The Biggest AI Bull Market Is Still Ahead of Us

But I think it's a great time to be invested in stocks specifically. And I think you should be very limited in your cash position and you should be looking to allocate whenever and wherever possible cuz I think we are in an incredible opportunity in the markets. What's up everybody? It's LG here and welcome to Milk Road Stocks, the daily market show where things have been up only since our launch and it doesn't look like that's about to change. Today is August 19th, 2026 recording on August 18th. The economy is strong. Inflation isn't currently forcing the Fed's hand, and AI demand is accelerating. Plus, those companies are actually showing real returns. Finally, for example, Anthropics revenue has grown 300% quarter over quarter and is projected to climb another 2 to 4x 207. This is the setup for the Everything Bull Market, a term coined by our co-owner and market analyst, Cal Reedhead, who has loaded up his portfolio with companies set to bank on the continuation of this incredible market we've been in. and he's on the show today to show us the macro data that points to no rate hikes anytime soon and dig into those profits I just mentioned. All of his insight, his trades, his calls are available in Milkroad Pro alongside our four other analysts. They have made some banger calls this year. For example, Melvin, his portfolio is up 40% since February. So, if you'd put 10K into his moves, you'd have over $4,000 in gains already. Milk Road Pro is so good that we're actually bringing up the price from $25 to $39 a month and $250 to $299 annually. But you, our loyal listeners, you can still get the old pricing for just another 6 days. You have until August 25th to go pro for just 25 bucks at the link below. And a reminder that our podcast today is free and that it wouldn't be possible without our partners at SaberMoney, the stablecoin payments platform built for Asia. Keep an ear out for more information about them later in the show. Kyle, listen. I love doing these episodes where it's just the two of us. Uh you always paint a nice picture of what's going on, what assets you like, and today I want to hear about this theory, this thesis, this idea that you've been proliferating uh called the everything bull market. Like what is that? >> Yeah, I've been uh I've been hammering the everything bull market on Twitter a lot uh over the last I don't know, maybe two months or three months. Um for for multiple reasons. Um the everything bull market has a macro thesis to it. Um and then it also has a technological um integration or adoption thesis to it. Um and when I say everything bull market, it actually it's a little misleading because it doesn't mean every single thing is going to go up, which you would think when I say that it's everything that's involved in AI is going to go up. So unfortunately for the crypto listeners, uh you do not participate in this everything bull market. uh but a lot of things do this does touch most things uh and to be honest at some point it will actually pull in crypto along with it um but there are certain companies that are not going to participate in this the old companies you know that that are not really using AI and and and probably won't um they will not be part of the everything bull market but everything from the infrastructure layer to even the model layer which I think a lot of people think is cooked um to the application layer um and and the application layer is very vast all of them particip ipate in what I call the everything bull market and it's backed by an incredible goldilocks backdrop on the macro side of things that is enabling this. So I think those two things um is what's powering the everything bull market. I think it's a great time to be invested in stocks specifically and I think you should be very limited in your cash position and you should be looking to allocate whenever and wherever possible because I think we are in an incredible opportunity in the markets. I think it's a really hard thing for people to to wrap their head around too, Kyle. And I think this is why I was excited to do this episode with you is that it's just you have markets at all-time high, right? And a lot of, you know, even people on our show like you guys tell us, our analysts that it's like, listen, but we're just at the start of this buildout, right? Like this is we're totally shifting into a new type of technology. A lot of companies are completely changing their models. The hyperscalers are used to do completely different things than what they're doing now. And I think that's just something hard for people to to to grasp um that things are going to continue to rip in this setup. So I think that's, you know, we'll talk a little bit more about that today. >> Well, and we'll talk about timing because everything bull market doesn't mean we don't have pullbacks. And actually, when I first started screaming about the everything bull market, it was while we were going into this huge pullback. And the reason I came up with it was I did a bunch of research during that time of why are we pulling back here, right? This was in July. um well I guess like mid mid June it started and I said okay well is this the end of the bull market or you know what's going on and so I started looking into the macro deeply which I already look at anyway but I just wanted to recheck my numbers was looking into what was happening in terms of you know the adoption of AI and where the ROI was with AI and that's when I actually came out with this everything bull market was at the the peak bottom of this whole thing or at least while we were going down and it gave me the conviction to buy a bunch of assets during that that pullback and so there will still be pullbacks along the way but I think this everything bull market is what helps you to have that conviction during those moments so do I buy when we're at peak tops you know sometimes but I prefer not to I prefer to buy during fear which we just had and it's this thesis that allowed me to do that >> yeah I like that so what I'd like to learn Kyle you talked about goldilocks between like basically the stocks and the hypers scales and basically the entire market and also like what's happening in macro data. So, I feel like that's a good place to start to understand