It’ll be made by owning the companies quietly deploying AI to cut costs, expand margins, and compound cash flow year after year.
This is the same phase where the biggest fortunes were made after the internet was already built.
Amazon, Google, and Netflix didn’t build the internet. They applied it to rewrite entire industries, and that’s where the explosive gains came from.
That’s why instead of buying NVIDIA here, I’m recommending these stocks that are trading at a fraction of the price of the average high-flying AI stock.
I urge you to look at these names before July 8th.
In case you missed it, here’s Big T’s Digital Asset Daily
Bitcoin crossed $82,000 last week. Then it hit resistance and slid back into the $77,000 range. The breakout that seemed to be forming has stalled for now.
I’ve seen this before. And I know the question it raises. Readers write in asking some version of the same thing: “Teeka, is the thesis still intact?”
It is. I’m going to show you exactly why.
The Signal Nobody Is Talking About
Recent events in the Middle East just revealed one of the most important real-world use cases for bitcoin I’ve seen in years. And almost nobody is talking about it.
Since the end of February, the U.S. and Israel have been at war with Iran, which responded by restricting shipping through the Strait of Hormuz. A ceasefire took effect on April 8, but tensions in the region remain active.
It’s not my place to tell you what to think about geopolitics or foreign policy. My job is to help you understand how global events shape the markets, so you can make informed decisions that help you build your family’s wealth.
What has happened since the ceasefire is something every serious bitcoin holder should understand.
Cut off from Western financial networks and holding effective control over the Strait of Hormuz, Iran is moving to monetize that position and cement its grip over the world’s most critical energy passageway.
On May 16, Iranian state media reported the launch of Hormuz Safe, a bitcoin-settled maritime insurance platform for cargo transiting the strait.
To understand why this matters, you need to know what the strait is worth. It handles roughly 20% of the world’s daily oil supply. That translates to about $2 billion in daily oil value alone.
Foreign cargo ships transiting the strait need maritime insurance to operate.
Western protection and indemnity (P&I) clubs, the international syndicates that have underwritten global shipping for centuries, are prohibited under sanctions from covering vessels moving through Iranian-controlled waters.
Those that haven’t pulled out entirely have raised war-risk premiums as much as 32x pre-war rates, pricing most commercial operators out of the market entirely.
Tehran saw the gap and moved to fill it.
Hormuz Safe positions Iran as the insurer of last resort for foreign ships wanting to transit the strait. Ship operators select a coverage tier, pay the premium in bitcoin, and receive a cryptographically verified digital receipt the moment the blockchain confirms the transaction.
Iran collects the premium from operators who have no sanctioned alternative.
The settlement runs entirely outside Western financial rails, with no banks, no SWIFT, and no dollar-denominated intermediary required.
Tehran turned a sanctions-created coverage gap into a revenue stream, priced in an asset no government can freeze.
Iranian officials project the platform could generate more than $10 billion in annual revenue if it captures a meaningful share of regional shipping insurance demand.
As of this writing, Iran has yet to confirm Hormuz Safe is operational. The full scope of the platform remains to be seen. But what it establishes is this: A sovereign government publicly adopted bitcoin as the actual settlement layer for international commerce.
I Predicted This in 2022
I predicted we’d see this happen back on March 14, 2022.
Russia had just invaded Ukraine. The U.S. and its allies froze more than $600 billion in Russian national assets overnight. At the time, bitcoin was down 45% from its prior all-time high. It had dropped from $68,000 to $37,600.
Here’s what I wrote on that day:
The West can cut off the world’s 11th-biggest economy and nuclear power in a blink of an eye… what does that mean for our country? I believe bitcoin will be the biggest long-term winner.
Regardless of how you feel about that conflict, every other nation on earth started asking the same question: could this happen to us?
For some, that question became a directive. Build financial infrastructure outside the reach of Western sanctions. Iran’s Hormuz Safe platform is one of the clearest examples of what that looks like in practice.
A government just structured sovereign financial infrastructure using bitcoin: insurance contracts, on-chain settlement, and cryptographic receipts, all denominated in bitcoin, over a waterway that handles one-fifth of global oil trade.
Bitcoin doesn’t need a central bank’s permission or a congressional vote to do this. It works because of what it already is: borderless, uncensorable, and impossible to freeze.
Iran is the most visible example. But the same underlying pressure is showing up in places that still have full access to Western financial systems.
In January 2025, Czech National Bank Governor Aleš Michl formally proposed adding bitcoin to the bank’s reserves, framing it explicitly as a reserve-management diversification tool alongside gold and equities.
The CNB board approved the study, and by November 2025 the bank made its first purchase of roughly $1 million in bitcoin and blockchain-based assets, specifically to gain operational experience with digital-asset custody and settlement.
By April 2026, Michl was publicly arguing that bitcoin could improve sovereign reserve returns without meaningfully raising overall risk, pointing to its low long-term correlation with traditional assets. That framing matters more than the dollar amount.
The U.S. dollar’s share of global foreign exchange reserves has fallen from 60% to 43% since 2000. Central banks are already diversifying.
Once one institution frames bitcoin as a reserve asset, the professional risk calculus shifts for every other bank governor who follows. And unlike gold, bitcoin held in self-custody requires no vault in New York.
That’s how sovereign adoption turns bitcoin into a multitrillion-dollar asset.
What Matters Right Now
While the market is watching bitcoin’s daily price action, I’m focused on the underlying thesis for bitcoin. And it just got materially stronger.
That’s why I always remind you not to confuse short-term price swings with the long-term adoption trend. I said that in 2022 after bitcoin dropped to $37,600. It applies just as much today at $77,000.
I believe bitcoin is becoming the foundation of a new global monetary regime.
As I’ve seen in every crypto cycle, the largest gains will go to the protocols and platforms that capture the capital flows bitcoin makes possible.
My research suggests one of the biggest beneficiaries will be stablecoins.
Stablecoins solve one of crypto’s major problems: volatility.
They keep price stability by pegging their value to another asset, maintaining reserve assets as collateral, or using algorithmic formulas that control supply. Many of them are pegged to the U.S. dollar (USD) and trade at or near $1.
They’re popular among unbanked populations because, as digital assets, they enable anyone to send value to anyone else anywhere in the world at any time.
