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Editor’s Note: I have a message for you from Dylan Jovine at Behind the Markets. I thought you might find it interesting – check it out here or read more below.
– Stephen Prior, Publisher
The Iran War Just Broke the Gold Market
Dear Fellow Investor,
The Iran war isn’t just a geopolitical event.
It’s a financial one.
Within hours of the strikes, oil surged…
Defense stocks exploded…
And gold ripped past $5,000.
But something even bigger just snapped inside the gold market.
Wars don’t just move markets.
They expose broken financial systems.
For decades, the price of gold has been controlled by paper contracts traded between the largest banks in the world.
But wars create a problem for that system.
Because when global tensions rise, investors stop trusting paper promises.
They want the real thing.
And on July 31, a legal deadline could force the paper gold market to confront a reality it has hidden for years.
When that happens, gold could surge.
But the biggest gains won’t come from gold itself.
They’ll come from the tiny companies sitting on massive untapped deposits of the metal.
There’s one company sitting on more gold than France, Italy, and China combined.
And my research suggests it could surge 1,000% as the gold market resets.
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“The man who does not read good books is no better than the man who can’t.” -Mark Twain (1835-1910, American writer, humorist, entrepreneur, publisher, and lecturer)
For the past few years I’ve offered some book titles to check out for summer reading, so let me do so again. Given the dramatic increase in book banning in the United States in the last few years, two of these books may well be on somebody’s list for banning, but worth the read, I think. If the other five are on somebody’s list, then we are in worse shape than I thought. I’ll leave it to you to decide.
An Altar in the World, A Geography of Faith (Barbara Brown Taylor, Harper Collins 2009) If St. Ignatius Loyola were to write a promo for this book, I think he’d write, “This is a great help in rethinking how to find God in all things!” There are altars everywhere and in all facets of our lives. Sanctity is found in the mundane as well as in the extraordinary, in fact probably more so in the ordinary, everyday. We have to learn to rethink how and where to find God all the time. If Mary Oliver were to write a promo, she’d write, “Pay attention, be amazed, and let Barbara Brown Taylor tell you about it.”
Circe (Madeline Miller, Little, Brown, 2018) When I was in high school we had to read Edith Hamilton’s Mythology: Timeless Tales of Gods and Heroes. Madeline Miller’s The Song of Achilles (2011) and Circe are told with perhaps a modern day slant which I am sure some will say has more agenda to the story-telling than the original Greek tales. But the Greeks certainly had their agenda for telling the stories in the first place. Whatever – just good stories and a refresher from my long-ago high school myth readings. In Time of Distance & Other Poems (Alexander McCall Smith, Pantheon Books, 2020) The Scottish author is known for his No. 1 Ladies Detective Agency series (1998-2026), the Isabel Dalhousie books (2004-2026), and the 44 Scotland Streetbooks (2005-2026), and a bunch of others. He’s a fanciful and engaging writer whom I’m happy to recommend, especially the No. 1 Ladies Detective Agency. I stumbled on this book of poems at our public library. It’s different from his stories, but has the same lightness of heart. And poetry is always important for the soul.
The Molly Murphy Mysteries (Rhys Bowen with Clare Broyles, Minotaur Books, 2001-2026) Rhys Bowen is the pen name of Brophy faculty member Tim Broyles’ mother-in-law. The last three books in the 20 book series are co-authored by Tim’s mother-in-law and Tim’s wife Clare. The wonderful main character, Molly Murphy, is a female detective in early 1900s New York City, married to a policeman and raising a family. She is quite adept at solving crimes and mysteries before the men on the scene can. The history of the time and place are well researched, so along with the crime solving, we get a good look at the Big Apple when it was becoming itself.
Paul, a Biography (N.T. Wright, HarperOne, 2018) Tom Wright (1948-) is an English scripture scholar, theologian, and Anglican bishop who has authored more than 80 books and has taught at Cambridge, McGill, St. Andrews, and Oxford Universities. His works are very readable, yet based in real scholarship and theology. I just recently read this biography of St. Paul and it was for me a whole new window into the life and the beliefs of Paul of Tarsus. Until now, Paul was pretty far down on my list of folks to meet in heaven because he seems, often enough, so disagreeable and harsh in some of his writing. After reading Wright’s Paul, I look forward to meeting him!
