Hypergrowth Investing

Folks, you've made it to the FINAL (for now) episode of Hypergrowth Investing ... and it's a bitter sweet moment. Sweet because the markets are up; bitter because we have to leave you fine folks. But there are still places you can go to get Luke's whip-smart research! Including: Innovation Investor: https://orders.investorplace.com/?cid=MKT639809&eid=MKT735625Breakout Trader: https://orders.investorplace.com/?cid=MKT709533&eid=MKT735630Early Stage Investor: https://orders.investorplace.com/?cid=MKT719397&eid=MKT735632Crypto Investor: https://orders.investorplace.com/?cid=MKT607059&eid=MKT735627Ultimate Crypto: https://orders.investorplace.com/?cid=MKT645975&eid=MKT735626Daily 10X: https://orders.investorplace.com/?cid=MKT628774&eid=MKT735628We hope you enjoy this final episode. And maybe we'll hear from you again in one of our premium services. Until then, thanks for watching and happy investing!

Welcome to the Hypergrowth Investing podcast, where we discuss the latest news and trends in the stock market! After you digest this week's podcast, be sure to download our FREE research report on the 5 Hypergrowth Stocks to Buy in 2023: https://signup.investorplace.com/?cid=MKT694229&eid=MKT732247 In this episode, Luke gets candid (while standing) about the following topics:Earning Season We analyze the earnings reports of some of the biggest companies in the market, such as Netflix and Tesla. Bottom line: earnings over the next couple of weeks will make us or break us. For Netflix, the thing to keep in mind is its password crackdown. And, while everyone's cutting costs, Tesla's cutting prices. So no wonder its margins got hit! Hear more of Luke's take and how he thinks markets will react to earnings in the podcast.Industry Rapid Fire Okay, showtime! Luke goes down the line here, giving his quick take on some of the hottest EV stocks in the market, such as Lucid Motors, Rivian and Fisker. How do they compare to the industry leader, Tesla? Next, Luke talks clean energy stocks. What's their outlook and their challenges in Q2? We also give our quick take on some of the major oil and gas stocks, the most popular consumer stocks in the market, some of the dominant advertising stocks, the top enterprise software stocks, the key semiconductor stocks, leading e-commerce stocks, travel stocks, China stocks, notable emerging market stocks, and sports betting stocks.Last but far from least, Luke will answer the most pressing fan questions you've submitted over the past week. Was your question answered? Tune in to find out!

Welcome to another week of Hypergrowth Investing, folks! With earnings season underway, we're laser-focused on companies' first-quarter results and what that means for stocks going forward. In fact, you can find out more in our FREE research report: https://signup.investorplace.com/?cid=MKT694229&eid=MKT732247 As we've mentioned previously, in the first three months of this year, both the labor market and consumer spending were quite resilient. And those two factors should support strong revenues in the first quarter of 2023. Consequently, we think we're going to see a lot of revenue beats this earnings season. At the same time, we've seen a lot of companies announce layoffs, shelve certain projects, and implement various other cost-cutting measures to shore up their spending. And those developments should support better-than-expected margins this quarter. Better-than-expected revenues + better-than-expected margins = better-than-expected earnings.So, if we're likely to see pretty robust Q1 earnings, the real question is, what will the guidance look like for Q2 and FY23?Right now, analyst estimates are stabilizing around $218 per share for the S&P 500 for 2023 and $240 per share for the S&P for 2024. Will those numbers rise or fall? That's what will determine the short-term trajectory for stocks. We're optimistic that earnings will help to push EPS higher, creating a path for stocks to do the same. And with more soft inflation data and a Fed pause on deck, stocks have the potential to reach new cycle highs into the summer. Get ready for a rally!

It's that time again, folks. Another thrilling earnings season is nearly upon us! We'll soon find out how companies have crushed it in the first quarter of 2023. And Luke has some bold predictions for these upcoming earnings reports.He thinks earnings will blow past expectations, mostly thanks to the smart cost-cutting strategies companies have implemented over the past few months. While the economy was struggling at the start of the year, business leaders didn't sit back and wait. They took action and revamped their budgets to cope with the uncertain environment.Now revenues are looking solid, but Wall Street is still pessimistic about earnings because of shrinking margins.But Luke's not buying it. He believes profit margins will bounce back in 2023 as inflationary pressures ease. And as companies continue to reduce their expenses and optimize operations, they will unlock positive operating expense (opex) leverage, which will likely lead to robust operating margin expansion in 2023. That's why Luke anticipates some impressive upside surprises in this earnings season. And stocks should soar as a result.If you're new to the Hypergrowth Investing podcast, we publish weekly on Wednesday at 5 p.m. Eastern. Featuring Aaron Davis, Luke Lango deftly talks topics such as “What Went Wrong at Silicon Valley Bank” and “Why SoFi Stock Is Melting Up Amid the Banking Meltdown.”Our podcast's 25,000 subscribers have said Luke has “impressive perception,” is “very good at what [he] does,” and is “[the] best out there.”Check it out for yourself and drop us a line in the comment section below!

After analyzing this latest round of employment data, it's clear to see that the labor market is substantially weakening. February job openings crashed. Layoffs are continuing to pile up. Jobless claims in the most economically sensitive states are on the rise – and usually, jobless claim spikes in these states precede nationwide claim spikes. At this point, the labor market is obviously deteriorating. However, it's not yet dying. And that offers a “sweet spot” – a narrow window for the Fed to guide the economy to a soft landing. Adding to our conviction is the fact that financial stress is also high right now. Treasury yields are plunging, indicating that bond investors are preparing for the financial markets to get tight. Credit and yield spreads are widening, and bank lending volume is collapsing. Plus, on Tuesday, JPMorgan (JPM) CEO Jamie Dimon said that the banking crisis is not over yet – and that's from someone who endured the 2008 financial crisis, so we're inclined to heed this warning. Given these macro developments, the Fed has ample reason to smash the pause button on its rate-hike campaign. Indeed, the Reserve Bank of Australia just paused, as did the Bank of Canada. Whenever those central banks pause, the U.S. Federal Reserve does, too. And historically speaking, after a Fed pause, stocks take off like a rocket.So, what does Luke like right now ahead of that incoming mega rally? Hydrogen, EVs, and Big Tech.Top Industries to Invest In: Hydrogen StocksNow, the hydrogen market has struggled lately, putting a hurting on one of our favorite companies – Plug Power (PLUG). And that's because this market is developing much more slowly than most anticipated. Despite this, the space is still growing quickly, and electrolyzer shipments are expected to double or triple here in 2023. Nothing about the bull case has changed. The world is still moving to replace natural gas with hydrogen power. And legislation continues to develop, helping to accelerate this shift. Further, Big Oil is moving into the hydrogen space. There's tons of demand for this fuel in Europe. And by summer, production tax credits for green hydrogen will come into focus – the first of its kind here in the U.S. The long-term demand for hydrogen power is extremely robust, so hydrogen is a great play if you can afford to hold on for the long haul. Top Industries to Invest In: EV StocksLike hydrogen, electric vehicle (EV) stocks continue to struggle. While Tesla (TSLA), Rivian (RIVN), Nio (NIO), XPeng (XPEV), and others released positive updates, their stocks dropped in response. We think this weird price action is a result of reemerging recession fears. After all, the auto market is not recession-resilient. Who knows how EVs will sell if the economy slows and interest rates remain high – especially because electric vehicles are expensive. But for us, this short-term risk doesn't matter; we're long EVs. Rivian, Fisker (FSR), and Lucid (LCID) will sell every car they make. They've all got reservation backlogs, so demand is a non-issue. And each has a unique value proposition that could help them to become leaders in this industry.If you're in EVs for the long term, this seems like a fantastic buying opportunity. Top Industries to Invest In: Big Tech StocksAnd Big Tech as a safety-net trade has definitely continued. The Nasdaq is showing alpha every single day. And now, the Nasdaq-100 has officially entered a new bull market after rallying 20% off its December lows. Names like Apple (AAPL), Meta (META), Nvidia (NVDA), and Alphabet (GOOG, GOOGL) are leading these rallies. And these stocks are fairly recession-resilient – we'll still all use Google, scroll on Facebook and Instagram, and watch Netflix during a recession. Plus, they'll all benefit from lower Treasury yields. We think this dynamic will work for the foreseeable future.

This week, we're starting off with one of our all-time favorites – SoFi (SOFI). This company is not only surviving, but thriving in the midst of a banking crisis that has shaken the industry. If you're not familiar with this name, SoFi is a fintech powerhouse that offers a wide range of financial products and services, from loans and investing to banking and insurance. It has a loyal customer base that uses its super app for all their financial needs. And unlike traditional banks, SoFi has no branches, no legacy systems, and no regulatory headaches.We've always called SoFi the “Amazon of Finance” because of its all-in-one super app. And it seems the parallels are getting stronger with this banking crisis. Amazon (AMZN) didn't start its e-commerce takeover until the sector had a major crisis – the dot-com crash. When countless internet startups went bust, hoards of consumers migrated to Amazon.com. The company gained tons of market share and continued to grow responsibly as its competitors went bankrupt. And that's kind of what we're seeing with SoFi right now.And much like Amazon during the dot-com bubble, SoFi is well-positioned amid the turmoil in the banking sector. You've probably heard about the failures of Silicon Valley Bank and Signature Bank, the near-collapse of Credit Suisse (CS) and First Republic (FRC), and the massive deposit outflows from many other regional banks. These events have eroded consumer confidence and trust in the banking system, and have created an opportunity for SoFi to gain market share and grow its deposits.For its part, SoFi has seen no deposit outflow, and CEO Anthony Noto even said he expects deposit growth to be on par or better than it was last quarter. In fact, SoFi recently announced that it has increased its FDIC insurance coverage from $250,000 to $2 million per account – 8X higher than the national average. This move shows that SoFi is serious about protecting its customers' money and providing them with peace of mind. And as a result, SOFI stock has been soaring, while most bank stocks have been tanking.While its competitors are struggling, SoFi is thriving in spite of the chaos. We expect that the company's growth will accelerate because of the banking crisis. This is an “Amazon moment” for the upstart fintech – a chance to capitalize on a crisis and emerge as a dominant player in the financial industry. We expect SoFi to continue to innovate, expand, and deliver strong results in 2023 and beyond. That's why we're bullish on SOFI stock and we think you should be too.Thanks for watching Hypergrowth Investing. Don't forget to like, subscribe, and hit the bell icon for more videos like this one. See you next time!