Juniper Research projects this market will grow to $5 trillion by 2035, nearly 14 times its current size. And the regulatory environment has never been more favorable.
When the GENIUS Act became law last year, it cracked open access to the $117 trillion global bank deposit market, the total value sitting in traditional banks around the world.
Stablecoins provide the rails to move massive chunks of that money over the blockchain.
I recently put together a briefing on the specific altcoins I believe are best positioned to profit as this parallel financial system continues to take shape.
In that briefing, you’ll also learn more about the $117 trillion stablecoin opportunity, including details on six projects trading at deep discount right now.
One of them is a company I believe will become the gateway between Wall Street and stablecoins.
When the market finally awakens to this trend and reprices these altcoins higher, those positioned in the right ideas could see 10x, 15x, or even 20x gains from here.
What Iran showed us in the Strait of Hormuz, and what the Czech National Bank confirmed with its reserves, is that bitcoin adoption at the sovereign level is no longer a prediction. It’s a documented trend.
The stablecoin layer is where that adoption turns into capital flows. And following capital flows is how you build wealth.
Welcome to The Pregame Lineup, a weekday newsletter that gets you up to speed on everything you need to know for today’s games, while catching you up on fun and interesting stories you might have missed. Today’s edition is brought to you by David Adler. Since this is Memorial Day Weekend, we’ll be back on Tuesday.
It’s been 569 days since Gerrit Cole last pitched in a Major League game.
Well, today’s the day. The Yankees ace and 2023 AL Cy Young winner is finally returning to the mound.
Cole will make his long-awaited 2026 season debut as the Bronx Bombers host the MLB-best Rays in a rivalry showdown at Yankee Stadium (7:05 p.m. ET, MLB.TV).
Cole’s last game was on Oct. 30, 2024 — that was the deciding Game 5 of the 2024 World Series, when the Dodgers rallied to defeat the Yankees and win the first of their back-to-back championships the last two years.
Cole missed all of last season after undergoing Tommy John surgery in March of 2025. But now, after a year-plus of recovery, every box has been checked. The Cole Train is back in the big leagues.
Cole touched 99.6 mph in his final rehab start at Triple-A. Maybe the No. 1 thing we’ll be watching is: Can the 35-year-old bring his old heat tonight?
2) Will he have his elite command?
Cole is a six-time All-Star who knows how to put a baseball where he wants it. He doesn’t just have overpowering stuff, he also has great command. But after Tommy John surgery, command is often the last thing to come back for a pitcher.
3) How will his new windup look?
Cole has been experimenting with a new, hands-over-the-head windup in his rehab process — a windup in the style of Max Scherzer. We want to see that new windup in action. And will it affect Cole’s stuff? His command? Both? Neither?
Whatever the results tonight, though, we’re just happy to see one of baseball’s true aces for the first time in a year and a half.
GAMES TO WATCH ON MEMORIAL DAY WEEKEND
Baseball’s longest scoreless streak, a bounceback spot for Skenes and some division rivalry series highlight the games to watch this Memorial Day Weekend. See how MLB is commemorating Memorial Day here.
Phillies ace Cristopher Sánchez has a 29 2/3-inning scoreless streak going, the longest in the Majors — and it’s his bobblehead night at Citizens Bank Park. But he’s facing a first-place Guardians team that has its own ace going, Gavin Williams.
Paul Skenes had one of his roughest outings of the season his last time out, allowing five runs in a loss to the Phillies. He’ll look to bounce back this weekend against a Blue Jays team that’s been scuffling, but still has a dangerous lineup.
The two best teams in the AL this season both happen to play in the AL East, and they’re clashing this weekend. This contest should be a particularly good one with resurgent Rays ace Shane McClanahan (2.82 ERA) on the mound.
The now-first-place Brewers open a big NL Central series against the Cards, who are just a couple of games back, on Memorial Day. And the series opener tentatively lines up to be Jacob Misiorowski’s start for the Brew Crew. The Miz hasn’t allowed a run in four starts in May, and he leads the Majors with 88 strikeouts this season.
DÉJÀ VU FOR HARRIS II
It was the home run so nice Michael Harris II hit it twice.
Not only did Harris hit the home runs to the same patch of grass beyond the right-center-field wall at loanDepot Park, but almost everything about the home runs was nearly identical.
Check this out:
HR #1: 110.1 mph / 19 degrees / 421 feet / 4.3 seconds hang time
HR #2: 110.5 mph / 18 degrees / 418 feet / 4.4 seconds hang time
Even Harris’ swing speeds were identical: 78.7 mph.
It’s like looking in a dinger mirror.
WHO NEEDS HOME RUNS? NOT THE BREW CREW
The Brewers have taken over first place in the NL Central thanks to a sweep of the rival Cubsearlier this week. And — surprise, surprise — they’re getting it done in the most Brewers way possible.
The Brew Crew continue to be the kings of small ball. And this weekend’s series against the Dodgers — who eliminated Milwaukee from the playoffs last year in the NLCS — will be a big contrast in styles between two contenders.
The Brewers rank fourth in the Majors this season at 5.04 runs per game. They rank dead last in the Majors with 33 home runs. No AL/NL team has ranked in the top five in runs scored while hitting the fewest home runs in the Majors since the 1930s.
Now consider the Dodgers. Los Angeles ranks just ahead of the Brewers in scoring offense at 5.14 runs per game. But the Dodgers rank fourth in MLB with 66 homers — twice as many as the Brewers.
And yet both teams are in first place in their respective divisions. Both teams have nearly identical records. There’s more than one way to win a baseball game.
BEST NICKNAME IN THE MINORS? VOTE NOW
The Minor Leagues are full of players with incredible nicknames.
There’s “Tugboat” … “The Grinch” … “The Ice Cream Man” … “The Username” … “Lord Tubbington” … “The Iowa Meat Truck” … the list goes on and on.
But who has the very best nickname of them all? It’s up to you to decide.
For 30 years, the overnight window has paid $17 for every $1 the daytime market returned.
Same stocks you already trade. Tesla, Apple, Broadcom – moves of +281%, +215%, +263%, all hitting between the closing bell and the next morning’s open.
Brandon Chapman just delivered a private briefing walking through every trade on camera. Real tickers. Real dates. Backed by research from Columbia, Purdue, and UC Berkeley.