Queen Esther (John Irving, Simon & Schuster, 2025) John Irving has been writing books since 1968 and there are certain themes, you might even say social justice themes, woven through many of his novels. Family in many forms, the dignity of misunderstood persons, care for those mistreated because they are different – my Catholic morality doesn’t agree with some of Irving’s way of dealing with the issues he writes about in his stories, but his characters and their issues are real. From the title you can guess that Jewish culture and antisemitism plays a big part. But the story isn’t about the scripture’s Queen Esther or Esther Nacht, a Jewish orphan in the early 20th century that starts the novel – it’s about Jimmy Winslow, Esther’s son and his college junior year abroad. Like all Irving novels, this one is a fun read with characters I really got to know and like. Not my favorite Irving tale, but glad to have read it.
Theo of Golden (Allen Levi, Atria Books, 2023) I’m not sure how many times I’ve heard the story of the newly ordained priest who asked an older priest for three pieces of advice and the older priest says,”be kind, be kind, be kind.” An elderly Theo in Allen Levi’s novel shows up in the city of Golden, Georgia, and through 400 pages we experience Theo’s kindness, and not just three times. I was captured by Theo and all the people he meets and connects with. I was left remembering Naomi Nye’s poem “Kindness” that when we enter into someone else’s life with empathy and understanding, we are left with kindness that “goes with you everywhere like a shadow or a friend.” My favorite book this year.
June Dates of Note
Pride Month
6 – D-Day, World War II (1944) 7 – Solemnity of Corpus Christi 9-15 – National Men’s Health Week 11 – Feast of the Apostle Barnabas 12 – Solemnity of the Sacred Heart Assassination of Medgar Evans (1963) 13 – Feast of the Immaculate Heart of Mary Supreme Court Ruling Miranda v Arizona (1966) 14 – Flag Day 15 – Father’s Day Signing of the Magna Carta (1215) 19 – Juneteenth 20 – World Refugee Day Summer Solstice 21 – World Day of Music 24 – Feast of the Nativity of John the Baptist 29 – Feast of Saints Peter and Paul William Mayo’s Birthday (1861-1939)
Pope Leo’s Prayer Intention for June
For the values of sports
Let us pray that sports be an instrument of peace, encounter, and dialogue among cultures and nations, and that they promote values such as respect, solidarity, and personal growth.
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(34) Jesus answered them, Verily, verily, I say unto you, Whosoever committeth sin is the servant of sin. King James VersionChange email Bible version
Instead of freedom, habitual sin brings about an enslaved consciousness, and one can gain insight into its nature by comparing it to chemical addiction. Like the chronic use of drugs, habitual sin causes a hardening of the heart (Job 9:4). Just as a junkie needs more of the addictive drug more often, habitual sin lowers the barriers of our conscience to more sin. As Jesus Christ says, “Sin no more, lest a worse thing come upon you” (John 5:14).
Our religion—our connection to God—provides us with the moral compass necessary to define both sin and the standards we need to walk worthy of our calling. This same connection also provides us with the ultimate solution for our addiction to sin—His love.
We do not live or commit sin in a vacuum. Each sin lowers our inhibition to further transgression and often causes collateral damage to those close to us and beyond. More importantly, it separates us from our Father and His love, without which we would be eternally lost. We can be assured, though, that because of our heavenly Father’s powerful love for each of us, He has provided the perfect antidote to all of our sinful habits in the life and the blood of Jesus Christ.
Collateralized loan obligations (CLOs) are securitized portfolios of corporate loans divided into tranches by risk profile. For many retail investors, CLOs can be foreign and uncomfortable, but the potential for attractive yields, floating-rate income, and diversification is strong. Some investors may also not be aware of how easy it can be to build CLO exposure into a portfolio with dedicated exchange-traded funds (ETFs).
ETFs already offer a diversification benefit for many fixed-income investors, helping to reduce issuer-specific, sector-specific, or credit-event risk compared with owning individual securities. Because they trade throughout the day like stocks, ETFs are also easy for investors to buy into or sell out of if they need to make portfolio adjustments in real time.
That ETF structure matters because CLO investing is not one-size-fits-all. CLO ETFs are not just easier access to a once-institutional credit market; they also offer the ability for investors to choose where they want to sit on the risk spectrum, from AAA-rated CLO exposure to higher-yield BBB and BB tranches. Funds such as the Janus Henderson AAA CLO ETF (NYSEARCA: JAAA), the Eldridge BBB-B CLO ETF (NYSEARCA: CLOZ), and the iShares AAA CLO Active ETF (NASDAQ: CLOA) may all invest in CLOs, but they offer very different combinations of credit quality, yield, liquidity, and risk.
JAAA: A Fund Targeting the Highest-Quality CLOs Available
The Janus Henderson AAA CLO ETF is focused on AAA-rated CLO tranches, the highest-quality slice of the CLO capital structure.
