 even with rising unemployment if the growth is driven by an AI productivity wave and investment cycle rather than consumer euphoria.

The U.S. will feel like it’s booming and struggling at the same time… because it will be.

3. Why Inflation Falls in 2026: The AI Productivity Paradox

Now, if you combine rising unemployment (weaker wage pressure + softer demand) with falling consumer confidence (which job insecurity tends to inspire) and AI-driven productivity gains…

…Disinflation is the base case.

Inflation accelerates when demand is running hot relative to supply and decelerates when demand cools or supply expands faster. And AI productivity is basically all about supply expansion. 

It increases the economy’s ability to produce services, content, code, designs, support, analysis, and operational throughput without proportionally increasing labor input.

Meanwhile, rising unemployment is a ‘cooling demand’ story:

• Fewer people are confident enough to spend
• More households tighten discretionary budgets, with slower growth in wage-driven consumption

So, inflation gets hit from both sides: supply improves and demand softens.

That’s how we get a meaningful downshift.

Now, will inflation collapse overnight? Probably not. Some components are sticky due to housing dynamics, energy volatility, geopolitical trade friction, etc.). But under this new framework, the directional pull in 2026 is strongly disinflationary.

And ironically, it will confuse people because headline GDP could still be strong. “If GDP is strong, why is inflation falling?” Because the economy isn’t strong from demand overheating – it’s strong from efficiency gains.

This is the ‘AI paradox.’

4. Multiple Rate Cuts Despite Strong GDP

The Federal Reserve’s primary job is to manage the tradeoff between employment and inflation conditions.

GDP growth is a secondary indicator. The Fed is not trying to maximize GDP; it’s trying to stabilize inflation and labor outcomes.

So, in a world where unemployment is rising toward 6% and inflation is falling, the Fed’s ‘risk management’ instincts will turn dovish.

Even if GDP prints 4% on the back of productivity, the Fed will still see rising unemployment as a “maximum employment” problem and falling inflation as a way to cut without reigniting price pressures.

Now layer on the political/leadership change.

Leadership influences the Fed’s tolerance bands.

• How quickly does it respond to labor deterioration?
• How much weight does it put on forward-looking inflation vs. lagging inflation?
• Does it prioritize preemptive or reactive cuts?
• How does it talk to markets?

A new chair could absolutely tilt the institution toward cutting sooner and more frequently, especially if inflation gives them cover and unemployment gives them urgency.

In this scenario, multiple cuts in 2026 is not only plausible; it’s likely…

Which brings us to the twist ending.

5. The Bond Market Twist: Long-Term Rates Stay High Despite Fed Cuts

Here’s where 2026 becomes a masterclass in economic irony.

The Fed can cut. The front end can rally. Everyone can cheer.

And the rates that actually matter for the real economy – the long yield – can still refuse to budge.

That’s because long yields are driven by two major forces: the expected path of short rates (where the Fed has influence) and term premium plus long-run real rate expectations (where the market decides).

In our framework, the Fed is cutting because unemployment is rising and inflation is falling. That drags down the expected short-rate path.

But the market simultaneously starts to believe two things:

If AI drives sustained productivity gains, it can raise the economy’s long-run real growth potential. And if that rises, the “neutral” real rate – r* – can rise, too.

This changes what investors consider to be normal for long-term real yields. The market doesn’t want to lend long at low rates if it believes the economy’s long-run return on capital is structurally higher.

If investors start to worry about monetary policy credibility – whether due to political pressure, policy uncertainty, or the perception that inflation might be tolerated in the future – they demand a higher premium to hold long-duration bonds.

Even if inflation is falling now, the market is always pricing the distribution of future outcomes. Independence concerns widen that distribution. Wider distribution → higher risk premium → higher term premium.

Put those two together, and you get a maddening reality:

• The Fed cuts
• Mortgage rates don’t fall much
• Corporate borrowing costs remain restrictive
• Long yields stay sticky or even rise

This is how you end up with an economy that looks like it’s easing while still feeling tight.

It’s also how you get political chaos: the public hears “the Fed is cutting” but looks at their borrowing costs and asks, “is it, though?”

So, we expect the 2026 regime could be:

• lower short rates
• higher or sticky long rates
• a steepening yield curve
• and a real economy that doesn’t get the relief people expect…

The feature of a world where structural productivity and credibility premium dominate the long end.

What This Economic Outlook Means, In Plain English

If these five predictions hold, 2026 will be the year the U.S. economy breaks people’s mental models.

You’ll hear things like, “The economy is booming, but nobody feels safe”… “Inflation is falling, but rent is still brutal”… “The stock market is happy, but households are stressed.”

And the real dividing line will be structural, not partisan.

If you own productive assets and can leverage AI, 2026 could feel like a golden age. But if your job is task-based and easily automated, 2026 could feel like a meat grinder.

The most unsettling part about this potential reality is that none of it requires a recession, only a productivity boom that changes the labor equation faster than society can adapt.

Not collapse, not euphoria – but a high-output economy with growing labor displacement, falling inflation, a cutting Fed, and stubborn long rates.

A boom… with a hangover.

The Window Between Prediction and Profit

While most Americans will experience 2026 as a confusing mess – strong GDP, rising unemployment, sticky mortgage rates – there’s a narrow slice of the market that will absolutely thrive: The companies the government cannot afford to let fail.

In a world where AI drives productivity but destabilizes labor, Washington’s response won’t be subtle. It will be direct capital deployment into strategic assets – just like we’ve already seen with MP Materials (+50% in a day), Lithium Americas (+100% overnight), and Trilogy Metals (tripled after government investment).

The government is betting on the winning side of the bifurcated economy I just described. And it’s telling us exactly which companies it’s betting on.

I’ve spent months tracking Uncle Sam’s shopping list – the rare earth miners, domestic chip manufacturers, AI infrastructure plays, small modular reactor companies, and defense monopolies that are central to the “Mines to Magnets” buildout.

These are strategic necessities for a government staring down supply chain vulnerabilities and an AI arms race with China.

I’ve compiled all my research on 119 companies – including ticker symbols, buy-up-to prices, and my top five plays – in a brand-new report.

The productivity boom and great labor displacement are coming. The government spending spree is already here.

You can either watch this play out… or position yourself ahead of the next wave.

Watch my free briefing and get immediate access to the full stock list.

The post 5 Major Economic Predictions for 2026 appeared first on InvestorPlace.

This piece introduced the “Crazy Map.” It’s a tool for understanding when speculation begins to outweigh fundamentals, and how to stay grounded during that shift.

I selected it because it remains a unique and helpful explanation for navigating a maturing bull market.

Have a good evening,

Jeff Remsburg

The last two weeks have brought more speculation about “the top” than any time I can recall over the past year.

The familiar worries have resurfaced: an AI bubble, exorbitant valuations, Dot-Com comparisons, market concentration, a cooling economy, risk of Fed policy error…

The consensus seems to be that we’re in the late innings of this bull market.

Of course, such a conclusion is of limited value…

Continuing with the baseball analogy, the average duration of a Major League Baseball inning is close to 20 minutes. But averages can obscure dramatic variations.

For example, on May 8, 2004, the fifth inning of the Tigers vs. Rangers game set a record, lasting nearly 70 minutes.

So, even if we are in the last inning today (still debatable), are we looking at another 20 or 70 minutes?

In recent weeks, our technology expert Luke Lango provided a timetable for how he sees this bull market progressing – and ending.

Here’s his one-sentence bottom line:

In the next 12 months, tech stocks could soar like it’s 1999. Then comes the reckoning.

Building off Luke’s work, let’s demystify this bull market’s final innings by identifying signs of the top, assessing where we are today, and outlining how to shift into bear mode when the time comes.

A quick walk-through of late-cycle “craziness”

Every bull market has a honeymoon phase when solid earnings and reasonable valuations drive steady gains. But things change in the later stages.

As prices climb, investors get bolder, money gets cheaper, and “story” begins to matter more than profits. Basically, “crazy” takes over.

Here are three quick historical examples:

• Dot-Com bubble (late 1990s): Start-ups with no profits – or even revenues – rushed to market and scored sky-high valuations. Pets.com went public in February 2000 and was bankrupt by November.
• Housing bubble (2007): Wall Street bundled shaky mortgages into exotic “synthetic CDOs” that somehow carried investment-grade ratings. Banks were slapping AAA ratings on bundles of subprime mortgages that were already starting to default (watch The Big Short for a refresher).
• Meme-stock mania (2021): GameStop rocketed from under $20 to over $500 in weeks as online traders squeezed short sellers. At the same time, hundreds of blank-check SPACs flooded the market – and then crashed.

Bottom line: Despite different decades and different assets, these crazy episodes had the same underlying pattern – too much money chasing too few good ideas, with increasingly wealthy (and greedy) investors convinced that someone else will pay even more tomorrow.

Can we distill these excesses into a “Crazy Map” that we can track?

Let’s try.

While each bubble has its own flavor, they all tend to share similar fingerprints…

Speculation over substance: Stock prices come to be driven less by profits and more by narratives – think the Dot-Com’s “clicks not bricks”, promises of crypto cutting out middlemen and upending all sorts of sectors, or “the next Amazon.”

Easy money and leverage: Margin debt and other forms of borrowing surge, ramping up today’s gains while setting the stage for tomorrow’s trainwrecks.

New financial products: Wall Street gets creative (and crazy) with its offerings. Think SPACs, ICOs, structured credit. They all promise easy riches while sidestepping old-fashioned disclosures.

Retail crowding in: Social media, zero-commission trading, and the promise of overnight riches lure small investors into the market in droves.

Headline-grabbing deals: We see large numbers of mergers and IPOs that seem focused on “buzz” as much as genuine value creation for shareholders.

To be clear – these signals don’t definitively signal “the top,” but when you get a bunch of them flashing at once, it’s usually a warning.

So, where are we right now?

Let’s use a simple Green-Yellow-Red system.

Green means healthy or “okay” levels. Yellow signals elevated risk. Red signals the danger zone.

Speculation over substance: Story stocks are back. AI start-ups with little revenue are getting triple-digit price-to-sales multiples, and some IPOs are doubling on day one (Figma and Circle Internet Financial).

Investors are looking for the “next big thing” narratives, even though cash flows/profits might be years away.

Score: Yellow tilting Red – fundamentals are less important in the hottest corners of AI.

Easy money and leverage: Margin debt has climbed to roughly $1 trillion, near all-time highs and comparable to peaks seen before prior market corrections.

Even when we adjust for inflation, the current margin debt is just slightly below the all-time high set in October 2021.

Score: Red – a dangerous volume of borrowed dollars are sloshing around out there.

New financial products: The newest twist is the boom in single-stock leveraged ETFs – funds that let traders take double- or triple-leveraged bets on single stocks like Tesla or Nvidia.

But it’s even crazier than that. On an internal Slack channel, one of our InvestorPlace analysts highlighted a “weekly pay” ETF that combines leverage with weekly cash distributions. But a significant portion of these distributions is return of capital, not investment gains.

Score: Yellow – creative (and potentially dangerous) packaging is back, but not yet at 2021 SPAC-mania levels.

Retail crowding in: Meme-stock craziness isn’t at stratospheric levels, but it’s still out there. Social-media chat rooms can launch a stock 20% in a day – case in point, Opendoor Technologies (OPEN) back in July.

Score: Yellow – the retail army is smaller than in 2021 but it’s still active and looking to make a quick buck.

Headline-grabbing deals: Merger announcements and splashy funding rounds aren’t at 1999 or 2021 levels, but there are eye-popping valuations in select AI, biotech deals.

An example is OpenAI: Late last year, it had a valuation of $157 billion. Today, that valuation has exploded to $500 billion.

Score: Yellow – things are frothy.

Altogether, our Crazy Map puts us squarely in the “yellow” caution range.

Of course, for many people, “yellow” means “slam on the gas!” – exactly what we expect to happen in the coming months in certain corners of the market.

So, we’ll keep tracking this as we move into 2026. The more “Red” we see, the more you might consider becoming defensive, depending on your specific financial situation.

But this isn’t the only way we’ll track this late-inning bull market. There are also some technical indicators we’ll monitor that – when coupled with this Crazy Map – can provide a very helpful sense for when to hunker down.

Together, we’ll do our best to mark the specific time when your general mindset should switch from “ride the crazy wave higher” to “sidestep the impending crazy wave crash.”

More on that technical analysis in a coming Digest.

Have a good evening,

Jeff Remsburg

P.S. To set yourself up for even more success in the new year, I encourage you to check out veteran trader Jonathan Rose’s Profit Surge Event. With experience forged in the chaos of the Chicago trading pits – as well as challenging trades that required patience and conviction before they turned around – Jonathan has learned that discipline goes a long way, and can produce big rewards – like 200% gains in just two weeks.

During his presentation, he’s joined by InvestorPlace Senior Analysts �������°�, Luke Lango, and �������°� to explain how applying Jonathan’s framework to their stock picks can maximize your gains. Click here to watch the replay.

The post Your Late-Inning Bull Market Gameplan appeared first on InvestorPlace.

The world is ripping in two. 

On one side are the people tuned in to what I’m about to tell you – and they are minting money at a rate that defies logic. On the other? Complete financial annihilation. 

Right now, 1,000 new millionaires are created in America every single day. That’s more than one every other minute. 

Yet, back in 2016, that figure was even higher – if you can believe it – with 1,700 new millionaires minted each day.

Meanwhile, the bottom 50% of Americans now hold just 2.5% of the nation’s wealth – down from 4% in 1990. The wealth gap between the top 10% and everyone else has reached its widest point since the 1920s. 

We’re not just seeing fewer millionaires created; we’re watching the middle class hollow out.

The economic middle ground is shrinking fast. 

It’s a terrifying reality. How can it be a ‘wonderful’ thing? 

Because now the path to generating 20X returns in the financial markets isn’t reserved for the venture capitalists on Sand Hill Road. It’s open to all.

This ‘hyperscale secret’ is what separates the billionaires from the bankrupt. And it’s the key to turning terrifying into wonderful.

Let me show you what I mean…

Linear Thinking Is Destroying Your Portfolio (The Law of Accelerating Returns)

After seeing that figure about the creation of millionaires in America, there was probably one thought on your mind… 

Why aren’t I one of them?

It’s not because you aren’t smart or because you don’t work hard.

It’s because you are likely betting on the “Old Economy,” using linear thinking in an exponential world. But, of course, that’s how human beings are wired. 

If you take 30 linear steps, you’ve taken 30 steps. 

Technology, however, does not care about biology. It progresses exponentially. If you take 30 exponential steps (1, 2, 4, 8, 16…), you don’t end up at 30. You end up at 1 billion. 

This is due to “The Law of Accelerating Returns.” And it’s why it feels like the world is spinning off its axis.

We are observing Moore’s Law on steroids.

Moore’s Law on Steroids: When Technology Compounds Exponentially

In 1975, the first digital camera cost $10,000, weighed eight pounds, and captured 0.01 megapixels. Today, the camera in your phone is thousands of times more powerful and costs mere dollars to produce.

The acceleration isn’t just in quality – it’s in adoption speed:

• The telephone took 75 years to reach 50 million users
• The internet took seven years to reach 50 million users
• Facebook took three years to reach 50 million users
• ChatGPT took just two months to reach 100 million users

Do you see the compression? The timelines are collapsing.

It took IBM (IBM) 42 years to become a billion-dollar company. Alphabet (GOOGL) did it in eight. Jet.com did it in just four months.

The rate at which companies are growing – and the rate at which wealth is being generated – is accelerating. Instead of years or quarters, we’re measuring growth in days. For example, Netflix (NFLX) made its most recent billion dollars in just 31 days. And Apple did it in less than two.

So, if you are holding stocks that grow at 6% a year because “slow and steady wins the race,” you are being lapped by a Ferrari while you’re riding a tricycle.

Why Half of Today’s Fortune 500 Will Be Dead by 2035

Now, I mentioned earlier that the world is ripping in two. This isn’t hyperbole.

While AI and exponential tech are minting millionaires, they are also obliterating industries that don’t adapt.

Remember Blockbuster? In 2004, the company was raking in $6 billion in revenue. By 2010, it was bankrupt, utterly annihilated by Netflix.

Look at the taxi industry. For decades, a taxi medallion was a golden ticket. Then Uber (UBER) and Lyft (LYFT) arrived, and the industry was devastated.

Then there’s retail. Amazon didn’t just compete with stores like Kmart, Sears, Circuit City, and Borders; it made them irrelevant.

This is the “dark side” of exponential progress. If you are invested in “Old School” companies – the ones with heavy debt, physical inventory, and linear growth models – you are standing on the tracks while the AI train barrels down on you.

Already, 1 in 4 companies has replaced workers with AI. By 2026, nearly 40% of companies will. This trend is not reversible. You cannot put the genie back in the bottle.

So, we face a binary choice: make money, or become a statistic.

What Makes a Company Hyperscalable? The Zero-Friction Formula

How do you ensure you’re on the winning side and find the companies that can go from a garage to a trillion-dollar valuation?

You need to look for a specific type of business. I call them Hyperscale opportunities.

And here is the secret that sounds completely insane until you look at the data: The best businesses in the world today don’t make anything.

They don’t manufacture steel, build cars, or drill for oil. Those are “high friction” businesses that require factories, massive labor forces, and expensive supply chains.

Hyperscale companies deal in information and data.

Think about it.

• Uber is the world’s largest transportation service, but it owns no vehicles.
• Airbnb (ABNB) is the world’s largest rental company, but it owns no real estate.
• Meta (META) is the world’s largest media owner, but it creates no content.

These companies built a platform once –  and adding new customers afterward costs them virtually nothing. 

That is hyperscalability. It allows for profit margins that manufacturing companies could only dream of.

Case Studies in Disruption

Let me give you some concrete examples. Take Shopify (SHOP), a platform that helps people set up online stores. It doesn’t sell the products; it just provides the code. In 2015, the firm had 162,000 businesses on its platform. By 2025, it reached 5.5 million.

Because Shopify deals in software, not physical goods, it could handle that explosive growth without exorbitant overhead costs, like building a hundred new factories. It went from a $1.2 billion company to an $87 billion giant. And I recommended that stock most of the way. Investors who followed my recommendation on Shopify saw gains as high as 17-fold, turning a $5,000 investment into $85,000.

Then there’s Paycom (PAYC), maker of payroll software. Sounds boring, right? Wrong. Once the software is written, the company can sell it over and over again at minimal cost. That’s why Paycom’s market value has increased nearly 11-fold since 2014.

Or look at Copart (CPRT), which runs car auctions. But it doesn’t just possess a lot; it invented a virtual auction technology called VB3. The company sits back and rakes in service fees on over 1 million car sales a year. The result? Copart shares have soared 26-fold since their IPO in ’94.

I wanted to prove this thesis, so I created an index tracking 15 companies with true hyperscale business models – firms like Shopify, Paycom, and Copart that can add customers at virtually zero marginal cost.

This “Hyperscale 15″index delivered returns over 7X greater than the S&P 500 over the past decade. A $10,000 investment in these companies would have grown to over $70,000, while that same amount in an index fund would have reached just $10,000.

But here’s what keeps me up at night – and what should excite you…

AI is hyperscalability on steroids.

These earlier hyperscale companies still required human customer service, human sales teams, human operations. AI eliminates even those costs. Once the model is trained, serving one customer or 1 million customers costs nearly the same.

This is why AI startups are reaching billion-dollar valuations in months, not years. And why the next wave of 20X, 50X, even 100X returns will come from AI-powered hyperscale businesses that haven’t even gone public yet.

The Hyperscale Investment Thesis: How to Spot 100X Returns

Shopify is a fantastic opportunity. But it is just one.

I have identified seven AI Hyperscale startups that are ready to change the world and could run like Shopify did from 2015 to 2025.

• One is an AI robotics company that Amazon, Walmart (WMT), and Softbank (SFTBY) are all backing to automate warehouses.
• One is a data science firm that is, as far as I can tell, the best in the world at applying AI to data analytics – the “oil” of the 21st century.
• Another is building the “railways” for future AI computing power and is backed by Nvidia (NVDA).

