How Louis is thinking about Physical AI… did we just get a recession signal?… why Luke Lango remains bullish… checking in on Altcoin Season… Jonathan Rose is eyeing an Ethereum trade
Two years ago, Louis Navellier, Eric Fry, and Luke Lango launched a project called the AI Revolution Portfolio – a high-conviction basket of stocks with the potential to soar 5X, even 10X, as AI reshaped the digital world.
Since then, the AI story has accelerated even faster than we expected…
AI models have dropped with powerful advancements in capability… Big Tech has gone all-in on infrastructure… and breakthroughs like Nvidia’s Blackwell architecture are now setting the stage for something bigger – the next step in this evolution…
Physical AI.
We want to help you get ahead of this.
In the video interview below, Louis sits down with InvestorPlace’s Chief Content Officer and fellow Digest writer Luis Hernandez to break down some of the most important developments in this next phase of AI.
We’re about to see what happens when artificial intelligence jumps off your screen and into the real world, powering robots, humanoids, and intelligent machines across the economy.
In the interview, you’ll hear Louis answer questions including:
- Where are the trillions of dollars pouring into robotics actually going?
- Which industries will be transformed first by physical AI?
- How will the federal government play a role in this shift?
Most importantly, Louis tells you where to look today to take advantage of the massive physical AI boom that’s just getting started.
Starting tomorrow, Louis, Eric and Luke have a new prediction about this new phase of AI growth – and the stocks they believe will benefit the most. I’ll bring you more details after their prediction drops tomorrow.
To watch Louis and Luis, click the play button below.
Did we just get a recession signal?
In the wake of Friday’s poor jobs report, our hypergrowth expert Luke Lango flagged troubling data in the labor market. Let’s go to his Innovation Investor Daily Notes:
The big red flag for us is that the 6-month moving average of job growth has fallen to levels it has only fallen to in recessions in the last 40 years.
The 6-month moving average of job growth now stands at 85,000, which is less than 100,000 for the first time in this economic cycle.
Every single time this number has dropped below 100,000 for the first time in a cycle in the last 40 years, the U.S. economy proceeded to plunge into a recession.
Luke notes that this happened in August 1990, October 2000, July 2007, March 2020, and now, July 2025, writing “that is a horrific precedent.”
But while we must watch this closely, Luke isn’t abandoning his bull thesis.
Back to his Daily Notes:
We do think this time could be different since the Fed can cut rates and the White House can strike trade deals to stem further labor market weakness, while continued growth in the AI industry should help stimulate economic activity.
Touching on Luke’s points, as I write Monday, the odds of an interest rate cut from the Fed in September now clock in at 85.8%.
And on trade, this morning, the European Union announced a six-month pause on its planned counter-tariffs on the U.S. that were to take effect this week. The move buys more time for continued negotiations.
Meanwhile, the Swiss apparently want to cut a deal. Here’s Bloomberg from this morning:
The Swiss government said it is determined to win over the US on trade after last week’s shock announcement of 39% tariffs on exports to America.
“Switzerland enters this new phase ready to present a more attractive offer, taking US concerns into account and seeking to ease the current tariff situation,” it said in a statement on Monday…
Big picture, yes, we’ve just entered a seasonally weak time of year, but for longer-term investors focused on the AI story, don’t let short-term turbulence from jobs, trade, or wherever shake you out of your high-conviction core positions.
Here’s Luke’s bottom line from Friday:
We do not think today’s jobs report is a reason to “freak out” or run away from stocks. Instead, we’re looking for buying opportunities. Not yet. Not today. But perhaps next week, when the dust settles.
This market is going higher over the next 6 to 12 months. Let’s put ourselves in a position to succeed with that rally.
Is “Altcoin Season” finally starting?
After setting a new all-time high in mid-July at just over $120,000, Bitcoin has been consolidating.
As I write Monday, it trades near $115,400, appearing to be gathering strength for its next leg higher.
While we believe Bitcoin’s rally has plenty of gas left in the tank as we look toward the end of the year, the bigger story is what’s been happening recently with altcoins.
To make sure we’re all on the same page, let’s briefly revisit how the crypto cycle works…
Given its monster size, Bitcoin outperforms smaller altcoins early in the broader crypto boom/bust cycle. This “Bitcoin dominance” makes sense as the sector is coming out of its prior bust. Bruised investors are in “safety” mode, focusing on what they consider to be the biggest, strongest assets. For crypto, that’s Bitcoin by a mile.
But as the cycle continues, gains snowball, investor confidence returns, and animal spirits take over. Eventually, emboldened investors begin rotating out of Bitcoin into smaller altcoins in search of bigger gains. And given how small many altcoins are, history shows that those gains can register in the quadruple-digits.