In a rocky macro environment like the one we find ourselves in today, many are feeling the heat.

Welcome, folks, to another episode of the Hypergrowth Investing podcast!This week, we'll be discussing the elephant in the room – the recent collapse of Silicon Valley Bank (SVB) and its implications for the markets.So what happened?SVB's failure was caused by a classic bank run, but this alone is not enough to bring down a bank, especially one as prestigious in technology as SVB. Rather, the run on SVB was a symptom of deeper issues – namely, two unique problems that arose from SVB's very niche, exclusive focus on the startup tech sector. We'll delve into these issues and explore what they mean for the future of the markets.What Happened to Silicon Valley Bank? The bank saw rapid growth in deposits amid the tech boom of 2020 and ‘21. And due to regulations put in place after 2008, SVB had to back up all those deposits with high-quality assets, which mostly comprise U.S. Treasuries. So, in 2020 and ‘21, SVB bought a bunch of U.S. Treasuries with its customers' deposits. Given the Fed's rapid rate-hiking cycle, U.S. Treasuries have since lost significant value. Consequently, SVB has been sitting on massive unrealized losses in its bond portfolio. Under typical operating circumstances, those unrealized losses are manageable because SVB can just hold the Treasuries to maturity and cash out without recognizing any real loss. However, in stressed operating circumstances wherein customer deposits dwindle and SVB needs to raise cash, the bank is forced to sell those bonds, and the unrealized loss becomes a realized loss. That's exactly what happened. Over the past 12 months, venture funding for tech startups dried up. SVB's customers were no longer seeing lots of cash inflow. In fact, very little cash was coming in the door. But those startups were still running businesses that required funds to keep the lights on, so cash flow going out of SVB accounts was still very high. Very little cash in, lots of cash out – obviously, that is an unsustainable situation, so SVB was forced to sell its bond portfolio to raise the funds necessary to keep up. The result? The company suffered a multi-billion-dollar loss on that bond portfolio. In order to recoup those losses, SVB tried to raise outside capital via share offerings. That didn't work. No capital came to the rescue. So, the federal government swooped in and took over.What Comes Next?But remember: SVB was forced to cash out early because of its unique and exclusive focus on the most rate-sensitive part of the economy – early-stage tech startups. Since essentially all of its customers saw their funds dry up over the past 12 months, SVB saw its deposits start to dwindle quite rapidly. Yet, cash needs of those customers were not dwindling, leaving the company with a massive imbalance that it needed to fill. So, this appears to be a problem unique to SVB. This is idiosyncratic – not systemic.SVB's collapse is a big warning shot to the Fed. Fed rate-hike cycles are like bulls running through china shops – they both keep going until something breaks. And something significant has broken.And what broke SVB could potentially break other banks – bigger banks – if the Fed keeps its foot on the rate-hike pedal. But we're confident the central bank will heed that warning. A pause is coming – and that means a major market rally likely is, too.

Welcome, folks, to another episode of our Hypergrowth Investing podcast! Last week, we talked a lot about AI, but today, we're getting right into the macroeconomic weeds to break down our base-case outlook for stocks over the next few months. Spoiler alert: While the markets are wavering thanks to a hawkish Fed, we're still preparing for a massive bull market run… and I'll tell you why.Last week, stocks tested and bounced off of some critical technical levels. And we believe that was the start of a big short-term burst higher for stocks in March and April. Plus, we view this bounce as proof that the rally we've had off of the October 2022 lows is, in fact, the start of a new bull market. There are three elements to this bull thesis – fundamentals, technicals, and positioning. Let's start with fundamentals.A lot of people are worried about inflation, rate hikes, a slowing economy, and the 10-year Treasury yield climbing to 4%. But in reality, these trends are shifting course in a favorable direction. Though the decline is a choppy one, inflation is coming down. Demand and supply are normalizing to pre-pandemic levels. And with a slowing – but not dying – consumer and rate hikes from the Fed, this disinflation will likely continue into 2024 and ‘25. The Federal Reserve is a bit of a wild card here. However, it's aware that inflation is falling and is likely to move forward with rate hikes at a slow and steady pace. Plus, the labor market is not weakening in a way that's indicative of a collapse, so we're confident that the Fed will be able to pull off a soft landing. It's true that the equity risk premium (ERP) – the spread between the S&P 500's forward earnings yield and the 10-year Treasury yield – is the lowest it's been in several years. But given the stable string of recent earnings, today's ERP is historically normal, and we're confident that stocks are fairly valued. Earnings and P/E multiples suggest that stocks have room to rally over the next nine months.Now to technicals:Stocks held the 200-day moving average last week. They held the uptrend line from October 2022's rally. And they bounced off the resistance line that acted as the ceiling for stocks during the 2022 bear market. Whenever stocks turn resistance to support, it means a trend reversal is underway. And they just turned a year-long resistance level into support – that is supremely bullish.Every time stocks were in a bear market, then bounced above and stayed above the 200-day moving average for more than 20 to 30 days, the market went higher. And that's exactly what we have today. And we can't forget about the Triple Barrel buy signal we saw in January, with the Breakaway Momentum, Whaley Breadth Thrust, and the Triple 70 Breadth Thrust indicators. All three are ultra-rare and ultra-bullish – and all three flashed on the same day for the first time ever. Onto positioning:From a positioning perspective, stocks are back to where they were at their October lows. That's when the 10-year yield popped above 4%, when the futures market began pricing out rate cuts, and when inflation expectations were pretty hot. And that makes us bullish because the positioning of expectations are at levels that leave a lot of room for dovish surprises.There's a good chance that the data we receive in March and April surprises to the bullish side. And considering these expectations have swung to peak-bearishness while stocks are holding well-above their October lows, we think it's yet another sign that we've arrived at a new bull market.Check out the full episode to hear our complete breakdown and analysis!

Happy earnings season, all! In this week's episode of Hypergrowth Investing, we're checking in on some of our favorites to talk about how they've fared this quarter.

Last week, we talked about how Big Tech stocks were the way to play the AI Revolution that's sweeping the globe. So, will Big Tech be the big winners in 2023, or are there other ways to gain in this new bull market?Well, AI is a powerful tool that will allow Big Tech to dominate even more than it already is. It's the ultimate productivity game-changer. And indeed, not only does Big Tech have the data, resources, and talent to build great AI – they have the platforms that stand to benefit most from that technology, too. Just look at Microsoft (MSFT). It's investing heavily in OpenAI and integrating ChatGPT into its suite of products and services. Imagine the boost in productivity that integration will allow. Writing a report and getting stuck with run-on sentences and a lack of clarity? What might've taken you an hour to revise will take AI just seconds – freeing up more precious time in your day.What about Alphabet (GOOG, GOOGL)? Despite its Bard AI fumble, the company has access to the largest amount of consumer search interest data in the world, and that's vital to developing robust AI and machine-learning algorithms. Similarly, Amazon (AMZN) runs the largest e-commerce platform on Earth, meaning the company holds the keys to the greatest collection of retail data in the world. And Meta (META) controls an unfathomable amount of data from its social media empire.Thanks to the start of this transformative tech revolution – and, in part, the improving macro backdrop – Big Tech is due for a great 2023. Once investors realize the enormous potential for margin expansion with these firms, it's likely they'll soar like never before. We're confident that buying Big Tech on the dip is a fabulous way to play the emerging AI Revolution.

Welcome, folks, as this week we're doing a deep-dive into the topic of the year: artificial intelligence (AI).We've said it before. AI will change everything about everything, just like the internet, the computer, fire – even the wheel – changed everything about everything. The AI Revolution is here, and we think it'll move forward at lightning speed over the next few years. So let's unpack it, understand it, and find ways to profit from AI stocks.Broadly speaking, artificial intelligence is technology that uses data to learn and improve over time without the need for human intervention or oversight. But the topic is amorphous – AI isn't one thing. There's conversational AI, like OpenAI's ChatGPT and Alphabet's (GOOG, GOOGL) Bard. We've had more ubiquitous low-level voice AI in things like Siri, Alexa, and Google Assistant. And what about services like Spotify (SPOT)? That platform uses machine-learning algorithms to track songs users enjoy in order to recommend new music. We have robotics, automated software, self-driving cars… the list goes on. AI can be manifested in so many ways; and that's why investors are so excited about it. But why is that hype happening right now? ChatGPT. In short, AI is having its ‘iPhone Moment.' When Apple (AAPL) released the first iPhone, the internet had been around for many years. But it wasn't until that breakthrough consumer product – with robust technological power literally in the palms of our hands – that we exploded into the internet era. Now innovations like ChatGPT are arriving at a time when the world is producing exponential amounts of data, which is essential for AI development. And the volume of daily data creation is only going to explode higher from here. We've arrived at a new era, folks. And it's time to embrace this AI Revolution to score generational gains.

