GET READY! History Says This Happens After Midterms.

Folks, midterms are officially over and in today's video, we're going to break down what is going to happen over the next 6 to 12 months. Firstly, we're going to start with how markets have performed in the year after every one of the last 19 midterms. Number two, we're going to talk about how the states with the most AI data centers just voted. And you're going to want to pay attention to this. Three, the fears that Democrats will pause AI data centers and what that could actually look like. I think this is vastly overblown. four, where the power is actually shifting and it's shifting from Washington to the states. So something you have to pay attention to there if you're invested in AI companies. And five, how the companies we follow can pivot to the new people in charge and which ones are the most exposed. If you are somebody who is invested in the AI trade in any way, shape, or form, or you're just a conscientious observer, well, this video is indeed for you. And then at the end of today's lovely video, we're going to break down a sponsored segment on a company called EVA Live, ticker symbol GO AI, on the NASDAQ. Eva Live builds AI that runs digital advertising, deciding which ad goes in front of which person. And now it's taking that same AI and using it to launch new businesses from customer acquisition to sports predictions to drones. I'll break down the company and why you may want to put it on your radar. And if you're the one taking the ultimate risk, you better be the one doing the ultimate frisk. Always do your own due diligence on all ideas presented. Okay, let's get to work. So, how have stocks historically done after midterms? Well, if you go back to 1950, there have been 19 midterm elections. I took the S&P 500's close on every election day and measured it 12 months later. All 19 were positive, 19 for 19. And if you've been watching me over the last couple of weeks, we've been talking about this, but the average was 15.1% in the green. And even the worst year, 1986, was still up 1.1%. Compare that to a normal year in any 12 month stretch since 1950 averaged about 9.4% up and it was only positive about three out of four times. So the year after a midterm is actually more positive than any other period of time that you're looking at on average. And the explanation is simple. Markets hate uncertainty. They absolutely hate it. And once you get certainty, it's a very positive thing because people can plan. And midterms historically have also been usually a check on the president's power. In almost every midterm except for these two here, you ended up with a split government. And a split government means nothing can pass. So there's no challenges to the regulatory environment, which means two years of certainty. Now, of course, that doesn't mean that line goes straight up. In fact, the closest match to today is 2018. You had Trump in the White House, Democrats taking the House, and the S&P fell 14.7% between election day and Christmas Eve. and it still finished the year up almost 12%. So, let's put that on today's chart. So, if you zoom out, the rhythm this year is pretty clear. The S&P bottomed on March 30th at 6344 and ran 23 whopping percent to a record close of 7819 on October 6th. Now, zoom in. Since mid August, it's been building a beautiful base. The ceiling is 7800 to 7820 tagged August 13th and again October 6th. The floor is around 7540 to 7550 which held September 16th and again on Monday. And right now we're sitting on that floor. Now here's the bad though. The S&P did lose its 20-day and 50-day moving averages both up around 7,700 and the October 30th drop came on the heaviest volume on the last month. So Charlie, what could the future look like if we're paying attention to previous history? Well, if that floor breaks on a close, the next stop is the 200 day moving average at 7316, which lines up almost exactly with the July 29th low. That's about 3% to 4% below where it's trading right now. And if we get a full 2018 size drop of 14.7%, that puts the S&P around 6456, right on top of the March low at 6344. And that's a proven floor. From there though, it would need to rally about 35% to hit the average midterm year. In 2018, the rally off the Christmas Eve low was 31%. So, the deeper the drop, the harder the 15% gets. On the way up, 7819 is the door the S&P has to walk through, and it's the close that counts. Above that, 8,000 is a round number that tends to act like a magnet. Then the measured move. So, the base is 277 points tall, 7819 minus 7541. So add that to the breakout and you get about 8096. And here's the one that I like. It's something you got to pay attention to. So the 1.618 Fibonacci extension of the March to October run lands at 8731. The average midterm year starting from election day's close lands at 8713. Those are 18 points apart. So here's how I'd frame it. A test of the 200 day or even a flush toward the March low followed by a break through the record toward 8,700 would be a completely normal post midterm year. So I would say trade the moves. Don't let the moves trade you. We like to exploit the volatility, but you don't want the volatility exploiting you, right? So the takeaway is you don't always see line go straight up, but each time the year-over-year from the midterm date is positive and on average a little bit over 15% up. Okay, but Charlie, how about state governments? How did the data center states vote? Obviously, you could have a lock on the federal level, but governments in the state level, very different picture. Well, Democrats, according to the numbers that we have right now, flipped the governor's office in Texas, Georgia, Ohio, Iowa, and Nevada. And according to Wells Fargo, Texas alone has some 27% of all the planned data center capacity in America, Georgia has 7%, Ohio 5%. And if you look at the exit polls, NBC's exit poll asked voters whether they'd want a new data center in their community and 76% said no. 86% said they're worried about their utility