sport football: The Next Chapter of the AI Story

One of the most powerful market movers is a good narrative.

Wall Street has a history of using these stories to drive its investment decisions. In fact, legendary economist John Maynard Keynes wrote in his 1936 book that a good investment narrative can unleash "animal spirits" on the market.

And when those animal spirits are unleashed, they drive prices higher (or in some cases, lower).

Take Daily Editor Teeka Tiwari's recommendation of bitcoin back in April 2016 as an example.

At the time, crypto was hard to understand. But Big T's narrative made the idea simple: Bitcoin would go from a small, niche market… to a global market of billions.

That prediction came true.

And those who had conviction in the bitcoin story and held on through the volatility didn't just make a profit – they were rewarded with life-changing gains.

Since Big T became the first editor in the newsletter industry to recommend bitcoin, it's seen peak gains of over 29,971%. It would take roughly 70 years to make those types of returns in the stock market.

However, the reverse is also true. A bad investment narrative can sink the price of an asset.

How many investors abandoned bitcoin when JPMorgan Chase CEO Jamie Dimon called it a "fraud" in 2017… Or when China banned bitcoin miners in 2021… Or when the FTX exchange spectacularly imploded in 2022?

There's no way to know for sure… But based on bitcoin's price action during these volatile periods (for instance, it plunged as much as 51% after China banned bitcoin miners and as much as 28% after FTX went down in flames)...

I reckon hundreds of thousands of investors gave up the opportunity to turn every $1,000 into as much as a $300,715 windfall.

This shows that focusing on the wrong narrative causes you to lose sight of the big picture and forfeit the opportunity to make life-changing returns.

Today, we're seeing a similar "fear" narrative play out on Wall Street.

The "Fear" Narrative Taking Over Wall Street

The story everyone is telling is that artificial intelligence (AI) is in a speculative bubble. You've probably seen the headlines yourself.

Here are just a few over the past month…

The Guardian: Global Stock Markets Fall Sharply Over AI Bubble Fears
Reuters: Bubble Trouble: AI Rally Shows Cracks as Investors Question Risks
Bloomberg: AI Bubble Watchers Wonder If We've Seen This Movie Before

Everywhere you look, the message is the same: The AI market is wildly overvalued. Everyone wants to call the "top" on AI stocks.

But I want you to think about this: When was the last time "everybody" was right all at the same time?

Just look at bitcoin. According to Bitcoin Obituaries, headlines have declared it dead at least 477 times (and counting).

Yet bitcoin continues to thrive, despite enduring an 82% wipeout… a 78% crash… four separate 50% drops… two 40% pullbacks… and nine 30% corrections since Teeka first recommended it.

As I'll show you, bubbles can remain inflated far longer than you think. Valuations can stay elevated a lot longer than anyone expects.

Here's the key thing to remember: So long as you stay in a powerful megatrend for the long term, it doesn't matter how bad your timing is. The trend will eventually bail you out of a bad entry price.

Yes, Bubbles Can Last Longer Than You Think

Let's rewind to 1995.

Back then, the Federal Reserve cut rates right in the middle of a roaring bull market that had been running and gunning since 1982.

The experts called it reckless. The bears swore it would end in disaster. Instead, the market caught fire.

The Nasdaq shot up 449% over the next four years.

We saw a similar scenario play out during the 2008 Great Financial Crisis. Everyone said the market was dead for a decade.

Then the Fed slashed rates to zero and injected $3.6 trillion into the system. What happened? The S&P 500 climbed 133% over the next six years.

Liquidity didn't just rescue the market. It accelerated the boom that was already underway.

If history is any guide, we're about to see a similar rally following the Fed's most recent rate cut on December 10 because the fresh injection of liquidity will act as rocket fuel for the next stage of the AI boom.

Following weak employment data on Tuesday, market expectations for a rate cut at the next Fed meeting increased. In total, the market is pricing in two rate cuts for 2026.

That means more liquidity will be injected into the markets, pushing risk assets like stocks and bitcoin higher. That's because, as interest rates fall, investors flock to risk assets to capture higher returns.

And while the headlines warn that the AI bubble is about to pop... The truth is, this trend is about to get much bigger.

The numbers back it up:

During a recent earnings call, Nvidia CEO Jensen Huang stated that over the next five years, his company forecasts $3-4 trillion in AI infrastructure spending.

Even more conservative estimates suggest the AI industry could grow from roughly $371 billion in 2025 to about $2.4 trillion by 2032.

If that's not a trend with a long runway, I don't know what is.

A Kernel of Truth

While AI is the next big megatrend, there is some truth to the "fear" narrative. Those headlines are right about one thing – AI valuations are high.

Today, the Nasdaq 100 Index, which is primarily made up of large-cap tech stocks, trades at an earnings multiple of 33.5. That means investors are paying $33.50 for every $1 in earnings.

For comparison, the Nasdaq 100's 20-year historical average is 22.2. That means large-cap tech stocks are 50% more expensive today than the 20-year average.

When Teeka first recommended Nvidia as an AI pioneer in December 2015, it traded for a split-adjusted price of just 80 cents. Today, it's valued at nearly $4.3 trillion.

For Nvidia to go up another 10x, it would need to hit a $43 trillion valuation. That's nearly as much as the combined GDP of the United States and China.

And that kind of upside just isn't realistic.

If you're just blindly buying the popular AI stocks today, not only will you miss out on the biggest gains, but you'll get burned. You could stumble out of this boom with devastating losses that set your retirement back by decades.

But that doesn't mean the opportunity is over. It just means the narrative is shifting.

Right now, our research suggests the next big play in AI won't come from Silicon Valley… It'll come from the "boring" companies no one is paying attention to.

I'm talking about "boring" blue-chip companies that are using AI to transform their slow-growth business models… into profit volcanoes.

Think about it. Big legacy blue chips are laden down with bloated infrastructure, employee, and legacy costs of all types that AI will completely rewire.

From streamlined customer service to AI-enabled product tracking for loss prevention to automation and employee training.

It's the old-fashioned, backbone-of-America corporate giants that will be the real winners from AI. By our estimates, many of these companies can be had for a 95% discount to the valuation being asked by the market for today's AI giants.

And what's even better is many of these blue chips pay juicy dividends of 4-5%. We expect those dividends could double or even triple over the coming years.

None of that is priced in.

This narrative of buying "boring" blue-chip stocks to play the AI boom has yet to take hold. That means these stocks are still cheap. That's creating the opportunity for you to make generational wealth.

It's all because these stocks are fundamentally mispriced. The market is pricing them as no-growth blue chips.

The application of AI in these businesses will unleash a wave of earnings growth that will catch everyone flat-footed.

After months of vetting this idea, there's a reason I'm sharing it with you today.

Teeka is about to launch a new service built specifically to help everyday investors like you target the biggest winners in this next chapter of AI before the crowd catches on.

Hundreds of thousands of subscribers are reading this right now. To be one of the first to hear about it, reply to this email with the words "Tell me before you tell everyone else."

While the herd continues to chase overvalued tech giants priced for perfection… The smart money is moving into the most undervalued sector of the market right now.

Over the next five years, AI's next chapter will create the foundational assets behind a new class of multimillionaires.

So, if you want in before the crowd catches on, reply to this email with "Tell me before you tell everyone else."

Don't Watch the Future Happen. Own It!

Houston Molnar