The recording comes down soon, and once it does, this window goes back to the institutions.
Corey Rosenbloom shared something during his session I haven’t heard him explain in this much detail.
He started his career as a bear in 2007.
He cleaned up scalping the 2008 crash with a small account. He felt smart.
Then 2009 happened. Then 2010. Then 2011.
His account suffered while the market kept climbing.
By 2012 he had to have a hard conversation with his family about whether he could keep trading at all.
In today’s free session replay, you’ll discover:
The paradigm shift that turned a struggling bear into a hardened bull. Corey changed his entire worldview in 2012. He explains exactly what forced the decision and why being right about fundamentals does not pay if you are wrong about the tape.
Why the “this has never happened before” argument is statistically false. Eight straight weeks. 13% from the lows. The current run is the 10th largest streak on record. Corey walked through 1995 and 2020 as examples where the same complaints showed up at every step higher.
The relative strength rule that filters winners from laggards.Strong stocks get stronger. Weak stocks get weaker. It sounds simple. Brandon, Gianni, Professor, and Mac all build their work on this same principle for a reason.
The colleague who wrote eight reasons the market would crash in 2012. Arab spring. Inflation. A new presidential term. Every reason was reasonable. The market kept going up anyway. Bears had good arguments. The tape had better answers.
Corey made a point that goes against most of the noise traders absorb every day.
Blaming manipulation, algorithms, or “those dang bulls” does not improve your trading.
Difficult conversations with yourself about why the tape disagrees with your bias do.
The fundamentals are bullish. GDP is bullish. Jobs at 4.3%. The chart is objectively in an uptrend.
If you start with the wrong foundation, everything that flows from it is wrong too.
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“The last stretch before a breakthrough is often the one that tests your resolve most deeply. That test is a sign you are near.”
When progress is slow and the goal still feels far away, it’s easy to wonder if your efforts are even working. But persistence has a way of quietly compounding beneath the surface, building momentum that isn’t always visible until the moment it releases. Don’t let the slowness of this season convince you to stop. You are doing the necessary work, and something is about to open up.MORE INSPIRATION
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As much as I love the stock market and investing, I am also passionate about cars.
In fact, I’ve built up quite a little collection of sports cars over the years.
And recently, I added something special to my collection: a Cadillac CT5-V Blackwing.
This is not a quiet little luxury sedan built for grocery runs. It is a serious performance machine. 668 horsepower and 659-lb-ft of torque. The kind of power that makes you sit up straight the moment you touch the gas pedal.
But here’s the thing about power…
It is only useful if you know how to control it.
That is why, in a few weeks, I will be heading to Spring Mountain Raceway in Nevada to go to Cadillac’s V-Performance Academy. It is a driving school built to help Blackwing owners learn how to handle these cars the right way.
Braking. Cornering. Reading the track. Staying calm when the car is moving fast.
In other words, it teaches you how to harness all that raw power and turn it into something you can control and enjoy.
And as I was thinking about that trip, I realized it is the perfect way to describe today’s market.
Because this market moves fast and turns on a dime.
Stocks can move 5%, 10% or even 20% on a single headline. Artificial intelligence news, oil prices, tariff rumors, Federal Reserve comments and global shocks can whip the market around in a matter of hours.
Most investors look at that and see danger.
But I see power – and a lot of potential gains on the table for investors who can harness it the right way – just like my Blackwing.
So, in today’s Market 360, I’ll show you why this market is no place for white-knuckle guessing – and why my InvestorPlace colleague Jonathan Rosemay have the ultimate “performance driving school” investors need for this new era of volatility. (You can learn more about it at his Convergence Summitevent on May 28.)
Elon Musk could take SpaceX public in 2026, at an estimated $1.75 trillion valuation. The IPO would include Elon’s AI model, Grok. But according to Louis Navellier, a radical new AI model will launch this year… kicking off a $100 trillion revolution. The company behind this new tech could outperform SpaceX in the process, too. Click here for full details (including Louis’ new pick – free).
This Is Not a Sunday Drive Anymore
For years, investing felt like cruising down a wide-open highway.
You could buy the biggest tech names, hold on, and let the market do most of the work. Thanks to the Federal Reserve, low rates helped.
The biggest growth stocks kept getting bigger. But that market is disappearing.
Today, investors are dealing with a much faster environment. Inflation matters one day, then it doesn’t. The Fed might lower interest rates, then it’s off the table. Oil spikes when conflict breaks out in the Middle East, but then craters when rumors of a potential peace deal leak out.
Don’t get me started on tariff fears and how they can hit entire industries. Or how AI stocks can soar one day and fall hard the next.
That is why so many investors feel like the market has become harder to read.
Folks, I have been in the market for nearly five decades. Let me tell you something: You are not imagining it.
This market is faster, more emotional, and less forgiving when you are on the wrong side of a move than at any time I can remember.
But that does not mean you should panic. It just means you might need to upgrade your playbook.
Volatility is a lot like horsepower. In the wrong hands, it can be dangerous. But with the right training, tools and signals, it can become a major advantage.
That brings me to Jonathan Rose.
Jonathan Rose Is Built for Speed
I believe Jonathan’s strategy is a perfect fit for the market we are in right now.
He came up in the Chicago trading pits, where fortunes could be made or lost by reading the flow of money faster than the next trader. That kind of environment teaches you how to spot when big money is moving. It teaches you how to recognize when a move has real force behind it. And it teaches you that speed is only useful when it is paired with discipline.
That is what I like about Jonathan.
His system is built for speed. It is designed to capture short, powerful bursts in the market that most investors miss. When everything lines up, it can absolutely blow your hair back.
But Jonathan does not just hand people the keys and tell them to floor it.
His entire approach is built around training, discipline and control. He teaches people how to recognize the right signals, understand the setup and avoid emotional decisions when the market is moving fast.
And folks, that matters. Because this market is not a Sunday drive anymore.
Follow the Smart Money
If you have followed my work for any length of time, you know one of the pillars of my own system, Stock Grader, is institutional buying pressure.
In plain English, I want to know where the big money is moving.
When paired with strong fundamentals – meaning growing sales, rising earnings, positive analyst revisions, etc. – it’s like the secret sauce for a stock. Chances are, good things will happen.
