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Dear Reader,
Last year I ran for Mayor of New York City.
And lost to a 34-year-old Democratic Socialist.
Now I'm convinced what's starting in New York will spread across America.
Just for starters:
- The new mayor wants to spend $70 million of taxpayer money just to study whether government-run grocery stores are a good idea.
- He's threatening a 9.5% property tax hike on every homeowner in the city.
- And he wants to raise taxes on every corporation and high earner.
This isn't just a New York story. Nearly 40% of Americans now have a "positive" view of socialism.
But what nobody's talking about is WHY this is happening... and where it's all headed.
I have my MBA from Harvard and spend my time in correspondence with billionaires like Warren Buffett and Bill Ackman. I've spent 30 years on Wall Street. And there's a specific term for what's unfolding in America right now... one that points to an economic event unlike anything we've seen in over 100 years.
I'm not running for office again. But if you care about your wealth, your family, and your future, you need to understand what's really coming.
I've put together a free analysis explaining exactly what I see, and the specific steps I recommend you take with your money today.
I strongly encourage you to check it out here.
Regards,
Whitney Tilson
Editor, Stansberry Investment Advisory
Former Hedge Fund Manager
Co-Founder, Teach for America
Harvard MBA
P.S. What's happening today will reset the financial system in a way most of us can't imagine. If I'm even half right, it's going to have a huge impact on your money and your future. Get the details here...
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Want to Escape the AI Sell-Off? This ETF Offers a Surprising Alternative
By Jessica Mitacek. Posted: 11/9/2026.
Key Points
- The ProShares S&P 500 ex-Technology ETF excludes the tech sector entirely and has outperformed the S&P 500 recently amid an AI-driven sell-off.
- Despite omitting tech stocks, SPXT still holds significant mega-cap exposure through Amazon, Alphabet, Meta Platforms, and Tesla among its top holdings.
- SPXT offers lower volatility and a 1.27% dividend yield but has historically trailed the S&P 500 and faces thin trading liquidity.
- Special Report: Today's stock pick is on me (From Behind the Markets)
If you’re looking for proof that nobody on Wall Street has a crystal ball, look no further than Crocs (NASDAQ: CROX)—the maker of foam clogs—which is outperforming every member of the Magnificent Seven this year.
Of course, that may say more about Crocs’ more than 85% year-to-date (YTD) gain than it does about the hyperscalers’ respective performances. But between runaway CapEx, Q3 free cash flow turning negative for Alphabet (NASDAQ: GOOGL), and AI stocks undergoing yet another sell-off, it’s no wonder that a $7.31 billion market-cap footwear company in the consumer discretionary sector is outperforming every one of those mega-cap stocks in 2026.
A free stock pick, from me to you (Ad)
Elon's paid this chip supplier since 2012. When NVIDIA tried to buy the company, he fought the deal.
Without its chip, his AI satellites don't fly. Now he wants 1,000,000 of them in orbit, 100 times what's up there today, and every one pays this company a royalty.
Dylan believes shares could react by December 8th.
Claim this free stock pick before the December 8 deadline todayFor those growing wary of the AI trade, there’s a silver lining. The S&P ex-AI Index has caught up with the S&P 500’s performance this year, as multiple rotations out of tech throughout 2026 have leveled the playing field.
The ProShares S&P 500 ex-Technology ETF (NYSEARCA: SPXT) offers another way to reduce AI-related exposure by excluding the technology sector entirely. But given the historic concentration in the tech sector, investors considering shielding their portfolios from further AI-driven volatility need to carefully evaluate SPXT’s safety-for-upside trade-off.
Why the AI Sell-Off Is Benefiting Other Sectors
The most recent AI sell-off has highlighted the relative strength of several nontechnology sectors as AI-related stocks have come under pressure. That’s largely because the tech sector has posted the worst performance of the S&P 500’s 11 sectors over the past month.
That approximately 15% loss has benefited other sectors, though, as the market has rotated into defensive areas such as healthcare, consumer staples, and utilities. As of Nov. 6, those sectors had posted one-month gains of 10.29%, 11.86%, and 7.87%, respectively.