bills. So utility bills is a main reason. Now, I looked into this a bit and the grid that covers 13 states, including Pennsylvania, Ohio, and Virginia, pays power plants to guarantee there's enough electricity. And in two years, that price went up more than 11 times. And the grid's own watchdog said 63% of one of those jumps came from data centers. So folks are getting pounded by these massive electricity costs on top of everything else and they're not so happy about it because these AI companies they see as raking in a fortune long term off their backs and I also don't like that too much. So I can understand why people don't like that. So anyways, this brings us to number three. What do these new politicians actually want to do and are they going to hamper the AI build? Obviously the headlines look pretty bad. AI pause, AI moratorium. Okay, what about the AI pause fear? So, we ran through a bunch of their speeches and here's what we found. So, Abdul al-Sed, who just won the Senate race out in Michigan, was asked two days before the election for a fullon pause. And his answer was, full on pause. >> Full on pause. >> Full on pause. >> And then Joselyn Benson, Michigan's new governor, said, quote, "We need to put a moratorium on data centers and their tax breaks and stop them from raising our electric bills." Kesha Lance Bottoms, Georgia's new governor, said, quote, "We don't need to take another step forward in the state until we fully understand what the impact will be on consumers." And then Gina Hin Josea, Texas's new governor on data center said, quote, "They are guzzling up all our water, guzzling up all our electricity." Alexandria Okasia Cortez AOC who introduced the national moratorum bill with Senator Sanders said quote whether that is a moratorum whether it is a pause so that there's actual consent in these communities Jeff who's now in line to be speaker of the house he said quote we have to protect the American rateayer from some of the downsides that seems to be one of the least committal of all of them and he's going to be the most powerful in the house now Rob Sand Iowa's new governor said quote I want a bill on my desk that forces data centers to pay full freight to carry their own weight. Beautiful rhyme there. Amy Actton, Ohio's new governor, said, quote, "Ohio is open for business, but we are not up for sale." Josh Shapiro, just reelected in Pennsylvania, said, quote, "Strict standards to hold data center developers accountable and protect Pennsylvania communities." And on the other hand, you have John Fetterman, who's a lot more centrist. senator from Pennsylvania said when the mortorium bill first came out he said quote I refuse to help hand the lead in AI to China. So here's my take on this. A lot of these quotes do sound scary and quite frankly we were seeing some scary quotes like these out of the Republican side too because a lot of voters don't like these data centers. They don't like the buildout and the electricity cost. But the loudest voices are coming from the far-left wing of the party that Senator Bernie Sanders leads. And I don't think they represent the vast majority of the new players that just got elected. Most of the concerns are about power bills and the proximity to communities and on net. I believe the vast majority of Democrats don't want to shut down data center construction. I think that would be lethal long term and I think it would be toxic long term and also a lot of these guys quite frankly get a lot of money from the industry. I think you're probably going to see some new light rules and regulations specifically on the state levels and I think that that might be a good thing long term for AI data centers and the overall trade. Smart regulation can actually be a very good thing for business. Think of it like a referee in a game. With no referee, people are going to cheat and the fans are going to stop showing up. But at the same time, a referee who blows the whistle every 10 seconds ruins the game entirely. I think the current government is a little bit more on the no referee side. But we're increasingly seeing the pendulum switch back to a little bit more refereeing. I think what we're probably going to see over the next two years and probably the next four years depending on how 2028 goes is you're going to see somewhat higher costs and slower approvals for data centers on the state levels and especially in Georgia and Texas which are the two states that you want to watch because a lot of the capacity is being built out there and some of the results on the state level are very surprising but overall just because there's a referee doesn't mean that the building is going to go away. I think this is going to be a massive industry and a little bit of refereeing isn't going to be a bad thing. So personally, maybe I'm an optimist, but I see this all as a very big positive. Okay, so where is the power actually shifting? How does this affect our money? Well, if you think about it, if you start with Washington, a Democratic Congress can hold hearings and subpoena AI executives. One Democratic congressman summed it up in two words, lawyer up, you're probably going to see a decent amount more of that. But Congress still can't pass anything without President Trump's signature. So they can't override his veto. So that means we have two years of stability on the federal level. stability in terms of new legislation. I'm sure it's not going to be stable in terms of the political rhetoric back and forth. You're going to see lots of scary headlines and lots of scary hearings for the next two years, but very little new law. So, that means that the AI industry from a federal standpoint still has a pretty crazy green light. But the real power is in the states. Even President Trump's own AI executive order left data center decisions to them. So, the current regime already left the states to do what they wanted. and states decide who pays for the new power lines and plants, who gets tax breaks, who gets permits, and where buildings go. So, the takeaway