Jonathan follows a similar idea, but in a faster part of the market.
He looks for moments when big money is moving with unusual force. These are not small, ordinary signals. They are the kind of powerful moves that can show up before the broader market catches on.
My system helps identify where institutional money is building over time.
Jonathan’s system is designed to spot where that money is moving right now.
That is why I believe his work is such a valuable complement to mine. And it is why I want you to hear what he has to say (more on that in a moment).
The New Convergence Trigger
There is another reason this is so timely.
Jonathan is now teaming up with Marc Chaikin.
Marc is one of Wall Street’s best-known institutional analysts, and he created the famous Chaikin Money Flow indicator.
Marc has spent decades studying how money moves through the market. Now, he and Jonathan say they have combined two powerful smart-money signals into one new trigger.
They call it the Convergence trigger.
Here is the simple version…
Jonathan’s work helps spot conviction – where big money appears to be moving with unusual force.
Marc’s Money Flow work helps confirm direction – whether institutional capital is lining up behind the same move.
When those two signals agree, Jonathan and Marc believe it can reveal some of the strongest setups in today’s market.
To go back to my Blackwing, this is like having a professional instructor in the passenger seat and a dashboard full of real-time data.
It does not remove all risk. Nothing in the market does.
But it can help you approach a high-speed environment with more control.
And the results can be powerful – I’m talking about gains like 780% in 42 days, 833% in just
over two weeks… and 784% in 30 days.
Reserve Your Spot for The Convergence Summit
That is why I want you to know about a special event coming up soon.
It’s where Jonathan and Marc will come together to explain this new Convergence trigger and show why they believe it is built for today’s volatile market.
They will explain why the old playbook may not be enough anymore… why smart-money signals matter so much right now… and how this new approach is designed to help investors handle today’s market with more confidence.
Again, I think about it like my upcoming trip to Spring Mountain.
I’ve been behind the wheel for years. But when you are dealing with a machine as powerful as the CT5-V Blackwing, you respect the power enough to learn how to handle it the right way.
Investors should have the same mindset today.
This market has power. It has speed. And if you know how to handle it, it may create some of the most exciting profit opportunities we have seen in years.
But you do not want to approach it blindly.
You want training. You want tools. You want discipline. And you want to know what signals to watch.
That is exactly why I think you should tune in to hear from Jonathan and Marc on May 28 at 8 p.m. Eastern.
Manage your account We hope this timely investment research is valuable to you. As you know the markets move fast and conditions change frequently. So please check the current issue for the most recent advice. Please note that we cannot be liable for any missed bulletins caused by overzealous filters. To ensure that you continue to receive this valuable part of your service please take a moment to add services@exct.investorplace.comto your address book.
🧨Reddit Gets Zucked… Revenge of the Computer Nerds
As the great Pablo Picasso once said, good artists copy… great artists steal.
(If you happened to read that opening line and immediately thought “he must be talking about a certain UFC fan” Ding. Ding. Ding. You are the winner).
Because Reddit shareholders got absolutely zucked on the final business day before Memorial Day weekend after Meta decided to do what Facebook Meta has done from the beginning: Ctrl+C, Ctrl+V somebody else’s entire business model.
Just like Zuck allegedly copied the Winklevoss twins… then copied Elon’s Twitter with Threads… Marky Mark and the boys over at Meta Platforms apparently looked at Reddit and said: “Yeah… we’ll take one of those too.”
So, they created a new app called Forum… which is literally the exact same idea as reddit (probably just with more ads).
Shares of Reddit dropped roughly 6% Friday, bringing the stock down around 40% on the year now… despite the company’s ad business continuing to put up pretty solid numbers.
Meanwhile, even though Marco Rubio’s peace talks with Iran still haven’t amounted to a hill of beans (at least not yet) the market kept floating higher anyways, with the S&P 500 climbing 0.5%, the Nasdaq rising 0.5%, and the Dow tacking on another 0.8% as commodity-hungry businesses and traders alike started getting hopeful the Middle East might finally be inching closer to something resembling “calm.”
Over in tech land, household name PC stocks had themselves a field day.
Your grandpa’s favorite computer company (and the S&P’s #1 stock today), Dell exploded more than 16% to an all-time high after Lenovo reported its strongest PC, tablet, and smartphone sales growth in five years. (Mac Mini? Never heard of her.)
HP also erupted nearly 16% as investors started foaming at the mouth ahead of earnings next week.
Turns out consumers are still buying computers despite everyone claiming smartphones and AI assistants were supposed to replace them years ago. Funny how every “the PC is dead” prediction keeps aging like unrefrigerated sushi.
Although, Lenovo did admit some demand may have been pulled forward because companies are panic-buying hardware ahead of expected price increases and ongoing memory chip shortages tied to AI infrastructure demand.
Then there’s the Fed… where President Trump officially swore in Kevin Warsh as the new Federal Reserve Chair this afternoon.
During the ceremony, Trump had the audacity to say he wants an “independent Federal Reserve” which is kind of like your boss telling you, “make your own decisions… as long as they’re the ones I like.” In response, Warsh promised a “reform-oriented Federal Reserve” focused on escaping outdated economic models.
Translation: the money printer is about to go Brrr.
Anyways, that’s enough market brain rot from me for one week. Go enjoy your Memorial Day weekend, eat an irresponsible amount of hot dogs, and try not to check your phone too often in front of your grandma.
If you read all of this, congrats for having a 10 second attention span (better than me). As always, here’s our heatmap for today.
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Oura’s Wellness Cult Marches Toward Nasdaq IPO After Smart Ring Revenue Explodes 4x
Kid: Mommy, how did we get so rich?
Mom: Daddy ignored the SpaceX hype and mortgaged the entire house on Oura’s IPO…
If there’s one thing Wall Street loves more than an AI company burning $400 million a quarter… it’s a subscription business attached to it. And now pretty soon, the suits will have a brand-new wellness obsession to throw ridiculous price targets at.
That right, Oura (the company that convinced millions of people to pay a monthly subscription to learn they’re stressed, exhausted, and probably overtrained) has confidentially filed for an IPO with the SEC. And I’ll have to admit, when I saw the press release I kind of rolled my eyes and smirked… but the numbers are…
Asset Managers Laugh All the Way to the Bank as Retail Investors YOLO into Endless Space ETFs
Hey, there’s a bubble…
To avoid contradicting the blurb at the top of this article… I’m not saying a bubble’s about to burst… but I’m also not NOT saying it.