The S&P 500’s Magnificent Seven Index is down 7.46% over the same period, while posting an uninspiring 6.7% YTD gain. From a technical standpoint, there could be more pain in store in Q4. The index recently broke a critical support level, which could lead to ongoing selling pressure as those names continue to deal with the fallout from mixed earnings results.
How SPXT Reduces Tech Exposure Without Eliminating AI Risk
On the surface, the ProShares S&P 500 ex-Technology ETF presents a reasonable solution, especially for conservative investors who are comfortable reducing their exposure to tech names. Over the past month, the fund has outperformed the S&P 500, gaining more than 2.34% while the index has declined approximately 5.5%.
But investors don’t turn to SPXT for outperformance. In fact, the ETF has trailed the S&P 500 over longer investment horizons, although its recent performance shows how excluding technology can provide an advantage during sector sell-offs. Instead, investors own the fund specifically because it excludes tech names.
However, that can be misleading when looking at the ETF’s portfolio. Although SPXT omits tech stocks, it still maintains plenty of mega-cap growth exposure through leading communication services and consumer discretionary names.
The fund’s top-five holdings include positions in four Magnificent Seven companies: Amazon (NASDAQ: AMZN), both Class A and Class C shares of Alphabet, Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA).
But any potential volatility stemming from those positions could be partially offset by SPXT’s two largest sector exposures: financials and healthcare. Eli Lilly (NYSE: LLY), Berkshire Hathaway (NYSE: BRK.B), and JPMorgan Chase (NYSE: JPM) are also among the fund’s largest holdings.
The fund’s industry exposure is similarly diversified. Specialty retail and media each account for 11.4% of the fund, while biotechnology, banks, and insurance account for another 9.3%, 5.2%, and 4.9%, respectively.
The Trade-Off: Less Tech Exposure, But Not Without Risk
Although SPXT excludes the tech sector, growth remains a primary objective. That growth is tempered, as reflected by the fund’s beta of 0.85, which indicates lower volatility.
Still, when AI bubble fears and chipmaker sell-offs drag down the mega caps, more than 19% of the ETF’s portfolio—spread across the aforementioned positions in four Magnificent Seven companies—remains susceptible.
Shareholders would need to accept that some AI exposure remains and be comfortable holding mega-cap stocks in the communication services and consumer discretionary sectors instead of their tech counterparts.
Liquidity presents another concern. Average daily trading volume is light, at around 19,000 shares, and that is unlikely to change given the fund’s less than $329 million in assets under management.
But with a low-cost expense ratio of just 0.09% and a dividend yield of 1.27%, or $1.43 per share annually at current prices, investors looking to reduce their tech exposure while being paid to hold SPXT may find that enough to justify the trade-off of less upside potential.
Palantir’s Real Washington Risk Isn’t the Budget—It’s Oversight
By Chris Markoch. Posted: 11/12/2026.
Key Points
- Palantir faces potential congressional scrutiny of its defense and immigration contracts following the Democratic midterm victories.
- The proposed $1.5 trillion defense budget was already facing resistance before the election, limiting how much of the uncertainty can be attributed to the results.
- Palantir's U.S. commercial revenue exceeded its U.S. government revenue for the first time in Q3, reducing its reliance on government-driven growth.
- Special Report: What if you already knew what to do? (From The Cycle Code)
After reaching a high of around $209 in early October, shares of Palantir Technologies (NASDAQ: PLTR) pulled back sharply. However, they have recovered much of the ground lost after the company's third-quarter earnings report.
The post-earnings sell-off began amid concerns that growth could slow. Since the U.S. midterm elections, selling pressure has continued amid concerns about Palantir's close ties to the U.S. government, particularly the U.S. military and Immigration and Customs Enforcement (ICE).
A free stock pick, from me to you (Ad)
Elon's paid this chip supplier since 2012. When NVIDIA tried to buy the company, he fought the deal.