in my view is that the decisions that matter most for data centers will be made by governors and state lawmakers. So, that's where you actually want to keep your eyes on over the next couple of years. So, how is this going to affect some of our favorite stocks? How are companies going to pivot to be able to still build in this environment? Well, the biggest companies have already started this year. Microsoft, OpenAI, Amazon, Google, Meta, Oracle, and XAI all signed a White House pledge to pay for their own grid upgrades and power plants. That's almost exactly what the winners of this last election just campaigned on. Now, of course, pledging to do something and actually doing it are two different things, but each of these companies has to pursue this anyways because there's such a shortage of power. And Corweave CEO Michael Intrur said this about moratoriums. He said, quote, "Moratoriums, they are not going to impact the demand for this infrastructure. they are going to impact where this infrastructure gets built. Then he added, quote, it will cause perhaps an increase in cost. And in other words, I mean, he thinks that we're going to see the same amount of building just in different places. If one state decides to be more pro AI, it's going to see more building. If one not so pro AI, less building. Now, just on a very broad level, which companies do I think are the least exposed to this political headwind? Nvidia is a clear winner here. It doesn't build data centers. It sells what goes inside all of them. Jetson Hong has been pitching the build out as a whole bunch of bluecollar jobs. If demand just moves, Nvidia still sells the chips. Maybe there's a bit of a hiccup as some companies pivot to different areas in different states, but hey, they still have to buy from Nvidia. So, big winner there. Meta is another one. Its biggest project is in Louisiana with others in Ohio and Texas. Meta can actually afford to cover the full cost of the power lines and plants it needs. And actually, if you dig into it, it even put money into a super PAC set up to back Democrats at the state level. New rules would raise its cost, but it has the money to absorb them. Watch its 2027 capex number in late January. I think you're going to be surprised. They're going to continue to spend a crazy amount of money. Applied Digital, its campuses are in North Dakota, which didn't have a governor's race, and it uses closed loop cooling with very little water. If new projects move to states that want them, North Dakota could get more of them. So, I don't think Applied Digital is going to be hurt by this. If you look at Cororeweave, it's spread across Pennsylvania, New Jersey, Oklahoma, and North Dakota, but a lot of its capacity is in Texas, and it depends on other developers finishing on time. So, Corweave, I actually believe in long-term. I'm a big believer in it. I think it's a great dip by. However, it does have a lot of drama with debt. And now this is another headwind that it's going to have to move past. I think it ultimately will, but the drama can blow up a little bit more. And I think is the most exposed short-term because almost everything it builds is in Texas, but its childress campus is already built and delivering a $9.7 billion Microsoft contract and it owns its own substations. So, if Texas does pass a pause, which again, I don't think it's going to pause in any meaningful way, it would most likely apply to new projects like their Sweetwater project while the Microsoft deal would keep going. Okay. Anyways, before I wrap up this video, I do want to tell you where I stand long-term on AI because so often this is lost in the overall conversation about the market. But at the end of the day, here's the bigger picture, and I think this is what's going to carry you to long-term wealth generation if you are on the right side of the straight. Number one, I see the data showing AI is improving exponentially and I believe that will continue. Number two, I believe the next 10 years will be the most extreme development curve in human history because of this exponential growth curve in AI. Three, I believe that many people will sadly lose their jobs, but I also believe that new jobs will be created. Four, I believe that by the time AI is built into everything, building individual wealth, it's going to be harder than ever. So this is your period of time to invest in the right companies to build that extra margin and not to be dependent on whether the government does some form of UBI or whatever. Five, I believe the vast majority of people either don't have money to invest in AI, don't know how to do it properly, or will get scared out of investing by the endless fear and doomongering that is only going to get louder as the overall AI trade gets more and more lucrative. six. I believe there's going to be many more massive sell-offs and bounces just like we've seen over the last 10 years. You're going to see even crazier over the next 10 years. And sadly, in each selloff, a lot of people will sell at the bottom only to buy back in at the top. And the media is going to play with them, telling them not to buy the dip. Don't buy the dip. Seven, I believe many people, probably the vast majority of average folks, are going to sit in cash, and that cash will lose a lot of its value. And eight, I believe that the top 1% are going to use all of this cycle to have more control than ever. Not because they're nefarious, but because they see the bigger picture. They're going to see, "Oh, there's a massive dip. I can buy great assets at great prices. Oh, there's a massive rip. Hey, I could take some profits off the table." Whereas the average person, unfortunately, follows the media too much, believes the media too much, and what they're going to be doing is they're going to be panicking out of their assets at every new low, every bad headline. They're not going to understand what they're buying. They're not going to be paying attention to wonderful channels like this one that explain the bigger picture and over