Welcome, folks, to another installment of our weekly Hypergrowth Investing podcast, where we discuss all things investing, such as artificial intelligence (AI), electric vehicles (EVs), and more. If you've been following my updates here or on our website, then it's no secret that we're super bulls when it comes to SoFi (SOFI). Indeed, last year, when the stock was languishing under $5, we called it the buy of a lifetime. Well, so far in 2023, even before we hit February, SoFi stock is already up 50%. And on Monday of this week, it saw an especially large pop after the firm reported excellent fourth-quarter earnings.Despite its rapid ascent this month, we still believe SoFi stock is the buy of a lifetime. In 2022, higher interest rates and a slowing economic backdrop were supposed to hinder lending activity and consumer spending and, ultimately, diminish SoFI's revenue and user growth trajectory. But as we've seen from the company's second-, third-, and now fourth-quarter earnings results, that could not be less true.Now investors are seeing SoFi's flawless execution in spite of the tough macro environment, and they're getting excited. If the company can perform this well under these conditions, imagine what it can do when the macro meaningfully improves. This ongoing success speaks volumes about the importance of a robust management team – especially in an industry as competitive as fintech. SoFi is outperforming in a space with tons of room to grow. And that's why we think the stock will keep flying higher.

It's Wednesday, which means we're back with a new installment of our Hypergrowth Investing podcast! Two months ago, despite widespread fear that the sky was actually falling, we were predicting a bullish breakout for stocks in this new year. And we're very happy to see that that call has come to fruition. The S&P 500 is already up 5% year-to-date. The Nasdaq is up nearly 10% – and we're not even a month into 2023. In fact, when it comes to the stock market, we think Sir John Templeton said it best: “Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria.” We saw severe pessimism in the back half of 2022, and that outlook has even bled over into the new year. So, it's no surprise to us that a new bull market is being born on the back of this pessimistic sentiment. And we believe this bullishness will last. What gives us confidence there? Well, in short, everything. Inflation is crashing, and the economy is remaining resilient. This unique combination sets the stage for a soft economic landing. The Fed can ease on its rate-hiking campaign, allowing for economic reexpansion in the back half of 2023 and beyond. How about valuations? The current spread between earnings and Treasury yields signals a historically discounted market. And as inflation continues to crash, we should see some significant valuation multiple expansion throughout the year. Plus, thanks to the economy's resilience, earnings are coming in better than expected.And don't forget about all the technical indicators we're seeing – S&P's golden cross signal, Breakaway Momentum, Whaley Breadth Thrust, Triple 70 Thrust, a bullish “trifecta.”Everything is telling us to be confident. And everything is saying this bullishness will last. It's time to position yourself for the next 12 months – because gains could be tremendous.Stay up to date with the hottest trends and seize financial freedom now by watching our latest Hypergrowth Investing episode.

Since the start of the new year, the overall market trend has greatly improved, and the past few days have been no exception. The market has seen a significant and sudden increase in price action, with stocks no longer declining as they were in 2022. While stocks played a stubborn game in 2022, this year, they refuse to go lower. Best of all? Technology and growth are driving the ongoing stock market boom in 2023.So why the sudden shift? Well, it seems that the consensus view in the market has finally aligned with the one we've had since November. Inflation is crashing hard, the Fed's rate hikes are nearly over, and the economy will likely avoid a deep recession. With this as the consensus, more investors are rushing to buy the dip in risk assets.And if you want to gauge the market's risk-on appetite, just take a look at the crypto markets. Bitcoin (BTC-USD) started the year at $16,500 and popped to $21,500 over the weekend – up a whopping 40% year-to-date. Several major altcoins have doubled in that same time. This is the type of price action you only see when new bull markets begin.We are highly constructive on what we've seen so far. This is likely Year 1 of a multiyear bull market. Get ready for those gains.So, the current price action in the market strongly suggests that we're seeing the arrival of a new bull market. And last week, this price action triggered a bullish indicator known as the Breakaway Momentum indicator.This indicator measures the ratio of the total number of stocks that were advancing over the past 10 days to the total number of stocks that were declining in that time. When that ratio is roughly above 2, meaning the number of advancing stocks is double the number of declining stocks, the Breakaway Momentum indicator is triggered.This has only happened a handful of times over the past 70 years, but every time it has, stocks were higher six and 12 months later. And similarly, nearly every time this breadth thrust indicator is triggered, it's been when a bear market is ending and a new bull market is beginning.In short, current price action indicates that a new bull market is forming right now. As always, remember that price is truth. So, keep an eye out for any new developments in the market. For us, one emerging development we're bullish on is quantitative finance. Hypergrowth Investing is no stranger to AI. We've talked about its impact on several industries in previous episodes, even when it comes to the future of stock picking. We're confident that eventually, AI and other quantitative approaches will dominate most money management and financial market strategies. Investors with fantastic track records and decades of experience picking stocks are few and far between. And access to these folks is very limited. But in the future, we will have access to AI tools and quantitative systems that allow us to be the best investors we can be – by removing emotion from decision-making and following the data.The stock market is a veritable treasure trove of data. And with the advent of machine-learning algorithms, it's becoming a powerful tool for investors. In the next few years, it's expected that most investors will turn to quantitative trading systems, powered by AI, to gain an edge in the market. Those who embrace this technology will have a significant advantage over those who don't, and will be able to make more informed and profitable trades.That's why our team has spent the past year developing a quantitative trading system to inform our investment strategies. We are using this quant tool to scan the market for the most high-quality breakout stocks. And by implementing machine-learning algorithms, we aim to create a robust system that helps us to greatly outperform the market.Learn more here: https://bit.ly/3kpWXUTWatch the full episode of Hypergrowth Investing above.

Goodbye (and good riddance), 2022! This past year has been an exceptionally tough one for the markets. In fact, it ranks among the worst in Wall Street's history. And it's easy to see why – decades-high inflation, a mega-hawkish Fed, soaring commodity prices, the Russia-Ukraine war, a strained global economy, and the threat of an incoming recession. Talk about harrowing.But with 2022 in the rearview, we're welcoming the new year with open arms – and renewed bullishness. In our first Hypergrowth Investing episode in 2023, we're talking all about stock market predictions for the coming year. What will work in this new year, and what won't? Welcome to Hypergrowth Investing's stock forecast for 2023. Let's get into it.Inflation will crash much faster than everyone thinks. The Federal Reserve's aggressive rate hikes are working. Incoming economic data from various fronts all point to slowing inflation, most recently seen in manufacturing and commodities prices. Home prices will continue to moderate. Rents are plateauing and starting to recede in some cities. Indeed, disinflationary pressures are building across the board. That will continue rapidly throughout the year. And historically speaking, when inflation crashes, stocks rally.The Fed will pause rate hikes much sooner than expected. Inflation is starting to crash. The economy is starting to slow, and soon, unemployment is going to rise. All that sets the stage for a pause in rate hikes in 2023. We anticipate the last rate hike in this cycle will happen in February – sooner than what the futures market is pricing in. And a pause is bullish for stocks. Our stock prediction? We think a Fed pause could kickstart a 12-month breakout on the order of 20%-plus.The economy will avert a deep recession. For a majority of the past 15 years, folks saved at an above-average rate. And today, the consumer is still spending pretty robustly. This means that companies will continue to see earnings and will largely maintain their workforces, which should keep the labor market steady. So, barring some unforeseen Black Swan event, we should be able to avert a deep recession in 2023, especially if the Fed pauses in February. Could we see a shallow recession? Sure. But that's pretty much already fully priced into stocks.The start of the year could be choppy. Liquidity drives the markets. So, once the Fed pauses and stops its liquidity drain, stocks will soar. Until then, they will probably remain volatile. Considering a likely pause in February, we could see choppy trading into that month – before a face-melting rally into the end of the year. ...To get the rest, watch our stock market forecast for the next six months and onward. Bottom Line: We're bullish; and you should be, too.

Welcome to another brand-new episode of our Hypergrowth Investing podcast, where we get candid on SoFi's (SOFI) prospects in 2023, ChatGPT3 and the AI Revolution, TikTok government bans, and whether Apple's (AAPL) XR headset can do for the metaverse what the iPhone did for the internet. Buckle up, friends, it's going to be a long one!If you're a sports fan, then you probably know that the college football championship game just happened a few nights ago (and boy, it wasn't even close, was it?). But more importantly, this championship game was held at SoFi Stadium. Since then, SoFi's been in the spotlight – and rightfully so.Great products make for great businesses, which make for great stocks. And that's exactly what you have with SoFi. Its world-class digitally native consumer finance app is a modern-day dream. And because the company doesn't have to maintain a physical presence, it can pass those cost-savings onto customers through better yields and higher interest. We see this as a company that will grow 20% per year into 2030. Yet SOFI stock is trading at 0.9X its book value. Traditional banking giants are trading at larger multiples – while growing at just 2% per year. And it's all thanks to the major risk-off sentiment that began in 2022. As soon as that sentiment abates – and it always does – SOFI stock could rocket in a hurry.The AI Revolution Is HerePivoting to artificial intelligence, which we've talked about a lot since the launch of ChatGPT3, OpenAI (the company behind that product) is reportedly looking to raise funds at a $29 billion valuation. What does this mean for AI stock investors?Well, in 2021, the company was worth $14 billion. Less than two years later, it has increased its value by more than 100%. And we're confident that the launch of ChaptGPT3 was a tipping point for the AI Revolution. Coding, music creation, copywriting, storytelling – there are already a plethora of things you can do with AI, even in these early stages. And we just hit the fast-forward button.Considering the state of the markets and the stressful macro backdrop we had in 2022, the launch of many AI platforms went unnoticed. While they're flying under the radar today, they'll soon attract tons of users – and value – leading to a categorical boom in AI.Some trends are unstoppable forces, and it seems that AI is one of them.TikTok Tops Out – Should You Buy SNAP Stock?First off, we see short-form video as the future. It's no secret that we're big fans of TikTok, but the platform keeps getting banned in certain places, namely on government devices in various U.S. states.Now, this doesn't mean TikTok is done. But we do think its ascent is over. Bans are one thing, and widespread media coverage is another. If all media outlets agree on anything, it's that TikTok is sketchy. And their coverage is likely to encourage users to migrate elsewhere.As a result, platforms like Snap (SNAP) and Instagram will probably see their usage soar over the next two years. TikTok's descent will act as an engagement tailwind for these platforms, and they'll return to continued growth very soon.The companies that will really thrive in this environment are those that tap into next-gen technology to augment user experience in a way that others cannot, and we think Snap really excels on that front. Get bullish here!Watch the full episode of Hypergrowth Investing above.

