LIFE CHANGING Opportunity is Coming in The Stock Market

We are about to experience a once in a decade opportunity in the stock market and most people have no idea what's about to happen. See, today CPI came in much better than expected and I think structurally this market is overpricing how hawkish the Fed is going to be and they're actually beginning to underprice how {quote} strong the labor market has been. And in this video, I want to talk about those specific topics that feeds into the bigger picture here, but I really want to talk about this midterm election, the volatility that we could be running into here in the next couple of weeks. It's It's normal. Okay? We also have earnings for this week and bigger earnings for next week, but TSMC earnings Thursday morning, that's going to be big for the AI story. And I do think investors are focusing on the wrong areas of this market and I do think it's actually much more important to understand what tends to happen after a midterm election and the massive rally that we're likely going to be looking at between November 3rd and about July of 2027. But getting a little deeper than that, I think the areas of the markets that are going to rally the most are some of the most hated, misunderstood areas out there. Hence, you have kind of an economic tailwind here, you have a seasonal tailwind, and you have a fundamental tailwind that's all going to come together towards the end of this year into 2027 that could make you a lot and I mean a lot of money. And we're going to talk about that, certain stocks and sectors that I really like. But again, I want you guys to keep in mind starting about late July-ish, you tend to get the markets that begin to roll over heading into the midterm election. For one reason or another, there's always something for Wall Street to freak out about before a midterm election. Just volatility is elevated. Like, do midterm elections actually matter? Does anything actually happen? Not really. I think this time around is a little more interesting because Trump is the president and he he there's a lot of volatility around Trump and potentially if Republicans lose the midterms, which it looks like we're heading in that direction, that would actually be an even bigger positive. I'm not bagging on that. I don't know what's going to happen here. But if preliminary signs are correct and Republicans do lose the midterms, that's going to make for the the rally after the midterms even larger because it will help to limit Trump's power and Wall Street loves gridlock. They love when nothing gets done. But, what's important to understand here is you're looking at November and November 3rd is the actual midterm. You tend to literally skyrocket after the midterms and then go vertical throughout the rest of the remaining year. But, things get interesting in the following year as well. You tend to have a very strong year after a midterm election year. And I think 2027 is set up to be the exact same. And I think the reason for this, outside of just midterm seasonality, is look, by next year, we should have inflation at target. I I would imagine. We should have you know, I think the AI trade's going to slow down a little bit and we're going to talk about that, but I don't think we're going to have some kind of epic disaster for the AI trade between now and next year. So, that's pretty stable overall. I think you're going to have an environment where maybe the consumer can pick up a little bit. I think the war with Iran hopefully is over with by then. I think the war between Ukraine and Russia could be over with by next year. You could have some very powerful tailwinds to lower Treasury yields, to lower oil prices. And you could have a situation where the Fed is actually cutting rates a little bit next year. This would all support the markets moving higher. And I think one of the biggest risks that has actively been facing this market is actually Trump volatility. If Republicans lose the midterms, that's going to limit some of the power that Trump has. And that's just an added cherry on top, if you will, for the stock market. But I also think all of the deregulation that we've seen at the start of Trump's term should really begin to kick in next year. Deregulation is powerful. It's It's a powerful economic force, but it doesn't happen quickly. So, I think next year you're also going to see a little bit of that that kicks in, that boost economic growth. So, in essence, I actually see a very good setup for next year in the markets at this point. Obviously, that can change, but things look pretty good for next year. And overall, things look pretty good for a post-midterm rally starting early November that you know, you know, heads till like July of the following year. There's no reason to think that doesn't happen this time around. And there's actually, again, reasons to support why it could be more aggressive than the average. But I do think we are about to see a colossal shift in this market and a repricing. You guys have to understand, if you're an investor in the market, you have to be looking for an edge. You have to be looking for opportunities that are not easily visible by Wall Street. Now, what what does that mean? Well, normally this happens on a much smaller scale, okay? Normally, you'll have like one stock that's kind of overlooked or or or or something. Right now, you have an entire sector and really multiple sectors of the markets that are mispriced. And that doesn't happen often. And this is why I do think you're setting up for a once-in-a-decade opportunity. We'll talk about that in just a moment. But this shift that I think is coming has to do with AI and the