that. Um, we had a macro channel for a long time. We still cover it once a week. John writes a whole write up about it. We have our uh Milk Road macro index that our pro members can look at every week that or every day basically that kind of tracks all of that stuff together, but I think it's always helpful to dig into the numbers individually too. >> Yeah. So, there's a few reasons why the macro matters. one, obviously if macro is is solid um and the economy is booming and earnings is booming, then typically that's a time when stocks are doing quite well, right? But what you really want to understand is when the economy is booming and when earnings are going through the roof, this is also a time to be quite vigilant in your investing because it tells you that generally at some point you're going to reach a top. The Fed is likely going to raise rates or things are going to flip and we're going to go down the other way. And once we start to decelerate in a good in a good market, that's when we start to sell off, right? And so the the the you know, easiest example of this was 2021 2020 was an incredible bull market. You know, we saw the the ISM going through the roof. Earnings were going through the roof. Like it was just a crazy time. And then what happened is whenever you have a lot of demand and consumption, inflation starts to pick up and uh you know you have well first you have low unemployment, you have wage growth growth which is growing um and thus people have a bunch of money to spend and so they spend everywhere. Consumption is crazy. Inflation picks up as a result of that and then the Fed needs to raise rates. Now that's a big problem if the Fed starts raising rates because a lot of this infrastructure buildout and what's going on in AI is being financed. And so we want to make sure rates remain or even go lower to keep this bull market alive. Now what we're seeing in capex is so big that you know one hike or two hikes might not even matter because the growth in AI uh and the the growth in capex is so big that it's surpassing you know what are we at right now? I don't remember 3.2 or 3.5% whatever like it's it's it's bigger than that. So it actually doesn't matter that much. But if we you know bring rates much higher um then at some point it is going to impact things. Now what I'm kind of trying to argue right now is that the economy is in this kind of goldilocks moment where what I have up on the screen here is the ISM. The ISM is above 56. This means that the economy is absolutely booming. It's expanding. This is a really really good sign for the economy. Now generally when this happens though you want to start thinking about when is the top coming because when the economy is expanding and the economy is booming especially when we look at earnings is also expanding right generally what this means is that we're going to be hiring a ton wage growth is going to be increasing consumption is is increasing and thus um we're going to have to start to raise rates because inflation should go higher and I think that what's happening though is that's not the case today we are seeing currently an expanding growing growing economy, expanding and growing earnings, but we are not seeing employment pick up like crazy. We are not seeing jobs pick up like crazy. We are not seeing wage growth pick up like crazy. And thus inflation is actually coming down rather than going up. And that is the Goldilocks moment. And I think not all of it but some of it has to do with the fact that the reason we are seeing earnings growth pick up so much is because we are seeing the integration and the adoption of AI and soon AI agents which is growing revenues without growing the human account the human count inside of companies. And thus humans aren't necessarily making more. They're not making a lot less either, right? They're not like it's not like we're losing a ton of jobs here because of AI. We're just not hiring a ton at the moment, which is great. Uh because it means that companies can do well without needing to hiring more and that means the stock market can go much higher without causing inflation to go much higher. And that's the key part of this all. So if you look at inflation right now, here's the chart that shows, you know, this is what happened back in 2022. Whole different world. This was a supply chain issue. We don't have that today. Um we had a spike in inflation which was scaring the market a little bit. Um earlier this year it went all the way up to 4.2%. 2% and now it is on its way down. This was because of oil. This was because of the Iran war, right? So basically nothing else spiked except for uh energy and in and the the the cost of oil um because obviously we closed the straight of her and there was a lot of issues there. That is becoming less of an issue. It's not solved yet, but becoming much less of an issue. And thus we're seeing inflation come back down. Now the Fed wants that 2%. We're still at 3.4. So, we're not there yet, but we are seeing a lot of the long-term things that are slow and take a while to come down like shelter um and energy. These are starting to come down over time slowly. So, meaning uh the cost of homes and that are coming down. Uh and that takes a while, but it's it's it's kind of steady and continues its way down. And so, I think we're going to continue to see inflation make its way down. Will it make its way to 2%? I'm not sure. But based on this, as long as we continue to come lower and don't forget GA or not gas, but uh oil is still quite high because we keep having these like mixed fears. So, it still has a long ways to come down. And if it comes back down to like its 60s, I think it's in the what is it the 80s right now? We can check right now while we're here. Oil is currently at 84. So, we've got a long ways to go to come down. Um and it can make its way down to in the 60s. Now, if that happens, that's going to bring inflation down really big. And I do think, you know, we've been in a a down pattern since March. So, I think that's going to make it back down into the 60s at some point. Um, and uh, and that's going to be the next driver of bringing inflation lower closer to 2%. I don't know if it actually gets to 2%, but we want to see it get there. Now, the other thing to keep in mind is the Fed doesn't look