Dear Reader,
Happy Monday!
Inauguration Day.
Here’s why I’m so excited…
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Big Pharma Giant Buys AI-Designed Drug for $4 Billion
It’s the biggest deal for an AI-designed drug in history.
But very few people know about it… yet.
Even leading investors in the U.S. have no idea.
And they don’t know that this tiny AI-biotech designed the drug.
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I love inaugurations, okay?
I’m a sucker for a good inauguration speech.
If I’m feeling a little off or a little upset, I will actually go and listen to like, Kennedy’s inaugural speech, which, for my money is one of the most inspiring speeches I have ever heard.
“The torch is passed to a new generation of Americans, born in this century, tempered by war…”
You know, all those things. Great stuff.
I also love Reagan’s inaugural speech…
“In this present crisis, government is not the solution to our problem; government is the problem.”
Amazing words…
So, I’m kind of a nut for a good inauguration speech.
You can bet your bottom dollar I’ll be watching Trump’s today.
I’ll force my kids to watch it, too.
Because what an amazing thing the peaceful transfer of power is in this country.
I mean, it is just such a gift when you think how rare that is for humans throughout history.
It’s truly incredible.
Anyway, today I want to talk about Wall Street banks.
Whenever earnings season starts, it starts with a parade of Wall Street banks that actually come in and report their earnings.
So last week we had Goldman Sachs, Citibank, JPMorgan, Bank of America, Morgan Stanley – all the big banks – investment banks, commercial banks, retail banks all reported their earnings.
That’s the first march of earnings season. It’s been that way since I was a young man on Wall Street.
And Wall Street banks had a great quarter.
CNBC reported, “the boom times are just starting.”
And boy, oh boy, is that true!
Just to give you an idea, what they’re saying in all their earnings calls, which I listened to because I wanted to hear what they were saying about debt, the economy, how business is doing, etc…
In all their earnings calls they all said their takeover pipeline is the strongest it’s been in 5 to 10 years.
Morgan Stanley CEO Ted Pick said multi-billion-dollar deals sit, “at the top of the waterfall…”
Meaning they are ready to flood the market.
JPMorgan CFO Jeremy Barnum said, “there’s no question we’re in an ‘animal spirits’ moment right now for takeovers.”
Citibank CEO, Jane Fraser, calls it, “the big unlock.”
What a great quote – the big unlock.
She said there’s a lot of pent-up demand for billion-plus-dollar deals right now.
To understand what’s happening I pulled a couple interesting facts for us.
In 2024, takeover activity was down 40% from its 2021 peak… from $5.2 trillion to $2.66 trillion.
And we can see it’s been deflating, going down every year from the Biden administration’s very, very aggressive policies trying to block takeovers.
So with what Jane Fraser calls “the Big Unlock” we are going to see a massive unlocking and big explosion of takeovers coming in the next year or two.
Specifically in the coming months.
It’s going to be crazy.
That’s why we’re hosting our live event tomorrow on takeovers under Trump. This is just so timely, and truly, an opportunity to turn out 20, 30, even 40 years’ worth of market gains during Trump’s second term.
You can click here to register now if you haven’t already.
The event is tomorrow at 1:00pm EST, and those joining live get an extra bonus, so I hope you can make it.
So, what kind of deals are we going to see?
There are a couple of really big areas we’re going to see explode with deals.
One is Big Pharma. As I mentioned here before, the big guys are facing a “patent cliff.”
They stand to lose $400 billion in revenue in the next few years as massive numbers of drugs are coming off patent.
The last time we saw a patent cliff like this was 2011.
And they did literally $224 billion in takeovers that year.
So right now they’re facing this flush with a trillion dollars in firepower, and a lot of deals they want to do.
Another big area is going to be in robotics.
When you look at what Elon Musk has said, that there’s going to be a gazillion robots sold by the end of the decade (I forget the number he said – but it boggles the mind whatever it was)…
But we all know we’re heading toward a world of robotics.
To understand that you have to believe AI is real.
For years they’ve programmed robots and they always look so weird and funny walking.
But now they’ve added AI and they’re becoming a heck of a lot more functional.
AI is revolutionizing robotics.
So we’re going to see a lot more deals where you see software or e-commerce companies buying robotics firms.
Specifically, robots working in people’s homes.
One of the deals we think is very strong is a robotics company that’s already have takeover offers and been approached by magnificent seven tech companies but the Biden justice dept. wouldn’t let those deals get done.
So what we’re predicting now is that big tech is going to start to muscle into robotics as a next frontier.
So this is what we’ll be talking about tomorrow at 1:00 EST. Click here to register and join us.
Again, we’re going to see massive activity this year.
Corporations are sitting on a lot of cash.
We’ll see deals in pharma, robotics, energy and more, very soon. Starting tomorrow, really, as Trump takes office.
So make sure you click here now to register.
I look forward to seeing you tomorrow.
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