These securities generally receive payments before lower-rated tranches, which helps explain why AAA CLO debt has built a strong historical credit record through multiple market cycles.
For investors concerned about risk, JAAA offers a more conservative way to access CLO income than funds focused on lower-rated tranches, though it still carries credit, liquidity, and interest-rate risk.
AAA-rated CLO tranches have historically shown lower volatility and lower downgrade risk than lower-rated CLO debt. JAAA offers retail investors access to a part of the CLO market that has traditionally been dominated by institutional buyers.
Investors in JAAA will likely appreciate that despite being actively managed, the fund has a low expense ratio of 0.20%. It also has strong liquidity for a niche credit ETF, with more than $27 billion in managed assets and a narrow 30-day median bid-ask spread. Because liquidity can be a concern with CLOs, JAAA’s scale and trading profile may help to ease investor worries in that regard.
While JAAA seeks the highest-quality CLO tranches, the Eldridge BBB-B CLO ETF targets CLOs rated BBB or BB.
These lower-rated tranches tend to come with greater credit risk and price volatility, but they also offer the potential for greater income than AAA-rated CLO exposure.
CLOZ is also an actively managed fund, so it carries a higher expense ratio than JAAA. Investors pay 0.50% annually for access to CLOZ’s portfolio of more than 160 CLOs. Like the AAA-rated CLOs in JAAA’s basket, CLOZ offers investors a set of products that have low correlation to both stocks and traditional fixed-income investments. Because CLOZ groups together a range of CLOs from different issuers and industries, this helps to further reduce single-issuer and single-deal risk.
While CLOs generally have low default risk, lower-rated CLO tranches are more exposed if loan defaults rise or credit conditions weaken.But in exchange for taking on a bit more risk, investors are rewarded with a yield of 7.4%, making CLOZ an excellent source of passive income with a unique focus and profile compared to many other bond funds.
It should be noted, though, that CLOZ is a much smaller fund than JAAA—it has under $700 million in managed assets and a one-month average trading volume just over 250,000—and so liquidity may be more of a concern in this case, especially during periods of credit-market stress.
CLOA: A Smaller Rival to JAAA
Another AAA-focused fund, the iShares AAA CLO Active ETFfocuses on U.S. dollar-denominated, AAA-rated CLOs.
The fund competes most directly with JAAA on credit quality and cost: both ETFs focus on AAA-rated CLO exposure and carry a 0.20% expense ratio.
For that fee, CLOA investors receive a portfolio of more than 400 holdings, giving them another low-cost way to access the highest-rated segment of the CLO market.
The main difference is scale, as CLOA is smaller and less liquid than JAAA but still offers a focused, actively managed approach to AAA CLO exposure. The fund has more than $2 billion in managed assets and a one-month average trading volume of around 415,000. However, its yield of 5% is roughly on par with its larger rival. READ THIS STORY ONLINE
Elon Musk says AI and robotics will drive the cost of goods and services to almost nothing. Alexander Green – who bought Apple at $1 and called NVIDIA at $1.10 (both split adjusted) – believes a massive deflationary wave is already building.
Investor interest in the AI space continues to grow, with many focusing on AI infrastructure plays to meet the increasing demand for data centers or on semiconductor stocks building the components necessary for AI platforms to function. One potentially overlooked area that is vital to AI but not directly related to the technology itself is land. Electricity consumption from data centers alone in the United States could triple that of the entire nation of Ireland by 2028, and generating that much power requires massive amounts of land.
If demand continues at its current rate, investors may expect an increasingly contentious battle for prime land used by data center developers—space that is open and accessible, with strong power infrastructure, not susceptible to natural disasters, and so on. Two real estate investment trusts (REITs) and an exchange-traded fund focused on data center real estate and development provide investors with exposure to this high-demand but underappreciated aspect of the AI boom.
Equinix’s Data Center Strategy Positions the REIT for Continued Growth
Equinix Inc. (NASDAQ: EQIX) is a REIT specifically focused on data centers, operating more than 280 different centers around the world. Shares are up about 40% year-to-date (YTD) but have essentially plateaued since late April. One reason for this is that the company’s Q1 2026 results were, in some respects, not as impressive as analysts had predicted: revenue growth of 10% year-over-year (YOY), for instance, was not as robust as expected.
Still, there are plenty of reasons to be excited about Equinix and its advantageous position as data center demand grows. For one, recurring revenue is growing, as are adjusted EBITDA margin and adjusted funds from operations. Further, management raised full-year guidance on revenue and EBITDA in the latest report.