at this metric, the CPI. It looks at other metrics, whether it's like true inflation or, you know, I don't know which which one it looks at, but it looks at more like real-time data, which already shows much closer to 2% than what CPI shows here. This is lagging data and honestly it's it's kind of outdated. So if we think inflation is going to continue to come down the other thing we can look at is you know generally you would see in a time when the economy is expanding and earnings are crashing you would see uh unemployment uh would come down which it is but it's still about 4%. It's nowhere near where it was back here at like in the 3% right. So, there's still many months left of kind of unemployment kind of staying as is or slowly beginning to come down. Like, at some point, we should be hiring a bunch more because the economy is doing so well, but we're not there today, which means there's still a lot of time left in this market. Um, and then if we look at non-farm payrolls, it's doing the opposite. So, we're actually seeing jobs um decrease, right? Um, which is quite interesting. And so, the the market is telling us that something different is happening here. generally um the opposite should be happening and it's not and so the market's telling us that I think AI is the thing that's making a lot of these earnings really pick up uh in terms of the economy at the moment and so that's why the market right now in Kelshi is saying that you know I think I was on the show was it last week or two weeks and it was like a 60% chance they were going to raise rates in September we're now at a 71% chance that they are going to keep it as is we're even starting to price in a bit of a cut. We're at like 1.2%. Okay. Uh so I don't think that's going to happen, but you know, we used to think that they were going to raise rates in September. Now it looks like it's pretty much for sure that that is not going to happen. And so that's the Goldilocks moment in the setup for us. That tells us, hey, it looks like stocks can go higher for longer. Earnings can go up for longer without the Fed having to intervene, without inflation going higher. If you're not a Pro member, what the hell are you doing? On August 26th, the price of Milk Road Pro is going up. Monthly goes from 25 bucks to 39 and annual goes from 250 to 299. And here's why. Pro used to be a paid newsletter with one portfolio attached. Now it's a full platform. Five analysts running real-time portfolios with every position, every trade, and piece of reasoning out in the open with live notifications to keep you in the know. And the results have been insane. Melvin's portfolio launched in February and it's up 41% since. If you put 10 grand behind his moves, then you'd be sitting on more than four grand in gains. 5 months of pro costs just 125 bucks over that same stretch. Is there a better ROI on any investment right now? If you join before midnight Eastern on August 25th, you keep today's price for as long as you're a member. After that, it's gone for good. The link is in the show notes. Mhm. And that's that's that that number on Kelshi and Poly market. It is consistent for all the upcoming Fed sessions through to January. It's like 65 to 75% of maintaining the rate. So that's that's not just for that's not just for next month. It's for the next like quarter beyond. Um so clearly the market is starting to price that in. >> There's a chance we get the rest of the year without them raising rates now which is pretty crazy because the market had priced in a bunch. So that in itself as the market continues to sort of figure that out and we'll see what happens in September when they give us their their speech. Um but assuming they don't raise rates and they even say look we think the market's fine. We don't need to touch it for the end of the year. That's your reason where we can be at all-time highs in terms of the stock market and they can go much much much higher. >> Kyle, is AI going to create jobs? Because I think we we've talked we talked about this a year ago. We talked about this for a long time is you were basically describing this K-shaped economy. We talked about it with Martin earlier this week on the podcast as well. Um that basically, you know, you're showing us that unemployment rate, which is actually going down. I didn't realize that, but also that we had a net negative last month in non-farm uh payroll jobs as well. So, what what do you think actually happens here? Because I think that that's largely the concern from also like a moral standpoint that it's like, yes, we want to buy these stocks. We want them to go higher, but also does it mean that nobody has jobs? Or do you think we'll have more jobs? >> I think we'll have more jobs. I think if we're going to So I I I don't think that this what I'm painting here, this Goldilocks picture is going to last for forever. It's lasting right now, right? And because what I do think is going to happen is the economy is going to continue to expand. Where's that chart? Earnings are going to continue to go up. The economy is going to continue to expand. Um but I think as a result of that, companies will start hiring more people. But I think what they'll hire is people that are using AI. So, the reason why I think we actually get more jobs out of this than less jobs is because companies are getting so profitable when they use AI that they're going to want to bring in more people that use AI to bring in more profit because what's happening here is just your profit per employee is increasing, right? And so, even, you know, I run two companies, both of our companies have hired and continue to hire people so long as they use AI because if they use AI, we know that we can generate more revenues from them. And so I think that's the world that we're going into right now is um companies are just going to look for more people that can use AI and it's getting easier and easier to use AI which is great as well. And so I think as a result you're going to end up hiring more people not less. It's funny I was had a my family over. Uh my family's from like a very small town so they're not very AI uh at all but one of my cousins was using AI and so we were having this debate. My dad and a few others thought okay well if AI is so good everyone's just going to lose their