So what’s got me acting all weird at the moment? Well, just the fact that our good friend Elon has somehow convinced the entire world that the next trillion dollar gold rush is happening somewhere above Earth’s atmosphere.
And that this gold rush is set to happen in months… not years or even decades (as his arch rocket nemesis Jeff Bezos said…
Anthropic Swoons Microsoft’s Maia Chip After Already Pimping Rest of Big Tech…
“I got hoes in different area codes” – Ludacris Daro Amodei, probably…
Well, it’s 2026 and there is absolutely NO compute partner Anthropic isn’t dipping its proverbial pen into, and as of yesterday, Satya is next. Sources confirmed that Dario “No Hands” Amodei is in talks with Microsoft to adopt the Maia 200 AI chip, the in-house silicon Satya rolled out in January but hasn’t bothered making available to actual Azure customers. No paperwork is signed (because, of course)”. The snitch “person familiar with the matter” was very clear about that. Which means as of now, both sides are still playing just the tip.
But the rumor is enough to make heads turn. For instance, Microsoft wrote Anthropic a $5 billion check six months ago. Anthropic immediately turned around and committed $30 billion to Azure. Friendly reminder: Side-Piece Satya (read: Nadella) has also sunk billions into OpenAI and briefly employed Sam Altman for what felt like a long weekend in November 2023.
Which makes Microsoft, at this point, the chip-sales equivalent of a hot tub with two dating apps open on the laptop. As for the Maia 200 itself, it’s the…
The Most Important Central Bank Speech Of All Time And Why It Was Kept Secret For Decades
In 1979, Belgrade, Yugoslavia, was the Dubai of the Soviet bloc.
Belgrade was the leading industrialized city in Eastern Europe. Rebuilt after World War II, it was a city shaped by the demands of the communists, which included heavy manufacturing for the military. Their plans didn’t include wastewater treatment or any regulations on air pollution. Its filth and stench were a warning of the catastrophe that would emerge a decade later in its civil war.
It was the most unlikely place in the world for the leading bankers of capitalism to gather. And it was the site of the most unlikely speech ever given by any central banker: a warning about the imminent failure of central banking.
Arthur F. Burns was chairman of the Federal Reserve from February 1970 until January 1978. He taught Milton Friedman at Rutgers. He advised four U.S. presidents. He smoked a pipe in every photograph. In the eyes of his profession, he stood at the summit of American economic thought.
He also presided over the worst peacetime inflation in American history, the rapidly escalating prices of the 1970s.
One Sunday in late September 1979 in Belgrade, Burns delivered the annual Per Jacobsson Lecture. The Per Jacobsson Foundation invites only the most senior figures in global finance – central bank governors, finance ministers, the principals of the International Monetary Fund (“IMF”) and the World Bank.
Burns’ lecture runs roughly 12,000 words. It is a moral and economic indictment of central banking. And it was a dire warning – to the entire world – of the enormous monetary reset that would begin just two months later. Butthis speech was kept secret for almost a decade.
It was only published after Burns’ death in 1987.
If you understand it, you have a chance of surviving what’s about to happen to America. If you don’t understand it, you have no chance.
Burns’ argument was not that the Federal Reserve botched the job of maintaining price stability in the previous decade, although he admitted plenty of error. His argument wasn’t about how central banking failed. It was about the far deeper failures, the why central banking fails. Burns’ warning was that, in democracies, the promises of the politicians will always outpace the taxes necessary to support them. This, inevitably, creates permanent and growing fiscal deficits. Burns explained that central banks were no longer being used to support legitimate government financing, but instead, had become the bridge to spending that would otherwise be impossible. He said:
The proliferation of government programs led to progressively higher tax burdens on both individuals and corporations. Even so, the willingness of government to levy taxes fell distinctly short of its propensity to spend. Since 1950, the federal budget has been in balance in only five years. Since 1970, a deficit has occurred in every year. Not only that, but the deficits have been mounting in size. Budget deficits have thus become a chronic condition of federal finance. They have been incurred when business conditions were poor and also when business was booming. But when the government runs a budget deficit, it pumps more money into the pocketbooks of people than it withdraws from their pocketbooks – the demand for goods and services therefore tends to increase all around. That is the way the inflation that has been raging since the mid-1960s first got started and later kept being nourished.
And then Burns told the world that the only way forward was a drastic change to this accommodative policy – a global monetary reset was inevitable.
If the United States and other industrial countries are to make real headway in the fight against inflation it will first be necessary to rout inflationary psychology – that is, to make people feel that inflation can be, and probably will be, brought under control. Such a change in national psychology is not likely to be accomplished by marginal adjustments of public policy. In view of the strong and widespread expectations of inflation that prevail at present, I have therefore reluctantly come to believe that fairly drastic therapy will be needed to turn inflationary psychology around.
What did “drastic therapy” mean? A complete monetary reset. Sixty days after Burns delivered his remarks in Belgrade, Paul Volcker – Burns’ successor at the Fed – began the most violent monetary tightening in U.S. history. The federal fund rate would eventually climb to 20%. The yield on the 10-year Treasury bond would hit 15% by October 1981, causing a 50% decline in bond prices. Mortgage rates hit 18%. Unemployment touched 11%. Stocks fell until the average earnings multiple on the S&P 500 was 8x earnings. The global monetary order reset. The dollar was saved. And financial assets were virtually destroyed.
Burns knew it was coming. He tried to warn the world – and the bankers wouldn’t let him. Today, the same warning applies, but on a vastly larger scale. Will you listen…?
From 1950 to 1979 – for 29 years – the federal budget reached balance only five times. Through the entire decade of the 1970s, it ran deficits every single year. The debt ballooned.
And today? Fiscal year 1999 was the last full year of a genuine on-budget surplus in American history. The deficits have been growing in every year since. Twenty-seven years of growing deficits and ballooning debts.
The arithmetic now exceeds anything Burns could imagine in Belgrade. Burns called deficits averaging 2% of GDP a “chronic condition.” We are running deficits that are 5.8% of GDP in peacetime, with full employment, with no recession on the horizon. This is the most extraordinary fiscal posture the United States has ever sustained outside of total war.