SoFi (SOFI) CEO Anthony Noto recently purchased $5 million worth of SOFI stock and then added another $2.4 million. Insider buying is a valuable metric when looking at a company, and Noto's large purchases are a clear indication of his confidence in the company. Why is he so bullish? And more importantly, should we be following in his footsteps and buying big for 2023?Noto has been buying SOFI stock all year long, but these are his biggest purchases by far. And they represent massive votes of confidence in the company. This is someone you want to listen to. Not only is Noto highly experienced on Wall Street, having served as CFO of Twitter (TWTR) and the NFL, but SOFI has also demonstrated strong growth under his leadership, with revenues increasing by 50% every quarter. So, in our opinion, his bullishness holds even more weight than a “regular” CEO's would. It's no surprise that we love SOFI stock. The company has been steadily growing revenues at a 50% clip every single quarter while mature firms like Bank of America (BAC) and Wells Fargo (WFC) are not. Additionally, SOFI's valuation is lower compared to those incumbent firms, making it an attractive investment. What's more, with several potential catalysts on the horizon, such as the end of the student loan moratorium, SoFi could be looking at outsized growth.Overall, Noto's purchases and SOFI's strong performance make it a worthwhile investment for 2023. It could soar when interest rates turn around, when the economy stabilizes, when the student loan moratorium ends. There are so many dormant catalysts here that could make this stock rocket. It's no wonder that the CEO is piling in. And we'd be buyers, too.But SOFI isn't the only stock we're bullish on right now – certain EV stocks have had our attention for a while. Lucid (LCID) and Rivian (RIVN) come up quite often, but do we have an absolute favorite for the next 12 months? We do. (Watch the video to find out which stock we're talking about!) We really believe that affordable electric vehicles will sell the best in 2023. The only uncertainty for us here is whether the company will be able to hit its production targets next year. If it does, this EV stock will sell tens of thousands of EVs per quarter by the end of 2023. And that simply isn't reflected in its current stock price. We think the stock can more than double in 2023.Something else we've been bullish on all year? Solar stocks. And lately, we've only gotten more bullish. The fundamental momentum in the solar industry is incredibly robust right now. For example, last week, McDonald's (MCD) signed a major deal to buy 190 megawatts of solar power to essentially power its entire U.S. supply chain. This means that the biggest restaurant chain operator in America is going all-in on solar for its entire operations. Not to mention, Meta (META) – one of the world's biggest companies – also signed a similar agreement to power its data center in the Southeastern U.S. Everywhere you look, there are positive news developments and really positive earnings from these companies in the solar industry. This underscores the stunning momentum the sector is feeling. We think it will only accelerate in 2023. This year, the world faces an energy crisis. We came to a fork in the road and had to make a choice: try to make oil and gas work, or embrace clean energy technology to power our world. All major governments around the world passed landmark legislation to accelerate the clean energy transition. Don't fight that trend. It will only get stronger from here.

Inflation – it's been the 2022 word of the year. And finally, as we head into 2023, it's starting to come down in a big way. We got a much cooler-than-expected Consumer Price Index (CPI) report on Tuesday. As a result, the market has been on a tear. And we think this rally is just a taste of what's to come.It seems clear that inflation will crash back to 2% over the next 12 to 24 months. In fact, over the past 100 years of market history, we've had seven prior periods of red-hot inflation that became disinflation – just like what we're seeing today. Each time, when inflation began to fall, it kept going lower. On average, we saw two to three years of disinflation and about 10 points off of the CPI. The current disinflation wave has begun, and it's still early in this ballgame. The forces are in motion – and they're going to stay that way for a long time. We're confident that in 2023, disinflation will be the word of the year. And since stocks respond positively to that kind of environment, we're quite bullish on the markets here.Now, inflation isn't the only piece to this macro puzzle. It's imperative that it crashes – and it's also imperative for the Fed to pivot dovish in response. Given the cooler-than-expected data we've received over the past two weeks, we think the Fed will continue to lean into its recent dovishness. Stocks should pop big in response, and that will lead to a new bull market in 2023.In fact, we think that despite what most investors are anticipating, we'll get a “soft landing” from the Fed next year. And the data supports this thesis. Over the past several months, we've been seeing major disinflation without much labor market destruction. Back in the 1980s, we were in a similar disinflationary cycle – but at that time, unemployment rocketed to around 9%. We saw something analogous in the 1970s. But today, the Fed is tamping down inflation without harming the labor market. And that's highly conducive to a soft landing. We're donning our optimist caps for this one.But enough about the Fed. Let's pivot (pun intended) and check in on a stock we haven't mentioned in a while – Tesla (TSLA). We've been bearish on this one for a while. It was the first mover and, really, the only viable competitor in the EV space for years. But since its production ramp in 2019, a lot of competition has entered the fold. Legacy auto companies are increasingly electrifying their own models. Plus, a swath of new entrants are coming into the market. And many – like our favorites Rivian (RIVN), Lucid (LCID), and Fisker (FSR) – are growing nicely. As a result, Tesla has and will continue to lose market share over the next few years.The stock has come down quite a bit. Normally, we'd say to take profits on the short and move on. But the bear thesis is actually getting stronger. Elon Musk's Twitter takeover and injection into the political realm has not been a good move for Tesla. We think it will continue to see a net loss in customers, and the share price will keep falling. Regaining momentum will require some significant changes. And until that happens, TSLA will remain a dead duck.And like a lot of the market, Chinese stocks were crushed in 2022. Recently, they've been bouncing back on hopes that the economy will reopen next year. Should we be buying?Yes (but not hand over fist). We think that in 2023, China will experience what the U.S. did in 2021 – pent-up consumer demand coupled with loose monetary conditions to unleash a massive economic boom. Indeed, especially after nearly three years locked down, there must be an incredible amount of pent-up demand in the country. Now, this reopening will be choppy, but that shouldn't impact the bull thesis here. That's well-priced into these stocks. And this major catalyst on the horizon could spark massive revenue and earnings growth – and send these stocks soaring. Throw that market a bone or two and see what happens over the coming year. To hear the whole story about inflation and our market outlook, watch this week's episode now!

Welcome to the newest episode of our Hypergrowth Investing podcast! This week, Aaron and I dive right into the latest tech innovation that's taken the internet by storm – ChatGPT. It's an AI-powered chatbot created by OpenAI. And in the few short days following its public release, it's already demonstrated profound abilities. It can edit code; tutor in math and physics; write articles, research papers, essays, and more. And it's a powerful example of the AI Revolution's global significance.Indeed, the world is becoming increasingly automated – and AI is critical to this next generation of industrialization. We were already bullish on AI stocks. And ChatGPT's success makes us even more bullish.That's because when it comes to automation, there are two main components – robotics and AI software. And as evidenced by ChatGPT's robust capabilities, AI software has progressed exceptionally well. The same is true on the hardware side of things. Just within the last few months, we've seen Amazon (AMZN) and Walmart (WMT) automating their warehouses; Chili's has implemented robotic servers; Domino's (DPZ) delivers pizza using self-driving cars. The software and hardware underlying this trend are laying a solid foundation – one that should allow automation to take off.But what's at the core of AI? Data. Data is the currency of artificial intelligence – and the more data an AI model has, the better that model becomes. Imagine all the data that can be gathered from space! Right now, in fact, several companies have satellites in orbit that are capturing new streams of data; Data streams that can be integrated into AI modeling to improve, say, GPS. We could make autonomous cars infinitely better at self-driving. The sky is the limit.Then there's the economic value of AI on electric vehicles, as artificial intelligence can run simulations to produce an output to create a better battery. More to the point, AI could potentially uncover a method to create lithium without mining. This would allow for an abundance of lithium, making EV mass production possible on an unimaginable scale. But hype and progress alone aren't enough to propel this industry forward. Booms happen when technological advancements converge with a significant urgency. And right now, as we approach 2023, we face an uncertain economy and labor market. To hear the whole story about AI and our market outlook, watch this week's episode now!

