Listen to the audio version of this article (generated by AI).
The “Fab 10” reshapes the AI trade… a connected billionaire’s quiet exit… why oil isn’t done yet… this bull market is broader than you think… why Louis says this is “a very special time” in the market
One of the most connected figures in Silicon Valley recently made a move most retail investors haven’t noticed yet.
He’s a legendary early-stage investor – someone who’s been ahead of every major tech wave of the last 25 years. And he recently filed paperwork showing he’s sold every publicly held share of Nvidia (NVDA), Apple (AAPL), and Microsoft (MSFT).
This wasn’t a trim. It was a full exit from the stocks that most retail investors are still holding.
So, what does he know that most don’t?
Well, let’s back up and consider what’s happening to the AI trade itself…
You’ve heard of the Magnificent 7. It includes the three stocks I just flagged plus Alphabet (GOOG), Amazon (AMZN), Meta (META), and Tesla (TSLA). That group defined the market for the better part of two years.
But analysts are now talking about something new – the “Fab 10.”
It’s the original Mag 7 with three massive players joining the roster – SpaceX (SPCX), following its landmark IPO, OpenAI, the creator of ChatGPT, which is expected to go public soon, and Anthropic, which is also eyeing an IPO.
The Fab 10 tells us something important about how AI is developing…
It’s no longer just a software story. Increasingly, it’s a story of physical inputs – the core infrastructure that makes AI run. Data centers, power, chips, and rare earth mining. The buildout requires enormous capital, and it’s attracting a very different kind of investor.
Including, it turns out, our Silicon Valley insider.
While he’s been exiting the Mag 7 names, he’s been directing capital toward private companies in energy, nuclear infrastructure, physical AI buildout, and natural resources. Basically, the back end of the AI economy that makes it all run.
Now, most of those private deals aren’t available to retail investors. But here’s where our technology expert Luke Lango, editor of Innovation Investor, and Dan Ferris, editor of The Ferris Report at Stansberry Research, come in.
They’ve identified seven publicly traded stocks that mirror the same sectors this insider is buying into privately – what they’re calling a “backdoor” portfolio. These are essential infrastructure companies that the AI boom cannot run without.
For the full story – who this Silicon Valley legend is, what exactly he’s doing with his money, and Luke and Dan’s complete seven-stock backdoor portfolio – click here. You’ll watch a conversation between Luke and Dan that – just by itself – will put you ahead of most investors thinking about the AI trade today.
Now, let’s shift gears from AI to the energy story – after all, they’re more connected than most people realize.
Should you sell your oil plays now?
As I write on Thursday morning, West Texas Intermediate crude trades under $74 a barrel – almost 35% below its early-April high.
The U.S.-Iran peace deal has taken enormous pressure off the market, and with the Strait of Hormuz slated to officially reopen tomorrow, it’s fair to ask…
Is it time to get out of oil?
Tom Yeung, lead analyst for our global macro expert Eric Fry in Fry’s Investment Report, just made a compelling case for staying put – and history is his guide.
In his Weekly Update on Tuesday, he reviewed past commodity supply shocks for the closest parallels to today’s oil market. His argument starts with a basic principle:
When supply suddenly falls, there’s only a limited amount of inventory sitting around to absorb the shock.
Prices often have to move quickly to balance supply and demand.
One of the best historical matches Tom found was cocoa futures between 2002 and 2007.
In September 2002, a civil war in the Ivory Coast – the source of 40% of the world’s cocoa – sent prices surging on fears of supply disruption. But the physical flow of cocoa never actually stopped, so prices quickly fell back as traders unwound their bets.
The real spike came years later, when war-related underinvestment finally triggered actual shortages. But by then, the market had already used up its easy fixes.
There are parallels today given how the Russian/Ukraine war was already impacting global oil supplies before the Middle East flare-up.
Here’s Tom with more:
Today’s oil market faces a similar challenge.
The first spike (Russia’s invasion of Ukraine) disrupted only one major supplier. The current disruption is hitting multiple countries across the Persian Gulf.
At the same time, U.S. production growth is slowing…
Many of America’s most productive drilling locations are now running out, making it harder to bring large amounts of new supply online quickly.
Tom notes that once a market enters a second supply-driven squeeze, high prices can persist longer than many investors expect.
Here’s his bottom line:
When energy and soft commodity supply chains are running with little slack, consumable commodity prices have a habit of staying higher for longer than people expect.
Given this, Tom and Eric recommend staying invested in the blue-chip energy producers they hold in Fry’s Investment Report.