When altcoin gains finally outpace those of Bitcoin, we arrive at “Altcoin Season.”
With this background, let’s go to Luke:
Most investors are still anchored to the Bitcoin narrative. But that’s a mistake…
Because while Bitcoin (BTC/USD) may have touched $120,000, the real action is elsewhere.
- Ethereum (ETH/USD) jumped over 20%,
- XRP (XRP/USD) surged 30%,
- Dogecoin (DOGE/USD) climbed 25%, and
- Stellar (XLM/USD) nearly doubled.
CoinMarketCap’s Altcoin Season Index just hit 89/100, signaling a decisive shift away from Bitcoin and into high-beta altcoins.
Luke writes that you haven’t missed the move. But once the Altcoin Season arrives, the gains often pile up so fast that most investors will miss them. The altcoin on your watchlist on Monday becomes the meteor that jumped 113% by Friday.
To help investors catch such potential moves, Luke sat down for a video interview with Luis (he’s a busy man these days). They discuss the state of the altcoin world and what to do about it in your portfolio.
To watch this interview, just click the play button below.
And for more on the specific altcoins on Luke’s radar today, he just revealed his top three altcoin picks in a brand-new special report: “Altcoin Awakening: The Next 3 Cryptos Set to 10X.”
It’s a part of a subscription to Luke’s Ultimate Crypto service which you can learn more about here.
Sticking with crypto, Jonathan Rose says an Ethereum breakout is coming
I’ll begin by noting that Jonathan is not a “crypto guy.”
But he is a veteran trader that finds opportunities wherever they are – and that’s put Ethereum front-and-center for him today.
Now, for some quick context, Ethereum is the second-largest cryptocurrency by market cap behind Bitcoin. But unlike Bitcoin, ETH’s use goes way beyond simple currency. Nearly every crypto platform, decentralized app, and smart contract runs on the Ethereum blockchain.
Yet there’s another differentiator that’s driving Ethereum’s value. Here’s Jonathan with the details:
Most currencies fall into two camps – sound and ultrasound.
Sound money simply holds its value like gold. When we say a currency is sound, we mean it maintains a fixed or predictable supply.
Bitcoin is the perfect example. It has a fixed supply of 21 million coins. That scarcity drives its value as “digital gold.”
ETH works completely differently. This is where ultrasound money comes in.
Instead of maintaining a fixed supply, ultrasound money actually shrinks over time.
We don’t dive into the details of how or why today, but the bottom line is that ETH has a supercharged scarcity mechanism, which makes each coin more valuable as network usage climbs.
Now, on one hand, this makes ETH an attractive longer-term hold (though you should be ready for volatility). Here’s Jonathan on that note:
The value of the dollar is under increasing pressure. It’s not collapsing—but it’s quietly eroding.
Meanwhile, central banks are trapped. They want to cut interest rates to stimulate growth, but every time they ease up, inflation threatens to flare back up.
It’s a lose-lose scenario: keep rates high and strangle the economy, or cut them and risk another wave of rising prices…
This is where Ethereum’s unique properties become very appealing.
ETH offers something no other asset can match. Sound money principles + yield generation + platform utility.
It’s truly unmatched in the digital asset economy. And it’s increasingly competitive with traditional financial instruments.
But there’s a more immediate trading opportunity with ETH
It relates not only to the potential for price gains, but also to how the smart money is pricing in cheap volatility for cryptos.
When you buy an option on an asset when volatility is low, it means you’re paying less for the option. If volatility later rises – even if the asset remains at the same price – the increased option value from that volatility alone can make the option profitable.
Here’s Jonathan with how this relates to ETH today:
Right now, we can use this cheap volatility to our advantage.
Think of it as a launching point to get into position well ahead of any potential moves…
You can see this reduced volatility through any website that tracks implied volatility (IV).
For example, here’s MarketChameleon highlighting the IV on the Grayscale Ethereum Trust ETF:
ETHE implied volatility (IV) is 61.3, which is in the 5% percentile rank. This means that 5% of the time the IV was lower in the last year than the current level…
If IV was lower just 5% of the time over the last year, that means IV was higher (or the same) 95% of the time.
It’s just another way to “buy low, sell high.”
Here’s Jonathan’s bottom line:
Soon, we’ll watch as ETH reclaims price leadership over Bitcoin and potentially reaches new all-time highs.
But there’s still time to position yourself before institutions flood in, and before ETH definitively reclaims leadership in the digital asset space.
We’ll keep you updated on all these stories here in the Digest.
Have a good evening,
Jeff Remsburg