What's up, hypergrowth investors? And welcome back to our Hypergrowth Investing podcast! We're now a few days past the Black Friday/Cyber Monday holiday shopping extravaganza. And this season has been surprisingly strong! Now, we've been bullish on retail stocks heading into the holiday shopping season for a while – especially e-commerce stocks. And these sales numbers only bolster our conviction.Analysts expected sales this past weekend to be weak, and it makes sense why. Consumer confidence has plunged to near all-time-low levels. Excess savings has been wiped out. Portfolios have been crushed. Everyone's talking about a recession. Inflation is still high – so are record sales enough to counteract the year's dramatic increase in prices? Well, it turns out, yes.According to Mastercard (MA), Black Friday sales were up 12%, and online sales were up 14%. But… how? The labor market is showing some signs of weakness, but it's still strong. The unemployment rate remains low. So long as consumer still have jobs, they'll keep spending. And that's why we think a deep recession in 2023 is unlikely. Our economy has withstood one of the most aggressive quantitative tightening cycles ever, and the U.S. consumer is still chugging along. We're starting to see reacceleration in e-commerce growth trends. The post-pandemic pent-up demand for in-store shopping has diminished, and folks are returning to online purchases. E-commerce growth trends have normalized, and they're going strong. That's not all we're bullish on… Guess who's back in the Clubhouse? Bob Iger. And since this CEO changing of the guard, the stock has languished at its COVID lows. But we think Iger's return is fantastic news for Disney (DIS) stock. Disney is trying to build out its streaming ability to become a tech company, not a legacy one. Former CEO Bob Chapek was on the fence about it. But Bob Iger is bullish on this development. And upon his return, we're likely to see Disney return to its streaming-first narrative.Is this the new market regime?That's the ideology we're seeing everywhere at the moment. But we have trouble with that sentiment. The data strongly supports the idea that what really drives stock prices is earnings. And when you look at earnings guidance for the coming years, it's the tech stocks that will have tremendous growth. So, while the Dow might be outperforming right now, the Nasdaq's tech stocks will still reign supreme in the long run. “New School” companies are here to stay.But what about oil? Well, oil and gas are part of those “Old School” stocks. And here in 2022, we've been bullish on the “New School” clean tech. Have things changed going into 2023? Nope!Up until this point, each year, companies spent more capital on oil and gas infrastructure and operations than they did on renewable energies. That changed in 2022, helped along by legislation promoting the acceleration of clean energy production around the world. Align with these decisions and invest alongside them. We're talking solar, hydrogen, energy storage stocks – they'll continue to work very well going into 2023 and will be some of the market's biggest winners throughout the 2020s.Before we wrap things up, lets talk about a favorite of ours – quantum computing. The computational power of a quantum computer is exponentially more than that of a classical computer. That has profound implications for nearly every industry out there, and now we're finally seeing its real-world benefits.But this revolution will take time to take off. There are some promising quantum stocks out there right now. Invest with significant patience. This cake won't bake overnight.

With inflation starting to turn the corner, 2022's pain is about to turn into 2023's gain!And it's not just inflation; Every single metric that turned this market into a bear market is now flashing indicators that the tide is turning yet again. Recall that in 2022, we've dealt with rising inflation, an increasingly aggressive Fed, rising Treasury yields, and shrinking corporate profit margins. In 2023, we're getting just the opposite on all fronts. Inflation is turning to disinflation. Our overheated labor market is cooling down as corporations lay off employees and expand their operating leverage. We're sympathetic to the employees caught in the crossfire here. But in that environment, the Fed will have to pivot dovish, ultimately creating the sort of conditions that allow growth stocks (and the consumer) to thrive.Which is why we're incredibly bullish on a massive rally materializing in 2023. So, when it comes to investing, what's going to work? And maybe more importantly, what's not?All the trends that were pertinent here in 2022 will reverse course as we head into 2023. Headwinds will become tailwinds, and vice versa. By that same token, what worked in financial markets will reverse course, too – and crash.So, what worked exceptionally well in 2022? Energy, oil, commodities. We think they're going to crash in '23. (In fact, this past quarter's 13F filings show that hedge funds are cashing out on oil. Follow the smart money before those energy trades fizzle.) Similarly, we're confident bonds will excel over the coming year. As inflation continues to cool and the Fed pivots dovish, yields will collapse – and long bonds will prove a great strategy.In 2022, soaring interest rates have caused the housing market to nosedive. It reasons that a dovish Fed and stabilizing (or falling) rates in '23 will turn the tide for housing, and those stocks will rebound. And don't forget to add those high-quality tech stocks to your portfolio. Hot inflation permeated the markets this year and put a chokehold on tech. As it's stamped out, investors will regain their excitement for innovation, and tech stocks will take to the skies once again.COVID's emergence in March 2020 kickstarted years of pandemic-related burdens on the markets. But in 2023, we'll finally enter a new era of market expansion. It should be the start of a great decade for growth.

SoFi is one of those stocks that checks every box for Luke Lango. And for a while now, Luke's been bullish on SoFi's growth velocity. Looking ahead to 2023, Luke's even more bullish.According to Luke, the up-and-coming fintech company is truly the “Amazon of Finance.” It's creating a powerful super-app that tons of younger consumers are gravitating toward. Its suite of products is second to none. SoFi offers checking, savings, loans and credit, stock and crypto investing, not to mention educational content, custom budgeting, and sweet rewards.As I alluded to, the company's growth trends are exceptional. Sure, growth has slowed somewhat over the past few quarters, but it remains very positive. Luke points out that SoFi is showing 60%-plus product and member growth year-over-year. Indeed, across all KPIs, SoFi's growth velocity is impressive – and especially so considering the broader macroeconomic environment.Plus, the cherry on top? The end of the student loan moratorium. This company defined itself on student loan refinancing, says Luke – a business that took a major hit during the pandemic, when student loan payments were put on pause. But that major growth catalyst comes back into the picture in two months.As Luke puts it, SoFi stock is already dramatically undervalued today. So, with its student loan business back online – and with the company already firing on all cylinders – it's easy to see how SoFi stock could rocket way higher in 2023.Following Amazon's playbook, SoFi is doing everything possible to make the most convenient and lowest cost financial product in existence. That should solidify its leadership in the industry for many years to come. At $5 today, Luke claims SoFi stock is an absolute steal.Despite the macro picture, Luke believes tech is our top investment option over the next few years. He's looking at some mid- to large-cap tech stocks with great financials and sticky businesses that got grossly overvalued during the pandemic – but are now trading at some great discounts. And software stocks are a niche we've got our eyes on.And we've talked about our “Big Three” – robotics, clean tech, and space – many times now. Well, given the path of inflation – and the wait time for a pizza on Halloween night – Luke thinks the robotics narrative is going to be huge. We need labor automation – for restaurants, deliveries, warehouses, construction. The labor market has been bifurcated, and there's a massive shortage of blue-collar workers. On top of that, birth rates are falling around the world, which means that the already-small labor market will only continue to shrink.Automation holds the key to solving the labor crisis we face. There's enormous economic potential there, says Luke. Which means long-term, robotics stocks are where you want to be invested.

Last week, we saw stocks rally in a major way. And we're confident this isn't another head fake. This rally has legs, and it seems possible that stocks are clawing their way out of this bear market.Earnings have been very strong. Yields are coming off their highs. Stocks have been performing well. There's talk of a Fed pivot again (which feels much more substantiated than it has previously). We're cautiously optimistic that this rally could become the start of a new bull market.Though it may not be happening as fast as some hope, inflation is coming down. The Fed is considering slowing its pace of rate hikes. And the bond market has started to react on a global scale. Central banks around the world have capitulated, causing yields to retreat. And now earnings are surprising to the upside. Altogether, this is creating a recipe for stocks to move higher – at least in the short term and hopefully into the medium and long term as well.So, if this is the start of a potential long-term rally, does that mean we've hit the market bottom? Well, timing an exact bottom is nearly impossible – but we're seeing indicators flashing all across the market, signaling that the bottoming process has begun. And that's all that matters when preparing for an incoming bull market.The first signal is valuations. Without a deep recession, bear markets tend to bottom around 14 to 16X forward earnings. And recently, stocks have reached about 15X – very close to that bottoming level. The second thing we're watching is financial conditions. Bloomberg's financial conditions index – which takes yields, stock prices, commodity prices, etc., into account – dropped below -1 a few weeks ago. Over the past 25 years, when that index falls beneath -1, stocks are close to a bottom.The third? The S&P's price is well below analysts' price targets, about 23% below consensus. Historically, the market bottom when the S&P was 20% to 30% below analyst targets. That's bullish.Another indicator? Fund managers have record-high levels of cash. That indicates capitulation and money waiting on the sidelines for a more bullish setup. And that's bullish, too.Not to mention, investor sentiment is at peak-bearish levels. This tends to mark “peak fear,” and it usually correlates with market bottoms.What about a strong technical indicator? The McClellan Oscillator, which is a market breadth indicator, just broke below -15 – a super negative reading it rarely breaks beneath. And every time it does – 100% of the time – stocks are higher 12 months later. Indeed, that is a huge bottoming signal for the market. These aren't the only signals. The list goes on. It's clear that we're due for a big rally here. And it's possible that this rally could bounce us all the way out of bear market territory.

Now, it's nearly impossible to predict a stock market bottom. But one universal truth? Eventually, every bear market ends ¬and a new bull market begins – creating new stocks to buy. And though we may not be able to predict this bear market's exact finale, we can follow the data today to prepare for that new bull market tomorrow.Since 1929, the median bear market decline has been 29% over 12 months. Currently, we're at a 30% decline over 11 months – almost exactly in line with that historical average. Valuations are washed out, near levels that marked the bottom of previous bear markets. The S&P 500 has collapsed to its 200-week moving average – and nearly every bear market of the past 70 years has bottomed at or around that level. Not to mention the index has fallen into oversold territory, which – you guessed it – usually marks its bottom.Market breadth, investor sentiment, cash positioning, the put/call ratio – the list goes on and on. Indeed, these signals are flashing everywhere. And absent a “Lehman moment,” stocks will be higher in 12 months. We don't need to time a bottom here – we just need to prepare for that new bull market. That's why we're going on a major shopping spree. Find out which types of stocks we're buying in this week's episode!Elsewhere in this episode, we discuss the following:Mark Zuckerberg's MetaverseThe metaverse – it's been buzzing in the news lately. In fact, Meta had an enormous breakthrough debut… legs. Will Zuckerberg be leading this space? What does the future of the metaverse actually looks like?This is one of those industries that got way too overhyped and then deflated, and now it's trying to find its niche because make no mistake; there is a value add there. Indeed, we're still bullish – and no, it's not because of what Zuckerberg is building. The metaverse allows for the creation of a digital world, and it can be whatever you want it to be. The creation of digital twins would allow us to plug in and visit the Coliseum, the Eiffel Tower, the Great Pyramids of Giza – all from the comfort of our own homes. We could try on clothes virtually to decide if we want to buy them. Business owners could check up on their spaces around the country or around the world without needing to travel at all.The reason we're bullish on this industry is because the opportunities in the metaverse are nearly limitless. It reminds us of the internet. Regardless of what it is, we'll all find some utility in it.Our “Big Three” ThemesLet's check in on our Big 3 – space, robotics, and climate tech! And as you might be able to guess, we're still as bullish as ever. Amazon (AMZN) is jumping into space. The company is planning on launching their own version of Starlink satellites. We continue to see mainstream media coverage about how robots are saving the day for the labor industry right now. A lot of firms are starting new solar and energy storage project development. And EV companies like Stellantis (STLA) are massively increasing production of electric vehicles.There are a ton of bullish developments happening in these spaces. And we think these three sectors will the biggest market winners over the next 12 months.