job. And I and I spent about a half hour explaining to them, no, no, no. Look, if you use AI, you become way more efficient, which means more like companies are going to want to hire you even more, right? Because you can get more done. You can make more money from them. And that's the key thing that I think the market is missing. Plus, you're going to have a bunch of brand new jobs that come out as a result of this that we can't even think of. So, I think um in the short to medium term, more jobs are coming. I don't know what happens when robotics come, but that's a 2029, 2030 story, and that's really going to take a while to scale out. I'm sure there'll be different jobs at that point, but for now, I think we're in a moment where AI is going to create more jobs, better earnings, um, and push the economy much further. Now, when that happens though, as more jobs come, we, you know, and the economy is doing so well, we will consume more, and that will potentially drive inflation higher. The reason why I say potentially is usually it always does drive inflation higher. However, if we can get AI and manufacturing and robotics to kick in, it could drive the prices down for a lot of things. And so maybe there's a world where we can have employment really good. Um, and the economy doing really good, but inflation actually doesn't go higher because the cost of goods is actually going down because, you know, renewables and energy is really kicked in because we needed that for data centers. Um, the ability to manufacture is much faster than we've ever had before. um you know the cost of you know things goes down because you know AI makes it way cheaper, our software goes cheaper. Like I don't know when that plays out. So I'm sure we'll probably get inflation pickup before then but I don't know. Let's see. >> Kyle, what did your did your family believe you? Did they agree with you when you explained all that to them? >> I think by the end of it, yes, cuz I gave a lot of examples and really like went into it, but it took a while, that's for sure. There was a lot of fight push back. this it's always good to get it's always good to step out of our um uh our little circle here and hear what you know non-stock people want to like think of the pro or think about AI and and the everything bull market >> the main thing that they were stuck on was kids can cheat at their exams and I was like here's the thing you got to understand is it used to be like really good if you ended up um you know like you had to make a 10-page report on our example we talked about was building a bridge Okay. And I don't know why. So, let's say this is an engineering class or whatever. And I was like, "Okay, you write a 10-page essay." And they were like, "Well, now you can just get AI to write that essay." I was like, "Sure, you can." But now, instead of me handing in a 10-page essay, I can hand in the the entire engineering blueprint for what materials I need, the exact architecture of this of this bridge with all the specs, plus a 3D rendering of this bridge, plus like I can find all the companies that we need to buy the materials and how long it will take, and I can have a whole plan, which you would only get from like a full engineering company. Now, as a grade 10 student, I could give you that entire thing. So, I don't hand in TED page essays anymore. I hand in a full 3D video rendering with all the specs and the engineering blah blah. And I was like, that's the new way that you do uh projects in school, right? Because AI allows you to be more efficient. And they were like, oh, dang. And so that's when I got them to to spin their head and go, "Okay, I see it now." So that's you can apply that to employees, right? That's how employees become more efficient because someone you used to need like, you know, it used to be very costly to get all those things. Now, one person can do all that stuff. So, it makes one employee go a lot further. >> I think that's a really good way to put it. I'm going to use that next time I'm having the argument that it's like it's not it's not that they they're going to be able to fasttrack their 10-page report is that the assignment should no longer be a 10-page report now that they can do so much more. I like that. I think that that's that's that's actually a really good way to look at it. Um, but thank you for sharing that. Go ahead. >> Yeah. So, now what I want this isn't a conversation about jobs. I think Martin already did that uh earlier this week, so we don't need to have that conversation. Let's go back to the everything bull market. So, in a time when macro looks really good, right? The question is, okay, well, where do you invest? And obviously, if I think that AI is the thing that's that's really helping the macro economy, we got to understand is AI going to continue, right? A lot of people and every time I post on Twitter, I get a bunch of people saying, look, this thing's a bubble. Um there's no ROI. The frontier models are cooked. uh the companies that are integrating AI are cooked um and it's too costly for them blah blah blah blah and the reason why I call this the everything bull market particular to those using and involved in AI is because if you really look at the numbers if you look at across the stack of AI meaning the infrastructure layer the model layer and the application layer every single layer is ROI positive they are all seeing a return on their investment and when that happens it means you can continue to scale fail this. It means it's not going to stop. If a company can spend money on Open AI and Enthropic and make money, they're just going to continue to do that, right? And if Enthropic and Open AAI can spend money on compute, whether it's from a Neocloud or SpaceX or from Google or whoever, and they can make money off of it, they're going to continue to do that. And of course, if these neoclouds and these cloud companies and these compute companies and the memory companies can make more money uh selling their products, they're going to keep, you know, building and manufacturing those products. Okay. So, if we look at the entire layer, here's a chart that's up right now that shows um that this is looking at 117 companies. They make more than 500 u million dollars a year in revenues. And for companies that that spend money on