And you haven’t heard a single banker or politician or economist say a single word about how this is completely unsustainable.
Net interest payments on the federal debt climbed from 1.6% of GDP in 2021 to a record 3.2% in 2025. If rates continue to rise, our government’s interest expense will soon reach 5% of GDP. Just in interest payments. In dollar terms, net interest will rise from $970 billion in fiscal 2025 to $2.1 trillion by the early 2030s. On this trajectory, by 2036, interest alone will consume more than 30% of every federal tax dollar.
Interest on the debt is the fastest-growing line item in the federal budget.
And every additional dollar of interest forces the Treasury to issue new debt, which pushes yields higher, which raises interest expense, which forces more issuance. Economists call this debt fueled doom loop “fiscal dominance.”
What they should call it is the bankruptcy of our government.
In 1979, the monetary reset had a name: Paul Volcker. Fed chair Volcker drove the federal funds rate to nearly 20% in 1981. He pushed the 10-year Treasury yield above 15%. He crashed the economy to save the dollar. But that option no longer exists.
When Volcker took the Fed chair in August 1979, federal debt held by the public stood at roughly 25% of GDP. Net interest expense ran about 1.7% of GDP. Higher rates, for a short period of time, wouldn’t threaten the stability of the government’s budget.
In 2026, federal debt held by the public sits at 101% of GDP and climbs to 120%. Interest already consumes at 3.2% of GDP. With $30 trillion of debt held by the public, every additional percentage point of average interest cost adds roughly $300 billion to annual interest expense.
A Volcker move today – funds rate to 15% – would add trillions in annual interest within three years. At those rates, interest alone would exceed total federal revenue.
Thus, this time, the monetary reset will not be like the last time. We can’t afford it. What will happen this time is letting the inflation run, higher and higher, while using the central bank to peg interest rates at a level the government can afford. As a result, inflation is going much higher.
It is inevitable. But, even so, just like in 1979, no one sees what’s coming.
The five-year, five-year forward inflation expectation rate – the bond market’s expectation of average inflation across the five-year window beginning five years from today – is only 2.21%.
Meanwhile, despite the soaring stock market, we are in the midst of some of the biggest bond market losses in history. Look at long-duration Treasuries since 2020. The iShares 20+ Year Treasury Bond ETF (TLT) – the standard proxy for the long end of the U.S. yield curve – peaked in August 2020. Through 2025, it has lost roughly half its value. The U.S. bond market has been in a continuous drawdown for 68 months. That’s the longest bond bear market ever.
This is what the early stages of a monetary reset looks like. The 1979-1981 episode was resolved in roughly 24 months because the Federal Reserve could raise rates and the government could afford them. The current episode drags on – five and a half years and counting – because the Treasury can’t afford it. And that means it’s bankrupt.
Our creditors see what’s happening.
Over the last five years, China has sold roughly $400 billion of U.S. Treasuries, dropping its holdings by half.
What are central banks buying instead of Treasuries? More than 1,000 tonnes of gold per year in 2022, 2023, 2024, and 2025. This represents the largest official-sector accumulation of gold since the closing of the gold window in 1971.
This is the “End of America” – the end of U.S. financial hegemony over the world. America’s creditors no longer believe the U.S. Treasury can be repaid in real terms.
Why was President Trump in China? When a debtor flies halfway around the world to see his creditor, the meeting is never just about tariffs.
The 1979–1985 reset moved through a predictable sequence:
September 1979: Burns’ warning in Belgrade
October 1979: Volcker’s “Saturday Night Special.” The Fed pivots from targeting interest rates to targeting bank reserves. Yields rip higher.
1980–1982: Fed funds rate touches 20%. Ten-year Treasury yield breaks 15%. Deep recession. Long bonds destroyed.
September 1985: Plaza Accord: The U.S., Japan, West Germany, France, and the UK agree to engineer a coordinated devaluation of the dollar. Over the next two years, it falls by nearly half.
The bond bull market begins. The secular inflation in goods ends. The secular inflation in financial assets begins.
The modern sequence will not look identical. The Fed cannot be Volcker – the government can’t afford it – the math forbids it. The monetary reset this time won’t be to rebuild the dollar. It will be to escape it.
Watch these markers between now and 2029:
The Social Security Trust-fund cliff. Social Security OASI (Old Age And Survivors Insurance) insolvency will arrive around 2029. A general-revenue bailout, financed by new Treasury issuance, becomes inevitable.
Continued Fed accommodation. Real interest rates become negative as inflation moves above 6% but the Fed doesn’t raise rates fast enough to prevent enormous losses in long bonds.
The printing resumes. When 10-year yields threaten to break the level at which Treasury interest expense turns unmanageable, the Fed returns to large-scale asset purchases.
A final reset in 2029. A global inflationary crisis leads to a formal U.S. Treasury default and a creditor negotiation. A formal Plaza-style accord – Beijing, Tokyo, Riyadh, Frankfurt at the table lead to a new global monetary agreement with gold and Bitcoin at the center of global trade.
Burns ended his Belgrade lecture with a sober line. He said central banking would ultimately fail, not because central banks couldn’t provide stability and liquidity to the markets, but because they did.
His warning was that central banks, by providing credit support, would enable governments to destroy their economies with debt and unsustainable promises. And so they have.
Prepare. Prepare now.
To learn more about the coming monetary reset and how to prepare, please read Porter’s new, best-selling book 2029: The End of America: Why the Age of Paper Money Is Ending And How to Survive the Coming Global Monetary Reset, available now at Amazon.
1. Foreigners dump Treasuries. The value of U.S. Treasuries held by international investors fell by $139 billion in March, the largest drop since September 2022. The selling was led by Japan, which unloaded $48 billion in Treasuries, followed by China’s $41 billion in sales. The world is fleeing from U.S. government debt at the same time that Treasury issuance sets new record highs, pushing up yields and thus U.S. borrowing costs.
2. Booz Allen’s EPS beat, brought to you by the IRS. Booz Allen Hamilton (BAH) closed fiscal 2026 with revenue of $11.2 billion, down 6.4% year-over-year, but earnings per share of $1.78 beat the $1.34 consensus – however, the largely mechanical earning beat related to an $86 million IRS reserve release. The full-year earnings margin actually remained flat at 11.0%. Backlog hit a record $38 billion, but FY27 revenue and EPS guidance remain below FY26’s. Shares rose 3% today on the news.