First on the docket this week – we're checking in on the Fed. After last week's big rate-hike announcement, we heard some hawkish commentary from Fed Board Chair Jerome Powell. That really spooked the markets, and stocks have been in freefall ever since. But the central bank hiked as expected… so, why are investors freaking out right now? Well, the markets were expecting a soft landing in the forecast, yet the Fed's projections showed that the bank has no intention of pivoting. It's much more concerned with the real economy, not the financial economy, and it's keeping its foot on the gas until something breaks. The lesson here – don't fight the Fed. Wait until it pivots, then get constructive on stocks again.Well, we're seeing evidence of a massive disinflationary wave building, and that will force the Fed to pivot sooner than it anticipates – which will, in turn, lead to a mega market rally. But as we wait for that to happen, we've turned bearish on the short term. We need a final massive capitulation selloff for these bullish things to happen. Historically, these grand finales mark the bottom in a bear market. One more fast-and-furious selloff could break some things in the real economy and force the Fed to reassess.With that mega rally on the horizon, what stocks should we be buying to play this comeback? Growth stocks, baby. We're talking climate tech, space, and robotics. These sectors are really picking up steam. In the broader markets, VC funding has really dried up lately – but that money is still flowing with climate tech. And there's a lot of legislation powering this sector's growth. We're also seeing the continued deployment of robotics and automation in various industries across the market. Not to mention continued innovation in space. These are areas that hold huge potential for early stage investors, and we couldn't be more bullish.Closing out this week's episode, we leave off with some of the best stocks to buy right now. These aren't picks for the short term – they'll go lower before they go higher. But we're talking about stocks that go from $3, to $9, to $20, to $40 over the next two years. Long-term investors, buy the dip, and hold your nose. These will pay off big-time.

In this week's Hypergrowth Investing Podcast, Aaron and I go over the macro-economic environment to answer the question: “Why is everyone acting like we are all on a sinking ship?”The first half of the year was defined by inflation, while the second half is defined by the Federal Reserve. They are steadily fighting inflation; however, the overall consensus is they are going too hard against inflation. Many people think this is going to lead them to walk the economy into a recession, even though we are already technically in a recession.We aren't seeing much of a drop off yet in the larger economy for one crucial reason: the financial economy leads the “real” economy.In short, the economy is going to take a big hit in the next six months. Between the labor market which is set to drop off in the coming months, low earnings projections, and an overwhelming number of bears in the market, the short-term outlook isn't pretty.The good news? We are close to “the bottom” in terms of price and time. We are in the final innings of this bear market and see the light at the end of the tunnel for the upcoming bull market in 2023.But it's all going to come down to the Fed. On the heels of global capitulation, they have been hawkish for months, but some Fed members have opened the door to a change in stance in the past week.OPEC+, the largest oil producer in the world, announced a recession size production cut. This is the main contributor to the rise in oil prices. But there is so much demand that oil prices aren't being pushed all the way to their previous highs like this past summer.This spike in oil prices is telling us that demand destruction is on the horizon. But at the end of the day, oil prices are going to trend lower in the next few months.The “bottom” is going to be confirmed by the official Fed pivot or Fed pause on hiking rates. Stocks tend to bottom because markets are forward looking.We predict that we will hit the “real bottom” within the next three months, and then it's off to the races for the new bull market.On the micro-economic front, our “big three” sectors have not changed. Climate tech, robotics, and space still have great fundamentals and high growth potential.The one upside to the absurd rise in oil prices, directly due to the OPEC+ production cut, is the pivot to clean energy sources. This means more solar panels, hydrogen facilities, more EVs on the road, and the restart of nuclear power.Everyone is fed up with gas and energy prices that their own government doesn't even control anymore. There is going to be a massive shift in clean energy solutions throughout North America and Europe and this is going to create massive investment opportunities in solar and hydrogen stocks but especially battery energy storage system stocks.Automation and robotics are an especially hot topic recently, with the rollout of prototypes from Tesla (TSLA) and Amazon (AMZN). These are two of the biggest companies in the world who are all in on robots. This is huge.Pay attention to these significant moves. The industry will accelerate rapidly over the next few years.Automation is going to help solve the labor-shortage problems across blue-collar work forces. While white-collar firms are firing, blue-collar companies – like the retail and restaurant industry – need automation solutions. We are super bullish in this space.What's more, there have been a lot of successful launches into space recently and demand is very strong.Across all of these sectors, supply chains are improving and inflation problems are being fixed. Take EVs for example. While the issues of supply chains are improving, at the same time, gas prices are going up. The cost delta between these two are growing, which is going to cause EV demand and production to rise.The easing of supply chain issues are creating more opportunities in the clean tech, robotics and space industries and creating more demand and higher stock prices in these sectors especially.Does that mean it's time to buy clean tech, robotics, and space stocks? Watch the podcast for our answer!

Another space that we love – and whose stocks have been absolutely soaring lately – is the energy storage industry. In fact, if there were one sector to stay bullish on over the next 12 months, regardless of the macroeconomic backdrop, it's energy storage. Population growth, urbanization, and digitization are creating a demand for energy that we don't have the supply to meet. We need more energy.Most think it should come from more oil and gas, more solar and wind, more nuclear, maybe hydrogen. But the thing holding us back, especially on the clean tech side of things, is energy storage. So, this is a space that's due for massive growth in the months and years ahead. And indeed, we're seeing this start to play out in Europe as we speak. Greece, Ireland, Germany, the U.K, and more are all beginning to construct and deploy battery energy storage across the continent. We love innovative tech that works to solve real-world problems. And right now, energy storage systems are putting on their red capes and saving the day. And because of that, investment in the space is starting to grow exponentially. And one of the major catalysts for this expansion is the U.S. Inflation Reduction Act. That includes a first-ever investment tax credit (ITC) for standalone energy storage units. Those ITCs are what allowed solar panel construction to boom in the 2010s – and for solar stocks to rocket during that time. And now ITCs are doing the same thing for energy storage. We really could not be more bullish on this space.

NFL season has begun with perhaps its most entertaining opening weekend of all time. It was a fascinating Sunday, which had fans doing what they do best – talking trash with their buddies. And over the weekend, sports betting entered the early stages of a full-on renaissance -- increasing an incredible 72% year-over-year. Now, some of that could be chalked up to the excitement around the season's start. Indeed, a record four teams overcame double-digit deficits to win or tie their games. Tom Brady crushed on Sunday Night Football. And Patrick Mahomes ruled the Chiefs' opener. It was a pretty incredible start to the season.But that alone doesn't explain 72% one-year growth in sports betting volume. Folks, we're not talking about going to the casino and smoking cigars anymore – the incredible start to the NFL season coupled with innovative technologies and less restrictive laws are leading to the normalization of sports betting.The number of people who tried to log into sports betting apps over the weekend was more than 100 million – and that's just in America. That means 1 out of 4 Americans were trying to log into sports betting apps. That's truly massive! And it's indicative of the broader sports betting trend's upward momentum. Changing laws are converging upon a diminishing stigma. That's opening the door for sports betting to take off.We think that within the next few years, sports betting will become as normal as sports watching. The investment implication? Buy those high-quality sports betting companies and rake in gains as this industry soars.Sports betting may be in the spotlight due to the hot start to NFL season, but it's not the only industry I'm watching. Two industries we're bullish on for the next 12 months are the space economy and robotics. Developments on both fronts have us more bullish than ever.SpaceX had a really big launch this past week, which went off without a hitch. AST SpaceMobile (ASTS) was part of that launch, as its BlueWalker 3 was part of the payload launched into orbit by Elon Musk's SpaceX. If ASTS proves its tech works, we could be looking at perhaps the biggest opportunity in the stock market today. Then there's Planet Labs (PL), which just reported excellent earnings – and it was still going strong despite Tuesday's market turmoil. There's a ton of incredible developments going on in the industry right now.And the same goes for robotics. Amazon (AMZN) just bought Cloostermans – a warehouse robotics company – to further automate its operations. This is its second robotics acquisition in a month. The company is making a huge push toward automation here. And this is just the beginning. We're extremely bullish on the companies making the technologies and products to service the need for automation.So… what are we bearish on? Oil – August's CPI print confirmed it. It was hot enough to ensure that the Fed will go full-throttle to kill inflation. That's going to hurt economic activity – and push oil prices lower. And indeed, the U.S. isn't the only country to report hotter-than-expected inflation. That means banks around the world will all tighten the belt. And oil will feel it.Meanwhile, Ukraine is making significant advancements in its war with Russia, clawing back previously held areas from Putin. If that continues, the odds for a semi-diplomatic resolution go up – as do the odds for the resumption of oil exports. We think oil goes to $65 by the end of this year.And… keep staying away from semiconductor stocks.To hear more, including my thoughts on the recent hot consumer inflation report, solar electric vehicles, and a potential crypto breakout, watch the podcast in full now.