These companies are small. They are hyperscalable. And they are moving fast…

Because we are witnessing the “End Game” of technology. 

Once we develop machines that can truly think and learn for themselves, that is it. There is no “next time.” The companies that dominate this era will control the future. And the investors who back them will control the wealth.

Fifty percent of the Fortune 500 companies we see today will be dead in 10 years, replaced by startups you haven’t heard of yet.

I want you to hear about those up-and-comers first.

My latest video presentation goes into much deeper detail about the Law of Accelerating Returns, the Hyperscale 15 Index, and exactly how to position yourself for this massive wealth transfer.

In this presentation, I pull back the curtain on:

If you are tired of 6% returns and watching other people get rich on the news you read six months too late… then you need to watch this.

Don’t let “linear thinking” cost you your financial future.

Click here to watch the full presentation and harness that hyperscale momentum.

The post Why Your Portfolio Is Failing: The Hyperscale Secret Behind the Biggest Stock Winners appeared first on InvestorPlace.

But before we get to that, I wanted to deliver a holiday gift to you… a special report featuring my Top 7 Stocks for 2026 that’s free to you just for being an important Smart Money reader.

Each one of these stocks capitalizes on one of the powerful megatrends we talk about here. I hope you’ll check that out.

Over the next few days, I’ll revisit your favorite articles from this year and provide updates to them as needed.

Our first article is from September of this year, where we discussed AI’s impact on the U.S. economy and how, by staying a self-determined investor, you can join the ranks of the “new market aristocrats.”

Hello, Reader.

“Lunch Atop a Skyscraper” is among the most iconic photographs of the 20^th century. On September 20, 1932 – exactly 93 years ago – 11 ironworkers ate their lunch 850 feet in the air, scuffed shoes dangling, gloved hands opening lunch boxes.

This makeshift lunchtime view is now the Top of the Rock Observation Deck, the primary attraction at Rockefeller Center. It features 360-degree views of the New York skyline.

The iconic photograph shows just a small group of workers who helped construct the skyscraper, which was commissioned by the eldest son and heir of John D. Rockefeller, founder of the Standard Oil Co. and one of the wealthiest tycoons of the Gilded Age.

Rockefeller’s fortune was estimated at $1.4 billion at the time of his death in 1937. That enormous fortune accounted for 1.5% of the entire nation’s wealth, and a whopping 16% of the wealth of “Manhattan Island,” according to the Census Bureau.

By contrast, average household savings in 1937 were less than $200! That means Rockefeller’s fortune was seven million times greater than the typical savings of folks like the ironworkers who built the skyscraper bearing his family’s name.

The immense wealth divide in the U.S. is as old as the American oil industry itself (and as old as steel, railroads, and shipping, for that matter).

But the thing is… it’s growing wider.

Now, thanks to AI, the financial chasm between folks is expanding by the day and creating a growing roster of new market aristocrats, along with extreme social and economic imbalances.

So, in today’s Smart Money, let’s take a look at the rise of a new “market aristocrat.”

Then, I’ll share five specific tactics you can use to join them.

Let’s dive in…

The Gilded Age, 2.0

The American economy of 2025 is both dazzling and disturbing.

In 2025, billionaires have never been more numerous. There are more than 3,000 of these global elites.

Take Oracle Corp. (ORCL) founder Larry Ellison.

He first became one of fewer than 200 billionaires in 1993. He is now a multi-billionaire, many times over, as Oracle has become a dynamic AI play. Ellison even briefly eclipsed Elon Musk as the richest person in the world last week, after the tech company announced stellar quarterly earnings.

Like the “robber barons” of the 20^th century, Ellison’s fortune dwarfs that of the average American.

The chart below shows Larry Ellison’s stock wealth, expressed not in dollars but as multiples of the median U.S. household’s net worth.

In 2005, Ellison’s fortune was already staggering, amounting to several hundred thousand times that of the typical American family. But since 2020, the trajectory has turned vertical. Today, Ellison is 2 million times wealthier than the median household.

This comparison does not merely tell the tale of one multibillionaire. It demonstrates how the “capital class” is flourishing in the age of AI, relative to the “labor class.”

The owners of intellectual property, stock options, and equity stakes in technology firms are watching their wealth skyrocket, while median household net worth is growing modestly, if at all, eroded by inflation, housing costs, and debt burdens.

In other words, for every Ellison, there are millions of households who find themselves priced out of housing, squeezed by medical bills, or stuck with stagnant wages.

But despite this growing wealth division, we individual investors are not powerless in the face of these forces.

To the contrary, the most effective response to today’s socioeconomic challenges may be as old as America itself… even surpassing the monolithic monopolies of the Rockefeller era.

And that is…

The 5 Tactics to Becoming a “New Market Aristocrat”

Self-determination.

A self-determined investor is one who honestly evaluates both risk and reward, and then sets a long-term course toward wealth creation. This is also the kind of investor who may eventually become a billionaire, joining the ranks of the “new market aristocrats.”

While not all will become billionaires, of course, most billionaires started as self-determined investors who refused to accept the status quo. Admittedly, AI complicates this journey because it introduces new and frightening risks.

But a complicated journey is not an impossible one. If we keep our eyes on the prize, we can hitch our financial future to the engines of progress, rather than being run over by them.

In practical terms, self-determination embraces and applies five tactics…

1. Own Businesses, Not “Tickers” – Self-determined investors insist on buying businesses with formidable competitive moats, not “story stocks” that are trying to dig a moat with a garden trowel.

2. Respect Both Promise and Peril – The prudent investor must acknowledge both sides of AI’s split personality – like driving innovation… and then hollowing out certain jobs – and then craft their investment strategy accordingly. The intelligent course is neither blind enthusiasm, nor blanket rejection.

3. Think in Years, Not Days – The self-determined investor looks past the noise and insists on a longer timeframe. Wealth is not built in days or weeks. It is built in years, even decades.

4. Diversify Without Diluting – In an AI-driven age, diversification might mean balancing high-growth innovators with stalwarts in energy, infrastructure, or healthcare.

5. Refuse the Seduction of Fads – The range of compelling investment opportunities extends far beyond the current fad of the technology sector. Self-determined investors can, and should, hunt for opportunity in the four AI categories that I’ve identified: Builders, Enablers, Appliers, Survivors.

The contradiction between abundance and anxiety is not a new feature of the American economy.

Obviously, we investors cannot block the path of progress, but we can prepare for it… at least to some extent. That preparation begins by applying self-determination.

And it continues by knowing exactly which stocks to buy, which to sell, and when.

That is why, in my free “Sell This, Buy That” broadcast, I share the names of four companies to sell before they crater, including some that might shock you.

These aren’t fly-by-night operations. These are companies that have been market darlings for years – and are still overweight in many investors’ accounts. 

More importantly, I also share the names of three companies that could multiply your money in the coming months.

For instance, while everyone is focused on Nvidia Corp. (NVDA), I’ve identified a stock that’s now become a key supplier to AI data centers everywhere.

And while investors keep piling into Amazon.com Inc. (AMZN), I reveal a virtually unknown online retailer that could be like buying Amazon in 2005 — but with an even bigger competitive advantage. 

I am sharing all of this with you today, free of charge. All you have to do is click here to access my special broadcast… and bring along your spirit of self-determination.

Good investing!

Regards,

�������°�

Editor, Smart Money

The post Best of 2025: The Rise of the “New Market Aristocrats”… and How to Join Them appeared first on InvestorPlace.

While we are closed, I want to share a favorite essay from Senior Investing Analyst Brian Hunt. It offers an unconventional perspective on wealth, getting to the heart of why we invest – financial freedom.

Brian is working on an exciting new project that we believe you’ll find incredibly valuable in maximizing your 2026 portfolio. We’ll debut that soon, but for now, this essay can help you sharpen your thinking and bring more focus to your investing roadmap for 2026.

Enjoy your weekend,

Luis Hernandez

Editor in Chief, InvestorPlace.

How rich are you?

Of course, it’s bad manners to ask such a thing.

But for a few seconds, think to yourself about exactly how rich you are.

If you’re like most people, you’ll go straight to the idea of “net worth.” That’s the value of all your real estate, cash, stocks, gold, and possessions (minus debt). Net worth is a rough dollar estimate of how rich you are.

Truly rich people will tell you there’s a much more useful way to think about wealth. It’s not in terms of net worth or dollars, and I’m not talking about clichés like “rich in friends” or “rich in happiness.”

I’m talking about thinking in terms of how many “Days Rich” you are.

I know that might sound silly, but suspend your judgment for a moment.

Let’s say you have a net worth of $200,000. That’s the total value of your assets. It’s a lot of wealth in America, so on the surface, you appear “comfortable.”

Let’s also say you have a lot of conventional bills to pay. You have a mortgage, a credit card, cable, a monthly car payment, and a gym membership. You pay school bills (either yours or a child’s). You also buy groceries and go out to eat a few times a month. These expenses total $100,000 per year.

Oh, and if you stop working today, you and your family would have no money coming in.

In this example, you’re basically 730 Days Rich (or 2 years rich). You could stop working, sell everything, and live on the proceeds for 730 days. Your $200,000 in savings would pay for two years of spending at a rate of $100,000 per year.

Most Americans aren’t even close to being able to cover 730 days’ worth of living expenses with their savings and asset holdings. Most Americans are just 30 Days Rich or 60 Days Rich, or even “negative Days Rich” (more expenses than income and making up the difference with borrowing).

Whatever your number is, you can see the wisdom presented. Thinking of your wealth in terms of “Days Rich” is a more practical, more useful way to think about your income, assets, expenses, and level of financial freedom.

Instead of being one isolated number that doesn’t account for the big picture, “Days Rich” accounts for dozens of things in your life and gives you an accurate measurement of how financially free you are.

For example, someone with $500,000 in cash, no debt, and just $50,000 in annual living expenses is 3,650 Days (10 years) Rich. They’re more financially free than someone with $4 million in assets, lots of debt, and $1 million in annual living expenses.

If you want to increase your “Days Rich” number, the obvious thing to do is focus on earning more money, but reducing your lifestyle expenses can be just as powerful.

For the ultimate in financial freedom and control of your life, the ideal “Days Rich” number is infinity.

Being an infinite number of Days Rich means you can stop working today. The passive income you earn on your savings and investments will more than pay for a lifestyle that leaves you content and fulfilled. You have so much income coming in from rents, interest, and dividends, that it covers your “monthly nut” and then some.

Your money works for you, instead of you working for money.

Ideally, your passive income grows so much larger than your expenses that it can be directed towards the purchase of more assets, throwing off more money, which can be used to purchase more assets, and so on. Your end goal is to have a money “snowball” that was set in motion years ago and grows larger and larger and larger as it rolls down the hill each year.

If you quit working today but have $50 million in the bank and modest living expenses, then you’re all set. You’re as many Days Rich as you can stay alive, but you’re very unlikely to be in this tiny group of people.

You’re much more likely to be somebody with a real shot at:

• Building an asset base worth $500,000 – $10,000,000.
• Managing the asset base so it throws off $50,000 – $1,000,000 in annual income.
• Being able to live modestly so you’re an infinite amount of Days Rich.

If you’re interested in being truly wealthy and truly financially free instead of a slave to having stuff, stop thinking in terms of “net worth” and start measuring your wealth in terms of “Days Rich.”

It’s an unconventional way of thinking that can bring you unconventional freedom and happiness.

Regards,

Brian Hunt

Senior Investing Analyst, InvestorPlace

P.S. Luis here. What if your success in gaining real financial freedom wasn’t determined by good or bad days in the market?

What if volatility and uncertainty weren’t obstacles—but opportunities?

This way of thinking is what separates the pros from everyone else…

They don’t just survive market volatility. They profit from it.

And one person who has mastered the art of profiting during chaos is 25-year trading veteran, and our newest analyst at InvestorPlace, Jonathan Rose.

His strategy has produced recent winners including:

• 951% in 31 days from Albemarle Corp…
• 1,200% in only 13 days from a combined trade on MP Materials…
• and 462% in 13 days from C3.ai.

If you have a battle-tested strategy like Jonathan’s, you can drastically improve your wealth and success rate, in bull markets or bear markets… 

If you want to learn how you could start seeing similar results, despite surging volatility and uncertainty, then you need to see this. 

The post How Many Days Rich Are You? appeared first on InvestorPlace.

Every major AI champion from Sam Altman to Elon Musk was making the same pronouncements about AI’s immediate future.

Entry-level positions handled by AI. AI handling in mere seconds tasks that would typically take humans hours to complete. And the big dream – artificial general intelligence (AGI) right around the corner.

You could connect the dots pretty easily. Beyond-human intelligence everywhere. Humans becoming obsolete.

For the biggest players, all of these pronouncements seemed like dogma delivered by the AI gods. And the markets absolutely ate up all the hype.

Surging valuations for AI stocks have dominated the headlines. Hyperscalers (AI infrastructure and cloud providers) like Nvidia are gobbling up more and more market share. And an ever higher global concentration of stocks are riding the AI wave as I write to you.

In short, we’re seeing what looks like an AI bubble taking shape similar to the one we saw during the original wave of dot-com startups. And just like that moment, the markets are minting AI winners and losers as I write to you.

In the past six months, I’ve helped readers capture double- and triple-digit gains from both major AI names and smaller, overlooked players.

AI’s moment is coming. But it hasn’t turned into the huge, world-changing year many people thought it would be.

We didn’t see robots taking everyone’s jobs or super-smart computers suddenly running everything. Still, we are seeing the early signs of something much bigger starting to unfold — a structural shift that will reshape industries far more profoundly than the hype cycles suggested.

AI is forcing a complete rethink of the future of work and income.

And here’s what’s really happening: it’s part of a much larger economic shift that’s unfolding faster than markets, policymakers, or most investors realize.

Which means practically nobody’s positioned for it… yet.

The Labor Market Is Already Showing Signs of Structural Stress

Just how fast is this shift happening?

Consider the biggest headlines over the last year alone

Amazon cut 14,000 corporate roles – its largest corporate layoff of 2025.

Verizon eliminated 13,000+ jobs, citing modernization and automation.

IBM is slashing back-office roles and freezing hiring wherever AI can handle repetitive tasks.

And those are just the headline names…

Over 4,200 more companies announced layoffs or hiring freezes this year as AI becomes a bigger part of their operations.

The institutions are validating this shift, too. The United Nations’ International Labour Organization (ILO) warns that clerical and cognitive tasks are highly exposed to generative AI. The ILO for Economic Co-operation and Development also confirms “renewed concern” about displacement in AI-exposed jobs

And the St. Louis Fed is studying AI as a driver of rising unemployment risk. Its findings? Just take a look at the chart below:

This chart shows sectors where higher AI exposure led to larger unemployment between 2022 and 2025.

Computer and mathematical occupations – predictably among the most AI-exposed – saw some of the steepest unemployment rises. Meanwhile, blue-collar jobs and personal service roles experienced relatively smaller increases.

So the short-term effects are already playing out. That tells us this shift in the future of work is already well underway.

Those figures above might trigger some hand-wringing. But I don’t want us to lose sight of the key opportunity emerging here. This is actually where it gets interesting for investors.

Yes, AI will displace workers. But I don’t see it taking humans out of the equation entirely.

AI’s real value comes from helping us, not replacing us. Workforce retraining and income stabilization will become larger pillars of the new economy taking shape under AI.

And for traders? This paradigm shift creates a major, underappreciated, and investable macro trend.

We’ve already banked early gains on AI’s mass market moment. Last year, we collected over 200% and 400% gains trading C3.ai – one of the biggest AI startups out there.

We’ve also hit massive triple-digit winners on the supply side – pure metals plays like The Metals Company (TMC) and MP Materials (MP) that are fueling the AI build-out.

In 2026, the opportunity gets even bigger for us. And for everyone reading this, the time to act is now.

I recently went live with a special webinar called The Profit Surge Event. I designed it to show you exactly how to systematically track hidden infrastructure plays and pair them with a simple tweak that can multiply the payoff on great stock ideas.

AI is one of the biggest sectors I’m watching right now. With this event, I’m giving you the tools to profit from the biggest gains in AI right now. You can learn all about the system – and my key stock picks – right here.

I’ve shown you a little of how AI is transforming work. And I’ve explained just how big the structural shift we’re seeing could be for early investors.

Now, let me show you how monetary policy and money itself are being transformed by AI’s mainstream moment.

The Fed’s Tools Don’t Work for This Problem

The Federal Reserve has a well-known dual mandate: Maximum employment and price stability.

And in order to carry out that mission, the Federal Open Market Committee (FOMC) has two levers it can pull on:

• Interest rates — raising or lowering the amount of interest charged on its loans to encourage or discourage borrowing.
• Balance-sheet operations — buying or selling bonds to add money into the financial system or take some out, making it easier or harder for banks to lend.

These tools work because they influence the cost of borrowing money.

So when the economy slows or unemployment rises, the Fed cuts rates.

Access to cheaper capital encourages businesses to borrow, invest, expand and hire workers to make it possible… At least, that’s how it used to work.

But this is the kernel of a growing problem — that playbook assumes companies need people to grow… But in a world increasingly built on AI and automation, that assumption is starting to fall apart.

Cheap Capital Doesn’t Create Jobs in an AI Economy

If the Fed cuts rates today, there’s little doubt it will make life easier for businesses…

But now, instead of scaling operations that require more manpower to grow, lower rates push companies to scale the systems that aim to replace workers in the long-term.

Instead of buildings full of new employees buzzing away the work day, AI gives us warehouses full of servers whirring away 24/7.

Every dollar of cheap capital becomes a dollar that accelerates automation.

That means the Fed has a bigger problem on its hands that it can’t fix with its usual tactics.

Rate cuts might shore up markets during a recession, boost earnings, improve balance sheets, and lift stock prices. But they can’t fix a structural reset like what AI is causing.

AI won’t return the clerical jobs it has already replaced.

Robotics won’t reopen the logistics roles it has made unnecessary.

Machine-learning systems won’t give back the administrative positions they’ve taken over.

What we’re seeing right now is early-stage job disruption visible across 2025 labor data.

Long term? The most valuable work won’t disappear. Like I said, workforce retraining and automation will help upskill workers for the AI era.

Still, displacement is a huge concern that will only grow from here. And that’s where the next factor comes in that’s pushing us toward a whole investing megatrend few are aware of.

The World Is Going Digital – And It’s Already Happening

It isn’t just physical labor getting phased out. Physical money is steadily getting pushed aside for completely digital transactions.

The worldwide transition to fully digital money rails is quietly reshaping how income and payments work. And as this digital transition happens, it’ll provide the fiscal support needed for the labor market shift I’m telling you about.

At the center of this new monetary architecture sits the most important shift of all: Central Bank Digital Currencies. Think of it as digital currency pegged to a country’s economy – like a completely digital dollar or digital euro.

Right now, over 130 countries are exploring or piloting CBDCs. Cross-border CBDC networks from El Salvador to China are already operational. Digital identity and wallet systems are also rolling out globally.

Bodies like the International Monetary Fund (IMF) are pushing tokenization and real-time settlement standards as I write to you.

And we’re seeing the same shift right here at home.

In July 2023, the Federal Reserve launched FedNow, a 24/7 instant-payment network that lets banks send and settle money in real time. It’s not a CBDC, but it is the new digital plumbing the U.S. financial system will run on going forward — the foundation for instant, fully digital money movement.

It lets banks and credit unions send and settle payments instantly — not in hours or days, like ACH or traditional bank transfers. It’s designed to modernize the U.S. payment system and create the foundation for real-time digital transactions nationwide.

It’s not just government rails being built.

While retail CBDC proposals face political resistance, private-sector digital rails – Visa, Mastercard, PayPal, fintech processors – are already making this shift possible.

And they’re best positioned to become the practical distribution layer for any future income-support mechanism.

The digital plumbing for large-scale income distribution exists now. That’s true even if the public narrative hasn’t caught up.

Here’s How This All Connects

With AI accelerating structural unemployment, it’s becoming obvious that monetary policy isn’t enough to steady the ship.