Without its chip, his AI satellites don't fly. Now he wants 1,000,000 of them in orbit, 100 times what's up there today, and every one pays this company a royalty.
Dylan believes shares could react by December 8th.
Claim this free stock pick before the December 8 deadline todaySome investors believe new leadership in Congress may cut or delay defense spending. That would add to the slower-growth narrative for a stock priced for sector-beating growth over at least the next several years.
But investing based on perception can lead to missteps. The reality is more bullish than it may seem, which helps explain Palantir's rebound from its post-election lows.
Budget Cut Expectations Existed Before the Election
Concerns about cuts to the defense budget are real, but they were already priced into PLTR before the election. The White House requested $1.5 trillion for defense in fiscal 2027. However, on Oct. 29, just days before the midterms, Politico reported that Pentagon officials and congressional staff were already working on a smaller plan closer to $1.1 trillion. The proposal was driven by Republican infighting, which had already put even part of the $1.5 trillion total in doubt—not by a Democratic wave.
Most of the money at risk is in an add-on. The request paired a $1.15 trillion base budget with $350 billion routed through a party-line bill like the 2025 tax law. A Democratic Congress can block that route, but it is far less likely to gut the base budget. Much of the proposed additional funding targets missile defense, munitions, and ships, rather than software programs specific to Palantir.
Palantir’s revenue mix further blunts the concern. In the third quarter, U.S. commercial revenue jumped 148% to $984 million, surpassing U.S. government revenue of $953 million for the first time. U.S. government customers generated about 41% of total revenue, while government customers worldwide accounted for nearly half. That includes civilian agencies, not just the Pentagon. U.S. government business still grew 96%. For a stock priced like Palantir, the risk isn’t losing that revenue; it’s seeing the growth rate slow.
Oversight Is the Real Concern
This is where Democrats have real leverage. Starting in January, they will chair the committees that write spending bills and conduct investigations, giving them subpoena power and control over hearing agendas.
The groundwork is already laid. In April, congressional Democrats asked DHS for a complete list of its Palantir contracts dating back to 2020, including their values and the systems they support. In December 2025, Sen. Elizabeth Warren and Rep. Jamie Raskin asked inspectors general to investigate contractors with ties to administration officials, citing Palantir as an example.
The ICE work, including a $30 million contract to build a deportation-tracking platform called ImmigrationOS, is the most politically charged part of the business. But the contract is small in dollar terms, so the greater risk may be to Palantir’s reputation rather than its revenue.
The Army deal matters more. Palantir holds a 10-year enterprise agreement worth up to $10 billion. Congress cannot directly cancel the agreement, although the government can terminate contracts under certain provisions. That figure is a ceiling, not a commitment, and the Army reassesses the agreement every 18 to 24 months. Because orders depend on annual funding, lawmakers can add conditions and slow new spending. Still, the deal consolidated 75 contracts into one to cut costs, making it harder to portray as a giveaway.
The likely outcome isn’t canceled contracts. It’s friction: more hearings, more document requests, and more cautious agency buyers. For a stock this richly valued, even modest friction can weigh on sentiment. The next real test could come in early February, when Palantir is expected to issue its 2027 guidance.
The Realities Around PLTR Are Still the Same
Palantir is a high-beta stock, meaning it tends to move more sharply than the broader market. That's the cost of entry for any shareholder.
The company will continue to face scrutiny over its close affiliation with the U.S. government and its unapologetic defense of Western values. Some valuation-focused investors avoid PLTR because of its lofty price-to-earnings and price-to-sales metrics.
Those concerns have been around for years. Yet PLTR has delivered substantial long-term gains, and many retail investors believe its growth story isn't over.
Palantir has a huge target on its back, and any hint of a misstep could trigger a sharp decline. But, as its Q3 earnings report in early November showed, Palantir has reduced its concentration risk in the U.S. government. It continues to add and retain customers while growing its free cash flow as expected.
Palantir has a Moderate Buy consensus rating and an average analyst price target of about $215. Barclays raised its target to $273 from $265 after the company's earnings report.
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