3. Gulf states press Trump to stand down on Iran as Tehran moves to formalize Hormuz tolls. The UAE, Saudi Arabia, and Qatar have urged President Trump to resume diplomacy and not military operations against Iran. Trump agreed to postpone a planned strike this week. Meanwhile, Iran is negotiating with U.S. ally Oman to establish a permanent toll system for the Strait of Hormuz, where passage fees have already reached $2 million per vessel. Iran has controlled transit through the strait since the war began in February, and formalizing that grip would represent a huge shift in global energy logistics. Roughly 20% of the world’s oil supply passed through the strait prior to the war.
Chart Of The Day… Hovnanian Enterprises (HOV)
Shares of Hovnanian Enterprises (HOV) rose 18% yesterday, despite its fiscal Q2 results looking weak. Revenue dipped to $667.6 million and the company posted a $0.46 per-share loss versus $2.43 in earnings a year ago. Bearish consensus was calling for a $2.06 loss and just $633 million in revenue. Less bad than feared was enough to spark the rise in share price.
Mailbag
In yesterday’s Daily Journal, “The Violent Lives Of Black Americans,” Porter wrote about the level of violence among blacks in America and how law enforcement’s inability to treat all people equally, regardless of race, has led to more homicides. He advocated that statistics among various groups be recognized to ensure the safety of all people.
“We Need to Address These Issues”
Bill S. writes:
Thank you, Porter, for having the courage to address a subject that many of us have wrestled with for some time. While we may not have been aware of the specific data that you’ve shared, we have been aware that common sense has been abandoned in favor of political correctness in today’s culture. The left preaches color-blindness as an attribute we should all espouse, except when it points to an offense committed by a person of color. I am not a racist, but I do find myself being extra wary when I am around a group of African-American individuals, especially at night. I ask myself why that is: it is because they are statistically more inclined toward aggression, as your data has clearly shown. Making excuses for bad behavior by claiming racism is truly an affront to most people’s intelligence. Your data and our eyes do not lie. Until the African-American community addresses these issues, we will never reach racial harmony in this country.
“Violent Lives Of Black Americans”
Raymond H. writes:
Porter,
Boy, you really stepped in this time. How DARE you cite empirical data and statistics! Doubtless, you will receive hate mail and cancellations.
I never studied the data you accessed, but you quantified my observations in growing up in a racially mixed neighborhood in the 1950s and now over 50 years practicing law. No, I never handled criminal cases. I could not cite statistics, but have wondered for years why the relative crime rates between black and white, as reported by day-to-day news accounts, clearly illustrated what you presented. Apparently, it is not a sociological origin, and I conclude it is simply endemic until the phenomenon is better explained.
Thanks for going out on a limb to point out that the emperor has no clothes. You do have balls.
Porter Comment: In 2020, 7.4 per 100,000 black women committed murder, according to the FBI. That was more, per capita, than white men. I think it’s extraordinary that facts like these (the 7x higher violent crime rates in the black population), the global prevalence of black violence, and the historic prevalence of black violence is largely ignored (and completely forbidden to discuss) because it forces us to ask very hard questions, that currently, don’t have any clear answers. One thing is certain – like I wrote yesterday – there is no excuse for violent crime in America. We should have a zero tolerance policy for all violent crime.
“Murder Rates In The U.S.”
Mary N. writes:
No doubt the facts recorded are correct. Yet not one mention of the extraordinary ownership by nearly all U.S. citizens of violent weapons. Mostly multiple ownership, it seems. No other country on earth provides such abundant wherewithal for killing. So, what else should you expect?
Porter Comment: I’ve got bad news for you…
There are lots of places in America where most people own guns. In states like Montana, Idaho, Wyoming, and West Virginia the majority of adults own firearms. The homicide rates in these places are extraordinarily low – as is the population of black people. The percentage of the population that is black is a far more powerful indicator of violent crime than gun ownership rates in America. In America, violent crime is tightly correlated with black populations, not guns.
“Disparate Impact”
H Busch. writes:
Dear sir,
As a Black man, born and raised in St. Louis, Missouri, in the late 1940s to the mid 1960s, I am so glad that someone has highlighted this travesty in America. Your article really hits home how dangerous some Black people truly are.
Even before the Mike Brown incident in Ferguson, I’d read that Europeans are educated/briefed on what places in America not to visit whenever they decide to vacation here. Ferguson was at the top of the list.
Even though born and raised in the ghettos of St. Louis, I have no desire at all to return from my current home in PA., to live there. It’s simply because of the high crime rate there… despite the most recent data below.
It’s really unsettling to me to know that our law enforcement officers have their hands tied by this Disparate Impact nonsense. However, the FBI has reported this recently:
“The projected U.S. murder rate in 2025 dropped to approximately 4.0 per 100,000 residents, which makes it the lowest rate recorded in the U.S. since 1900. This 20% to 21% decrease from 2024 represents the largest single-year decline in homicides on record.
This historic milestone is detailed in data from the Council on Criminal Justice (CCJ) and preliminary statistics from the FBI’s Crime Data Explorer.
While 2025 likely brought the murder rate to a century low, experts note that crime reporting methods have changed significantly over the last 125 years.”
“Impact on Specific Cities:Chicago: Homicides fell by roughly 28% to 30% compared to 2024, giving the city its lowest number of murders since 1965Baltimore: Killings plummeted by roughly 30% to 60% compared to 2019, putting the city on track for its lowest homicide rate in nearly 50 yearsSt. Louis: The city recorded its lowest homicide numbers in over a decade, with 141 murders in 2025 representing a notable reduction in citywide violent crimeDetroit: The city shared in the downward trend, echoing the historic drops in violent crime seen across major U.S. urban centers”
What’s your opinion on these most recent stats? Thanks. God bless!
Porter Comment: Thank you for your letter! The reverse in the homicide rates in the last one to two years has occurred because of a return to more aggressive policing and the end of the consent decrees. Also, many of the notoriously lax prosecutors (like Mosby in Baltimore) have been voted out of office.