So what else could it take to start stabilizing the system? One potential solution is to use the new digital infrastructure to deliver direct fiscal income support.

It could take many different forms — a minimum income floor, wage-stabilization programs, automation offsets for the fields hit hardest by AI, emergency income payments, even something framed as a “Freedom Credit” or “Automation Dividend.” The terminology will vary, but the underlying mechanism will be the same.

As income support moves across digital rails, electronic money flows will rise, and the value will concentrate in the companies that operate those rails.

These rails include payment networks, instant-settlement processors, digital identity engines, and verification layers — the infrastructure that will carry the next generation of money movement.

And here’s what most investors haven’t priced in: the companies controlling this infrastructure are dramatically undervalued relative to the potential role they’re poised to play.

Who Benefits From This Shift?

You’ve already heard about players like Visa, Mastercard and PayPal. And while all those names are great ways to gain exposure to this trend, digital-first platforms like Coinbase also represent another major landgrab for readers.

In my view, Coinbase is quietly becoming one of the most important publicly traded companies tied to U.S. digital-dollar infrastructure. One of its core revenue engines is the stablecoin USDC, and that comes with multiple streams: payment flows, reserve income, institutional custody, settlement — the whole stack.

And if you’re new to this, stablecoins have effectively become the private-sector version of a retail CBDC in the United States. They’re already doing the job long before the government gets there.

So if income support goes digital — and the rails carrying those payments run through private platforms — the companies issuing and moving digital dollars become structural winners. Coinbase is right at the center of that architecture.

Remember, this all sits inside a global payments ecosystem worth $2.4 trillion today. McKinsey expects it to reach $3.1 trillion by 2028, and that projection doesn’t even include digital income-support flows.

Layer in recurring income delivered digitally, and the economic impact gets much larger — and so do the opportunities for the companies powering those rails.

Why You Need to Act Now

System-level changes don’t announce themselves. They surface in the numbers first, then in the flow, and finally in the price action.

We’ve got job disruption. A central bank that can’t address it. And global digital money rails expanding rapidly.

The value these companies offer as AI and money converge isn’t reflected in their valuations yet. It’s a highly asymmetric setup the markets aren’t seeing right now.

The way I see it, what we’re witnessing is a massive disconnect between today’s pricing and tomorrow’s economic architecture.

We have a chance to be early on the biggest macro shift of the coming decade.

The political resistance trying to hold things back won’t last forever. They’ll become the practical distribution layer for future income-support mechanisms.

The digital plumbing is already built. And while the spotlight stays on AI, there’s a deeper shift underway that many investors simply haven’t connected to the broader macro story yet.

Make no mistake – institutional traders are building huge stakes in companies like Coinbase and other private firms offering digital payment architecture.

That gives us an opportunity to get in on the ground floor of this revolution before the market fully appreciates the scale of what’s coming.

But recognizing the shift is just the first step.

The real edge comes from knowing how to turn a structural thesis into a structured trade. I’m talking about trades with defined risk and asymmetric payoff. And a framework that keeps you from getting shaken out when volatility hits.

Over the last year, I’ve helped members of Masters in Trading capitalize on the biggest shifts happening in everything from AI to quantum.

I want everyone reading this to have the same tools to spot huge structural shifts like we’re seeing with AI and currency before they happen.

That’s why I recently went live with something very special – The Profit Surge Event.

I showed everyone who signed up how to systematically track those hidden infrastructure plays and pair them with a simple tweak that can multiply the payoff of great stock ideas.

I even invited three of the most respected stock pickers in the business — �������°�, �������°�, and Luke Lango — to highlight their highest-conviction names.

We walked through how this approach has historically turned strong recommendations into stronger trades.

This includes big winners that show how you can your boost profit potential by 500%-plus. I also explained why our recent track record shows average winning gains of 267% in just 36 days.

I’m reopening access to my Profit Surge Event – plus a free report with three high-conviction stock ideas the team believes are positioned for outsized upside – for free. That means you get one more chance to learn all about the key picks we’re watching. Just click here to watch the replay of the Profit Surge Event right now.

Remember, the creative trader wins

Jonathan Rose,

Founder, Masters in Trading

The post The Automation Era: Why This Is the Most Mispriced Macro Shift of the Decade appeared first on InvestorPlace.

In fact, that’s what my colleague Jonathan Rose has done. He looks at the market through a different lens than I do, and he has an idea I think every investor should hear. He believes AI isn’t just changing how businesses operate – it’s changing how people work, how money moves and how policy decisions get made.

What stood out to me here is how clearly he explains what may be coming next – and why Wall Street might be underestimating it.

Jonathan recently hosted a free presentation called The Profit Surge Event, where he walked through how he’s trading this setup – and shared a few names he’s watching now.

Click here to watch the full replay.

Now, I’ll turn it over to Jonathan…

**

2025 was supposed to be the year AI took over everything.

Every major AI champion – from Sam Altman to Elon Musk – was predicting rapid job replacement, superhuman productivity, and AGI just around the corner.

Markets bought into the narrative. AI stocks surged, hyperscalers absorbed more share, and capital crowded into the trade.

To be clear, there were real opportunities. Over the past six months, I’ve helped my members capture double- and triple-digit gains in both marquee AI names and smaller, overlooked players tied to the build-out.

But here’s the reality: AI’s moment hasn’t unfolded the way most people expected.

We haven’t seen robots running the economy or machines suddenly replacing every job. What we are seeing, however, are the early signs of something far more important – a structural shift that will reshape work, income, and capital allocation well beyond this hype cycle.

And this shift is moving faster than markets, policymakers, or most investors realize.

So in this report, let’s move past the headlines and focus on where the real opportunity is forming.

Specifically, I’ll show you:

• How AI is already reshaping the labor market – and why the impact is appearing faster than most investors expect.
• Why the Federal Reserve’s traditional tools don’t work the same way in an AI-driven economy.
• How a new layer of digital money and payment infrastructure is emerging – and why the companies behind it remain badly mispriced.

If you want to understand where the next wave of asymmetric upside is coming from, keep reading.

The Labor Market Is Already Showing Signs of Structural Stress

Over the past year alone, some of the largest companies in the world have already started acting on it:

• Amazon.com Inc. (AMZN) cut 14,000 corporate roles – its largest layoff ever.
• Verizon Communications Inc. (VZ) eliminated more than 13,000 jobs, citing modernization and automation.
• IBM Corp. (IBM) is slashing back-office roles and freezing hiring wherever AI can handle repetitive tasks.

And those are just the headlines.

More than 4,200 companies have announced layoffs or hiring freezes this year as AI becomes embedded in daily operations.

The International Labour Organization warns that clerical and cognitive jobs are highly exposed to generative AI. And research from the Federal Reserve Bank of St. Louis links higher AI exposure to rising unemployment risk.

The chart below shows that the most AI-exposed occupations have seen the sharpest unemployment increases since 2022:

In other words, the disruption isn’t theoretical. It’s already happening.

AI won’t remove humans from the economy entirely. Its real impact is forcing a reorganization of how work, income, and productivity function. Workforce retraining, automation support, and income stabilization will become central pillars of the next economic phase.

And that creates a powerful, underappreciated macro trend – one that markets have not fully priced in yet.

I’ve already helped readers profit from early stages of the AI build-out, from high-profile AI software names to critical supply-side players fueling the infrastructure behind it.

What matters now is understanding what comes next – because this shift doesn’t stop with labor.

It changes how monetary policy works… and how money itself moves through the system.

The Fed’s Tools Don’t Work for This Problem

The Federal Reserve operates under a simple mandate: maximum employment and price stability.

Cheaper money through Fed rate cuts encourages businesses to borrow, invest, expand, and hire.

At least, that’s how it used to work.

That framework assumes companies need more people to grow. In an economy increasingly shaped by AI and automation, that assumption is breaking down.

If the Fed cuts rates again, it will absolutely make life easier for businesses. But instead of fueling job creation, cheap capital now accelerates investment in automation.

Every dollar of lower-cost financing makes AI systems, robotics, and software-driven scale more attractive than hiring. Instead of hiring, companies invest in data centers, robotics, and automated systems.

Rate cuts can still support markets. They can boost earnings, strengthen balance sheets, and lift asset prices. What they can’t do is reverse a structural shift in how work gets done.

The labor disruption showing up in 2025 data is only the early phase.

Retraining and productivity gains will matter. But the transition will be uneven – and job displacement will remain a growing pressure.

And that’s where the next, less-discussed force enters the picture – one that’s reshaping how income is delivered and how money moves through the economy.

This shift isn’t limited to labor. Money itself is going digital.

Around the world, physical cash and slow payment systems are being replaced by fully digital money rails that move value instantly. That transition is quietly reshaping how income is paid, how support is delivered, and how economies function in an AI-driven world.

At the center of this new monetary architecture are central bank digital currencies, or CBDCs – digital versions of national currencies designed to move in real time.

More than 130 countries are already exploring or piloting CBDCs. Institutions like the International Monetary Fund are actively pushing tokenization and real-time settlement standards.

The same infrastructure is taking shape in the United States.

In 2023, the Federal Reserve launched FedNow, a 24/7 instant-payment network that allows banks to send and settle money in real time. It isn’t a CBDC, but it is the digital plumbing the U.S. financial system will increasingly run on — the foundation for instant, fully digital money movement.

And it isn’t just governments building these rails.

While official CBDC proposals face political resistance, private-sector platforms – including Visa, Mastercard, and PayPal – already operate digital payment networks at massive scale.

The digital infrastructure needed for large-scale, real-time income distribution already exists – even if the public conversation hasn’t caught up yet.

As AI accelerates job disruption, it’s becoming clear that monetary policy alone can’t stabilize the system.

One likely response is fiscal – using digital infrastructure to deliver income support directly. That support could take many forms, from wage stabilization and automation offsets to emergency payments or baseline income programs. The labels may differ, but the mechanism is the same.

As those payments move across digital rails, money flows will concentrate in the companies that operate them.

These rails include payment networks, instant-settlement systems, and digital wallets – the infrastructure that will carry the next generation of money movement.

What most investors haven’t priced in yet is how valuable that infrastructure becomes when income itself goes digital.

Who Benefits From This Shift?

Large payment networks like Visa Inc. (V), Mastercard Inc. (MA), and PayPal Holdings Inc. (PYPL) are obvious beneficiaries. But digital-first platforms are positioned for even larger landgrabs.

Coinbase Global Inc. (COIN) sits at the center of U.S. digital-dollar infrastructure. Through its stablecoin, USDC, Coinbase participates across the full stack – payment flows, reserves, settlement, custody, and institutional access.

In practice, stablecoins already function as the private-sector version of a digital dollar. They’re doing the job long before official government solutions arrive.

If future income support is delivered digitally – and those payments flow through private platforms – the companies issuing and moving digital dollars become structural winners. Coinbase is one of the clearest examples.

All of this sits inside a global payments ecosystem worth roughly $2.4 trillion today, projected by McKinsey to reach $3.1 trillion by 2028 – before accounting for any digital income-support flows. Add recurring digital payouts, and the opportunity grows significantly.

Why You Need to Act Now

System-level shifts don’t announce themselves. They appear first in data, then in capital flows, and finally in prices.

Right now, we have labor disruption, a central bank with limited tools, and global digital money rails expanding rapidly. Yet the companies enabling this convergence remain undervalued relative to the role they’re poised to play.

That disconnect creates a rare opportunity to position early in what could be one of the most important macro shifts of the coming decade. The market just hasn’t connected the dots yet.

The real edge comes from knowing how to turn a structural thesis into a disciplined trade – with defined risk, asymmetric upside, and a framework that holds up through volatility.

That’s exactly why I recently hosted The Profit Surge Event… joined by my colleagues at InvestorPlace: �������°�, �������°�, and Luke Lango.

In it, I walk through how to identify these hidden infrastructure plays and apply a simple trading framework that has historically amplified strong stock ideas into outsized gains. And Louis, Eric, and Luke share their highest-conviction names.

I’m reopening access to The Profit Surge Event, along with a free report featuring their three high-conviction stock ideas positioned for this shift.

You can watch the replay right now and see how to position for what’s coming next.

Remember, the creative trader wins.

Jonathan Rose,

Founder, Masters in Trading

The post AI Is Breaking the Labor Market – Here’s What Comes Next appeared first on InvestorPlace.

Today’s Digest, from June 2025, arrived as two big themes were beginning to assert themselves – moves by major retailers into stablecoins, and the early signs of strength in silver.

Those themes only grew more relevant through the back half of the year, and the silver trade I highlighted has since shown real momentum. As of mid-December, SLV is up approximately 75% since this original Digest.

If you got in on this move, congrats! Looking ahead, we expect even higher prices to come for silver in 2026.

Have a good evening,

Jeff Remsburg

There’s a potentially major shakeup brewing in the financial tech (fintech) space.

Over the past week, both Walmart and Amazon have quietly signaled plans to explore launching their own stablecoins.

To make sure we’re all on the same page, a stablecoin is a type of cryptocurrency designed to maintain a consistent value – typically $1 – by holding cash or cash-like assets such as Treasuries.

Unlike volatile cryptos like Bitcoin, stablecoins stay pegged to the dollar, enabling real-time transfers without price surprises.

Now, why would Walmart and Amazon be interested in their own stablecoins instead of just using the U.S. dollar as usual?

Let’s go to our crypto expert Luke Lango. From this past weekend’s Crypto Investor Network update:

Stablecoins offer these giants a compelling reason to jump into crypto: lower transaction fees and faster settlements.

Every year, Amazon and Walmart fork over billions to card networks in interchange fees. By launching or accepting stablecoins — especially dollar-backed ones — they can bypass the Visa/Mastercard mafia, cut costs, and settle instantly, including cross-border.

This isn’t just a payments innovation. It’s an economic incentive. It’s capitalist gravity pulling big business toward crypto rails.

Building on Luke’s point, Walmart and Amazon together are estimated to spend around $14 billion annually on card‑processing fees. Just a 1% cutback via stablecoins could translate into roughly $1 billion in profit before interest and taxes.

Meanwhile, faster settlement times – instant, instead of the typical days – would improve cash flow, especially across international supplier chains.

A boom for retailers, yet a bust for credit card companies?

If these projects gain traction, stablecoins could turn Walmart and Amazon into quasi‑financial hubs. They could provide the framework for launching new service ecosystems, locking in customer loyalty, and boosting margins.

Basically, these retail giants could undercut existing payment ecosystems while retaining control of the user experience.

This is a major threat to traditional credit-card networks. Plus, banks and payment processors may face pricing pressure as retail giants shift to in‑house payment rails.

So, what happens to credit card companies?

You can be sure that they (and banks) won’t go down without a fight.

They could accelerate their own blockchain initiatives – like Visa’s USDC settlement pilot or Mastercard’s tokenization tools. They could offer new services like embedded lending, fraud protection, or loyalty incentives.

Most of all, I’d guess we’ll see an army of lobbyists push for regulatory frameworks that level the playing field or slow adoption, especially around compliance and custody requirements.

Speaking of related regulatory “frameworks,” keep your eye on the GENIUS Act. Back to Luke for what this is and its significance:

The GENIUS Act, a bipartisan bill establishing clear regulation for U.S. dollar stablecoins, passed a key Senate procedural vote 68-30. It requires full reserves, mandates transparency, and gives oversight to the Fed or state regulators.

If the bill becomes law — and momentum is building — the U.S. will have a clear framework for stablecoins. That’s step one toward mainstream institutional crypto adoption.

Bottom line: Keep this on your radar. It’s a major development. If Walmart and Amazon successfully proceed with this, it’ll rewrite the rules of money and commerce.

Bullish on gold today? Don’t overlook silver

As we’ve profiled here in the Digest, gold has enjoyed an explosive run in 2025, setting a series of all-time highs.

Meanwhile, for much of this year, silver has been lagging, trading at historic lows relative to gold.

For perspective on this lag, let’s look to the gold-to-silver price ratio. It measures how many ounces of silver are equivalent in value to one ounce of gold.

In the 20^th century, the average clocked in at 47:1. From 2000-2020, this ratio bumped up to roughly 60:1.

Now, just a few months ago, as gold surged while silver meandered sideways, this level clocked in at nearly 105 – the highest level of all time except during the Covid crisis.

Source: goldsilver.com

But since then, silver has finally begun to climb, outpacing its golden cousin. And as it appears today, silver could be starting its long-awaited catch-up rally.

Silver is on the move…and we’re still early in the move

As you can see below, since late May, silver has been crushing gold roughly 3-to-1.

But even after this move, we think it has plenty of room to run. To understand why, let’s revisit the gold-to-silver ratio.

As I write Tuesday, it’s at 91 – still elevated, but falling (bullish for silver). Importantly, this is happening because silver’s price is rising fast, not because gold’s price is falling.

So, what’s fueling silver’s momentum beyond technical mean reversion?

For one, supply constraints. According to the Silver Institute, global silver markets ran a deficit of roughly 117 million ounces in 2024 – the fifth straight year of undersupply. And because most silver is produced as a by-product of mining other metals like copper and zinc, higher prices don’t necessarily lead to more supply anytime soon.

Then there’s the industrial side.

Silver plays a critical role in the clean energy transition, especially in solar panel production, which continues to grow rapidly. Throw in rising demand for electrification and high-tech components, and you have a metal that’s increasingly indispensable – yet still underpriced by historical standards.

Technically, the picture looks strong too.

Silver recently cleared resistance around $37 – its highest level since 2012.

Bottom line: After years of underperformance, silver is stepping back into the spotlight. This may be the early stages of a long-awaited “silver bull.”

If you’re looking for a one-click, easy way to play it, check out SLV, which is the iShares Silver Trust.

Bottom line: Given today’s backdrop of geopolitical instability, ballooning sovereign debt, and the ongoing erosion of fiat currency credibility, we think silver (and gold) have very bright futures from here.

Another metal on the move

As we’ve been profiling in the Digest, nuclear stocks have been getting lots of attention in recent weeks.

This has happened as mega-cap tech stocks (think Microsoft, Alphabet, and Amazon) have inked deals for nuclear power.

This has been a tailwind for select uranium stocks. And subscribers of our macro expert �������°� just cashed in.

Here’s Eric’s recent Flash Alert in his trading service, Leverage:

Since October 1, 2024, the day I recommended [placing our uranium trade on the Global X Uranium ETF], the spot price has slumped 15%.

Despite that drop, the price of our calls has doubled. Good fortune of this sort doesn’t happen often in the stock market. Therefore, I recommend closing out the entire position for a gain of slightly more than 100%.

First, a big “congratulations” to Leverage subscribers. But what accounts for the value of their calls climbing if spot uranium is falling?

Back to Eric:

Most of the uranium mining companies in its portfolio are generating strong revenue growth and anticipating more of the same. But at their current quotes, they are discounting a lot of good news that has not yet arrived.

For example, Cameco Corp. (CCJ), which represents 24% of URA’s portfolio, is trading for a lofty 140 times earnings. Even if we flatter this analysis by using this year’s estimated result, the stock is trading for 68 times earnings.

That valuation is what the esteemed financial writer James Grant calls “priced for perfection.”

Eric points out that this “perfection pricing” may be entirely appropriate, but he believes that erring on the side of caution is the wiser move. So, he recommended subscribers ring that cash register to the tune of a 100% return. Congrats again.

Finally, looking for another reason to stay invested? How about “Trump Accounts”?

Earlier in June, we dove into a tax provision (Section 899) in President Trump’s “One Big Beautiful Bill Act” that could dent our portfolios.

While we remain wary of that clause, there’s a different part of the bill that’s bullish for our portfolios.

Tucked into the bill are “Trump Accounts” (initially called “MAGA Accounts”). If passed, the government would deposit $1,000 into a stock market investment account for every U.S.-born baby from 2025 through 2028. The family can make an additional $5,000 investment a year. The money must go into a low-cost, diversified U.S. stock index fund and remain untouched until the child turns 18.

Consider the implications…

If this passes, we’re talking about government-mandated stock buying – potentially millions of new accounts funneling money into the market each year.