actual timeline of AI adoption. So, when we're thinking about CapEx and data centers and compute demands, yes, we're going to need more compute. I don't think the CapEx trade is going to die. I think it's going to stop going up at a crazy clip. I think we're going to stall out a little bit. Instead of CapEx growing what people are expecting like 70% next year, I think it grows at 30% potentially next year. That's not enough to force AI stocks to be the, you know, talking point of the markets, right? Like this year, it's been all about AI hardware. I don't think with those kind of growth rates, AI hardware has to lead the markets. I don't think they crash either though or like, you know, bubble pop kind of scenario. So, I kind of see a stabilization within the AI trade from a ridiculous, irresponsible level of spending down to something that is more manageable. And the reason for that is where the compute demand is actually going to come from. So, 2026 was the year of experimenting with AI. Companies wanted to see what AI can do for their business. And they've largely figured it out where they can adopt AI, you know, so on and so forth. A big problem for enterprises though is up to 90% of their data is unstructured. Video files and audio messages and blah blah blah blah blah. And in order to use AI effectively throughout a company's enterprise, you have to structure that data. And that's why companies like Snowflake and Datadog, MongoDB, they're seeing so much demand right now. It's because companies are restructuring their data. So, I think this year was the experiment phase. 2027's the year of getting ready to implement AI. And by the end of this by the end of 2027, you will see companies actually begin to implement AI. The the the real compute demands come between 2028 and 2030 when enterprises truly adopt AI. And again, look, I think that's coming, but it's not coming as fast as a lot of Wall Street is going to expect. And I think that's why the capex numbers will slow down a little bit. But you guys have to understand, what are the actual stocks that are going to win from this at this point? Even Microsoft CEO talks about um at least over the weekend on July 12th, Microsoft CEO put out a post basically agreeing with Palantir CEO Alex Karp that large language models are stealing companies IP. We've seen examples of this. I mean, OpenAI is being sued by Apple. You've seen Claude basically copy Figma after they signed a partnership with them. So, like look, why is there real estate agents in the real estate market? Why are there insurance brokers? Like, it it it it's because certain things have a lot of risk associated with bad decisions, okay? Or errors or whatnot. Real estate's one of those. You don't legally have to have a real estate agent to buy or sell a home, but 91% of homes are bought and sold with real estate agents because there's a lot of risk. So, what's going to happen is you're going to see large language models and like frontier labs. Yeah, they're there. But, that's going to flow through to software and controls straight to enterprises. So, software, that's really an area that's going to be the middleman, right? And and and I kind of look at it like existing software tools are just going to get better at our new features. That's where a lot of the compute demand is going to come from. But, it's going to also protect enterprises. So, from 2028 through 2030 and likely next year, as Wall Street is forward-looking, you're going to start to see software stocks really really outperform. And this is where I think the once-in-a-decade opportunity comes from because Wall Street is so wrong and it's so obvious to see if you're like me and probably like you and you're interconnected with what's going on with with software and how this story is developing, it's one of the most obvious calls I've ever made in my life. Like, being bullish on software, not all software, but software that's actually going to benefit from what I'm talking about here, it's one of the easiest choices I've ever made with what I believe will be one of the best opportunities, the biggest rewards that I've ever seen. And again, we have seen this relationship between hardware and software. Every time hardware goes up a lot, software goes down a lot. When hardware goes down, software goes up. I don't think that has to, you know, be the case forever. I do think software and hardware can go up at the same time, but I do think here in the next one to two quarters, you are going to see CapEx numbers begin to slow down. Now, next week we're going to get more of your hyperscaler earnings. This week we have TSM. I don't know how much um their new information they're going to give us, but I just don't think there's going to be so much good news, so irresponsible spending, one would say, that all of the attention goes to hardware. People are going to start broadening out their opportunity horizons. And I'm just telling you this before it happens. And one of those areas that's going to be a massive winner from this realization that everyone's crowding in the same area is software. And that's a big reason why a lot of the software stocks that I own and invest in have actually been doing great. But for, I mean, our portfolio is up like 42% year-to-date. We're over 4x outperforming the S&P. If you guys want to come trade and invest alongside of us, that link is down below in the description of today's episode. What's also interesting is on Google Trends, I uh typed in token cost, and this had been steadily rising for the most part since October of 2025. It had been rising, rising, rising. It peaked out in early June, and now it's come down to the the lowest