Porter & Co. Market Snapshot
PriceYesterday’s ReturnYear-to-Date ReturnS&P 500 Index$7,445.720.17%8.77%Gold per ounce$4,539.80-0.49%4.44%Bitcoin$77,539.17-0.85%-12.14%Oil (West Texas Intermediate) per barrel$96.35-1.23%68.60%Berkshire Hathaway (BRK)$718,387.00-0.34%-4.82%Porter’s Permanent Portfolio-0.02%0.23%The Better Than Berkshire Index-1.36%2.49%YieldYesterday’s ChangeChange Year-to-DateU.S Treasury 30-Year Yield5.11%0 bps27 bps
Prices as of 4:00 pm ET May 21, 2026
bps = basis points (or 0.01%)
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For seminarians and recent graduates, the Hall-Proctor Institute offers more than a gathering. It offers formation.
The Dale Andrews Freedom Seminary (DAFS) is a credit-bearing, graduate-level experience embedded within the Institute. Designed for emerging faith leaders, DAFS connects theology, preaching, pastoral care, and social analysis with the urgent realities shaping the lives of children and youth.
Named in honor of Rev. Dr. Dale P. Andrews, a visionary in public theology, the seminary prepares students to lead with clarity, courage, and accountability to the communities they serve.
What Makes DAFS Distinct:
A rigorous academic experience, not a conference track
Integration of public theology and children’s advocacy
Space to engage faith, justice, and lived experience together
A cohort model that extends learning beyond the week on the Farm
2026 Leadership
This year’s DAFS will be led by Co-Deans Rev. Dr. Lorena ParrishandRev. Dr. Obery M. Hendricks, Jr., guiding seminarians through a week of theological reflection, critical engagement, and formation grounded in the Black prophetic tradition.
Rev. Dr. Lorena Parrish
Associate Professor of Urban Ministries,
Director of Community Engagement Institute and Center for Public Theology at Wesley Theological Seminary
Rev. Dr. Obery Hendricks
Emeritus Professor of Biblical Interpretation at New York Theological SeminaryRead MoreRead More
Hall-Proctor is an intergenerational convening of emerging and established faith leaders. The Institute is not complete without our seminarians.
A Note From Publisher Stephen Prior:The markets and our Monument Traders Alliance offices will be closed Monday, May 25, for Memorial Day. So, we won’t be publishing our Trade of the Day letter.
We hope you enjoy the long weekend, and you can expect to receive your next issue on Tuesday, May 26.
Dear Reader,
Jet fuel has nearly doubled in price since the Iran war started.
The conflict in the Middle East triggered the largest oil supply disruption in recorded history. The Strait of Hormuz, which carries roughly 20% of global oil supply, saw tanker traffic collapse from 130 ships per day in February to just 6 in March.
Global oil supply fell by 10 million barrels per day in March alone.
My job is to look past the pain.
The most useful investing maxim I know comes from hockey: skate to where the puck is going, not where it’s been.
The sectors that will generate the most profit in a few months look absolutely terrible right now. That’s the window of opportunity I see.
Airlines, industrials, consumer discretionary, homebuilders, and financials are falling further behind. When the market is this narrow, the sectors getting ignored are the ones worth watching.
The ceasefire Pakistan brokered on April 8 has held in fits and starts. Iran’s foreign minister says a deal is just inches away. But a durable resolution hasn’t happened yet, which means the positioning window is still open.
When the Gulf War ended in 1991, the S&P 500 gained roughly 26% in the year that followed.
Oil prices fell sharply the moment the supply threat lifted, and the sectors that had absorbed the most punishment posted the strongest rebounds. That’s the playbook I’m working from.
Airlines are the most direct casualty of this conflict.
Jet fuel surged from roughly $85 a barrel to nearly $200 in Europe and up 70% in the United States, and Reuters estimates the industry absorbed nearly $15 billion in war-related costs.
The three largest U.S. carriers face nearly $5 billion in additional quarterly fuel expenses at current prices, and one carrier, Spirit Airlines, has already ceased operations.
Delta (DAL), United (UAL), and Booking Holdings (BKNG) are on my radar. When oil falls, the fuel cost reversal is dramatic, and the stock recovery follows.
The pain extends beyond aviation.
High oil prices are inflationary, and inflation is a direct tax on consumer spending.
When energy costs consume a larger share of household budgets, companies in retail, restaurants, entertainment, and autos contract.
A drop in oil is a drop in inflation, a rise in consumer confidence, and a release valve on the interest-rate pressure that has kept the Fed from moving. Amazon (AMZN), Tesla (TSLA), and LVMH sit in that recovery path.
It disrupted everything that moves through it. Global merchandise trade growth is now forecast to slow from 4.7% in 2025 to as low as 1.5% in 2026 as rerouted shipping lanes and broken supply chains ripple through the industrial economy.
A resolution normalizes those routes and puts companies like FedEx (FDX), Caterpillar (CAT), and UPS back in business at pre-war margins.
War-driven inflation pushed bond yields higher and kept the Fed from cutting rates.
Higher rates mean higher mortgage costs, which keep the housing market on the sidelines waiting for relief. If peace cools inflation and gives the Fed room to move, the homebuilders and lenders move fast.
Lennar (LEN) and JPMorgan (JPM) are the names in that camp.
AI has been the only game in town, but a peace deal broadens the whole market.
The parts of technology sitting outside the top AI names have room to run into semiconductors, software, and growth names that have been left behind. Broadcom (AVGO), Intel(INTC), and AMD are already moving.
The rest of the sector has some catching up to do.
A lot of the market looks terrible right now. Which is why I’m looking at these specific sectors before we get a resolution.
YOUR ACTION PLAN
I’m already building positions in several of these sectors inside the War Room.
If you want to know exactly where I’m putting money to work before the puck gets there, this is where we do it.Want more content like this?
FUN FACT FRIDAY
This week, NVIDIA raised its quarterly dividend from 0.01 dollars to 0.25 dollars per share. This is a 25 times increase. Jensen Huang owns roughly 812 million to 871 million shares of NVIDIA.
This change boosts his personal annual dividend income from around $35 million to nearly $870 million. It is one of the largest self-funded pay increases a CEO has ever given himself through a dividend hike.
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RJ Hamster 