Let’s do some crude math to ballpark the impact. Based on current U.S. birth rates (~3.6 million births annually), that’s approximately $3.6 billion in fresh equity demand per year.

But that’s just the initial government contribution. Add in some families contributing $5K per year… plus dividend reinvestment… and then growth over 18+ years, and the total economic impact balloons.

Being conservative, the Milken Institute estimates that $1,000 invested in a broad equity index could grow to $8,300 over 20 years. Multiply that by 3.6 million children per year and you’re looking at roughly $30 billion in potential future equity market value added annually from just this program.

Realistically, $30 billion is a drop in the bucket relative to the stock market’s multi-trillion-dollar market cap, but it’s a bullish tailwind nonetheless. And more importantly, these accounts could offer millions of young Americans a welcomed financial head-start in the coming years.

We’ll keep you updated on all these stories here in the Digest.

Have a good evening,

Jeff Remsburg

The post A Major Shakeup in the Fintech Space appeared first on InvestorPlace.

It is strange to say that we are now at the end of 2025. And anytime we reach the end of the year, it’s always a good idea to do a little portfolio housekeeping.

The reality is the market should do well in the New Year, aided by the “January Effect.”

The January effect happens when folks pour new funds into the market. Whether it’s a bonus from work or a New Year’s resolution, it’s a phenomenon that happens year after year.

But perhaps the biggest contributor is simply the fact that large fund managers tend to rebalance their portfolios at the beginning of the year. They all have performance benchmarks they want to meet in the New Year, so they tend to load up on top performers when they rebalance.

What’s interesting about the January effect is that it’s more noticeable with small-cap stocks. What’s more, not every January effect is the same.

Still, while not every year is the same, stock prices do tend to rise in the first month of the new year.

This means it’s even more important now that your portfolio is positioned to benefit from the potential future strength. And that’s where my Stock Grader (subscription required) can help. Each week, my system interprets reams of financial data and outputs those results in easy-to-interpret letter grades.

And in today’s Market 360, I want to share 10 stocks you should consider selling before we open the books on 2026.  Stock Grader recently flagged all these stocks as very weak. Take a look below; some of these names might surprise you…

Each company on this list received a “D” or an “F” rating in my Stock Grader. So, as we come up on the New Year, it is critical to dump stocks like this from your portfolio. If you want to make real money in the markets, you likely won’t do so with any of the stocks I listed above.

The truth is that next year it will be every stock for itself, which means that companies with strong fundamentals and earnings growth should emerge as the market winners…

So, I encourage you to use the final trading days of 2025 to ensure that your personal portfolios are fully invested in fundamentally superior stocks.

Now, if you’re not sure where to find fundamentally superior stocks, then look no further than my Growth Investor service. In this particular service, I have two Buy Lists: High-Growth Investments and Elite Dividend Payers. And both of these Growth Investor Buy Lists are chock-full of fundamentally superior stocks.

So, if you want to make sure your portfolio is filled with the crème de la crème, fundamentally superior stocks, then join me at Growth Investor today. You’ll receive instant access to all my Buy List stocks, as well as all my Growth Investor Monthly Issues, Weekly Updates, Special Market Podcasts – and much more.

Click here to sign up for Growth Investor now.

(Already a Growth Investor member? Click here to sign in now.)

Sincerely,

�������°�

Editor, Market 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Clorox Company (CLX)

The post 10 Stocks to Sell Before the New Year appeared first on InvestorPlace.

So I walked into the Chicago Mercantile Exchange for the first time that summer.

The smell hit me first: sweat, paper, and burnt coffee. Then the sound.

A wall of voices shouting bids and offers, phones ringing, bells clanging. Paper tickets flew through the air like confetti. It was a storm in every sense of the word.

I was just 22 years old, standing shoulder-to-shoulder with men two and three times my age who had been trading longer than I’d been alive. I was nervous and my tie was a little too tight, but I knew I was exactly where I wanted to be.

I didn’t know it then, but those first steps onto the floor would shape everything that came after. That was where I learned what really separates traders who survive from traders who wash out.

That’s where I learned The Trader’s Mindset.

Building Our Framework

Even when you think you’re ready for the challenge, you find out quickly that there’s still a lot left to learn.

Any trader can catch a lucky break here and there, but on the floor you can’t survive on luck alone. You need process. You need conviction. You need discipline. These are the core principles traders fall back on when the waves come crashing in that keep us calm, cool and collected.

It all starts with process. If you can’t explain why you’re in a trade, you don’t belong in it. This isn’t a gut feeling we get from some squiggly lines on a chart, we’re on the hunt for objective reasons to believe that an asset is mispriced. This can take a lot of forms.

Sometimes it’s as simple as following some unusual options activity (UOA), or spotting mispriced earnings volatility. Maybe we find a divergence between two highly correlated assets.

We’ve also had success with special situations like KTOS and combat drones, QXO consolidating the retail building supply space, and more recently with mispriced stocks like BMNR with large Ethereum holdings.

But even the most thorough process doesn’t spare you from the ups and downs of the market.  Nothing moves up or down in straight lines.

A trade can look perfect on paper and not go the way you expected. That’s where conviction steps in. It’s the belief born from research and preparation that allows us to remain confident when things don’t go as planned. Without conviction, process is just theory.

While conviction is what carries us through the rough patches, it’s even better if you can avoid those patches altogether. That’s where discipline comes in.

Discipline is about setting the rules of the trade before you even put in your first offer. I’ve seen plenty of sharp traders self-destruct. And in every case, they would make the same mistakes…

They would rely too heavily on technical analysis. They let excitement push them into chasing hot trades and oversized bets. They would micromanage their portfolios. They would break their own rules. In the long run, the market will punish you for that kind of recklessness.

Discipline is the patience to wait for your setup, even when the market feels dull and your inner voice is screaming for action.

Discipline is what creates consistency. It’s not glamorous, it doesn’t get applause — but it’s the framework that allows us to fine-tune our approach to the markets.

Without it, you’re just swinging at every pitch that comes your way. With it, you’re ready to defend the strike zone and stay at the plate long enough to capitalize on the right opportunity.

That discipline, consistency and patience is exactly what I teach to my Masters in Trading community.

It’s all part of the singular strategy that we leverage to systematically track hidden stock plays with confidence and pair them with a simple tweak that can multiply the payoff on great stock ideas.

I recently went live to discuss exactly how this system works with The Profit Surge Event. It’s a special webinar designed to give you the tools and insights to trade with conviction and process – while avoiding market noise.

You can learn all about the system – and the key stock picks I’m watching – right here.

Now that you have a better understanding of the trader’s mindset, let’s take a look at one real world example that brings it all together.

Process in Action

I’ll take you through our recent Lyft (LYFT) trade step by step. It’s a clean example of how process, conviction, and discipline all come together.

Back in July, we took aim at Lyft Inc. The company was getting set to release its next earnings report on August 6.

We came into earnings with a simple observation: the options market was underpricing the move. The straddle was implying around a 16% swing, but Lyft’s history told us the stock typically moved closer to 20% after earnings.

Even better, we also saw that LYFT has been lagging behind its top competitor UBER, which gave us conviction that LYFT still had room to catch up.

That’s the edge. We weren’t guessing. We weren’t saying, “Hey, I think ridesharing is hot.” We were playing the math and had multiple reasons to believe that LYFT had potential to move.

With catalyst events like an earnings release, we never know for certain whether the stock will go up or down.

So, instead of making a directional play, we trade the volatility. I

In this case we structured the trade as a straddle. That’s when you buy calls (bullish) and puts (bearish) on the same strike price designed to expire at the same time. This way, we didn’t need to worry which way Lyft would break. We just needed it to move more than the market was pricing.

Discipline Over Emotion

Then earnings hit. Lyft sold off on the news, but not far enough outside of the market maker’s expectations. In this case that meant we were able to take profits on our puts, but it wasn’t enough to cover the total cost of the strangle. Meanwhile the calls were close to worthless, which put us in a tight spot.

A lot of traders see red on one side of their trade and panic. It would be easy to cash them out, then to try and preserve capital while clawing back some more premium, but as a general rule, we never want to sell an option for less than $0.20. Even if we did, we would still be underwater on this trade.

On the flip side, we could hold onto the calls and see if shares recovered in the nine days before expiration. The situation didn’t look good, but this is where conviction and discipline come into play.

We knew the research. Sure, the earnings catalysts didn’t pan out. But that wasn’t our only reason to believe LYFT could move to the upside.

That conviction in the trade and the discipline in our approach kept us from second-guessing the setup when the stock went against the calls.

Conviction Rewarded

And then, right at the last minute, the payoff came. On Friday, August 15^th, LYFT started moving after announcing its co-founders Logan Green and John Zimmer were stepping down from the board next year.

That meant their Class B shares would soon turn into common stock, killing the dual-class structure and bringing our calls back from the brink. As a result, shares jumped more than 10% and brought our calls back in the money.

All told, the straddle returned around 5%. It was a minor win built on process, conviction, and discipline.

But it didn’t end for us there…

Soon after LYFT’s stock run, I saw yet another opportunity to turn LYFT’s short pop into a fresh win.

I told my Advanced Notice viewers to go all in on the LYFT October calls at the end of August. In just two weeks, we netted over 200% from that short run in the stock.

Both trades on LYFT came from the same approach…

We didn’t chase. We didn’t guess. We didn’t let emotions drive the bus.

We found a setup with edge, trusted the research, and managed risk with discipline. That’s the trader’s mindset in action — and that’s how you stay alive long enough to hit the big ones.

This isn’t the only comeback story we’ve seen over the last year.

We saw rallies in IWM, AA and RUN over the last few months. They looked all but lost only to rebound and take what looked like surefire losers into the green.

It’s the same story with two recent wins that looked to have completely run out of steam for us – Antero Resources and Coterra Energy.

It wasn’t easy sticking with our bullish stance on clean energy throughout 2025. Government-sparked headwinds broadly sent clean energy stocks into a tailspin for much of the year.

But with both trades, our goal was getting long exposure. And luckily for us, we never wavered in our conviction with these trades. Our bets on these stocks paid off with gains of more than 90% and 145%.

The lesson in all of these trades is simple: don’t mistake short-term noise for a verdict on your trade.

If your process is sound and your discipline is intact, you don’t have to flinch when a position goes red. The market will test you — it always does. It’s about trusting the framework you’ve built, leaning on conviction when the waves hit, and letting discipline decide the exit.

Train Your Mind to Think Like a Pro

The truth is, no one is born with the trader’s mindset. It isn’t some gift you’re handed when you open a brokerage account or read a book. It’s forged in the fire of real-world trading decisions — like the ones we just walked through with Lyft.

But here’s the thing: you don’t have to spend years on a trading floor to build it.

I spent years uncovering where the big money is getting in position before the crowd figures it all out. All that knowledge is exactly what I teach in Masters in Trading.

And I want everyone who’s eager to listen to have that same knowledge. The kind that gets you a beat on the biggest opportunities before they hit most investors’ radars.

That’s why I recently went live with my “Trade of the Decade” at The Profit Surge Event.

Not only that, but during that presentation, I showed viewers exactly how to systematically track picks from my InvestorPlace colleagues – �������°�, �������°�, and Luke Lango – and pair them with a simple tweak that can multiply the payoff on great stock ideas.

This is the same approach we’ve used all year to stay ahead of massive shifts in precious metals, commodities, tech stocks, and much more. While everyone else was reacting to headlines, we were positioning where the real money is flowing.

All based on discipline and conviction. And all without paying any attention to the short-term noise shakes most investors’ confidence.

For The Profit Surge Event, Louis, Eric, and Luke share their highest-conviction plays. These are the names they’re watching most closely right now.

Plus, I show you how to get ahold of my Trade of the Decade… plus three more trades that I believe could be home runs based on my market forecast and Unusual Options Activity.

You can watch a full replay of our special event for a limited time.

Remember, the creative trader wins,

Jonathan Rose

Founder, Masters in Trading

The post Process, Conviction, Discipline: The Framework That Wins appeared first on InvestorPlace.

Happy Holidays!

Hello, Reader.

In the spirit of the holiday season, I’d like to share a small gift with you today: a particular fintech stock I’ve been closely watching.

This financial technology company that serves both merchants and consumers recently saw a 10% annual increase in its Black Friday and Cyber Monday performance results (your holiday shopping might’ve played a role in those numbers).

But what makes this company especially important is its role in helping redefine the fintech sector in the age of artificial intelligence.

AI is on a one-way track, rapidly improving by the minute. We can see it in how easily it integrates into our daily lives – from personalized video recommendations to generating ideas or organizing everyday tasks.

Instead of sitting back as AI inevitably touches – and changes – everything we know, including the financial sphere, I want to show you how to profit from this moment.

So, in today’s Smart Money, I’ll share one of my favorite plays in just one of many sectors being transformed by AI… and where you can find more stocks I rank as “Buys.”

Introducing Block Inc.

Volatility can open the door to new buying opportunities. That’s how I spotted Block Inc. (XYZ), which owns and operates the well-known payment app, Square. 

The company’s story starts like this… 

In 2009, Jim McKelvey, the founder of Mira Digital Publishing, partnered with Twitter founder Jack Dorsey. The duo developed a square-shaped card reader that could plug into smartphones, eliminating the need for expensive card readers. It was a simple, elegant solution that cost just $0.97 in hardware and was given away to merchants for free. 

In 2010, Square added 50,000 test merchants in a single summer. The following year, the firm was reportedly adding 100,000 new merchants every month. 

Today, the company – now known as Block Inc. – helps merchants transact over $200 billion annually. Its point-of-sale systems are found everywhere from farmers’ markets to national retail chains.

And thanks to Block’s sizeable multi-year spending on both capital investments and M&A, the company has become one of the world’s leading fintech companies. It also appears to have reached an important inflection point, and it is on a path to potentially grow beyond that.

In part, this hockey-stick-shaped growth is a reflection of the broader payment processing industry.

The business tends to be highly scalable, since digital payment systems require large upfront investments that can eventually serve an unlimited number of additional customers at virtually zero marginal cost. So, payment processors tend to become enormously profitable after they reach a certain scale. 

But Block’s business model also exaggerates this growth trend, given its focus on flat fees, efficient client onboarding, and diversified software offerings. This creates more overhead, but also greater efficiencies once scale is reached.

Plus, Block owns another platform that is strengthening the company’s outlook…

Cash App’s Money-Making Service

In 2013, Block launched Cash App, a peer-to-peer payments service that skyrocketed to popularity after offering lottery-style cash awards to users. In 2023, the mobile payment service available Cash App brought in over $248 billion of gross inflows, eclipsing Square by that metric. 

In addition, the company’s Cash App product has gained a major adoption rate among younger demographic groups.

It is the No. 4 app in the finance category on Apple Inc.’s (AAPL) App Store, and Gen Z and Millennials combined account for more than 70% of Cash App’s inflows. Additionally, Block is the only major fintech firm with a banking charter, and management recently announced intentions to roll out banking services for Cash App customers. 

“It is about making Cash App our base’s primary financial tool,” Block CFO Amrita Ahuja said during his second-quarter earnings remarks, “which ultimately leads to stronger engagement and stronger inflows.” The Cash App card now has 57 million monthly transacting active users, making it even larger than many regional banks like TD Bank by that measure. This offering is an “option value” for future growth.  

Best of all, shares of Block don’t yet reflect these truths. The company expects gross profit growth in the mid-teens through 2028, and for operating income to rise about 30% annually.

I recommend this fintech company to my Fry’s Investment Report subscribers, and I’m excited for its 2026 performance. That’s why I’m excited to share it with you today.

At Fry’s Investment Report, we’re interested in the companies with attractive valuations that effectively apply and integrate AI into their businesses – not the expensive tech stocks flying high… and too close to the sun.

But knowing what stocks to avoid is as important as knowing which to buy.

So, I encourage you to watch my Sell This, Buy That presentation, where I dive deeper into the popular stocks I think investors should sell.

To keep in the holiday cheer, I reveal the “Sell” counterpart to Block’s “Buy” – a bank that should stay far away from your portfolio.

Click here to watch now.

Regards,

�������°�

The post Stuff Your Stocking With This Fintech Winner appeared first on InvestorPlace.

In the summer of 1896, the lights went out in Manhattan.

Not because the city lacked capital or brilliant engineers. Rather, the city had grown faster than its infrastructure could support. 

The electric dynamos that powered the new age of industry simply couldn’t keep up with demand. Factories stalled. Streetcars froze in place. Progress, it turned out, had a bottleneck.

History rarely remembers the bottleneck. It remembers the winners who solved it.

That’s the uncomfortable question investors face today.

Everyone’s fixated on AI chips. On trillion-dollar valuations. On whether Nvidia (NVDA) can keep defying gravity. But while the crowd debates multiples and margins, something more basic — and far more dangerous — is quietly breaking beneath the surface.

AI is running ahead of the grid.

Tesla (TSLA) all but confirmed what we’ve suspected for months: the next great computing bottleneck isn’t chips – it’s power.

The company recently launched a new marketing push for its Megapack batteries, aimed directly at AI data centers battling wild, unpredictable power swings. Tesla claims its systems can absorb up to 90% of AI-induced load volatility, stabilizing sites where energy demand can spike or crash by several megawatts in seconds.

It’s a reminder that as AI training stresses the grid to its limits, batteries are quietly becoming as essential to AI infrastructure as GPUs themselves…

And we’re already seeing that shift begin to play out in real time.

Canary Media recently reported that – instead of waiting on infrastructure upgrades, new gas turbines, or lobbying utility companies for more power – Aligned Data Centers is purchasing a new 31-megawatt/62-megawatt-hour battery to power its new facility in the Pacific Northwest. According to the companies involved, this deal will get Aligned’s data center running ​”years earlier than would be possible with traditional utility upgrades.”

These moves tell us everything we need to know about where we are in the AI infrastructure cycle – and where the next big investment opportunities are hiding. 

AI data centers are running ahead of the grid; and batteries are how they’ll bridge the gap.

Instead of waiting on utilities or new gas turbines, hyperscalers are turning to utility-scale batteries to unlock capacity, stabilize voltage, and keep training clusters humming. It’s the clearest signal yet that batteries are becoming core AI infrastructure.

It’s a brilliant hack – and it’s likely to become standard practice for every hyperscaler racing to deploy AI capacity.

And in today’s issue, I’ll show you why batteries are rapidly becoming core AI infrastructure — and which companies are quietly positioning themselves to ride what could become the next trillion-dollar investment theme.

The AI Battery Boom Is Here

Data centers are quickly becoming the largest power consumers on the planet.

That’s why the companies solving AI’s energy bottleneck could see growth that rivals – or even surpasses – the chip boom itself.

Just as Nvidia (NVDA) became the bottleneck supplier for AI compute, the companies capable of delivering utility-grade batteries are positioning themselves as bottleneck suppliers for AI power.

Think about it this way. Every AI data center needs:

• Graphics Processing Units (GPUs) to run their models
• Reliable power to keep the lights on and the regulators happy

It’s the same dynamic; and it creates the same kind of explosive opportunity.

We see three very interesting ways to play it.

Eos Energy: The Zinc Battery Play for AI Data Centers

Most current batteries are lithium-ion. But lithium-ion has limits: it’s expensive, it degrades quickly when cycled hard, and it’s not optimized for multi-hour storage.

Enter Eos Energy (EOSE).

Eos builds zinc-based batteries that are specifically designed for longer applications, between four and 10 hours. That’s the sweet spot for data centers looking to buffer grid demand and secure overnight uptime. And unlike lithium-ion, zinc doesn’t require nickel, cobalt, or lithium – minerals increasingly caught up in geopolitical snares.

The company has quietly amassed a multi-billion-dollar project pipeline. And if other data centers go the way of Aligned, the AI Boom could pour gasoline on that fire. 

Think of Eos as the ‘non-lithium bet’ on AI storage. If hyperscalers start diversifying battery chemistry to reduce risk, Eos is perfectly positioned.

Fluence Energy: The Leading AI Data Center Battery Stock

Now, where Eos is the scrappy upstart, Fluence (FLNC) is the established pure-play leader in grid-scale batteries.