Equinix is also positioned to boost its capacity dramatically going forward, with plans for capital expenditures of up to $4.1 billion in 2026 on 46 major new projects. Backlog and bookings are both up as well, demonstrating the company’s ability to appeal to a growing list of customers.
All of these signs point to future potential, and so it’s no surprise that Equinix has a strong appeal across Wall Street. 23 out of 29 analysts view the firm favorably and have assigned a Buy or equivalent rating.
A Fast-Growing Data Center Dividend Yield Play
Digital Realty Trust Inc. (NYSE: DLR)takes a similar approach to Equinix, as it is a REIT that owns and operates data centers and provides colocation solutions. In terms of sales, its 16% YOY growth for Q1 2026 outpaced Equinix’s performance.
The firm also brought its total backlog to $1.8 billion during the quarter while achieving record interconnection bookings of $98 million. Management raised full-year guidance on funds from operations to between $8 and $8.10, representing growth of about 9% YOY at the midpoint.
As a REIT, Digital Realty is obligated to pay out a majority of its earnings as dividends, and itsDLR 2.6% dividend yield may appeal to investors while also outpacing Equinix on this metric. Like its larger rival, Digital Realty is favored by many analysts, as 21 out of 29 call DLR shares a Buy.
The firm also has upside potential of more than 10% according to its consensus price target, even after already returning more than 20% YTD.
A Data Center ETF, But Not a Pure-Play Investment
For investors not keen to pick individual names in the data center land grab, the Global X Data Center & Digital Infrastructure ETF (NASDAQ: DTCR) offers a convenient way to access multiple companies in a single investment. This ETF holds a portfolio of more than two dozen global firms with an interest in data center infrastructure.
DTCR has positions in Equinix and Digital Realty Trust—indeed, these are the two largest holdings in the portfolio by percentage, representing close to a quarter of the total basket. It supplements these with a collection of other data center REITs, semiconductor manufacturers, and digital infrastructure players.
Investors should note that DTCR is not a pure-play data center real estate bet, given its chip-maker holdings. This makes it suitable for those looking for a broader play on AI infrastructure, rather than a focus on land and property directly. Still, it provides a modest dividend yield of 0.7% as a bonus on top of YTD returns of about 50%. For an expense ratio of 0.50%—somewhat higher than most passively managed funds, but perhaps worthwhile given the unique theme—investors can leave the portfolio management to someone else while reaping the rewards to be found in the fast-growing AI infrastructure space. READ THIS STORY ONLINE
Palmer Luckey, founder of Anduril, recently told Fortune Magazine that AI will drive costs so low ‘you’ll be able to buy a Ford F-150 for $1,000.’ Billionaire OpenAI backer Vinod Khosla echoes the thesis, predicting free doctors, tutors, and lawyers.
Analyst Alex Green – who bought Apple at $1 and flagged NVIDIA at $1.10 (split adjusted) – says a deflationary shockwave is building. He argues the biggest opportunity won’t come from the most obvious AI stocks.WATCH ALEX GREEN’S FULL THESIS FREE – NO SIGN-UP REQUIRED
However, the S&P 500 has become so top-heavy with mega-caps that passive index investing now carries more concentration risk than many retail investors realize. In fact, at this point, if investors own the index through a vehicle like The SPDR S&P 500 ETF Trust (NYSEARCA: SPY), they already have significant AI exposure. The question is whether that exposure is intentional, diversified, and sized appropriately for individual investors’ risk tolerance.
Here are some ideas regarding what a practical AI playbook could look like
But First, Understand Any Current Exposure
Before buying anything with “AI” in the name, it’s important to understand how much exposure may exist from index funds. For example, the SPY ETF has roughly 30% invested in the six companies that dominate AI headlines.
This isn’t a critique of the approach; it’s just math. Many index funds are market-cap weighted, meaning the bigger the company, the more of your dollar it consumes. That means, in recent years, the Magnificent 7 stocks collectively represent a historic share of the index. If AI stumbles, a “diversified” index fund will feel it.
This means any additional AI exposure should be a complement, not a substitute, and sized accordingly. A reasonable framework that many financial professionals recommend for most investors is to treat dedicated AI positions as satellite holdings around a core index, capping thematic exposure at 10% to 15% of total equity allocation.
The Infrastructure Layer
For direct, high-conviction exposure to AI’s build-out phase, the infrastructure layer is the clearest bet. Someone has to manufacture the chips, and right now, NVIDIA’s Blackwell GPUs are the dominant substrate on which the entire AI boom runs.
