Six weeks. 17 full-time jobs – gone... 15 software vendors – fired… An office space – vacated. |
The mathematics of AI are brutal. |
Last week, I got a call from a friend. He sells subscription packages for flavored coffee creamers. Six weeks ago, he had 19 full-time staff in a swanky office building in a hip part of Austin, Texas. |
Today, he has two employees. No physical location. And he eliminated all his software vendors. What happened six weeks ago? He downloaded a single piece of AI software. |
He told me he didn’t do it because he wanted to. He did it because his competitor did it first. |
I’ve been covering financial markets since the late 1980s. I’ve seen the savings and loan crisis… the dotcom bubble burst… the 2008 housing collapse… and the pandemic crash. |
I’ve never seen technological disruption of this scale. |
What happened with my friend isn’t an outlier. It’s a preview of what’s coming across most industries. And while tech billionaires tell you AI will make your life an incredible utopia – the reality is far grimmer. |
According to Goldman Sachs, AI could replace 300 million jobs. Bad for Main Street… But party time for Wall Street. |
That’s because when a company uses AI effectively, it cuts costs (jobs) while output stays the same. That expands their profit margins, which they can use to undercut competitors and grow. |
That’s great for the companies that use AI, but terrible for the folks who will lose their jobs. To add insult to injury, many of the companies those folks have chosen to rely on to fund their retirement are the exact wrong names to own. |
On paper these stocks are incredible businesses. The massive tech names like Microsoft, Meta and Oracle are the ones powering this AI boom. And they’re truly great companies. But they’re trading at terrible prices. |
Let me explain. |
What’s made these tech giants such amazing winners is they were essentially built on software. Once you’ve built and sold your software product, your incremental costs are quite low. That means once you have scaled, your profits are enormous. |
If we take the Magnificent 7 as an example, collectively they have annual free cash flow of $350 billion. |
That’s an insane number. To put that in perspective, those seven companies generated one-third of all free cash flow of the S&P 500. No wonder every retirement account in the country is stuffed full of Big Tech stocks. But here’s the problem: These aren’t asset-lite software companies anymore, but they’re still being priced that way. |
This year, Big Tech has committed to spending $690 billion on their AI buildout. That level of capital outlay (capex) transforms these companies from asset-lite cash machines to heavy industry money furnaces. And those types of stock don’t trade for 30-40x earnings. They trade at 12-15x earnings. |
The second mistake a lot of folks are making is they think the tech companies can just turn off this spending anytime they want. |
But think about it. If they stop investing in AI, they lose their competitive position… If they lose their competitive position, their stock price goes down… If the stock price goes down, they lose their most talented staff to the companies that are investing in AI. |
Can you see how this is creating a death spiral of spending? |
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Tomorrow Night This Shuts Down |
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Forget everything you think you know about profiting in today's AI market. While retail investors are told to "buy and hold" through the chaos, the ultra-wealthy are playing a different game entirely. |
Nancy Pelosi didn't buy a single share, yet she reportedly banked $4.3 million from a single AI trade. Billionaire Stanley Druckenmiller and elite hedge funds are using the exact same "Stock Replacement" strategy to multiply their gains by 5x, 10x, even 20x all while slashing their risk. And no, it's not options trading, futures, or anything you'd expect. |
And Big T shared everything. The strategy, the loopholes, and the three AI stocks immune to the shakeout that you need to know about. But this all comes down tomorrow night. |
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The Lifestyle Death Sentence No One Sees Coming |
It reminds me of the late 1990s. The internet was reshaping industries across the board. Companies like Sun Microsystems, Intel and AOL were all the rage. They were going to dominate the next 50 years of American business. |
Investor euphoria was real. The Nasdaq rose fivefold in five years. And then it fell 78% in less than three years after the dotcom bubble burst. Companies like Cisco, Intel, and Oracle saw their stock prices plunge by over 80%. |
I’m not predicting another dotcom crash. What I am saying is we could see a 10- to 15-year period of massive underperformance by the companies building the AI infrastructure the way we did during the early 2000s when the darlings of the 1990s like Cisco, Intel, Microsoft and JDS Uniphase went nowhere in price. |
What’s more dangerous about this time period is – that unlike the dotcom bubble – today’s businesses are amazing companies. And that’s lulled folks into a false sense of security. |
If you’re at or near retirement and you own the wrong names, you risk 15 years of dead money. That’s a lifestyle death sentence for a retiree.
I call this process The Final AI Shakeout and I think about it every day. |
I was 29 in the year 2000. I was young enough to recover from the devastating investment wasteland that was 2000-15. But now I’m 55. You might be older. We don’t have 15 years to sit and wait. |
Our families are depending on us to make the right moves. But the problem is no one knows who’s going to win and who’s going to lose the AI race. I cannot tell you who is going to win. Neither can Warren Buffett nor Ray Dalio. Any hedge fund manager who claims otherwise is guessing. |
So we have to take this crapshoot on the future with our life savings. And I’m just not prepared to do that. |
That’s why I’ve spent the past year focused on one question: Who makes money no matter who wins the AI race? |
My research shows the biggest returns WILL NOT come from betting on which companies will win the AI race. The big money will come from the companies that own the toll roads every other AI company has to run on. It doesn’t matter who crosses the finish line. These companies get paid either way. |
I recently held a special briefing where I shared all my research on three companies that own these toll roads. |
Here’s the thing: I don’t want you to buy a single share of them. Not yet. |
A few months ago, I got a call from a veteran trader with 25 years of experience. He showed me a strategy that could help you make 5x, 10x, or even 20x your money on these three companies… I was so impressed, I asked him to share it with you. |
One reader turned $100,000 into $4 million over 18 months using this strategy. That’s a 3,900% return. Another booked $177,000 in three weeks. Another made more than $300,000 in pure profits in 2025. |
And no. It’s not regular options trading, futures, or anything extra risky. |
You can stream the replay right here. |
It comes down Thursday night, so please watch it right now. |
If you’re counting on today’s popular tech names to carry your retirement for the next decade, you could be making the same mistake people made in 2000. |
A few minutes of your time today could save you 15 years of frustration in the future. |
Let the Game Come to You! |
Big T |
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