And let me share one of them with you…
Devon Energy Corp. (DVN): a natural gas blue chip with huge upside potential
Devon is one of the leading producers in the Delaware Basin.
For years, it has produced more natural gas than the region’s pipeline system could efficiently move to major markets. That bottleneck forced the company to sell some of its gas at deeply discounted prices.
But new pipelines are now opening, allowing Devon to send more gas to Gulf Coast customers and to LNG export facilities, where prices are typically higher. As those transportation constraints ease, Devon should be able to earn more money from the same gas production.
Despite improving fundamentals, DVN trades at less than nine times expected earnings, a valuation that remains well below many of its energy-sector peers.
As I write on Thursday, DVN trades at $41.92 – well below Eric’s buy-under-$47 threshold, making this a timely entry point for investors who want exposure to the energy trade.
If you want more investment ideas from Eric, his free “Sell This, Buy That” broadcast gives away seven free trades – including three lesser-known alternatives to Nvidia, Amazon and Tesla – that he believes could double your money in the next 12 to 24 months.
Some of the picks tie into the AI infrastructure and energy themes we’re covering today. You can watch it here for free.
This bull market is wider than you think
AI infrastructure, energy, and now, something that doesn’t make as many headlines – but should.
Brian Hunt, editor of the free daily e-letter Money & Megatrends, has been tracking a signal that suggests the bull market is healthier and broader than most investors realize.
In his Tuesday issue, he flagged two manufacturing ETFs that just hit new all-time highs.
These aren’t flash-in-the-pan AI stocks. These are boring, stodgy, industrial companies, which makes them a far better litmus test for how the broader economy is actually performing outside of the AI trade.
Here’s Brian:
[These new all-time highs] are very bullish economic signals…
These firms operate with little fanfare, providing critical equipment and services the U.S. economy cannot function without.
Our factories, vehicles, homes, and cities cannot function without their specialized pumps, motors, filters, fans, valves, gaskets, wiring, bearings, and switches. And their businesses are doing well.
The two ETFs are the Invesco S&P SmallCap Industrials ETF (PSCI) which holds a diversified basket of smaller, lesser-known U.S. manufacturers, and the Industrial Select Sector SPDR Fund (XLI), which holds the largest names in American industry – Caterpillar (CAT), Boeing (BA), Deere & Co. (DE), and GE Vernova (GEV), among others.
Both ETFs hitting new highs simultaneously is a powerful signal.
Back to Brian:
The fortunes of the components of these ETFs rise and fall with the health of the American economy. And right now, their stocks are soaring.
This exceptional price strength means the economy is doing very well…
The new highs in XLI and PSCI tell us to expect to see reports of strong economic activity about six months from now. Please manage your financial affairs accordingly.
If you’re only watching the AI and energy trades, you may be missing the broader story. U.S. manufacturing is in a bull market of its own – and PSCI and XLI are two straightforward ways to participate.
For more from Brian, he sends out a free issue of Money & Megatrends every day the market is open. They’re filled with actionable insights and specific stock tickers for your consideration. To join him, just click here.
Putting it all together
The Fab 10, energy, manufacturing – three different corners of the market, all pointing in the same direction.
And note something else…
Our analysts, across the board, are bullish.
Not recklessly so. And not uniformly confident about every corner of the market. But they’re all finding profitable ways to put money to work right now – even as naysayers continue to proclaim impending doom.
Yes, the bears deserve a hearing and an honest assessment of their concerns. But so does a market that keeps making new highs.
On that note, let’s hear it straight from legendary investor Louis Navellier in Monday’s Flash Alert in Growth Investor:
The analyst community continues to revise their estimates higher. The market has broadened out…
If you look at your accounts if you’ve been with me for a while, your average gain’s probably at least 180% right now. And you should be approaching 40% up year to date.
If you have cash to deploy, I would wait for pullbacks. I do expect a strong finish to June. I expect us to rally going into July 4. Maybe we pause, stutter step for a week or so, and then we have another great earnings announcement season.
It’s really a very special time, the best market in over 30 years. So, I want you to enjoy it.
Bottom line: We have a multi-trillion-dollar AI capex boom unfolding with years of runway ahead… earnings revisions trending upward… and a rally that’s widening beyond its usual suspects…
Investing is always about assessing the odds, so caution remains warranted – but today, the odds favor staying invested.
Don’t throw caution to the wind. Be mindful of your goals and your timeline. But this is a money-making market. As Brian wrote above, “Please manage your financial affairs accordingly.”
Have a good evening,
Jeff Remsburg
(Disclaimer: I own GOOGL, MSFT, AMZN, AAPL)