levels you've seen since, you know, back October, November of 2025. I think this is a clear sign that the experimentation phase of enterprise AI usage is likely starting to die down. And you guys have to understand, these software companies that are actually implementing AI in a serious way, these are not the experimental winners from, you know, AI adoption. These software companies are going to be the real winners from long-term AI adoption starting at some point next year throughout, you know, 2030 and beyond. These are the like I like to put this into an like some kind of analogy, right? Um Imagine you're renting a car. You rent a car through the car rental place. You're renting it, right? Does the dealership benefit from that? On the opposite side of town, no. The dealership benefits when you make a long-term commitment and buy the vehicle. So, right now people are renting the car. They're getting ready to buy the car, but they're not buying the car yet. And that's why, again, yes, some companies are seeing early, you know, AI adoption. Some of these software companies are putting up great AI numbers. And those are the companies, I think, that are going to do the best. But, you're going to see this S curve really begin to inflect higher really in 2028 and 2030. Markets are forward-looking, so I think, you know, next year software is going to have a great year, and I think this this rally is going to be, you know, really good for a lot of software stocks, but this is really like an idea for the next 1 to 3 years. And if you guys want a visual visualization of what I'm talking about here, you can see this is a graph of the S curve of AI agents. So, 2026, there's not many agents out there performing tasks. Next year, you begin to ramp as well. Next year is going to be good. There's going to be a lot of growth, but 2028 is when you hit about 500 million agents worldwide. And by 2030, that number 5x's to 2.5 billion agents. So, really it's 2028 through 2030. But again, the markets price things in ahead of time. So, that's why stocks that are even pre-revenue or biopharmas are good example. If there's a promising biopharma company, that could be a $10 billion company with zero revenue. Why? Because people are expecting the revenue to come. Um and I think a lot of these software stocks could go up a lot even before they really start to see that you know, S curve of 2028, 2029, and 2030 of adoption with the expectation that it will come. Hopefully, that makes some sense. Now, before we talk about specifically some of the software stocks that I like the most right now, I do want to mention um I I do think it is likely that we have some kind of correction or volatility um over the next couple of weeks. And I think there could be a couple of reasons for this. First and foremost, whatever is going on with Iran, if something gets worse or oil continues to go up and you know, people get concerned about inflation, that's that's a part of this. I don't think that's going to happen. I'm not that worried about that. What is a little concerning is potentially TSUM earnings this week. But the hyperscalers for next week. I don't see an en- environment where capex goes up so much that we are blown away that the money just massively goes into AI stocks. I see a scenario where capex maybe goes up a little bit. In that scenario, it's not enough to reignite AI stocks. Hyperscalers are still spending more. So, they probably come down. So, you could have a scenario where hyperscalers and AI stocks come down at the same time. That could be a problem for the markets. But, I think broadly speaking, if you're just thinking about the markets here, expectations are very high for this earning season, right? This This is no surprise. If you look at any different chart, you're going to see, I mean, these are the highest at highest EPS uh expectations um for earnings we have seen in 4 years, 5 years, since Q3 of 2021. And there's a better chart to show you guys this. So, I'll just scroll down. If you guys are not following me on X, go ahead and uh follow me on X. It is the real TCI over there. But, typically when you have this kind of you know, high expectations, it's it's typically not great. So, these are the highest expectations you've seen in a long time. It really blows away anything of 2022, 2023, 2024, or 2025. You're expecting 22% EPS growth. I think we're going to beat that. I think we're going to come in at like 30%. But, it's just not that impressive. So, could you see a lot more of the I guess sell the news reactions around earnings? Yeah, I definitely think so. And uh typically just again, the higher the expectations are, the worse off um the the positive reactions tend to be. I I also think margin debt is a little bit of a cause for concern in the near term. I don't think this is going to take the house down or anything like that. But, really when you see margin debt spike this much, this quickly, you're up 55% year-over-year. Anytime this happens, you tend to have like a bear market, massive correction, bubble popping kind of moment. I don't think that's going to happen here. Um but, I do think there is a risk of these near-term kind of drawdowns, especially within the AI stocks because, look, you know, SK Hynix and Samsung, they're 60% of the South Korean market and there's a massive leverage problem over there. There's a massive gambling problem over there um in those stocks with leveraged ETFs and, you know, some of those leveraged ETFs are like 90-95% owned by retail investors. You're talking billions of dollars. And, you know, if if sentiment shifts, if earnings do not impress, there's a chance you could have some, you know, pretty