A joint venture between AES (AES) and Siemens, Fluence has already deployed more than 7 gigawatts of storage worldwide. The company offers both hardware and sophisticated software to manage storage systems, making it a one-stop shop for data centers and utilities.

If you’re a hyperscaler that needs 200 MW of storage integrated into your new AI campus, Fluence is the first number you call.

Investors have started to notice. Shares have surged nearly 370% since spring.

But even still, the runway here is massive. Fluence could be to AI batteries what Nvidia was to AI chips: the name brand everyone trusts.

Tesla’s Megapack: The Hidden AI Infrastructure Powerhouse

Everyone knows Tesla for its cars – and now its humanoid robots. But the company has quietly become one of the world’s largest battery companies.

Tesla’s Megapack business has locked in multi-year, multi-billion-dollar contracts, most notably: 

• a 15.3 GWh supply agreement with Intersect Power valued at over $3 billion through 2030
• and a June 2025 order from Clearway Energy for 490 MW/1,356 MWh that industry reports peg at roughly $450 million 

With Tesla cranking out record volumes – 12.5 GWh of Megapacks in Q3 2025 alone and over 31 GWh in 2024 – demand is so strong that new orders are getting pushed well into future calendar years. In other words, Tesla’s battery business isn’t just busy… it’s booked solid for years, as utilities and power producers race to lock in capacity before the grid revolution leaves them behind.

Recent moves suggest Tesla sees where the market is headed. The company is clearly aligning its Megapack business with the surging power demands of AI, positioning itself as the go-to provider for hyperscalers that need flexible, grid-stabilizing storage fast.

That alignment gives Tesla a near-unmatched edge. It already has the factories, supply chains, and track record to deliver multi-megawatt systems at industrial speed. For AI developers facing power constraints, that combination of scale and reliability makes Tesla the obvious partner.

This makes it not just an EV stock but a stealth AI infrastructure play hiding in plain sight.

Investing in the Data Center Power Revolution

Aligned’s battery tactic isn’t a one-off curiosity. It’s a preview of the next wave of the AI trade.

First was GPUs. Then energy. Now? Storage.

Every AI data center built over the next decade will almost certainly come with a giant battery project attached. That’s tens – maybe hundreds – of billions in new demand for grid-scale batteries…

Which means the companies building those batteries could ride the same exponential curve Nvidia has over the last five years.

If you believe AI is the future, you need to believe batteries are the enabler. And you need exposure to the stocks that make it happen.

Bottom line: AI isn’t just a compute story anymore. It’s a power story. And in that power story, batteries are the unsung hero. 

Today’s headline about data centers building giant batteries to get online faster is tomorrow’s trillion-dollar investment theme.

But zoom out, and this battery shift is just one piece of a much bigger pattern forming beneath the AI boom.

Over the past few months, the U.S. government has quietly taken equity stakes in a handful of small, strategically critical companies — moves that blindsided Wall Street and sent those stocks soaring shortly afterward. In each case, the signals were visible before the headlines hit… if you knew where to look.

AI has entered a new phase — one where compute, energy, storage, and national strategy are converging. The White House isn’t reacting anymore. It’s positioning. Securing supply chains. Accelerating infrastructure. Picking choke points it can’t afford to lose.

Data center power is one of those choke points.

Grid-scale batteries. Nuclear-adjacent energy. Advanced infrastructure plays that sit at the intersection of AI growth and national priority.

That’s why I recently went to Silicon Valley to unveil what I call the Hyperscale Revolution — a new phase of the AI wealth cycle where capital, policy, and exponential technology start reinforcing each other. Historically, this is the part of the cycle that creates fortunes fast… but only for those positioned early.

I believe one small, overlooked company — operating in an unexpected corner of the energy market — fits this pattern almost perfectly. 

I’ve laid out the full evidence, the pattern, and exactly how I’m positioning in my latest briefing.

If you want to see what I’m seeing — and decide for yourself before the next headline hits — I strongly suggest you watch it now.

The post The Quiet Power Play Wall Street Is Missing in the AI Boom appeared first on InvestorPlace.

Before we jump in today, please note we’ll be taking a break tomorrow, Christmas Eve, and Thursday, Christmas Day, here in the Digest. We’ll pick back up on Friday, December 26. Now, today’s Digest…

This piece, from March 2025, came during a moment of market wobble – and it offered a calm, statistical reset on how normal such pullbacks truly are.

I chose it because two of the trades highlighted have since delivered strong moves: GDX is up approximately 115% since that original Digest (as of mid-December), and QQQ is up approximately 27% over the same period.

It’s a good reminder that disciplined investors often benefit when fear pushes others to the sidelines.

Have a good evening,

Jeff Remsburg

Job creation hit the brakes last month.

This morning, ADP’s private sector jobs report showed February’s gains clocked in at just 77,000 workers. That’s miles beneath January’s revised number of 186,000 and substantially lower than the consensus estimate of 148,000.

For what’s behind the slowdown, here’s Nela Richardson, ADP’s chief economist:

Policy uncertainty and a slowdown in consumer spending might have led to layoffs or a slowdown in hiring last month.

Our data, combined with other recent indicators, suggests a hiring hesitancy among employers as they assess the economic climate ahead.

As we’ve been highlighting here in the Digest, “uncertainty” is the big market overhang today.

Will President Trump’s tariffs be fleeting or long-term? How will they impact corporate profits? How will they affect consumer spending? How will they influence inflation and the Fed’s interest rate policy?

This swirl of questions has weighed on the market since mid-February.

As we’re going to press, we’re getting welcomed news that’s helping the market

President Trump has given a one-month tariff exemption to the big three U.S. automakers.

From Press Secretary Karoline Leavitt:

Reciprocal tariffs will still go into effect on April 2, but at the request of the companies associated with USMCA, the president is giving them an exemption for one month so they are not at an economic disadvantage.

Stocks are rallying on the news. The hope is that this is a foreshadowing of additional tariff leniency to come.

Meanwhile, earlier today, Commerce Secretary Howard Lutnick suggested the Trump administration could scale back tariffs on Canadian and Mexican goods. An announcement with more details could come as soon as this afternoon. As we go to press, that update hasn’t arrived.

But even if that announcement comes, a “scale back” isn’t a “removal.” And so, the impact of scaled-back-yet-sustained tariffs remains an uncertainty…which Wall Street hates.

Returning to jobs, the most important report comes on Friday with the Labor Department’s Bureau of Labor Statistics report on nonfarm payrolls. It could be a market mover.

We’ll report back.

One thing to remember if the recent market drawdown has you feeling rattled…

It’s normal.

As I write, the S&P is down about 5% from its high. This doesn’t even register as a “correction,” as defined by “down 10% from the most recent high.”

So, in the grand scheme of things, this is far less a massive 10-car pileup, and more so the slightest of parking lot fender benders.

But what if we get a 10% correction, or even something a bit deeper?

Such pullbacks are commonplace in Wall Street’s long history. Here’s some perspective from Kiplinger:

Since the 1950s, the S&P 500 has experienced around 38 market corrections. That means that historically speaking, the S&P 500 has experienced a correction every 1.84 years.

Considering that the S&P’s last correction came in 2022, we’re basically right on schedule.

And how long should we be prepared to endure this?

Obviously, no one knows. But American Century Investments crunched the numbers and found that if this pullback reaches “correction” territory but doesn’t slip into a full bear market, then, on average, we’re in for a 14% drawdown that will last about four months.

How do you manage your portfolio during such a drawdown?

A study of market history shows that the best thing to do is ignore it.

Of course, if your specific investment timeline and/or financial situation requires you to pull your money out of the market, do what you must. But if you’re investing for a longer period, log out of your brokerage account and go live your life as you wait for the inevitable rebound.

Here’s Schwab with perspective on that eventual bounce:

Occasional pullbacks have historically been followed by rebounds, according to the Schwab Center for Financial Research.

Since 1974, the S&P 500 has risen an average of more than 8% one month after a market correction bottom and more than 24% one year later.

Schwab delved into additional historical data on corrections, concluding:

Despite these pullbacks, however, stocks rose in most years, with positive returns in all but 3 years and an average gain of approximately 7%.

This brings to mind the 2025 market forecast from our hypergrowth expert Luke Lango, editor of Innovation Investor:

We think this will be the pattern for the stock market for the foreseeable future: two steps forward, one step back. Lather, rinse, repeat. 

And yet, I still think stocks are going higher in 2025.

Bottom line: Pullbacks like the one we’ve been experiencing today are 100% normal. Take it in stride.

A different way to play the gold bull market

As I write Wednesday, the yellow metal is barely 0.3% below a new all-time high.

But rather than discuss investing in gold today, let’s highlight gold miners. You can think of this as investing in gold, yet with operating leverage. 

You see, there’s something strange happening with miners today…

While gold’s price has been hitting new highs in recent months, sentiment toward miners has been lukewarm at best. This is resulting in valuations near historic lows.

Here’s Barron’s from February:

Gold stocks, despite their gains, really do look like bargains.

The VanEck ETF trades at just over 12 times 12-month forward earnings, a 44% discount to the S&P 500’s 22 times, a much wider gap than the 10-year average of 20%.

Narrowing the price/earnings gap to that average discount would bring the ETF up to just over 16 times, landing it, once again, at $51.

Let’s get a visual on this inconsistency between gold and miners.

As you can see below, since spring 2022, while gold has climbed almost 50%, gold miners, as represented by the VanEck Gold Miners ETF, GDX, are basically flat.

(Disclosure: I own GDX.)

This is abnormal. Typically, top-tier gold mining stocks make moves that are 2X- 3X the size of gold’s move. This reflects the swelling profits that miners enjoy as gold’s market price rises above breakeven costs…or the snowballing losses they suffer when prices swing the opposite way.

Recently, miners haven’t been commanding this premium. Here’s Mining.com:

The gold miners’ stock prices have largely decoupled from their metal, which overwhelmingly drives their profits.

This fundamental disconnect has spawned a shocking valuation anomaly, with gold stocks far too low relative to gold. But this aberration won’t last, as markets abhor extreme deviations from precedent.

Mean reversions and proportional overshoots soon follow, so gold stocks will soar to reflect their record earnings.

But why are miners lagging so badly?

First, miners usually sell their gold based on long-term contracts or hedging strategies. This creates a lag in profits even as gold hits all-time highs.

Beyond that, the question is usually better answered on a case-by-case basis. But here are some of the top reasons why miners are lagging:

• They’ve faced higher operating costs due to inflation
• Environmental and regulatory costs have also increased
• Some miners have a history of poor capital allocation (bad acquisitions, excessive debt, shareholder dilution)
• Many mines operate in politically unstable regions, leading to supply chain disruptions, government intervention, or nationalization risks

Remember to do your due diligence and be discerning about which miners you buy, but the opportunity today looks compelling.

For your own research, I’d recommend looking at Agnico Eagle Mines (AEM) and Alamos Gold (AGI). They’re generating enormous free cash flow today. And, of course, there’s GDX, which gives you exposure to a basket of top miners.

Finally, are you feeling courageous?

One of Warren Buffett’s most famous quotes is to “be fearful when others are greedy and to be greedy only when others are fearful.”

Well, we’ve got the “Fear” part covered.

Even though stocks are up as I write Wednesday, CNN’s Fear & Greed Index puts us at “Extreme Fear.”

So, are you ready to be greedy?

If so, here’s an idea…

According to TrendSpider, the trade is to buy QQQ (a fund that tracks the Nasdaq 100) when its price is 10%+ off its 20-week range high.

In the last 10 years, when following this entry signal, the average returns six months later have been 13.5% with an 82% win-rate.

Here’s the chart from TrendSpider.

For another idea, I’d point you to our global macro expert, �������°�, the editor behind Leverage

In Leverage, Eric recommends LEAPS trades, which stand for “Long-Term Equity Anticipation Security.” You can think of this as an option with a longer-dated expiration, usually lasting from one to three years.

One of the main reasons to use LEAPS is because of the “leverage” they afford investors. As Eric writes, you “put down a small investment to control a large amount of stock.”

As an example of the potential payoff, in February, Leverage subscribers locked in gains of nearly 300% on their Dutch Bros. Inc. (BROS) call options that they opened in July 2024.

Now, also in February, Eric recommended a miner that he called a “hidden” gold play.

From Eric:

[This miner’s] relatively low valuation underscores its identity as a hidden gold play.

Its shares are trading for just six times gross earnings (EBITDA), which is 40% lower than the valuation of the Philadelphia Gold and Silver Index (XAU) stocks.

Since that recommendation, this stock has fallen slightly in sympathy with the broad market. But this is offering investors an even better entry price on what could be a monster trade if gold mining stocks roar higher as history suggests they’re likely to do. (As of mid-December, the stock is up about 70%.)

If jumping into QQQ or Eric’s “hidden” gold trade makes you nervous…

That’s totally normal.

But here are a few words of wisdom from wise (and very successful) investors who have gone before us.

From billionaire Rob Arnott, founder and chairman of the board of Research Affiliates:

In investing, what is comfortable is rarely profitable.

And J.P. Morgan:

In bear markets, stocks return to their rightful owners.

Finally, Cullen Roche:

The stock market is the only market where things go on sale and all the customers run out of the store.

Bottom line: Don’t take on more risk than is appropriate for you and your financial situation, but recognize that one investor’s panic sale is another investor’s bargain entry price.

Have a good evening,

Jeff Remsburg

The post Two Strong Setups for the Coming Rally appeared first on InvestorPlace.

Gold prices continue to set new all-time high after new all-time high. In fact, according to my favorite economist, Ed Yardeni, gold is the new bitcoin.

What does he mean by this? Well, for a time, bitcoin attracted significant investor interest as a safe haven amid geopolitical uncertainty. However, gold is now resuming the role it previously held for centuries, long before bitcoin came along.

In other words, gold is back in style…

Yardeni predicts that gold prices will reach $5,000 per ounce within a year – and could potentially breach $10,000 per ounce by the end of the decade.

The fact is that the lack of confidence in central banks has encouraged many to load up on gold, and global central banks themselves have also increased their gold holdings. This is why gold prices have soared to new all-time highs in 2025.

Now, deflation is a very serious problem, especially in China. Deflationary pressure is also being driven by poor demographics across Asia and in Northern Europe. All central bankers are taught to fight deflation, and one of the only ways to fix it is through currency devaluation.

Bottom line: Gold remains a reliable hedge against deflation.

One of my predictions is that you’re going to hear a lot more about this global deflationary problem in 2026.

That means gold stocks should continue to attract the attention of individual and institutional investors. So, if you want to give yourself a present this holiday season, you might want to consider the following companies…

Stocking Stuffer #1: Agnico Eagle Mines Ltd. (AEM)

Agnico Eagle Mines Ltd. (AEM) is a Canadian mining company focused primarily on gold. In fact, it is the third-largest gold producer in the world, with operations in Canada, Australia, Finland and Mexico. The company expects to produce between 3.33 million and 3.5 million ounces of gold in fiscal year 2025, which is attainable considering 77% of this guidance was produced in the first nine months of the year.

In the third quarter, Agnico Eagle Mines produced 866,936 ounces of gold and sold 868,563 ounces of gold. The company also reported adjusted earnings jumped 89.5% year-over-year to a record $1.09 billion, or $2.16 per share. Analysts expected earnings of $1.96 per share, so Agnico Eagle Mines posted a 10.2% earnings surprise.

Following the quarterly earnings beat, analysts have increased fourth-quarter earnings estimates by nearly 25% in the past three months. Fourth-quarter earnings are now forecast to soar 88% year-over-year to $2.37 per share. Revenue is expected to grow 45.9% year-over-year to $3.24 billion.

Stocking Stuffer #2: Alamos Gold, Inc. (AGI)

More than two decades ago, Alamos Gold, Inc. (AGI) was formed through the merger of Alamos Minerals and National Gold. Through strategic acquisitions, the company has continued to grow and expand its operations over the past 20+ years. Today, Alamos Gold is a top producer of precious metals, primarily in Canada and Mexico.

Alamos Gold operates three mines, including two in Canada and one in Mexico, as well as has several projects in the pipeline. The company has a 100% interest in the Young-Davidson Mine, one of the largest underground gold mines in Canada, as well as a 100% interest in the Island Gold Mine, one of the highest-grade gold mines in Canada. It also has a 100% interest in the Mulatos Mine in Sonora, Mexico, and it has produced more than two million ounces of gold since 2005.

The company reported that gold production rose 3% year-over-year to 141,700 ounces in the third quarter, driven by strong operations at Mulatos and Island Gold District. Due to an unplanned week of downtime, production was slightly lower than guidance for 145,000. Alamos Gold now expects full-year 2025 production between 560,000 ounces and 580,000 ounces.

Third-quarter revenue increased 28.1% year-over-year to $462.3 million, up from $360.9 million in the same quarter a year ago. Adjusted earnings surged 99.1% year-over-year to $155.5 million, or $0.37 per share, compared to $78.1 million, or $0.19 per share, in the third quarter of 2024.

The consensus estimate called for third-quarter revenue of $491.09 million and adjusted earnings of $0.36 per share. So, Alamos Gold posted a slight revenue miss and a slight earnings surprise.

Stocking Stuffer #3: Kinross Gold Corporation (KGC)

Kinross Gold Corporation (KGC) is my favorite gold stock right now. Based primarily in Canada, Kinross Gold operates the Great Bear project in Red Lake, Ontario, as well as three gold mines and a development project in the U.S. The company also has a mine in Brazil, a mine and development project in Chile and a mine in Mauritania.

In the third quarter, Kinross Gold produced 503,862 gold equivalent ounces and sold 504,111 gold equivalent ounces. Total precious metal sales grew 25.8% year-over-year to $1.8 billion, which topped analysts’ estimates for $1.76 billion.

Adjusted third-quarter earnings soared 77.3% year-over-year to $529.6 million, or $0.44 per share. Analysts were looking for adjusted earnings of $0.39 per share, so Kinross Gold posted a 12.8% earnings surprise.

Given the better-than-expected quarterly results, analysts have increased fourth-quarter earnings estimates by 36.8% in the past three months. Fourth-quarter earnings are now forecast to surge 173.7% year-over-year to $0.52 per share. As you know, positive analyst revisions typically precede future earnings surprises. 

How I Found These Top-Rated Gold Mining Stocks

When it comes to finding market-beating stocks, there are two critical characteristics at the center of my analysis.

The first is strong fundamentals. By fundamentals, I mean sales growth, earnings growth and a number of other factors. The second characteristic I look for is strong buying pressure. Think of this as “following the money”. The more money that floods into a stock, the more momentum a stock has to rise.

Thanks to my Stock Grader system (subscription required), which I’ve developed over the course of my four-decade career, I can systematically scan for stocks with superior fundamentals and strong buying pressure.

In fact, as I write this, all three of these stocks earn an overall grade of “A” – meaning they are strong picks worthy of consideration.

It’s no wonder, then, that we’re already up by triple digits on two of these three picks in my Growth Investor advisory service.  

But for the reasons I discussed above, I think there will be plenty more gains ahead in 2026. So, for more information on these three companies, as well as the other stocks I like right now, learn more about Growth Investor now. If you sign up, you’ll have access to my entire list of picks – and a fully searchable database of Stock Grader, where you’ll be able to immediately get the latest grades for the 6,000 stocks in our database.

Click here to see our latest research and become a member of Growth Investor now. I hope you have a wonderful holiday!

Sincerely,

�������°�

Editor, Market 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Agnico Eagle Mines Ltd. (AEM), Alamos Gold, Inc. (AGI) and Kinross Gold Corporation (KGC)

The post My Three Favorite Stocking Stuffers for This Holiday Season appeared first on InvestorPlace.

As we head into the holiday stretch, we’re taking a slightly different approach in the Digest.

In the days ahead, we’ll revisit several Digests from 2025 (and one from last year) that helped frame important questions, spotlighted emerging risks and opportunities, or raised issues that still matter as we look toward 2026.