It's no secret that the markets have been struggling lately. But some of our favorite EV stocks have shown some impressive resilience amid the selloff. One that comes to mind is Rivian (RIVN), which could see an even better 2023. Now, why are these stocks outperforming? And more importantly, will this trend continue?The entire energy trade has been strong – everything from natural gas, oil, uranium, energy storage, solar, electric vehicles. Indeed, earlier this year, despite soaring battery metal prices, EV sales were still hitting record highs. And this wave is continuing as that “headwind” has become a tailwind. Battery metal prices are falling, and we think that could lead to EV price reductions in 2023. It seems this energy rally has legs.This is great timing for a stock like Rivian. Indeed, things are just ramping up for the company here in 2022. But over the next few years, production will really pick up the pace. As the macro environment improves during this ramp, it will really help the company's sales and margins. And RIVN could be primed for excellence.Today, investors are simply waiting for the Fed to take inflation out back and shoot it. The only question is: How bad will that collateral damage be? For EVs, a shift in consumer preference is a strong tailwind that should survive no matter how much collateral damage we see. It's a resilient space. Now, as Aaron notes in this week's episode, a slowing economy, falling inflation, and lower yields all set the stage for a market rally into the end of the year. So why aren't people buying into that rally right now?Indeed, according to the data we're seeing, we're in for falling inflation, a dovish evolution of the Fed, and lower Treasury yields over the coming months. And based on those three things, stocks should rally big into the end of the year.But if the opposite happens – inflation stays hot, the Fed remains hawkish, and yields go higher – stocks will collapse. And the fear of that outcome is so strong that it has investors sitting on the sidelines. They want more proof to emerge before they're willing to put some skin in the game.And we think that proof will come very soon – in the form of the September CPI print. It's likely to be much softer than expected and show a rapid deceleration in inflation. And after, we're likely to hear some dovish Fed commentary about future rate hikes. Given that, stocks should head higher over the next four weeks. But we've got to get to that print first.Investors fear CPI will come in hot, and that's got the markets really choppy. And until we get some clear answers from the Fed, it'll remain that way.Now, the bear thesis hinges on the idea that inflation is structural. But this isn't the 1970s. We have so many disinflationary forces at our fingertips today. There are so many tools in the toolkit nowadays that we can adopt as needed to make sure we crush inflation. So, it's highly unlikely that the bear thesis here is correct. Indeed, by 2023, inflation will be a diminishing problem. And all signs point to a mega rally into 2022's end.

This week in our "Hypergrowth Investing" podcast, we're talking about my "Big Three" investing themes for the rest of the year (and beyond). You've probably heard me talk about each one of these themes at one point or another, but I'm a big fan of repetition. The more we repeat things, the more command we hold over our narrative. And my narrative in this case is that if you're not invested in the Big Three then you may as well not be investing at all.Our first “Big Three” megatrend is derived from psilocybin – yep, we're talking about magic mushrooms. Psychedelics. Favorable legislation has been setting the stage for psychedelics to do very well over the next couple of years. Importantly, magic mushrooms, molly, LSD, etc., have become somewhat destigmatized in popular culture and among general society. For instance, two recent studies from Johns Hopkins looked into psilocybin, the active ingredient in “magic mushrooms.” They found that it can significantly help with smoking cessation and reducing alcohol dependence.Another Hopkins study from 2020 examined those with life-threatening cancer diagnoses. It found that psilocybin can relieve anxiety and depression levels four times better than traditional antidepressants.That finding corroborates a previous NYU study. It found that psilocybin causes a “rapid and sustained” reduction in anxiety and depression levels in cancer patients.That's excellent news, and it's exactly what we expected. Some people, however, wonder why I like psychedelics but don't like pot stocks. I did like pot stocks, once upon a time. But there's one big differential between marijuana and psychedelics – the barrier to entry. Point blank, psychedelics have a bigger moat than marijuana. With weed, anyone can grow it, anyone can smoke/ingest it, and anyone can theoretically start their own marijuana business. The story is different with psychedelics. Why? Well, they're not direct-to-consumer. Psychedelics are only available in medical settings as a therapeutic treatment. There's a lot of steps that go behind this. For example, you have to go through multi-stage trials and get FDA approval, among other things.What's more, commoditization isn't a concern with psychedelics. With pot, as it turns out, there's not going to be a big brand name in the pot space. Or at least not one that takes off on a national, international scale, as we've seen with beer and liquor. People just don't care enough about the different strains of weed or even where it came from. For the most part, people will buy whatever it is their connect is selling. And there are just too many different types of marijuana strains for any single one to ever become branded in a meaningful way. In the psychedelic space, I see one company in particular becoming the “McDonald's of Psychedelics.” That company is COMPASS Pathways (CMPS). To hear about the other two megatrends that make up my “Big Three,” check out our podcast now!If they succeed — and we're confident they can — CMPS stock could be Wall Street's biggest winner of the 2020s.To make money in these choppy markets, knowing about this revolution and the tiny company leading it are vital. What's even more vital is knowing when to invest. Fortunately, I just put together a presentation about how to invest in a stock during its most critical “stage.” And you can watch it right now! https://bit.ly/3AF4K5l

Today, we're starting off with one of our favorites – fintech darling SoFi (SOFI). Throughout the course of the pandemic, the student loan moratorium has been a drag on the company's stock. But now that freeze is finally coming to an end.Student loan refinancing is where SoFi first cut its teeth in the finance industry. Since, it has greatly expanded its horizons, pushing into investing, crypto, checking and savings, credit cards and loan programs. And indeed, that's why we love the stock so much for the long term.But at the end of the day, the majority of SoFi's revenues still come from the company's student loan refinancing business. And with the moratorium, that business has been put on hold. Well, that student reprieve is reaching its end, and now the Biden administration is set to decide on how to handle student loans going forward. Will it extend the pause, cancel some (or all) debt, or resume payments without cancellations? It's become a real hot topic.The data shows that since this payment freeze's implementation, student debtors have been spending their would-be repayments elsewhere – travel, clothing, restaurants, etc. – and it all piles into the inflationary problem. Since the Biden administration is looking to do everything possible to combat this high inflation, it will likely resume student loan repayments at the end of this month. It will do two things – have a great deflationary impact on the U.S. economy and be a massive boon for SoFi stock.Indeed, this is a company that – even with a pause on student loan debt repayment – is still growing like wildfire. And the restarting of those payments will further accelerate this company's huge growth narrative into 2023. Paired with disinflation and a dovish pivot from the Fed, this could really lead to an enormous breakout in SoFi stock.

Lots to cover in this week's Hypergrowth Investing podcast! Prepare yourself for a hefty discussion on retail earnings, housing data, cryptos, and whether Michael Burry is right to make a rare “Doomsday Call” on the economy.Front and center, we're seeing a lot of growth stock buying among “smart money,” which is code for “hedge funds.” Think folks like David Einhorn and Ray Dalio – two hedge fund managers whose reputations precede them. And this quarter, the pair have invested in one of my top electric vehicle stocks to watch: Rivian (RIVN).If that isn't a bullish sign, I don't know what is.The bottom line here is that when these funds get into names, they tend to do so with high conviction. That means Einhorn and Dalio could be invested in RIVN stock for years. The fact that they both initiated stakes in Q2 of 2022 means they see a compelling long-term future with Rivian.As do I.It's significant that this is happening during a time of high momentum for the EV space – and clean energy technology in general. With soaring gas prices, EV sales are hitting record highs at a time when nothing else is. The passing of the Inflation Reduction Act, dubbed “the climate bill,” fuels this fire. Naturally, I love this industry right now. In particular, I really love Rivian stock. Let me contextualize: With my wife and I expecting another child, we've started our search for a roomier electric vehicle. But we've run into a problem: There are very few seven-seater EVs on the market right now. And there's even fewer that are worth buying.Rivian aims to solve this problem with its upcoming R1S. My use case aside, Rivian is debuting the right car at the right time. Which means it has near-term potential as well as long-term potential.While I see great things on the horizon for growth stocks, not everyone shares my admittedly rose-colored vision. It's a little funny – or maybe a little scary – but Michael Burry of The Big Short fame sold everything last quarter. And he picked up one stock ¬– private prison operator Geo Group (GEO).This is obviously a doomsday move. Burry is a super bear right now and is expecting the labor market to tank and crime to take off. At least he's putting his money where his mouth is. Something to keep in mind: Burry has a knack for these things. He's made fortunes in the dot-com crash and financial crisis, when no one else would listen to his bearish forecasts. So, let's take Burry's doomsday call as a reminder of the risks to the bull thesis that we have right now. Instead of rushing into the markets and buying blindly, let's walk. Let's take our time and allow the bull thesis to play out in full.

Did I call it or what? I'm talking about SoFi (SOFI), which popped in response to second-quarter earnings, which were fantastic. SoFi's stock soared as investors digested the report. But then – a hiccup. SoftBank moved to sell part of its stake in the company, and SOFI shares took a dip. What comes next?Well, in the current economic environment, fintech companies were expected to report slowing growth and not-so-great earnings. And yet SoFi released superb numbers. Across the board, the key theme there was reaccelerating growth. Management also lifted its full-year revenue and EBITDA guidance. SoFi is firing on all cylinders. Remember, Amazon got to where it is by being a one-stop shop for all-things ecommerce. SoFi is following Jeff Bezos & Co.'s blueprint in the fintech space. We've been bullish on the stock for a long time now, and we'll continue to be for a lot longer. At the end of the day, SOFI is a long-term growth asset. Compared to legacy financial giants, SoFi proves to be a lower cost financial platform across the board. Instead of having five or six platforms for your banking purposes, you only need SoFi – which provides higher yields on savings accounts, better fees on crypto buying, better mortgage rates, better personal loan rates, and so much more. What more do you want out of your bank? The advantages that allow SoFi to act as the Amazon of Finance are built into its DNA, meaning it's not easy for a Wells Fargo or Bank of America to replicate. This is more pronounced as SoFi attracts more talented developers to its workforce, allowing it to create a more polished finished product than possible at legacy banks. That said, it's important to note that we're not bullish on where the company will be six months from now ¬– we're focused on its five-, 10-year outlook. So long as the company continues to power forward, our conviction remains strong. In truth, the move from SoftBank is non-news. We're going to stay the course if the fundamentals remain robust, and that's the case today. I think this stock could go to $100, $150, even $200 over the coming years, and I'm in it for the long haul.