tokens, they make three times more than those that are not. And their revenues are growing the more that they spend on tokens. Meaning the more money they give to OpenAI and Enthropic, the more revenues that they make. And when you compare it to those that are not spending money on OpenAI Enthropic, you see that those that are spending the money are making three times more. They're growing three times faster than those that are not spending. So we can see the application layer is making money. This is the like Palunteer stories, the Service Now stories. So those companies sure are making money, but what they're doing is they're helping companies integrate AI within their companies and they are making more money. The more they integrate AI, you see it again with our company, right, with Milk Road, with Impact 3, have an agency. The more that we can use AI, the more that we are generating additional revenue and better earnings as a result. And this is happening across many many many companies across the stock market and just in general across the US. So that's the application layer. This could be Eli Liy in biotech that's using AI. This could be SAS companies that's using AI like Salesforce and Service Now and you know whoever else, right? This could be just your average company like um you know a Robin Hood or a Coinbase who have talked a lot about using AI and they're getting way more. They can ship way faster. their their their earnings are getting better as a result of it. Um so there's many different subtypes of companies that fit within this. Okay. So the application layer is making more the more they use AI. So that's key. Okay. That's the first thing to understand. Now we got to go to the model layer. This was a chart that came out from semi analysis I think last week and they said that for every gigawatt that open AAI or Enthropic buys they can make a hundred billion dollars off of it through inference API inference API just means companies using their product to chat with it to build agents with it etc $und00 billion so you've heard the number of Elon Musk saying that they can sell a gigawatt of compute for 30 to50 billion ion dollar a year. Well, the reason they can do that is because Enthropic and Open AI can make a h 100red billion a year. So, if they sell it for 50 billion, Enthropic and Open AI make 2x that. If they sell it for 30 billion, Enthropic and Open AI make more than 3x that. Some of the neoclouds have been selling long-term deals for 10 billion a year, which means they can make 10x that. So, do you think Enthropic and Open Air are going to continue to spend more or less on compute? they're going to spend a ton more because they can make way more money when they do it. Okay. So, do you think the capex continues? Does Google and Amazon and SpaceX and Nibius and Cororeweave have the capital that they need to keep buying more to build out these data centers and buy these GPUs etc. Well, the answer is yes because companies like OpenAI, Enthropic, you also got to include Microsoft in there. They can do the same thing here. You also now can probably start to include SpaceX. Grock and Cursor is becoming a very legit um uh frontier model. I think they're going to start to eat market share on Enthropic and Open AI with their new launch of 4.6 Grock and their Grockbot. So, I think you're going to have a fourth player and you could maybe say Gemini as well, but I don't know that they're making this kind of money, but I think you're going to see that with SpaceX. Um and so we have four model companies uh that are able to spend this much money on on on uh compute and they can make uh a return on it. So that is a huge number. And then lastly, we just had a report come out um earlier this week that Enthropic um there's two numbers to look at here. First, Enthropic has reached a $65 billion annualized revenue run rate. Open air has reached 40 billion which is huge. Okay, so they are now making between the two of them hundred billion dollars in run rate a year and it is growing extremely fast. How fast? Well, in Q2, Enthropic made 11.5 billion. That's up 14x year overyear. 14 freaking X, which is absolutely insane numbers. In Q1, they were at 4.7 billion. So, they more than doubled that quarter over quarter. They almost 2xed it quarter over quarter or sorry, 3xed it quarter over quarter. So, and then and then if you look at OpenAI, so Enthropic is not even the fastest growing now. So, those numbers are insane. Open AAI more than doubled their codeex users in one month. From July 12th to August 12th, they went from 6 million users to 15 million users. >> Oh my god. So, they more than doubled I think they they doubled their revenue in the last two months or something like that. I forget what it was. Um, so they're growing faster. And then I think cursor and anthropic or sorry cursor and grock are doing a similar thing but from a much smaller base. They're at like maybe I we don't know but let's say like 6 to 8 billion revenue run rate right now. Um I think they're going to hit 10 to 20 billion at least by the end of this year. Um and the expectations is Enthropic and um Enthropic supposed to reach 100 to 120 billion by the end of this year revenue run rate. uh Open AI, we don't know, but let's say they can maybe double uh maybe even less than that, but let's say somewhere between 60 and 80 billion. So, their their run rate by the end of this year is is 200 billion, just those two companies. And if you were listening to the All-In podcast on Friday, Gavin Baker and I think it was David Saxs, maybe I forget, we're talking about where they expect it to go by the end of next year, and they're expecting Enthropic to reach somewhere between 250 billion to 400 billion. which is like insane numbers, especially when you consider that everyone thought that the models were going to get crushed by open uh by the open source models and they're not. They're continuing to grow. So, we're seeing every layer of the stack has an ROI positive and that tells you that this can continue for longer than most people think. You know, one thing we've talked about a lot on this show is that crypto is quickly becoming a huge part of the global payments infrastructure and nowhere is that more obvious than in Asia. But if you're actually running a remittance company or a payment business, you know that the hard part isn't moving. the stable coins. 