The risk is well-known: NVDA trades at a premium that prices in years of continued dominance. A single disappointing earnings print or a credible competitor could move the stock violently.
Broadcom (NASDAQ: AVGO) is another popular choice. Its custom AI chip business, built around hyperscaler partnerships, offers a different angle on the same infrastructure theme, with slightly less valuation froth and a more diversified revenue base that includes networking and enterprise software. Neither of the two is a “safe” stock, but for an investor who wants genuine picks-and-shovels exposure, one of these two belongs in the conversation.
A Diversified AI Beneficiary
Microsoft is the least exciting pick on this list, but this is one time when boring and predictable can be profitable.
Its enterprise AI strategy, which is built around its Azure cloud platform and its deep integration of Copilot across the Office suite, gives it something NVIDIA doesn’t have: a recurring revenue model that doesn’t depend on any single customer’s capital expenditure cycle. Enterprises are slow to change productivity software. That stickiness is valuable.
Microsoft also gives retail investors exposure to OpenAI’s commercial trajectory without having to access private markets. The relationship is complicated, and the financials are partially opaque, but the strategic alignment is real.
As of this writing, Microsoft has an attractive valuation relative to its earnings growth. For investors seeking AI exposure that can withstand a sector-wide correction without going to zero, MSFT can be a quality anchor.
The honest assessment: most AI ETFs are highly correlated with the Nasdaq 100 and with each other. Pull up their top 10 holdings, and you’ll find the same names that you already own through your index fund. The “diversification” you’re buying is often a repackaging of mega-cap exposure with a thematic label and a higher expense ratio.
Where ETFs genuinely add value is in accessing the mid-cap and international AI layer that’s harder to research and trade individually. Companies like ASML Holding (NASDAQ: ASML)—the monopoly supplier of the lithography machines that make advanced chips possible—or Japanese robotics plays are real diversifiers. A well-constructed thematic ETF that reaches into this tier is doing something an index fund isn’t.
How Retail Investors Can Build a Smarter AI Portfolio
This earnings season should have put to rest the idea that AI is in a bubble. However, it won’t be a sure thing for every stock. It’s both a genuine technological shift and an overcrowded trade simultaneously.
The investors who will come out ahead are the ones who get exposure with intention: knowing what they own, why they own it, and how much pain they can tolerate if the timeline stretches or the narrative cracks.
For those with a higher risk appetite, the AI trade has a momentum layer worth understanding, even if it isn’t the core of a long-term position. Memory stocks like Micron Technology (NASDAQ: MU)have become AI proxies, driven by surging demand for high-bandwidth memory in GPU clusters,
On the energy side, companies like Vertiv (NYSE: VRT), which supplies the power and cooling infrastructure that AI data centers require around the clock, have emerged as momentum plays, with valuations that reflect genuine demand growth but also a great deal of optimism already baked in.
The practical framework, then, looks something like this: one infrastructure name, one quality compounder, a careful look at whether the ETF on the watchlist is actually diversifying or just repackaging the same mega-cap exposure. And for investors who are active enough to manage it, a small, disciplined allocation to momentum names like MU or VRT that captures the AI trade’s more speculative edge without letting it define the portfolio. READ THIS STORY ONLINE
Trump just returned from Beijing with the most powerful business delegation in American history – Elon Musk, Jensen Huang, Tim Cook, and the CEOs of BlackRock, Goldman Sachs, and CitiBank. The media covered the handshakes. But what was really being negotiated behind closed doors?
Porter Stansberry has connected the Beijing trip to a landmark pact signed by 13 nations in Washington – a pact designed to cut China out of a $3 trillion investment wave tied to the most critical resource of the 21st century. His new documentary exposes the five assets at the center of it all.WATCH THE FULL DOCUMENTARY AND SEE WHICH ASSETS ARE POSITIONED TO BENEFIT
The Night Owl is a financial newsletter that provides in-depth market analysis on stocks of interest to individual investors. Published by MarketBeat and Early Bird Publishing, The Night Owl is delivered around 9:00 PM Eastern Sunday through Thursday. If you give a hoot about the market, The Night Owl is the newsletter for you.
Energy stocks aren’t simply limited to oil, gas, and coal. Renewable energy, through solar and wind power, are fast becoming appealing sources. Here are some current bargain stocks for this resource that are always in demand.
Florida officials will pay nearly half a million dollars to a biologist who was fired by a state agency for criticizing conservative activist Charlie Kirk on social media after his death. More Info ➔
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