Today’s selection, originally published in August 2024, explores the “mouse utopia” experiment and what it suggests about an AGI-driven world where our basic needs are met but meaning and purpose begin to erode.

Given how quickly AI capabilities have advanced this year – and how many debates now center not just on what AI can do, but what it might do to us as a society – this topic remains timely.

As a reminder, InvestorPlace offices, including Customer Service, will be closed December 24 through December 26, and December 31 through January 2. The Customer Service department will be open for limited hours, from 9:00 a.m. to 12:30 p.m. Eastern Time on December 22, 23, 29, and 30.

Have a good evening,

Jeff Remsburg

The biologist had created a perfectly engineered “utopia.”

The focus of the experiment was “what would happen now that the subjects had everything they could ever want? Would it lead to unbridled flourishing?”

It was the opposite.

The experiments, run for decades, always ended the same way…

This idyllic “utopia” devolved into a hellscape of violence, death, and eventually, mass extinction.

Yes, this is a strange way to begin today’s Digest, but stick with me…

In 1968, biologist John Calhoun created what you might think of as a “Garden of Eden” for mice.

It was a pen that held the perfect conditions for rodents – more than enough food and water… a temperate climate… reams of paper and stuffing for the mice to build perfect nests… 256 separated “apartments” for mothers and young … plenty of space to prevent overcrowding due to population growth… and each mouse was pre-screened to eliminate the risk of disease.

It appeared to be an environment perfectly engineered for a burgeoning, healthy population…and yet time and again, it collapsed into a nightmare.

What an increasing number of people are asking today is, “Are we on a path toward our own ‘mouse utopia’ thanks to artificial intelligence (AI)?”

Two weeks ago, we began a series that tackles AI from a handful of angles

In our first Digest of the series, we profiled “AGI,” which stands for Artificial General Intelligence.

AGI will exceed human intelligence in every aspect. It’s predicted to be an autonomous agent that can learn without human supervision. It will have some version of consciousness, subjective experience, emotional understanding, and self-reliant decision-making capability.

In that Digest, we looked at the central fear in creating such an AGI: “How do we control a conscious agent that is substantially more intelligent than us?”

Today, let’s look at AI from a different angle. Instead of the potential for AI overlords waging war against humans, let’s assess the risk that AI will have unintended consequences from a sociological perspective.

I’ve read several visions of the future in which AGI is so powerful and efficient that we’ll all eventually stop working and live on a Universal Basic Income (UBI). This will free us to follow our hearts, becoming poets, musicians, sculptors – whatever your dream may be.

In other words, we’ll live in a utopia.

But as Elon Musk said, which we highlighted in our last installment in this series, “with artificial intelligence, we’re summoning the demon.”

Is it possible that the demon we’re summoning is…us?

The hellscape of “mouse utopia”

Calhoun’s most famous “mouse utopia” experiment centered on Universe #25, which began in July 1968.

At first, things seemed wonderful. The eight initial mice bred, and the population doubled every 55 days afterward. It eventually peaked at about 2,200 mice roughly one-and-a-half years into the experiment.

To be clear, this peak population growth wasn’t limited by the size of Calhoun’s physical universe. The pen he created had additional room to support further population growth.

Some studies of mouse utopia argue that overpopulation was the problem, but that’s not the case. From Victor.com:

Despite the abundance of space throughout the enclosure — each compartment could house up to 15 individuals, and the overall enclosure was built for a capacity of 3,000 — most mice were crowding select areas and eating from the same food sources.

No, it wasn’t overpopulation that killed mouse utopia. What led to the decline was something far more sinister…

What happens when “perfection” disrupts traditional social hierarchies and roles

In mouse utopia, mice pups rarely died, grown mice had to do nothing to survive and flourish, and all mice wanted for nothing. This introduced unexpected problems…

Mice have social hierarchies. Dominant alphas control harems of females, and regularly must fight off challengers. In the wild, the losing mouse would scurry off to some distant area and start over. But in mouse utopia, the losing mouse couldn’t escape. And because so many mice were surviving in these idyllic conditions, hordes of these losers – what Calhoun called “dropouts” – would gather in the center of the pens.

Cut, scarred, and angry, these dropouts would occasionally begin brawling for no apparent reason. They would even roam the pen attacking innocent mice. It was just senseless violence. In some of Calhoun’s earlier universes, some of these dropouts turned to cannibalism.

Life wasn’t better for the alphas. With so many mice surviving childhood, the alphas grew tired of defending their harems. So, rogue mice invaded many of the mouse apartments.

The female mice fought back, but this changed their relationship with their existing young. Many of these tired, stressed mothers booted their pups from the nest before the pups were ready. Other mothers abandoned their young. Some even attacked their own offspring.

Then, with all basic needs provided through the experiment, the mice didn’t have to spend their days foraging, creating shelters, or avoiding predators. This lack of broader purpose/responsibility led to new deviant behaviors. Here’s Science History to explain:

Maladjusted females began isolating themselves like hermits in empty apartments—unusual behavior among mice.

Maladjusted males, meanwhile, took to grooming all day—preening and licking themselves hour after hour. Calhoun called them “the beautiful ones.” And yet, even while obsessing over their appearance, these males had zero interest in courting females, zero interest in sex.

Given the violence, lack of traditional roles, lack of sex, and lack of parental support when pups were actually born, the population began to plummet.

Back to Science History:

By the 21st month, newborn pups rarely survived more than a few days. Soon, new births stopped altogether.

Older mice lingered for a while—hiding like hermits or grooming all day—but eventually they died out as well.

By spring 1973, less than five years after the experiment started, the population had crashed from 2,200 to 0. Mouse heaven had gone extinct.

Humans aren’t mice, but…

There are some parallels we’d be foolish to ignore.

First, to address the obvious pushback that mouse behavior is a poor proxy for human behavior, here’s Science Daily:

Studying animals in behavioral experiments has been a cornerstone of psychological research, but whether the observations are relevant for human behavior has been unclear.

Researchers have now identified an alteration to the DNA of a gene that imparts similar anxiety-related behavior in both humans and mice, demonstrating that laboratory animals can be accurately used to study these human behaviors.

And Live Science reports, “Mice are much like humans in how their bodies and minds work. This is why laboratories use mice as test subjects for medicines and other items that may be used on humans. Nearly all modern medicine is tested on mice before they go to human medical trials.”

But whether mouse behavior is representative of human behavior, instinctively, we know that a “perfect society” that requires nothing of us is not healthy.

Humans are hardwired for striving, not leisure. Just about any study on retirement will show you this.

From WebMD:

Even for people who chose to retire, saying goodbye to their career doesn’t always bring happiness… Almost 1 in 3 retirees say they feel depressed – a rate higher than that of the adult population overall.

What we find is that the retirees who are happiest in retirement are the ones who transition from “work” into a different type of “work” – usually, volunteering for something that brings fulfillment along with a continued sense of identity, purpose, and meaning.

A lack of said identity, purpose, and meaning often breeds depression. From New Retirement:

A study published in the Journal of Population Ageing found that those who were retired were about twice as likely to report feeling symptoms of depression than those who were still working.

And research from the London-based Institute of Economic Affairs found that the likelihood that someone will suffer from clinical depression actually goes up by about 40% after retiring.

Then there’s the cognitive decline that accelerates when people stop working, due to the sudden reduction in mental processing. From Forbes:

Research shows a connection between the early stages of retirement and cognitive decline, and numerous studies indicate that retirement can exacerbate a slew of mental health challenges, including anxiety and depression.

As a loose parallel, Calhoun wrote about the “spiritual death” of the mice in his experiment that preceded their physical death…

Here’s Medium:

Calhoun saw the fate of the mouse population as a metaphor for the potential fate of humanity. He called the breakdown of society a “spiritual death,” while physical death was called the “second death” …

Spiritual death, as generally understood, is a disconnection from one’s own essence, values, or beliefs. It can manifest as a loss of purpose, meaning, or sense of belonging…

Are we to believe that an AGI-driven world in which we do nothing but paint, sing, and dance will be meaningful and intellectually stimulating?

I would guess that some of your own times of greatest fulfillment and happiness were found on the other side of a period of intense (and possibly painful) striving, stretching, and battling to accomplish a noble, worthy goal.

Would a lifetime of self-indulgence spent on artistic self-expression really be a utopia? Or might it be fun for a while until the complete absence of responsibility, duty, and self-sacrifice for a goal beyond ourselves turns into a hell of our own making?

The risk of nihilism in an AI-world in which there’s nothing to work or strive toward

Let’s return to Medium:

With advances in technology, AI-driven advances could replace almost all mental and/or physical work done by humans within a couple of decades. This could cause major problems in society.

• If it is not distributed fairly, it has the potential to cause the existing imbalance of wealth and power to become an order of magnitude or more severe than it already is. That would lead to authoritarian societies and the potential of despotic dictatorships.
• If fairly distributed, it could grant the population much more free time and they could effectively wither and die, so to speak if they are not imaginative enough to find their own purpose in life or find someone else to give them a purpose in life.

Now, though our focus in this Digest is on the sociological challenges of an AI-driven future, I want to make one comment on the idea of distribution of wealth since the excerpt above tapped into it, and because it relates to sociological risk.

For our entire world to enjoy a UBI, there must be mass redistribution of wealth on a scale we’ve never seen before.

Where is that wealth to come from?

Ostensibly, it will come from the corporations that have benefited from AI, generating all the profits.

Today, these corporations are investing billions of dollars into AI technology. In the coming years, that investment number will climb into the trillions.

Are we to assume that these companies will just hand over their profits to the government for mass redistribution?

What about the risk capital they put on the line? The years of lower earnings due to huge outlays of capital into AI R&D? Is that just ignored?

What about the money you, as an investor, have aligned with that company? What happens to the company’s share price – and your portfolio value – when the government takes those AI profits for redistribution?

I have serious questions about how the corporate world would go along with this, except through an ironfisted government mandate. Of course, that leads us into a discussion about fascism, which we’ll sidestep today.

However, on the topic of mass wealth redistribution, a large portion of our citizenry will love the idea and push for it; meanwhile, a significant portion will fiercely resist, viewing it as stealing.

I’m sure nothing could go wrong there…

Keep your eyes open for a deeper dive into AGI from our macro expert �������°�

As we noted in the first installment of this series, our macro expert �������°� has turned his attention to AGI.

He’s published a series of reports for members of his trading service, The Speculator, where he reveals the best investment strategy for surviving and thriving when AGI arrives. Click here for more information. 

Now, though in today’s Digest, we’re looking at one darker vision of what AGI might mean for our world, but there are also far more optimistic, beautiful ways this could unfold.  

And regardless of what’s coming, there will certainly be enormous investment opportunities. As we noted in our first installment, Eric has been zeroing in on ways to play AGI from both “offensive” and “defensive” angles.

If the connection I’ve made today between mouse utopia and an AGI-driven world makes you roll your eyes, consider this…

Technology is already radically reshaping our society.

Look at these statistics below and ask yourself – given this age of unprecedented technological advancement, when virtually everything we want is just the touch of a button away – why are these takeaways so horrific?

• Morgan Stanley estimates that by 2030, 45% of women will be single and childless
• According to studies from the University of Michigan and the book “Generations: The Real Differences Between Gen Z, Millennials, Gen X, Boomers and Silents — and What They Mean for America’s Future,” nearly half of teens say they agree with phrases like “I can’t do anything right,” “I do not enjoy life” and “My life is not useful” — roughly twice as many as did just a decade ago
• The CDC reports nearly 3 in 5 teen girls (57%) said they felt “persistently sad or hopeless.” That’s the highest figure in a decade
• Pew Research reports that among men under 30 years old, over 60% are single – that’s almost double the number of women in the same age bracket. A separate study by American Perspectives finds that 15% of men have no close friendships at all, which is a 500% increase since 1990
• Researchers at the University of Indiana report that nearly one in three men between ages 18 and 24 haven’t had sex in the last year. This number has jumped more than 70% since the year 2000
• The Institute for Family Studies reports that the highest number of young adults ever will never marry – 1 in 3.
• In Japan, we now have something called the Hikikomori (Hiki), which in Japanese means “being in solitude.” It refers to children who isolate themselves in their rooms – some for years at this point. The website Steemit reports, “They left the room only for wash (once a month or less), opened the door only for take a food left by their parents, day by day didn’t show any activity, could sit quietly in the room looking at the wall.”

The truth?

We’ve already begun a grand sociological experiment driven by technology and it’s not going particularly well.

And yet, we’re hurtling toward an advanced iteration of AGI that will have consequences far beyond what we can predict.

Will the “birth of AGI” lead to a blissful explosion of creative self-expression, fulfillment, and joy? Or, to borrow from Calhoun and mouse utopia, will it result in the “death of the spirit”?

No one knows.

What we do know is that we’re rolling the dice on a scale never seen before.

Have a good evening,

Jeff Remsburg

The post How AI Could Lead to the “Death of the Spirit” appeared first on InvestorPlace.

That’s why you should be prepared for whatever the market may bring next. Luckily, my friend Keith Kaplan, CEO of TradeSmith, recently shared a tool designed to do exactly that. It helps investors stay in the market when conditions are strong… and step aside when volatility starts to rise.

He explained how it all works in a special event called Tipping Point 2026. If you missed it, click here to watch the replay.

I should note that Keith wasn’t alone during this presentation. But I’ll let him explain who the perfect partner was and why that person has a bearish outlook for 2026…

By the late 1990s, Apple already had a reputation for brilliance.

Its engineers had built the Macintosh, helped spark the desktop-publishing boom, and redefined personal computing.

Then a designer named Jony Ive stepped forward – and took Apple’s products, and its business, to the next level.

Ive had a way of stripping an object to its essence. He sketched devices as if they were carved from a single block: clean lines, hidden screws, shapes so simple they felt inevitable once you saw them.

It was a new design language, and it ran through Apple’s most iconic products – the iMac, the iPod, the iPhone.

Ive showed how a great organization can become even greater when it partners with the right person at the right time.

And at TradeSmith, we’re making our own version of that leap.

We’ve had one of our strongest years ever – launching tools that track seasonality patterns in thousands of stocks… uncover hidden value in the options market… and use AI to forecast short-term trading opportunities.

Now, we’re teaming up with one of Wall Street’s most respected “quant” investors, Marc Chaikin, for another important breakthrough.

Marc is a legend on Wall Street and a pioneer of the kind of data-driven analysis we excel at here at TradeSmith.

His first day on Wall Street was October 7, 1966. Back then, the term “quant investor” didn’t even exist.

Today, Bloomberg and Reuters carry his Chaikin Money Flow indicator on their terminals. And hedge funds and banks around the world use it to spot shifts in institutional buying and selling pressure.

Thanks to the success of these tools, Marc has advised Steve Cohen, George Soros, and Paul Tudor Jones – guys who don’t return your call unless you bring a real edge.

Even more impressive, his public warnings about the 2020 crash, the 2022 bear market, and this year’s tariff shock all came before the damage hit. Now, he’s partnering with TradeSmith on what may be the most important prediction of his career.

Marc says 2026 will be the Year of the Bear, with an average stock market loss of about 20%. And he warns that popular AI-related stocks – the kind that are flying high now – could get hit even harder.

My mission as TradeSmith CEO is to make sure you have hedge-fund-level tools to help you spot opportunities and protect your downside risk.

So, together with Marc, my team and I are launching a set of new tools to help you lock in gains… and avoid sudden losses… in the type of market he sees coming.

It’s an advancement in investment tech that could save tens of thousands of dollars in potential losses when we reach the next market tipping point.

I’ll get into more details in a moment. First, more on what makes Marc the perfect partner for TradeSmith and why, after years of AI-fueled euphoria, he sees a bear market coming in 2026.

The Perfect Partnership

At TradeSmith, our mission is to take the kind of software tools elite money managers use – and put them in the hands of everyday investors.

That’s why we built TradeStops 20 years ago. Instead of relying on emotions and gut feel, it gave our subscribers a quantitative way to know when to sell their stocks based on their historical volatility.

It’s also why we released our Seasonality software, our suite of options tools, and our Predictive Alpha AI-powered trading model. We want to give regular folks the kind of edge Wall Street takes for granted.

And Marc’s career mirrors that mission.

In 1966, he started on Wall Street with nothing but a phone, a notepad, and a desire to understand what truly drove stock prices. And he went on to build something few others have: a quantitative system trusted across the industry.

Bloomberg and Reuters carry his Chaikin Money Flow on their terminals all over the world. Banks, hedge funds, and other institutional investors use it to measure where the big money is going and react accordingly.

Later, Marc built the Power Gauge. It’s a 20-factor model that evaluates stocks the same way institutions do: by blending fundamentals, technicals, and real-world money flows.

Marc has also shared a series of timely predictions about the market with his more than 800,000 followers. And he’s helped them not only avoid big losses, but also capture big gains.

• In early 2022, he sounded the alarm on the post-COVID bull run, just 90 days before stocks fell into a bear market.
• In early 2023, he said stocks were about to kick off an extraordinary recovery and shoot up 20% or more – right before the S&P 500 gained 26% that year alone.
• And earlier this year, he warned of a violent market shift, just before the S&P 500 plunged 19% following the Liberation Day tariffs.

Nobody has called the twists and turns of this market quite like Marc has.

He’s worked on Wall Street for 50 years, survived 10 bear markets, built three new indexes for the Nasdaq, and created his own quantitative indicator that’s still used on Wall Street. I don’t know any other investor who matches his record. 

Now, he’s warning that another sudden drop is coming… one that will take a lot of bulls by surprise.

2026 – Year of the Bear

Marc says 2026 will be a tipping-point year for the stock market. Not because of valuations… or sentiment… or anything you’ll hear about on CNBC.

It’s because the stock market is entering a pattern that shows up again and again across more than a century of data. Based on his analysis, Marc puts the odds at 65% that this surprise downturn will begin by March 2026.

And his concern isn’t just about the broad market. It’s about how uneven the returns on individual stocks will become.

During the 2022 downturn, for example, the S&P 500 fell 20%. But because the stocks most investors were holding fell much farther, much faster, the average investor was down closer to 40%.

That’s why Marc believes 2026 requires a different kind of playbook. One built for fast markets, sharp reversals, and sudden breakpoints. One that lets you step out early to avoid losses – and step back in again after sharp drops, before the crowd gets back in.

That’s exactly what we designed our new sell-alert system to do.

A New Kind of Alert for a New Kind of Market

For years, I’ve pounded the table on the importance of using some form of stop loss.

If you’re not familiar with the term, a stop loss is a line in the sand you set below a stock’s highest price. If the stock falls through that line, you sell automatically. It’s designed to protect your profits and prevent a drop from turning into a portfolio-wrecking loss.

And the kind of “smart” stop losses we’ve developed at TradeSmith help you maximize your gains while keeping your winners from turning into losses.

They’ve helped tens of thousands of investors stay in winners longer and avoid catastrophic wipeouts.

But for the first time since I’ve been TradeSmith’s CEO, I’m telling you NOT to lean on our smart stops to protect you. They’re a powerful tool – but we didn’t engineer them for the kind of fast, reactive environment Marc expects in 2026.

Instead, we’ve created a new kind of “early-warning system” built specifically for volatility shocks, fast trend breaks, and tipping-point conditions Marc sees ahead.

It’s sensitive to even the slightest bearish tremor in a stock.

You can set one up to monitor every stock you follow. If one of them begins to experience abnormal short-term volatility, you’ll automatically be alerted.

In our backtests, you would have been able to get out of:

• Freshpet (FRPT) before a 74% crash
• Lifetime Brands (LCUT) before a 77% crash
• Bloomin’ Brands (BLMN) before a 72% crash
• Funko (FNKO) before an 86% crash
• Rocky Brands (RCKY) before a 75% crash
• American Eagle Outfitters (AEO) before a 69% crash
• The Buckle (BKE) before a 21% crash
• Levi Strauss & Co. (LEVI) before a 49% crash
• Shoe Carnival (SCVL) before a 42% crash
• The Gap (GAP) before a 72% crash
• QVC Group (QVCGA) before a 99% crash

And if Marc’s prediction about 2026 is as accurate as his past calls, next year will be mainly about playing defense. You’ve got to protect your capital and recognize the stocks in your portfolio that are going to cause you problems.