aggressive margin call-like scenarios quickly. Now, I don't think we're going to have a bear market or anything like that. I think a typical run-of-the-mill correction is likely in store um, you know, as we get deeper into this earning season though. Now, some of my favorite stocks to play the next AI theme, I'm just going to share them with you. Zeta Holdings. This is what a beautiful company. It looks like it wants to make a move to the upside, but this is going to be a big winner from AI adoption and re- um, reconci- you know, companies that go from legacy marketing to AI-powered marketing. Uh, Zeta's really going to stand to benefit there. Rubric. This is mission-critical in the day and age of AI. Yeah, we were buying the stock in the 40s and 50s during the peak of the SaaS apocalypse, but I still think even at $87-88, you know, this is a $230 stock by 2028, right? So, I I think uh think there's a lot of room for that to do well. I think UiPath. This is the epitome of, you know, UiPath is not a winner from experimenting with AI. It's very complic- it's not complicated in the typical sense of you think, but UiPath can string together hundreds of actions for agents and RPA bots to do inside a company's, you know, enterprise database, right? So, UiPath is just not an early winner from AI experimentation from enterprises. UiPath is the company that enterprises call when they're like, "Hey, we're ready to adopt AI agents. Let's let's get the ball rolling." UiPath is a company that benefits from that, but there's a lot of barriers to entry even at this stage from enterprises mass adopting AI agents. So, literally, the image that I showed you, right, of AI agents, you know, growing, literally 5x-ing from 2028 through 2030, UiPath is developing, well, not developing, it's already developed, their Maestro platform to orchestrate these AI agents. I mean, yeah, of course, 2026, you're not seeing that much in the numbers yet. 2027, things are going to get better, but between 2028 and 2030, is when the exponential rise happens, and UiPath is going to be a big winner from just that. I also think Tesla for robotics and real-world AI applications, that's going to be, you know, another interesting one. I think, you know, companies like uh ServiceNow, you know, they're also going to have a place at the table here. Um, you know, wouldn't wouldn't don't hate the idea of that of of that. Zscaler, you know, another one. I think it's down a lot. I think it is going to be a big winner from AI. I think cybersecurity in general is going to be a big winner from AI. Zscaler actually looks pretty attractive risk-reward, you know, basis here. So, these are some of the kind of names that I like right now. You can't go wrong with like a Data Dog or a Snowflake. Snowflake it's up a lot. You know, next year is going to be the year of reconfiguring your data, taking data, just raw data from silos and organizing it. And I think there's going to be a lot of demand for for that next year specifically as companies get ready to mass implement AI. But how much of it's already priced into these stocks? Yeah, yeah, I don't know. MongoDB might be a better way to play that theme since it is still down, you know, from its five almost $600 all-time high. Stock's at 343. Maybe it's a better way to play it. But um you know, some of the some of the first ones I mentioned, Zeta, UiPath, Rubrik, these are core AI winners that have a clear trajectory to being AI winners that are priced as if they are AI losers. I wouldn't hate you if you're buying an Oracle or a Microsoft as well, although Oracle has more of a a debt issue. Microsoft, if if you want something with a lot of stability, you know, it's just going to be around. I think Microsoft's going to be an easy AI winner as well. So, these are the kind of opportunities you want to be looking at and thinking about in this kind of market when I think we're about to see this massive shift. But again, I do think this will ultimately set us up for a very strong end of this year and 2027. Again, I do just want to warn you guys, I don't think you want to be chasing hype here. I don't think you want to be chasing the hottest stocks in the market even though, you know, investors are like, "Oh my gosh, look at this growth today. Look at what's happening today." You want to be thinking about where the puck is going. And that's what the most successful investors of all time have done. They're not investing for today. I'm not investing for what's happening today. I'm investing for what's going to happen, and what's going to happen is software is going to outperform. The you know, the Fed's going to be more dovish than expected. Consumers going to get better. I think real estate's going to pick up. Cyclicals, financials, software, areas of industrials, the left behind forgotten about parts of this market. That's where the exponential opportunity is. Right here and right now. You always have to position early to take advantage of the gains. That's what this video is designed to help you guys do. Hopefully it provided some value or perspective. Nonetheless, hit the like button. Subscribe to the channel if you guys have not done so already. If you guys want to come trade and invest alongside of us, again, we are 4x outperforming the markets this year. And I think it's only going to get much more dramatic throughout the rest of this year. And it's going to be insane next year through really 2030 for a lot of the stocks we're investing in uh right now. My My opinion, obviously not financial advisor, not financial planner, come to your own conclusions as always. Have a fantastic rest of your day though, and I will see you in the next one.