First, to everyone who joined us yesterday at the American Dream 2.0 Summit – thank you.
It was one of our most energetic and engaged events of the year, and I was grateful to share the stage with my colleagues Luke Lango and Eric Fry.
In the event, we walked through:
- The $11.3 trillion buildout happening across America…
- Why the next wave of market leadership will not come from the Magnificent Seven…
- And why January 2 could kick off a powerful 12 to 18-month rotation into the kinds of overlooked U.S. companies most investors are not paying attention to yet.
As it turns out, the timing of our event couldn’t have been better. Because, almost right on cue, just as the Summit was airing, one of Wall Street’s most respected economists stepped forward and validated the entire thesis we presented at the event.
In today’s Market 360, I’ll discuss the latest forecast from my favorite economist, Ed Yardeni – and what it means for our American Dream 2.0 prediction.
Yardeni has been a trusted voice for decades, and institutions around the world follow his work closely. So, when he updates his outlook, the financial media pays attention.
My Favorite Economist’s Latest Forecast
It’s no secret that the Magnificent Seven stocks have dominated the market for the past few years. Those companies include Apple Inc. (AAPL), Microsoft Corporation (MSFT), Alphabet Inc. (GOOG), Amazon.com Inc. (AMZN), NVIDIA Corporation (NVDA), Meta Platforms Inc. (META), and Tesla Inc. (TSLA).
But after a famous 15-year run of an “overweight” recommendation for the Information Technology and Communication Services sectors, Yardeni is now recommending a “market weighting.” In other words, Yardeni is not calling for a crash, but he believes the era of the market being driven almost entirely by these sectors is coming to an end.
And he had a special warning for the Magnificent Seven, saying that his firm sees more competitors coming for the “juicy profit margins” of these companies.
He added that the Magnificent Seven companies are “competing more aggressively against each other and they’ve got more competition coming out of nowhere.”
The good news? Yardeni believes earnings leadership is set to broaden across the rest of the S&P 500 as competition increases and the mega caps begin to face more pressure. In particular, his firm highlighted financials, industrials and health care as sectors that could outperform.
He also highlighted something I have been telling my followers recently. Investors are already rotating into other areas of the market. For example, since late November, transportation stocks and small caps have outpaced the Magnificent Seven. Yardeni expects this trend to continue as the U.S. economy gains strength in the first half of 2026.
But what stood out most was this comment: “Every company is evolving into a technology company.”
In other words, the benefits of artificial intelligence and automation are no longer concentrated in the Magnificent Seven or even the tech sector. They are beginning to spread through the entire economy.
This largely concurs with what Luke, Eric and I told attendees at the American Dream 2.0 Summit yesterday.
Why This Matters
For most of the past decade, investors could simply buy the largest technology stocks and enjoy steady outperformance. If Yardeni is right, and I believe he is, then that will no longer be the case moving forward.
That’s because a $11.3 trillion buildout is happening across the country – and it’s going to create new economic winners in places many investors have not looked in years. Companies tied to infrastructure, energy, advanced materials, manufacturing and automation all stand to benefit as AI and domestic reinvestment spread into every corner of the real economy.
We think this trend will begin to take shape in a major way in 2026. Not only will it kickstart economic growth on a scale we haven’t witnessed in decades – but it will also rewrite the rulebook for the American Dream. And the real opportunity ahead lies in the smaller U.S. companies positioned at the center of America’s new industrial buildout, not the mega-cap names that dominated the last cycle.
This is exactly what we covered at the American Dream 2.0 Summit. They are smaller, more specialized firms tied to power generation, manufacturing, logistics, advanced materials, defense technologies, and automation. These are the companies providing the backbone of the new industrial economy that is forming right now.
The Time to Act Is Now
In fact, we believe January 2 is the date when this rotation could turn into something much more powerful. When we look back, this could very well mark the launch date of America’s new industrial era. And the catalyst is the opening of a critical facility right in the heartland of America.
On Monday, we revealed how you can profit from this key development. That’s another reason why I urge you to check out a replay of ourpresentation if you were not able to join us.
But the bottom line is this. With the Magnificent Seven slowing and the broader economy strengthening, the market is opening the door to a much wider set of opportunities.
Luke, Eric, and I walk through the companies we believe are positioned at the center of America’s new industrial buildout. You will also learn how to get a full look at our new American Dream 2.0 Portfolio and learn why we believe it could outperform as this rotation accelerates into 2026.
With January 2 approaching, the timing could not be more important.
Go here to view the full replay now – before it’s too late.
Sincerely,
Louis Navellier
Editor, Market 360
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
NVIDIA Corporation (NVDA)