To do that effectively, you need a disciplined, quantitative approach. If you’re relying on your gut… news headlines… or “gurus” on social media to alert you to these drops, you’re not going to be able to keep up.

And you’re not going to know when the next tipping point is coming for the stock market, either.

That’s why I hope you’ll clear time in your schedule for our Tipping Point 2026 event.

Marc will walk you through the data he’s looking at that led him to make his bear market call for 2026. And I’ll be showing you the groundbreaking new technology we’ve designed, developed, and meticulously tested to help you position yourself for what’s ahead.

When you see what it can do for you… on any stock you own… you’ll understand it’s the best way to safeguard your holdings in 2026.

Follow this link to watch the replay now.

Sincerely,

Keith Kaplan
CEO, TradeSmith

P.S. As a thank-you for joining us, Marc and I will be sharing the name and ticker of a stock we believe every investor in America should steer clear of after January 1. We’ll also share the ticker of a stock we believe every investor should buy before January 1.

Here’s that link again to watch the replay.

The post A Backup Plan for 2026 appeared first on InvestorPlace.

Happy Holidays!

Hello, Reader.

Using technology is pretty much unavoidable when you’re going about your day. Look, you’re even reading this on an electronic device right now.

And now AI has come into the mix, pulling us further into the digital world.

But I want to escape for a minute, and take us back to when checking smartphone notifications wasn’t a habit… to the 14th-century Humanism movement.

(Even if you don’t fancy yourself a history buff, stay with me in this study… because it’s a trend that’s coming back, and one you’ll want in your portfolio.)

Humanists believed in reviving the culture of Ancient Greece and Rome through literature, philosophy, art, and other focuses that were exclusively “human.”

This gave us masterpieces like Raphael’s The School of Athens, a painting that depicts philosophers Plato and Aristotle and praises human intelligence. You can check it out below.

Frankly, the work of art itself – and the brilliance it celebrates – could never be replicated by artificial intelligence.

Now, it’s impossible to know how AI will affect human expression and humanity itself down the line. But I mention the Humanism movement because I believe the past can teach us a thing or two as we invest in today’s AI-heavy market. 

As AI floods into every corner of our lives, what’s uniquely human will become increasingly valuable. That’s where the opportunities lie.

So, in today’s Smart Money, I’ll explain why investors should start moving away from popular tech stocks and toward underrated non-tech stocks set to thrive as “humanism” makes its inevitable comeback.

Then, I’ll share the kind of companies uniquely poised to profit from this digital reversal.

Let’s jump in…

Why AI Stocks Are Overheating

Let it be known, AI is here to stay… but that doesn’t mean it will stay dominating the market forever.

The coming decade may indeed belong to data centers, algorithms, and robots. But many of the most enduring and prosperous businesses will have nothing to do with them. They will thrive instead in the non-digital realms of gardens and gatherings, of drinks poured and songs performed, of motion, laughter, and luxury – the spaces where people still go to feel something real.

We investors don’t have to choose sides between silicon and humanity. But if you doubt that analog, non–AI stocks can deliver wealth-building gains, you would be mistaken.

During certain market cycles, stocks like these are among the few that can deliver outsized gains. This is especially important right now, as AI stocks enter the “bubble” stage.

The Big Tech companies leading the market are investing countless hours and dollars into AI, becoming highly overvalued in the process.

For example, as I discussed in Thursday’s Smart Money, Oracle Corp. (ORCL) recently fell to its lowest levels since June when it announced its plans to spend around $50 billion in the current fiscal year – a bold 40% increase from the previous fiscal year and $15 billion more than Wall Street’s forecast.

It’s worth noting that Oracle has around a $523 billion backlog of revenue-generating contracts, but most of it is linked to OpenAI, another company whose AI spending investors rightfully question.

It’s a similar story with Microsoft Corp. (MSFT) – another company with partnerships and growing ambitions with OpenAI. According to Bloomberg, Microsoft’s capex represents 25% of its revenue, more than triple what it was 10 years ago.

Additionally, we’re watching too much money going into a small handful of stocks.

That means a stumble by just one or two of those companies may have the power to drag down all stocks, with losses cascading through mutual funds, ETFs, and indices. This kind of concentration increases the risk and fragility of the entire market.

We saw something similar in Japan in the 1980s. A handful of financial and industrial firms grew so large that Japanese equities made up 42% of the entire world stock market value by 1989.

It was simply unsustainable, and the Nikkei eventually lost over 80% of its value over the next 18 years before finally starting to recover. Then it took another 16 years to recover to its 1989 level.

Simply put, it’s becoming risky to put your money into the Magnificent Seven and other popular tech and AI companies.

And as this risk grows, the money is going to start moving out of the overpriced, digital world and into companies that offer the priceless experience of being human.

Here’s how to make that move yourself…

Where Humanism Meets the Market

In a future defined by AI, the greatest and most dependable returns may come from the companies that remind us of what AI can never reproduce — the simple, sensory, irreplaceable pleasure of being human.

That’s why I looked to the past – to a purely human movement, producing creativity and excellence in a way AI could never replicate or outdo.

And translating that movement into investing means buying dependable, long-lasting stocks built to endure AI-driven change.

These companies are the “AI Survivors.”

In fact, my Fry’s Investment Report portfolio holds several explicitly non-AI stocks I believe will outperform AI stocks over the next few years. And they’re already seeing great returns…

One stock in particular – a drive-through beverage chain – checks one of my critical boxes for AI Survivors…

A business with a high level of human interaction that can’t be replicated by AI.

This AI Survivor saw a 5% increase last week while AI stocks suffered a selloff; and it’s up 80% since I recommended it to my paid subscribers in August 2024.

I discuss this stock further in my brand-new special presentation, along with a handful of others positioned for massive growth in the new year – all built on businesses that thrive because they’re irreplaceable by AI.

Also during my broadcast, I unpack the five danger signs in the market today relating to a potential AI bubble… and dive deeper into specific sectors I believe are still positioned to thrive despite the turbulence ahead.

If you’re concerned about your portfolio’s exposure to overvalued AI stocks, click here to discover the AI Survivors that could protect and grow your wealth.

Regards,

�������°�

The post Why I’m Ditching AI Stocks for “AI Survivors” appeared first on InvestorPlace.

While Wall Street is quiet, it’s the perfect time to sharpen our trading skills and learn strategies that can make us more profitable when the market reopens.

So today I want to take this opportunity to tell you a story…

A few years back, a trader we’ll call Mike had his eyes locked on a hot new tech stock. It was making big waves, and Mike was convinced it was poised for a massive breakout.

He analyzed the charts, pored over earnings reports, and finally made his move: taking a long position with some call options.

For the sake of simplicity, we’ll say the premium came out to $500. The potential upside? Sky-high — or so he thought.

A couple of weeks later, Mike’s instincts paid off. The company announced a groundbreaking product, and the stock surged about 10%. Suddenly, those calls were up to $1,000.

That’s a great trade, right? But here’s where Mike’s story takes a turn.

Hold, Sell, or… Something Else?

Mike faced a tough decision. He could sell the option, cash out his double and call it a day…

But according to his analysis, he believed the rally would continue and his calls would balloon in value. Should he walk away with the bird in his hand, or let it ride and trust in his research?

It’s a common problem. The market was giving him a solid win. However, if he cashed out now, he risked missing out on a huge payday.

In the end, Mike held on, confident the stock had more room to run. But the market, as it often does, had other plans.

A week later, a disappointing jobs report sent the broader market tumbling. The tech stock gave back all of its gains, and Mike’s once-thriving call expired out of the money (OTM). His hard-earned gains had evaporated, and he was left wondering where he went wrong.

The Missing Strategy: Delta Hedging

Mike’s mistake wasn’t in buying the call — his analysis was spot-on. It wasn’t even in holding the position after the initial spike. His mistake was in not having a plan to protect his gains while staying in the trade.

That’s where delta hedging comes in. It’s a strategy that many retail traders overlook simply because they don’t know it exists.

Delta hedging allows you to lock in profits when a trade moves in your favor, all without abandoning your position. You cash in on part of the move while keeping the door open for further upside. If Mike had known about delta hedging, his story could have ended very differently.

How Delta Hedging Locks in Gains While Staying Flexible

Let’s jump into the Wayback machine and show you what Mike’s story could have looked like. The moment his $500 call turned into a tidy profit, he could’ve taken action.

With delta hedging, he would have calculated the delta of his call option — let’s say it was $0.50, meaning his position behaved like owning 50 shares of stock. To hedge, Mike could’ve sold 50 shares in the open market, locking in a portion of his gains.

Here’s why this matters:

• If the Stock Fell: When the stock price dropped 5%, the short stock position would have generated a profit, helping to offset the decline in the call option. Mike would’ve retained a significant portion of his $500 gain instead of watching it almost vanish.
• If the Stock Rose: If the stock rally continued, Mike would still benefit from the additional gains in his call option, minus the small cost of the hedge. He wouldn’t capture the full upside, but he’d still profit.

Delta hedging would’ve let Mike manage his trade with finesse, adapting to the market’s movements instead of leaving his profits to chance.

Why Retail Traders Need This Strategy

Most retail traders don’t think about what happens after their trade goes in their favor. They’re either paralyzed by indecision or forced into an all-or-nothing scenario: take the profit and exit, or hold and hope for the best.

Delta hedging breaks this cycle. It’s a middle ground that gives you control over your trades even when the market is unpredictable.

This strategy isn’t just for professionals. It’s for anyone who wants to:

• Protect gains without prematurely closing a position.
• Reduce risk when markets get choppy.
• Stay flexible and adapt to changing conditions, illiquid options, and after hours moves.

The beauty of delta hedging is that it’s scalable. Whether you’re trading one contract or ten, the principles remain the same.

When to Use Delta Hedging

Delta hedging is most effective in these scenarios:

Turning Missed Opportunities Into Mastery

Mike’s story is a cautionary tale, but it’s also a call to action. Retail traders can’t afford to leave their profits to the whims of the market. Strategies like delta hedging aren’t just for Wall Street — they’re powerful tools that every trader can and should use.

At Masters in Trading, we teach traders to approach the market with precision, discipline, and creativity.

If you’ve ever found yourself in Mike’s shoes, wondering how to protect your gains without giving up on a trade, delta hedging is your answer. Learn it, practice it, and watch how it transforms your trading outcomes.

As we look to educate ourselves about the best options strategies traders use… There’s one approach that’s yielding the most bullish gains in the market right now.

And you can find out all about it in the Masters in Trading Options Challenge.

This is a rare opportunity to learn about a whole approach to options that I’ve perfected over 27 years as a professional trader.

This week-long course will teach you the exact system we use to spot the most profitable opportunities in the options market. I guarantee anyone who takes the Challenge has the opportunity to become an options trading pro in record time.

There’s no reason you should miss out. Just click here to learn more about the Masters in Trading Challenge.

The post Delta Hedging: The Game-Changer Most Traders Don’t Know appeared first on InvestorPlace.

Up, up, down, down, left, right = Buy Nvidia (NVDA), layer in Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOGL), maybe sprinkle in Super Micro (SMCI) or CoreWeave (CRWV). Boom – infinite lives, exponential gains.

You couldn’t lose. Nvidia alone is up more than 1,100% since the start of 2023. Just sit back, relax, and watch the money print itself.

But what happens in every game? Eventually, the developers patch the exploit.

And right now – while retail investors are still mashing the same buttons, expecting the same results – the hyperscalers are rewriting the source code.

They’re done paying Nvidia’s 75% gross margins when they can build chips themselves for a fraction of the cost. And starting in 2026, they’ll flip the semiconductor industry on its head with custom silicon designed in-house.

We’re calling this shift ‘The Great AI Decoupling.’ And if you’re not prepared, the portfolio you built during the easy-mode era is about to get obliterated.

Here’s what’s coming…

Why Custom Silicon Is Replacing Nvidia GPUs

For the last few years, companies like Microsoft, Alphabet, and Meta (META) have been in a compute land grab. They needed GPUs yesterday, and price was no object. In fact, in 2025 alone, as data journalist Felix Richter noted, “Meta, Alphabet, Amazon and Microsoft are expected to spend between $350- and $400 billion in capital expenditure,” most of it dedicated to the AI buildout.

But that math is breaking down. 

Running a massive, specialized AI model on a general-purpose Nvidia GPU is like using a Ferrari to buy groceries. Sure, it works – but you’re paying for a twin-turbo V8 when all you need is trunk space and decent gas mileage.

Hyperscalers have realized that if they design their own chips – Application-Specific Integrated Circuits (ASICs) like Google’s Tensor Processing Units (TPUs) – they can optimize for their exact workloads and slash costs by 30- to 50% per inference operation.

And this transition is happening right now. 

• Alphabet uses TPU v6 for a substantial portion of its internal AI training.
• Amazon just launched Trainium2 chips claimed to deliver up to 30% better price-performance than comparable Nvidia GPUs – and AWS is now pitching them hard to customers like Anthropic and Databricks.
• Microsoft has begun deploying its custom Maia AI accelerators in Azure datacenters and is integrating them into its cloud infrastructure to support large-scale AI workloads, including services that run models from partners such as OpenAI.
• Meta is in advanced talks to purchase billions of dollars worth of Google TPUs to reduce its Nvidia dependency.

In other words, the AI Boom’s ‘infinite budget’ phase is dead. The ‘efficiency’ phase has begun. 

And in an efficiency war, the generalist always loses to the specialist.

Four Custom Silicon Stocks to Buy for 2026

So, if $100-plus billion is shifting away from Nvidia and into custom silicon, where does it land?

With the Enablers – the companies that sell the blueprints, the connectivity, and the lasers that make custom chips possible.

Those are the stocks you want to own in 2026. And we’ve zeroed in on four plays that are particularly well-positioned to profit…

Broadcom (AVGO): The Pick-and-Shovel Play for Custom AI Chips

• The Pitch: If Google is the gold miner, Broadcom is who’s selling the pickaxes.
• Why It Wins: Google and Meta can’t build custom chips alone – they need Broadcom’s intellectual property. Broadcom provides the critical SerDes (Serializer/Deserializer) technology that moves data on and off chips at high speeds, plus the physical chip design architecture. Without Broadcom, there’s no TPU. Without Broadcom, there’s no custom AI chip at scale.
• The Catalyst: Broadcom just signed a massive deal with OpenAI to “jointly build and deploy 10 gigawatts of custom artificial intelligence accelerators as part of a broader effort across the industry to scale AI infrastructure.” This is the template: every hyperscaler building custom silicon needs Broadcom’s IP. CEO Hock Tan has said the company’s AI-related revenue could hit $60 billion annually by 2027. Broadcom isn’t just riding the custom silicon wave – it’s collecting rent on every chip that gets made.

Credo Technology (CRDO): The Cable King of AI Networking

• The Pitch: The “Cable King” of AI networking.
• The Hidden Gem: Custom AI clusters run on standard Ethernet networking – but at extreme speeds (800 Gigabits per second, soon 1.6 Terabits), traditional copper cables can’t handle the signal. The data literally degrades after a few feet.
• Why It Wins: Credo makes Active Electrical Cables (AECs) – copper cables with embedded signal-boosting chips that extend range and reliability at ultra-high speeds. And they’ve got a near-monopoly on the tech. Exhibit A: Elon Musk’s Colossus supercomputer in Memphis – one of the world’s largest AI training clusters – runs almost entirely on Credo cables, not Nvidia’s. When xAI needed to connect 100,000 GPUs, they called Credo.
• The Trade: Credo is a small-cap with big volatility – but also explosive upside. The company’s revenue grew 272% year-over-year in its most recent quarter, and management sees Ethernet-based AI networking as a multi-billion-dollar TAM. If custom silicon becomes the standard, Credo could 10x from here.

Lumentum (LITE): Why AI Clusters Need Laser Technology

• The Pitch: Light is faster than electricity.
• Why It Wins: As custom AI clusters scale into the tens of thousands of chips, copper cables hit a physical wall. You need fiber optics – and fiber needs lasers. Lumentum manufactures the electro-absorption modulated lasers (EMLs) that power the optical transceivers inside Google and Amazon’s datacenters. No Lumentum lasers, no long-distance, high-speed connectivity between chips.
• The Catalyst: The industry is upgrading to 1.6 Terabit Ethernet networking in 2025-2026, which requires next-generation EML lasers. Lumentum is among the leading vendors in this space and is deeply embedded with the hyperscalers. As custom silicon clusters expand, Lumentum’s revenue should scale proportionally.

Arm Holdings (ARM): The Royalty Machine Behind Every Custom Chip

• The Pitch: The DNA of every custom chip.
• Why It Wins: When Microsoft builds its “Cobalt” CPU or Amazon builds its “Graviton” chip, they’re not inventing the underlying architecture from scratch – they’re licensing it from Arm. Arm’s instruction set is the foundation for nearly every custom CPU in the cloud.
• The Economics: Arm collects a royalty on every chip shipped – typically 1-2% of the chip’s selling price. As hyperscalers manufacture tens of millions of custom CPUs to pair with their AI accelerators, Arm’s royalty stream grows automatically. No extra R&D costs. No scaling challenges. Pure leverage. It’s one of the highest-margin business models in semiconductors.

How to Position Your Portfolio for a Boom

Wall Street is pricing Nvidia as if its dominance will last forever. 

It won’t.

The capex budgets for 2026 are already being written, and they heavily favor custom silicon.

The playbook for this is simple:

The AI revolution isn’t over. It’s just growing up.

The “dumb money” is still chasing the GPU shortage.

The “smart money” is building the factory that makes the GPUs obsolete.

And the “smartest money”? They’re following the roadmap laid out by the federal government.

Washington is systematically targeting chokepoints in the AI supply chain currently controlled by foreign interests – and backing U.S. companies to solve them with domestic solutions. And the stocks that win that federal backing will likely be among next year’s biggest winners on Wall Street.

That’s why I’ve spent the past several months building a list – not of companies that already received government backing… but those most likely to be next…

Because when Washington opens the money spigot and starts picking winners, early investors don’t just make money – they build fortunes.

Get in front of the government’s next move before it’s announced.

The post The AI Investing Cheat Code Just Got Patched appeared first on InvestorPlace.

Perhaps the two most terrifying words in investment is the term: “Everyone knows.” 

To growth investors, it represents the moment when a promising trade has become too crowded. 

• “Everyone knows that internet stocks are the next big thing…” 
• “Everyone knows Florida real estate can only go up…” 
• “Everyone knows that crypto will take over banking…” 

Meanwhile, contrarian investors understand that markets don’t reward what is obvious… only what is misunderstood. If an investor were thrown back in time to the year 1999, it would have been far better to buy shares of emerging market ETF The India Fund (IFN) (+600% through 2006) than dot-com darling Cisco Systems Inc. (CSCO) (-22% over the same period) 

That’s why recent comments from OpenAI Chairman Bret Taylor should ring alarm bells. In an interview with Fox Business, he rightly stated, “Everyone knows AI will transform the economy.” 

“The excitement is authentic, and as a consequence, there’s a huge amount of investment,” Taylor said during the interview. “And a lot of people are just wondering, are we investing too much, too quickly?” 

Now, will the AI economy burst in 2026 as the dot-com bubble did in 2000? Well, no one knows that for sure. We could be in for another five years of supernormal gains… or shares of the Magnificent Seven could fall 50%-80% next year and underperform for two decades. 

But what we do know is that some corners of the market are being totally ignored by the “everyone knows” crowd. 

Eric outlines this fact in his brand-new “AI Collapse Survival” presentation. In this free broadcast, he identifies a category of stocks he calls “AI Survivors,” companies immune to the technological disruption (and potential selloff) that AI could create. In other words, these companies look more like the overlooked emerging-market companies in 1999, rather than the expensive Ciscos of that era. 

To give you a sense of his strategy, I’d like to outline three misunderstood sectors he’s eyeing… and why these areas are so ripe for a breakout in 2026 while the “everyone knows” crowd is looking elsewhere.  