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I think a lot of people think like, well, this is so overblown, it's so overhyped, it's a bubble, whatever. Just talk about the common narrative. But it's it's clear that when you actually look at the numbers, the money they're reporting, it's obscene and it's going to continue to grow. And for everything from what I've learned doing these shows with you guys, it's like all these companies like like they are projecting for that growth. And also on the application side, it's like they're using it like a lot of big companies are using it. Eli Liy is a really great example. We keep coming back to that that both you and Vincent have talked about that company u tons. It's the biggest biotech company in the world are releasing the S&P 500 and over a trillion dollar market cap and that they are actively showing revenue from using AI, right? And that's going to trickle down, inspire everybody else. Um, and there's that demand for that is just going to continue to grow and they're going to want to keep using it and hire people all the way back to jobs that use it. Right. Exactly. Now, look, at some point we will reach a top here. Uh, at some point the revenues of Open AI Enthropic will likely start to decelerate. Uh, maybe flatline. Um, and that will become likely problematic. Maybe the thing is is like I don't know when that happens because the other thing to think about actually I don't have this chart prepared but I can find it pretty quickly. Um I was showing this on my live show yesterday. If you want to pull up my screen again. Yeah I got it right here. This chart here. So if we look at right now most of us use chat. Okay. So we just talk to entropic and open AI. What's coming here and where the the real demand really comes from is from agents both enterprise agents and consumer agents. Enterprise agents has just started this year. Consumer agents has not started. Um but it's about to kick off end of this year. Um and enter for through Apple and and Google. Um and then enterprise agents has already started and the TAM for that is just absolutely massive. And then you have from that physical AI which is our robotics. And so there just keeps being waves of more and more demand that continue to kick off and they keep like um transitioning on top of each other. It's not like we've got to wait a few years and then all of a sudden it kicks in like with the internet, right? It's like we overbuilt uh we had to wait uh until we had enough fiber that we could get like video, right? Then all of a sudden, okay, that was the next big demand and then we had to wait for like mobile to come. But that's not happening here because these things are happening so fast. So it's like chat, then we have agents. The one that there might be a gap maybe is between agents like digital agents uh and then uh and physical AI. But the thing is I think that agents have so much room to grow that it just means there's so much more demand for these tokens. And the thing is the reason why I think the um open source models have not cut into the share I mean they have cut into the share a little bit of entropic open but the reason why these companies can continue to grow is because they don't have the UI and UX for a company to come in and distribute AI to thousands of employees and allow them to you know build agents and connect into their software and their CRM and all this kind of stuff and have control over their usage and the costs etc. Entropic and OpenAI have built that that sort of like administrative layer and all the tools to connect and do all that kind of stuff. If I want to go use like Kim K3 or DeepSeek, I've got to go build that myself. Now, most companies aren't going to do that. Some will, but most aren't, which is why most companies are still continuing to onboard into Codeex and into Enthropic um and use that. And so I think we've still got a long ways and and the more that we we use that and the more they have this kind of like um this head start the more that it's hard to move off because everything is now integrated into your your enthropic or into your open AI platform. So um they continue to hold that and continue to grow as a result of that and they keep launching new you know new things like agents within that. So, um I just think at some point this will slow down and it will matter, but right now when you have a Goldilocks macro moment and you still have significantly increasing demand, you've got to be investing in this stuff during that time point. Again, this will stop at some point and maybe it's next year. I don't know when, but right now it's not that moment. >> Kyle, how are you expressing all this in your portfolio? >> Yeah. So, first I just want to show this chart here which is around timing. So um and then because this matters this matters of when you express this in terms of your portfolio. So this is an interesting chart on just looking at investor sentiment right so just because the macro is really good and the earnings are really good and everyone's adopting AI doesn't mean that everything's just going to always go up right again as I said at the beginning of the show we do have pullbacks. So there are you you want to try to time when you enter into different companies or just into the broader market. So this is an interesting chart that shows um you know if you were paying attention to this earlier this year then you saw that all this was true you know good macro setup uh you know AI buildout is crazy capback's going to continue blah blah blah and we had at the same time we had a trade war that happened so again similar to what I did during the the pullback that we just had in July if you were paying attention to these numbers and everything and saw what was happening you would have saw that this was an amazing time to be buying because the market sold off like crazy during the beginning of the Iran war. Okay. Then it ripped and got a little bit crazy, right, back in like May. And so maybe what that point when investor sentiment was so greedy and everyone was allocated and it was absolutely crazy and Micron was going nuts and whatever, that's probably not the time you want to be buying. What you want to do again is