time unfortunately they're going to become more and more dependent on cash and cash loses its value long term. Anyways, that's my take. Let us know your thoughts down below. Okay, folks. Now it's time for our sponsored segment on EVA Live, ticker symbol G AI on the NASDAQ. This segment is disseminated on behalf of EVA Live. So, what do they do, Charlie? Well, Eva Life is an AI company that started in digital advertising. Its core product is called the EVA platform. It uses AI to match advertising campaigns to individual ad spots one at a time. It tracks which ads actually turn into customers and it uses those results to make the next decision better. The company moved up from the over-the-counter market to the NASDAQ on January 28th of 2026 and the advertising business has grown. In 2025, Eva Live did about 17 million in revenue, up about 83% from 2024, and it reported about 8.1 million in net income. In the first half of 2026, revenue was about $8.1 million, a little higher than the same period a year earlier. Now, here's where it gets interesting. So, Eva Live is taking the AI it built for advertising and using it to launch new businesses. Right now, there are four of them. The first one is Fast Quote. Fast quote finds people who are already shopping for something like a debt consolidation loan or a home security system and connects them with the companies that sell it. On August 25th, Evil Live said fast quote had reached about $10,000 a day in revenue from just those two categories. That's a run rate of potentially about 3.65 million a year. And the company said revenue had recently been growing about 20% week over week. The plan is to expand into 50 more categories like real estate, insurance, legal services, and auto. And the CEO, David Boulet, put it this way. Quote, "Our vision is not to build 50 separate businesses. It's one AI engine working across all of them." And then the second one is Eva Brain. When it launched on April 28th, Eva described Eva Brain as an AI agent that can run ad campaigns on its own across platforms like Google, Meta, and Tik Tok. Then in August, Eva took that technology to websites. On August 26th, it signed a white label deal with Domain Development Corporation, a domain company founded in 2002 to put Eva Brain on its websites. So instead of clicking through menus, a visitor just types what they want in Eva Brain helps them get there. Financial terms weren't disclosed. The third one is EVA Sports Predict which launched on October 27th. It covers professional and college baseball, football, hockey, and basketball with a separate model for each sport. It looks at things like team and player data, venue conditions, and sports book odds and gives you a projected score, overunder probabilities, and a confidence level. It timestamps every prediction and records the final results so users can go back and check how it's actually doing. And Eva says more consumer products like this are coming over the next several weeks. And the fourth one is drones. Now, in June, Eva Live formed a subsidiary called Eva Defense. In August, Eva Defense signed a 12-month, $1.2 million development program with a company called Boomerang to build a drone under 55 lbs that's designed to keep flying and keep communicating even when GPS and radio signals are jammed. The goal is 10 to 20 field tested prototypes. In September, EVA Defense showed a low-noise drone prototype and its advisory board includes a retired four-star Army General Robert Brown. Then at the Army's big AUSA conference in Washington from October 12th to the 14th, the team met with Army stakeholders and defense contractors to work out the specs for its next round of development. On October 29th, EVA took that drone technology into farming with EVA Farms Site. The idea is drones that take off vertically and then fly like a plane so they can cover a lot of ground plus AI that scans the fields for signs of disease, pest, and crop stress. From there, the platform helps plan targeted treatment and flags irrigation problems. Eva plans to make money from the software through things like subscriptions and per acre monitoring and to work with drone makers and operators instead of building every drone itself. Now, let's talk about some of the potential risks that you should consider and also make sure that you read through all of the SEC filings and the risk disclosures. But some of the big ones that you should consider are that Eva Live isn't generating enough cash to fund itself yet. It's still a very early stage company. At the end of June, it had about 2.2 million in cash after using about 5.2 million to run the business in the first half of 2026. In its own filings, the company says it must raise additional capital to continue as a going concern. And for a company this size, raising money usually means selling more stock, which is the evil dword dilution. Beyond that, the new businesses are all early. The company says Eva Defense hasn't generated any revenue yet, and Eva Farms site was only announced on October 29th. And like any small stock, these companies can move very violently hard in any direction on a single headline. So, those are things to consider when you're doing your own due diligence. But in conclusion here today, Eva Live built an AI engine for advertising, and it's now using that engine to launch new businesses. Fast quote, Eva Brain, Eva Sports Predict and drones. Fast quote is already bringing in revenue. And Eva Sports Predict is live. This is a very early and very high-risisk company. And of course, execution does need to show up for this company to work out, but it is one you may want to start your due diligence on and put on your radar. If you want to dig in more and begin your own due diligence, you can check out the company with the first link down below. As always, this is not financial advice. This is a sponsored segment disseminated on behalf of the company, so make sure to consider that when you're taking a look. Anyways, have a great rest of your day and we'll see you in the next