Planting the Seeds for 2026 Gains 

Let’s be honest: Fertilizer is not a historically attractive industry. 

Ammonium nitrate… phosphorous… potash… 

Much of it looks like dried cow manure and often smells like it too. 

That briefly changed in 2022 when Russia invaded Ukraine. Suddenly, Western nations were threatening to boycott one of the world’s largest exporters of fertilizer – a move that threatened to turn existing shortages into an all-out panic. Prices of potash surged 170% from their 2020 lows, and the malodorous business of fertilizer became one that smelled more like money. Shares of fertilizer firms spiked 2X or more between 2020 and 2022 and briefly became a fascination on Wall Street.  

Prices eventually came back to Earth as vendors rerouted supply chains and farmers temporarily cut back, but there was plenty of time to cash in first. 

However, we’re now seeing a new bull market in fertilizer prices, driven by tariffs, rising demand, and Chinese restrictions on phosphate and urea exports earlier this year. Below is a chart from the St. Louis Federal Reserve that shows the producer price index for phosphorus-based fertilizer. 

That’s why Eric is recommending shares of a particular fertilizer manufacturer that should benefit handsomely from this new bull market. It’s one of the world’s lowest-cost producers of its class, and its American production sites shield it from much of President Donald Trump’s tariffs. 

Now, it’s essential to note that not every fertilizer firm will do well. Nitrogen-based fertilizer prices have struggled in comparison, due to structural weaknesses in its supply chain. Many manufacturers are also high-cost, high-debt, or both. 

That’s why it’s important that you watch Eric’s latest presentation, where he identifies the exact fertilizer company to pick for 2026. 

Powering the AI Revolution 

Next, we have natural gas – an energy commodity that doesn’t always mirror the price of oil. 

Below is a graph of Henry Hub, the standard U.S. benchmark price. Prices today are 36% higher than in 2024 and 62% higher than in 2023. Excluding the 2022-2023 price spike caused by Russia’s war in Ukraine, we’re now at the highest seasonally adjusted point since 2013. 

The reason for the recovery is straightforward: Supply has failed to keep pace with demand. 

On the production side, American energy firms have been hesitant to drill new gas wells, given their vivid memories of the 2015 industry crash. Low oil prices have also limited the amount of natural gas collected as a by-product of oil production. (Ordinarily, more than a third of gas production is generated this way.) The U.S. Energy Information Administration (EIA) expects just a 1% increase in U.S. gas production next year. 

Meanwhile, the demand side paints an even more bullish picture, thanks to the insatiable electricity needs of AI data centers. A single ChatGPT query takes 10 or more times the energy of a Google search, and creating a short AI video can use 2,000 times that figure. Analysts at Goldman Sachs forecast that AI will drive a 165% increase in data center power demand by 2030. 

That’s triggered a new rush to build combined-cycle gas turbine power plants. The EIA now expects another 18.7 gigawatts (GW) of gas generation capacity to come online by 2028 in America, compared to zero in 2024. 

American liquified natural gas (LNG) exports have also risen around 17% this year to 12 billion cubic feet per day (BCf/d), and the U.S. Department of Energy expects that figure to reach 26 BCf/d once U.S. LNG export projects under construction are completed. Some analysts say that U.S. gas demand could rise as much as 27% from 2024 levels by 2030. 

To ride this wave, Eric has picked one specific American driller with outsized upside thanks to its low breakeven costs, high-quality assets (averaging 17 years of remaining inventory life), and an irresistible stock price. In fact, even the company’s oil assets will remain profitable until West Texas Intermediate (WTI) prices drop below $45. 

To find the name of this company, click here. 

Conducting the AI Revolution 

Finally, one overlooked component of the AI Revolution is the raw metal needed for the wires, connectors, cooling systems, chips, and shielding needed for AI data centers: 

Copper. 

This raw material has been on a tear in recent months, jumping from $6,031 per metric ton in 2020 to $9,835 per metric ton in June 2025, as pictured below.  

Prices have since risen further to $11,000, and one mining CEO is now warning that it could increase to $15,000 next year on supply disruptions and the lack of new production sites. Eric believes this new supercycle should flip the refined-copper balance into a deficit of roughly 150,000 tonnes next year. As he puts it in a recent Fry’s Investment Report update (subscription required): 

Copper is one of the most vulnerable links in the global supply chain for the energy transition and AI build-out. Without more than $200 billion of new investment, the world simply won’t have enough copper. For context, Wood Mackenzie estimates that total copper-mining investment over the past six years reached only about $76 billion… 

So, the short-term story is simple; demand is growing faster than expected, supply is growing slower than expected, and the market is already slipping into deficit. 

Some copper miners have already seen price action in their shares. Southern Copper Corp. (SCCO) has risen 60% so far this year, while Hudbay Minerals Inc. (HBM) is up 125%. 

But one company has yet to recover… and Eric is seeing it as a coiled spring waiting to go off. This company is a leader in global copper production and has also pioneered a cost-effective method for extracting copper from waste rock. This technology could eventually add 20% to its pretax income.  

The firm also generates a significant amount of gold as a by-product of its copper mining operations. In fact, one of this firm’s mines is so rich in precious metal that the copper it produces has negative unit cash costs.  

Now, you might be able to guess the name of this miner. Eric has been recommending and talking about this company since 2020. But to be sure you’re investing in the right firm, I’d highly suggest watching his presentation, where he reveals details about this pick for 2026. 

“Zigging” While Everyone Else “Zags” 

In the late 1990s, Eric worked at Grant’s International, a firm focused on international markets. While everyone in America was fixated on dot-com stocks, Eric was recommending foreign companies like Thailand’s Minor International Group (MNILY), Germany’s Adidas (ADS), and, of course, The India Fund. 

These recommendations were made in 1999… the year dot-com mania was reaching its peak. And all three massively outperformed U.S. tech. Over the following years, each one scored 1,000% gains or more. 

Today, Eric is once again warning that markets are beginning to look frothy. Investors are convincing themselves that this technological revolution is different, and that the old valuation norms no longer apply. After all, if “everyone knows” something will change the world, why shouldn’t you buy it at any price? 

But much like the dot-com boom, today’s AI Revolution comes with growing risks. Stocks will likely keep going up in the medium-term… but what happens if (or when) the bottom falls out? 

That’s why it’s growing equally important to buy sectors that “no one knows,” even as prices in the “everyone knows” camp keep rising. Eric covers all this, and more, in his new “AI Survivors” special presentation.

Now, before you go, please note that our office will have adjusted hours throughout the month for the holidays.   

InvestorPlace offices, including customer service, will be closed on December 24 through 26 and December 31 through January 2. And our customer service team will have limited hours of 9 a.m. to 12:30 p.m. Eastern time on December 22, 23, 29, and 30.   

We’ll feature “best of” Digest pieces during the holidays, and I’ll see you back here after New Year’s. 

Until then, 

Thomas Yeung, CFA 

Market Analyst, InvestorPlace

Thomas Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.

The post 3 Overlooked Sectors to Buy in 2026  appeared first on InvestorPlace.

Americans are paying a silent tax that doesn’t show up on ballots or get debated in Congress.

It’s the ‘mortgage-rate tax‘ – and for many households, it has quietly stolen more than $100,000 in home-buying power since early 2020.

That is, back in March 2020, when 30-year fixed mortgage rates hovered near 3.5%, a typical household aiming to pay around $1,700/month could have stretched that into a $400,000- to $420,000 loan – enough to reach a modest but comfortable home.

Today, with rates around 6.25%, that same $1,700 payment now only supports roughly a $275,000 loan. That’s a loss of around $110,000- to $130,000 in borrowing power, even if the family’s income hasn’t moved an inch.

And to add insult to injury, home prices never really came back down to meet them. Typical U.S. home values remain in the $360,000- to $370,000 range – far above what many buyers can afford.

This doesn’t feel like a normal housing market. It feels like a hostage situation.

But now the White House may be about to try negotiating a release…

Back in early September, Treasury Secretary Scott Bessent hinted that the administration could soon declare a National Housing Emergency. He didn’t share details at the time, but make no mistake: Washington has plenty of levers it could pull to reset this market. 

We’re talking tariff and material-cost relief, incentives and grants for first-time buyers, down-payment assistance, streamlined permitting, changes in housing finance, even the use of federal land for new development.

If that happens, the market will thaw; and housing stocks could fly – meaning this is a prime time to start accumulating housing-related names…

How the Housing Crisis Reached a Breaking Point

To understand why a policy shock could matter so much, you need to understand just how broken things are.

Over the past four decades, the U.S. housing market was defined by one structural tailwind: falling mortgage rates. From the early 1980s until the early 2020s, 30-year mortgage rates trended down, enabling buyers to afford higher home prices while keeping monthly payments manageable.

That all changed in 2022.

Between early 2022 and late 2023, mortgage rates spiked from 3.25% to more than 7%. That’s a 400-basis-point move – the steepest increase on record, with data going back to 1990. And rates haven’t come down much since. The average 30-year mortgage has largely hovered between 6- and 7% for two years now.

The impact on demand has been devastating. Zillow data shows that U.S. households are now spending an average of more than 35% of their yearly income on mortgage payments for a new home, compared to less than 25% just a few years ago. Anything above 30% is considered “unaffordable.” 

Bloomberg estimates that you need nearly $120,000 in annual income to afford the average home today. But the median U.S. household income? �������°� $80,000. That math simply doesn’t work.

Of course, these high rates didn’t just destroy demand. They froze supply, too.

Anyone who bought a home in the last 25 years almost certainly locked in a mortgage rate well below today’s market. Unsurprisingly, casual sellers have vanished… because why would you trade a 3% loan for a 7% one? The only people putting homes on the market are those who have to move. On top of that, elevated borrowing costs have made building new homes more expensive, choking off fresh supply.

So, here we are: low demand, low supply, sticky-high prices, and affordability in the gutter.

The Fed Can’t Fix Housing Alone

Now, rate cuts could help, and the Federal Reserve has started down that road. But let’s be realistic: this market is too broken for monetary policy alone to fix. It will take a policy sledgehammer.

That’s where the White House comes in.

If the administration does move forward with a National Housing Emergency, it has several levers it can pull, many of which could have fast, tangible impacts:

• Tariff and material cost relief. Reducing tariffs or granting exemptions on imported lumber, steel, or other key building materials could immediately lower construction costs.
• First-time buyer support. Grants, down-payment assistance, or expanded Federal Housing Administration (FHA) benefits would directly ease affordability challenges.
• Regulatory streamlining. Federal guidance could push localities to accelerate permitting timelines, especially on multifamily and affordable housing projects.
• Mortgage finance tweaks. Agencies like the Federal Housing Finance Agency (FHFA) and Department of Housing and Urban Development (HUD) could cut fees or loosen restrictions, while Fannie Mae and Freddie Mac could be nudged toward more flexible underwriting or targeted affordable housing initiatives.
  • We’d be remiss if we didn’t note one idea that’s also surfaced, floated recently by President Trump – the creation of a 50-year mortgage. But, in our view, that fix appears cosmetic at best and unlikely to meaningfully stimulate the housing market. An analysis by UBS found the cons would outweigh the pros: compared with a 30-year mortgage, a 50-year loan would only lower payments on a typical home by 5.4%, while saddling borrowers with roughly 225% of the total home price in interest. In other words, it stretches the affordability problem instead of solving it.
• Use of federal land. Large swaths of federally owned land could be opened to housing development, particularly in areas where zoning and local politics have created bottlenecks.

Individually, none of these measures would fix the housing market. But combined, they could meaningfully boost both supply and demand within a year. And that’s the sort of synchronized intervention that could trigger a housing boom unlike anything we’ve seen since the post-financial-crisis rebound nearly two decades ago.

The Stock Market Angle: Housing Stocks That Could Soar

If the White House pulls any of those levers, housing-related stocks could rip.

We see the obvious trade in homebuilders. 

Lennar (LEN), PulteGroup (PHM), DR Horton (DHI), KB Home (KBH), NVR (NVR), Toll Brothers (TOL), Meritage Homes (MTH), Green Brick Partners (GRBK) – these are the blue chips of America’s housing construction industry. They’ll benefit directly from any boost in demand, lower material costs, or faster permitting timelines. Their order books will swell, their margins will expand, and their earnings will jump.

But here’s where I’d go a step further: the real upside lies in housing tech.

• Zillow (Z): The closest thing we have to a digital super-app for housing. If more buyers flood the market, Zillow becomes the go-to platform, especially for millennials and Gen Z.
• Opendoor (OPEN): The iBuying model thrives in higher-volume markets. If Washington can thaw out supply, Opendoor’s algorithm-driven instant offers will look increasingly attractive to sellers.
• Compass (COMP): A tech-first brokerage that could win market share as agents flock to platforms offering better digital tools.
• Rocket Mortgage (RKT): A policy-driven housing boom paired with falling mortgage rates could unleash a massive refi wave. And Rocket dominates that space; perhaps the biggest winner of them all.

These are structural disruptors poised to gain share as housing transactions migrate online. And a National Housing Emergency could be the catalyst that accelerates that shift.

Why Investors Need to Position for Housing Now

Housing affordability is becoming a generational issue, and it’s climbing the policy agenda.

The administration is looking for wins heading into 2026. And unlike many avenues, housing intervention has the potential to deliver visible, near-term relief to millions of families.

And since markets are forward-looking, if the White House even hints at a concrete emergency package, housing stocks could gap higher overnight. 

Waiting until the details are out will mean missing much of the move. That’s why now is the moment to start building exposure. Whether through the builders or the tech disruptors – or both – investors who position ahead of a National Housing Emergency declaration could be looking at one of the strongest tailwinds of the next 12 months.

And we think it could arrive any day now. If so, the combined impact of lower material costs, more federal land, easier mortgages, and support for first-time buyers could trigger a boom unlike anything we’ve seen since the 2008 financial crisis.

The builders will benefit. But the real asymmetric upside lies in the housing tech stack – names like Zillow, Opendoor, Compass, and Rocket Mortgage.

We face the worst affordability crunch in modern history. That’s the problem. The opportunity? When the policy hammer falls, the rebound could mint fortunes. 

And while most investors watch the Fed, the real disruption is forming elsewhere. 

A $1.9 trillion market – frozen for years – is about to thaw. And one company’s algorithmic supremacy may be the key that unlocks it.

Find out more about the innovator that could deliver 1,000%-plus gains as it fixes a broken system.

The post Housing Affordability Has Become a Policy Emergency appeared first on InvestorPlace.

Imitation is the sincerest form of flattery, but what happens when the original isn’t so flattering?

That’s where we find AI stocks today… mirroring the turn-of-the-century dot.com bubble burst.

A few fretful investors have begun to worry that an “AI bubble” may be nearing its breaking point – and that a subsequent bust could wreak havoc on Wall Street. 

And it’s not just investors. It’s the kingmakers, too. In October, Jeff Bezos said, “[AI] is a kind of industrial bubble.” 

When the Internet turned the world upside down, it sparked such a stock market frenzy that the most powerful central banker said stock prices were being driven up by an “irrational exuberance.”

We were told the “information superhighway” would revolutionize how we work, communicate, socialize, and play. It eventually did all that and more.  

Of course, great new technologies can dazzle us, like both the Internet and AI…

And still usher in a devastating crash.

If you were investing back then, you’ll remember the euphoria… and the depression that followed.

Today’s AI boom is checking nearly every one of the boxes that indicated a bubble back in 1999.      

So, in today’s Smart Money, I’ll detail the five warning signs that are currently flashing red hot… and the steps you can take to keep your portfolio in the green.

The 5 Signs of Danger Ahead

The AI boom mirrors the Internet Bubble across five critical danger signs…

1. Bubble-level valuations.

Driven by AI stocks, the P/E ratio just hit a 25-year high. The price-earnings ratio just divides a stock’s price by its annual earnings. In other words, how many dollars does it take to buy $1 of a stock’s earnings?

Over the long term, you usually pay about $16. Today, you’re paying over $40 for $1 of earnings. That isn’t just a high number… it’s what we saw in 2000 right before Internet stocks imploded.

2. Extreme concentration

The top 10 stocks represent 40% of the market (vs. 23% in 2000). That means that a stumble by just one or two of those stocks can be an anchor that drags down all stocks.  

Take Nvidia Corp. (NVDA), for example. It is worth more than the entire Canadian stock market! This kind of concentration increases the risk and fragility of the entire market. We saw this scenario play out during this week’s AI selloff.

3. Risky IPOs

During the Internet Boom, it seemed like anything with “.com” in its name went public. Similarly, speculative companies are going public with minimal revenues.

Take Figma, the hot cloud-computing software platform that went public in September and rose 250% in its first day. The stock lost about half its value in the month after its debut. The stock market is packed with AI plays that feature more hope and hype in their business plans than reality and revenues.  

4. Circular financing

In the dot.com era, companies and others began lending money to their own customers, creating circular deals and artificial revenue. Similarly, OpenAI is buying billions of dollars in Nvidia processors… while Nvidia is investing $100 billion in OpenAI. 

5. Record stock ownership

Studies show that the average American has more money invested in stocks than ever before, even more than the days of the Internet Bubble. This will amplify a crash impact.

When the air starts hissing out of the AI bubble, I don’t think investors will just ride it out. Instead, as alarm sets in and everyone tries to sell at the same time, a trickle of selling could quickly become a flash flood.  

So, the selloff could be even worse than in 2000.  

Now, during the waning days of the dot-com boom, I was running an institutional research service.

And I didn’t just survive the dot.com bust – I was able to thrive. And I am using the same playbook this time around…

How I Survived the Internet Bust

If we rewind the tape to March 2000, when the dot-com bubble finally met its pinprick, the entire technology sector began to lose altitude almost immediately.

But not every corner of the market followed it down. In the midst of that harrowing collapse, finding successful investments was not easy, but it was possible.

Back then, I recommended selling short numerous high-flying tech stocks and buying several non-tech plays.

On the “Sell” side, I suggested dumping stocks like Softbank Group Corp. (SFTBY), Motorola Solutions Inc. (MSI), and Cisco Systems Inc. (CSCO) – all of which tumbled more than 80% over the ensuing two years.

On the “Buy” side I recommended a diverse group of non-tech stocks like…

• Royal Garden Resorts (MINT.BK) – A Thai hotel company
• Freeport-McMoRan Inc. (FCX) – A global copper and gold miner
• Humana Inc. (HUM) – A managed health care company
• Christian Dior SE (CHDRY) – A French fashion house
• The Indian Hotels Co. Ltd. (INDHOTEL.NS) – A leading Indian hotel company
• Adidas AG (ADDYY) – A leading brand of athletic shoes and leisurewear

As the chart below shows, these six stocks delivered triple-digit gains during the early years of the dot.com bust, while highfliers like Cisco, Amazon, and Microsoft Corp. (MSFT) tumbled more than 50%.

I am not expecting history to repeat itself exactly during the current AI boom, but I do expect it to rhyme.

Specifically, I expect many non-AI stocks to outperform their AI counterparts over the next few years.

Past performance won’t pay today’s bills, of course. But the lessons from that period still matter. Two stand out in particular…

The key, though, is to panic properly. That simply means preparing.

I’ve already started, and I’d like to share steps you can take today to prepare, too.

Don’t Just Panic in 2026: Prepare

Generally speaking, proactive preparation works better than reactive repairing. The best time to reinforce your house is not when the hurricane is already tearing off the roof, but while the sun is still shining.

That’s the posture I recommend as we head into the new year.

I expect any future AI bust — whenever it arrives — to rhyme with the dot-com bust. And it’s why I’ve been gradually diversifying away from direct AI momentum plays and toward areas with sturdier foundations.

These are companies with proven business models immune to AI disruption that could deliver substantial gains – all while AI stocks crater.

In my brand-new, AI Survivors broadcast, I dive into these types of companies.

I also share how you can find six overlooked stocks that I currently recommend to prepare against the eventual AI Bubble burst.

I believe these companies could surge as investors rotate out of overcrowded AI trades.

Click here to watch my free presentation now.

Regards,

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