wait for fear. And so we had that happen again in July. So long as the macro backdrop looked good and everything I'm talking about on the AI side looks good, that's your time to deploy at scale, right? You want to put a lot of money into the market if you can. If you were a Milkward Pro member, we had tons of calls over that like few weeks there in July. Actually, in both of these in February, March, we were we were calling to buy a bunch of assets during this time. We we bought the bottom a bunch. Um and then same again here in back in July. Milker Pro members got a bunch of calls to buy Micron, to buy Nibius, to buy Coroweavee, to buy I don't remember what else, but a bunch of things over those few weeks because the riskreward was so good in that moment. Right now, if you look at today in August, you know, we've had a pretty sharp uh uh jump back from that pullback. Um and so investor sentiment is now very bullish. They are very excited. Again, we've hit all-time highs in the stock market, and the S&P um doesn't mean it's not a good time to buy. you know, Nibbius, Micron, and a bunch of these other assets still have not hit all-time highs. So, I think we are still going to run further here. But I just want people to realize is that you want to have this data that I'm talking about and then you want to really deploy when there's fear, which is a very hard thing to do. And I think one of the best things you can do is have a group of people or analysts that can help you get through that. That's why we launched Milk Road Pro. Milk Road Pro, just so you guys know, is uh a place where five analysts, really top tier analysts, share their research like this. Um, and they share their real-time portfolios and live trades and their research. And it basically puts, you know, for you guys that are just consumers and maybe not working full-time checking out the markets. It puts the bull market on easy mode for you because you don't have to figure all this out. You literally just get a message in your email saying, "Hey, we're buying this at this time now. We think it's a good time to buy." Blah blah blah blah. So, um, if you are not yet a pro member, go do it because it puts the bull market on easy mode for you. You can make a lot of money doing this. Uh, and we're going to help you do that. So, that's the the key thing is around timing. Um, and then the next thing is where do you invest your capital? And I think there's there's three layers to think about it, right? And I actually think you probably want to invest across all three. The first layer is the infrastructure side. So, we talk about a ton of that on this show. That's your memory and GPUs and semis and um, and you know, compute and uh, power and so on. So you can look to buy assets there. And I think as long as capex continues to grow, you want to have a basket of those assets. You don't just want to own one, you want to own a basket of those assets. The application layer is the other area where I think is really good, which is look at good companies that are integrating AI and as a result their earnings are going to improve. Um, and I think that's a really good spot to be investing in. You mentioned Eli Liy. That is a big part of of my portfolio. Um, I've talked a lot about SAS. Whenever I tweet about SAS, no one likes it, but that's because it's down like 50%. Um, however, we were buying it uh at its very bottom and it's it's done very well. It's outperformed a lot of the infrastructure side. I think owning both of those almost like a barbell is really good. Now, the model layer you could own, but the problem is it's all private, so you can't really own it right now outside of uh Cursor and Grock inside of SpaceX, but I think that the price of that company is um being priced very different than, you know, just a pure play uh frontier model. So, I really like the barbell strategy, which is own the software um and the application layer side and then own the infrastructure side. Kyle, can you um talk about this fear, this kind of investor sentiment chart uh and these huge dips being opportunities? We got one comment yesterday during your live stream from a guy saying that and this is a lot of people get into Milk Road Pro and they're you know again they got we got Nebius calls way back uh in like February at $300 which is fant or Micron even or or AMD all these companies that have ripped but even on the short term for getting these like notifications of buying these dips what did this guy say he made 60k he made 60k in the last week and I'm assuming this is from yeah exactly all these calls SpaceX Sandis uh Nebius Did we call Santa? I don't even know if that's true, but it's one of the companies that bounced back, but definitely in that dip in the last couple weeks, especially through July, you guys were buying. Melvin was buying, man. Plowing back into those Neocloud, saying he's super bullish and that this is an amazing buying opportunity. Nebas went all the way down to like 147 yesterday. It was at like 280 or something. Literally a 2x opportunity. So, this guy making some cash from that. >> Well, here's the thing. You either get the calls from us or you at least get the research that gives you kind of the layout to understand the market and then you can make your own investments too. You might buy things that we don't hold, but it fits the thesis, right? There's a lot of things you can buy on the barbell strategy I just talked about. And I own a bunch of assets within them. So does Melvin. So does Martin. So do all of our analysts, but you might buy others as well. Um, and yeah, this guy here who was in my live stream yesterday made 60K just last week because of the Milk Road Pro calls. Now, here's the thing, guys. It's $25 a month, okay? And this guy made 60K in a freaking week. That ROI is better than any ROI you've ever seen. I don't care. You can try to use AI to build a company. You're not getting an ROI that good. No way. Here's the thing, though. We are running a campaign right now because Milk Road Pro is getting so freaking good that we're actually increasing the prices by a lot. So, what was once $25 a month, it's moving to uh $39 a month. What was once 25 $250 a year is moving to $299 a year. But this week you can get it at the same price at this $25 a month or $250 a year, which I would recommend the yearly cuz it's way cheaper. Um for the next week, you can lock in that price and you get it for life. So if you if you sign up to Milk Road Pro this week, you get that price for life even though we're going to close to double the cost at least on the monthly basis. And here's the thing, the reason we are increasing the prices is because Milk Road Pro has changed a ton. So, we used to be just one portfolio, now we have five portfolios, five analysts. We are launching a portfolio tracker in the next few weeks here, which means you can connect your accounts. You can see your exact portfolio, line it up along with all of our analyst portfolios. You're also about to get um uh professional investors portfolios that you can see. So Gavin Baker and others like that, you're going to see them inside and you're going to see them all across who owns the same assets that you own, how much do they own, how does it fit in their portfolio, um and you're going to be able to get a bunch of analysis based on our analysts um on your own portfolio. So this is going to be really really cool and um we're super super excited about this. This is coming at the end of August, probably early September. Uh and so that's why the prices are actually raising because this is going to get even better. By the way, there's also a community where you can sit there and you can talk to me and the four other analysts any time in the day and ask us any questions about your portfolio. So, it's just uh yeah, it's crazy to do this bull market alone and not do it with Milk Road Pro. >> And you know, and I think another thing too, Kyle, just to point out about Milk Road Pro and and it is a good time for an increase because people are getting value. That's a 25,000% return. Uh that guy, you know, being subscribed for 20 $25 a month and being able to make a trade that made him 60k. Um, I think it's also important to talk about how much that that the product has evolved dramatically. Even in my time in Milk Road, man, like this is, you know, the amount of stuff that we have now is obscene. We have real time notifications for trades. Like, how awesome is that, man? It's not just, you know, you would have gotten the notifications last week or whenever wasn't that someone like Melvin who has been our Neocloud champion, he's plowing back in during that dip. And those days where you have that extreme fear, you're scared, you're like, maybe maybe I missed, maybe I missed it, you know, maybe I should have gotten out. um you know you'd have that signal from us to continue to get into the market and everything else is going to continue to happen from here. Kyle, >> you also have I talked you know the first 20 minutes of this show uh about uh macro. We have a Milk Road macro index which basically gives you a barometer on macro at all times. You literally can see it every single day. And every week there's an update from one of our analysts John uh giving you a breakdown of the macro environment and what it means. Should you be buying? Should you not be buying? And you can see we are very risk on right now, which tells you exactly what I was saying. Um, so just as a quick look here. Oh, look at there's been a couple buys today. I got to get out of that. So, everyone here can't see. You got to pay to to see that, but looks like there was some buys. Um, but here's some updates on Nibius this morning. Uh, I made a buy some SpaceX. Uh, here's your MRMI brief. Uh, we do earnings updates. So, every time there's an earnings, any of the companies that we hold, um, we do updates on them. Uh and uh yeah, it's um there's just there's a lot that you are gonna get here to turn this bull market on easy mode. >> Exactly. And to just and to just keep up and I think is also we have different analysts and you guys cross over theme-wise but you also have your different strategies. You also have your different ways of doing it and I think that that's really helpful for people and even all the features that are coming uh you know totally worth the price and and justified for the for for the price increase because this stuff is really good man. So, this is your last week, guys, to get in at this price. Price goes up 60% on the monthly. That's the calculation, Kyle. So, that's that's a big increase. So, if you want to get in at that $25 a month, this is your chance now. The next couple days, uh, is is basically the the last time that you can do it. So, the link is below. >> Let me just say Q4 is going to be very bullish. You're going to want to be in the market. You're going to want to know what stocks to be buying because, as I just showed you, we're in a Goldilocks moment in macro. We are in an incredible opportunity in terms of AI as I just talked about. That's not stopping this year. That might stop next year and we will of course let you guys know when we think that's going to happen, but I think we have another big leg to go in the market and uh and so you want to be involved in that. So you can try to invest alone if you'd like. Um but why not do it with friends? >> That's and that's what we do in Milk Road Pro. Kyle, it's been a great episode, man. Thank you for sharing your theory on the everything bull market. And again, if you guys want to go pro, now's the time. Uh, it's at the link below and all the information is there. Make sure you sign up and if you got any questions about today's episode, sign up and go ask Kyle in our Discord. Go grill him or write a a question on one of his pro updates. You can do both of those to get in touch with him. Otherwise, Kyle, good to see you, man. Thank you for all the info. >> Thank you everyone. Thanks for listening to Milk Road. If you enjoyed the show, make sure you like and subscribe. And if you're struggling to find winners in the market, that's exactly what Milkro Pro is built for. Our analysts have called some of the biggest winners early, and Pro lets you see what they're buying next. every trade they make and the research behind every position. Check out Milk Road Pro at the link below. Everything you hear on Milkroad is forformational purposes only. These are our personal opinions, not financial advice, and we may own some of the investments we talk about. Always do your own research and make the decisions that are right for you. See you next time.