The Great EV Consolidation is underway, and some electric vehicle stocks in your portfolio may not be around a year from now...In short, the number of electric vehicle companies will dramatically shrink over the next few years, not unlike that of the gas-powered car boom in the early 1900s… Back then, nearly 500 companies entered the race to capitalize on this technological marvel, but by 1930, less than 50 of them were operating. Cherry on the top: Just three automakers made up 80% of the market. It's a natural evolution. And the same thing is happening with EVs today. Which means that there are fantastic long-term investments and fantastic short-term trades to play the Great EV Consolidation… but only if you pick the right stocks.To prove my point, electric trucking company Nikola (NKLA) just agreed to acquire battery maker Romeo Power (RMO)! We've said before that the EV industry is too crowded, and we're due for a “great consolidation.” Nikola's buyout of Romeo is just the beginning.When a new technological paradigm emerges, everybody wants to start a business around it because they see an immense opportunity to strike it rich. But the market isn't big enough to sustain all those startups. As an industry matures, it consolidates around a few players. Those left out in the cold either go bankrupt or get acquired. Guess what? The EV market is maturing. Every time I leave the house, I see a Tesla Model 3, or I see a Tesla Model S, and often find myself in a “Tesla sandwich,” flanked by Tesla EVs on the highway. Looking at the data, June 2022 saw a record-high number of EV auto sales. The industry has started to become meaningful to the global economy. And I believe that over the next 12 to 36 months, the EV industry will be defined by two things – rapid growth and rapid consolidation. The top players that arise out of the EV boom will differentiate themselves from the pack in terms of some major value-add (think: cost, design, performance, or branding). Those electric car titans will attract all the consumer demand, reap all the rewards of the EV Revolution, and squeeze out 90% of the industry.So, when I look at the EV landscape today, I see a graveyard with a few shining stars.To make some short-term gains, look for small-cap EV stocks that could be great acquisition targets -- and are not at risk of bankruptcy. These companies will have an edge over their competitors, plus unrivaled talent and technology. Investors who take advantage of small, beaten-up, yet high-quality EV stocks primed to be bought out by future titans of industry will see tremendous gains over the coming few years.

This week, Aaron and I discuss the emerging technology of vertical farming, which aims to solve a major crisis ¬– the global food shortage. That's huge. Think about this… we've gone from Amazon fixing how we receive our packages, Netflix solving how we watch major entertainment, Facebook solving how we connect with friends and loved ones, and so on. These were “problems” to solve, but now, tech has graduated to solving real-world problems, such as food security, energy outages, supply shortages, and more. And indoor farming widely looks to be the solution to a major worldwide problem. Today, the global food crisis has reached a fever pitch amid COVID-19, the Russia-Ukraine war, and myriad other factors that have negatively impacted food production supply chains across the world. Vertical farming, in my opinion, is the most promising solution to this crisis. By taking one smaller plot of land and growing food vertically in layers, we can increase productivity per square foot by 10X-plus. Now that farmable land is becoming scarcer, indoor farming allows us to start building up instead of out. Right now, this tech is in its infancy. Most vertical farms in existence today are growing leafy greens, some vegetables – no meat or wheat production. But this is a great starting point. Long term, I envision skyscraper cities of farms. And that's a world that can produce much more food than it presently can. Why is this happening now? Geopolitical tensions have taken a hit to food production, and the world is feeling the urgency. Further, over the past few weeks, we've seen record-high temperatures around the globe. We're beginning to feel the effects of climate change, and unfortunately, this is just the beginning. And it's more incumbent than ever upon technology companies to intervene with next-generation solutions. With this top of mind, Aaron and I dive into alternative energy – and how it can help to combat these intense global affects.Temperatures will continue to reach new extremes (in either direction), so we must develop new technologies to adjust to that. And with extreme sun and heat across much of the world, solar is one technology to take advantage of. Battery energy storage solutions are a big part of that. As are hydrogen and wind energy, which will both continue to grow as we shift toward a more sustainable power grid.In sum, these intense heat waves and rolling blackouts just emphasize our need to create different types of electricity. Until this point, we've been reliant upon a sole energy source – natural gas. It's time to diversify our energy.

If you're paying attention to the housing market crash, you should also pay attention to what history says comes next. And a historical deep-dive into housing bubble trends tells us there's nothing to worry about with the current correction. In fact, what we're seeing today is a great normalization of the housing market, not a great crash in the housing market. Let's unpack this.What kicked off the latest downtrend in housing was the National Association of Homebuilders Index, which came in below analyst estimates and fell for the seventh straight month to its lowest level since May 2020. The latest drop was also the second-largest decline in the history of this index. Now, I've stated multiple times that the housing market will not crash. This data still doesn't change my stance.For one, we've seen big drops in the homebuilder index below 60 – its critical line – before. Almost always, they're one- to three-month drops that don't lead to home price declines. December 2018, March 2016, March 2015, May 2014, April 2003, October 2001 – all periods like July 2022, where homebuilder sentiment plunged below 60; and all periods where homebuilder sentiment immediately and strongly rebounded. The exceptions to the trend were 2008 and the late 1980s. But today's inventory constraints keep us from repeating those eras. Rather, what we're looking at is more representative of a housing market that's normalizing to pre-COVID levels after a two-year period of exceptionally elevated demand. That's normal and healthy – and positive for housing stocks such as Opendoor (OPEN).And that's been our thesis for months now. What are the two big reasons behind why I say that? Supply and demand. We are in the most supply-constrained housing market of all time. After the subprime mortgage crash, consumers grew hesitant within the housing market. The lack of consumer confidence and drop-off in demand led to a years-long period of under-building. After COVID hit, demand for homes has gone through the roof (no pun intended). But it'll take a decade of overbuilding for us to crawl our way out of this inventory hole. So, with ultra-low supply and ultra-high demand, you can be sure this is not a housing market crash.#housingmarket #housingbubble #housingcrisis #psychedelics #rivian #canoo #goev #evs #electriccar #investing

The electric car space has been abuzz with RIVN stock after Tim Cook was spotted taking a ride in Rivian's R1T over the weekend. It's just a bit of fun, honestly, and means absolutely nothing of consequence in the grand scheme. But it did serve one important purpose… proving that Rivian is the EV company to watch right now.Here's the nitty gritty on RIVN: The electric truck maker is hitting its production target of 25,000 vehicles this year… but it's firing some people. This might sound spooky, but it's actually a good thing. The era of “grow at all costs” is over, and Rivian is focusing on growing strategically and profitably. That paves the way for RIVN stock to take off.Long term, why am I such a huge fan? Well, Rivian has a great first-mover advantage in the electric pick-up truck market (one that will end up being quite massive) with a very technologically sound, high-performance, and cool-looking electric car. Not to mention it has a fantastic seven-seater SUV that will likely be the premier vehicle in that market once it fully launches. Further, Rivian has $17 billion on the balance sheet. And when it comes to an early stage industry like this, capital is everything. That amount of cash gives the company a bazooka in a water gun fight. Not to mention, the company is also backed by global titan Amazon (AMZN)…But RIVN stock isn't the only electric vehicle company on my radar. Some other major EV news recently broke ¬– that is, Walmart (WMT) has agreed to buy at least 4,500 electric vans from Canoo (GOEV), with the potential for up to 10,000 EVs. The stock majorly popped on this announcement. You probably know I'm a long-term believer in this company, too. So, why is this deal a gamechanger for GOEV stock?I think Canoo has the most interesting tech in the electric car game. Its modular platform removes all the wasted space inside the vehicle, maximizing square footage by pushing everything out to the van's edges. That's an especially large value prop for big families – and delivery vans. That's the deal we saw with Walmart. By fitting more inventory in its delivery vehicles, the company can minimize transportation and upkeep costs. And Canoo's vehicle allows just that. Similarly, Canoo's tech also allows it to attack another major market – pickup trucks. By maximizing square footage, it can create a truck that allows for a bigger bed without creating a massive vehicle. This will increase demand among construction workers, contractors, etc. Currently, the company's issue lies with liquidity. Its quarterly burn rate is about equal to its cash balance, so bankruptcy is a very real concern. The company plans to prove its worth in manufacturing and raise more capital to continue. And the Walmart partnership is a huge step in that direction. It almost ensures the company will be able to raise that nondilutive financing to become cash-flow positive. And if it finds solid footing, GOEV stock could really rocket high.

Oil has continued to crash, and it's looking to go lower. In fact, when compared to the oil bull market of 2007-09, oil's current trajectory looks eerily similar. And what comes next? Well, if this pattern continues, oil is due for a major crash. Indeed, we are getting a bonafide repeat of 2008 in the commodities markets, including oil. And these commodity wipeouts only happen when the markets shift to a recessionary trade. A few weeks back, we brought attention to our “short oil” thesis, and we've become increasingly bullish on this idea. Why? Because oil performs terribly in recessions, and that's the base case at this point. I see a lot of folks attempting to buy the dip, and this is one falling knife that you'd do better to back away from.Renewable energy, however, is a completely different story. As opposed to fossil fuels, clean energies have very positive learning curves. That means that the more we use, produce, and learn about them, the cheaper they become. And in fact, the oil giants themselves are not investing in ways to better produce oil – they're putting their money into hydrogen instead. Makes sense. Big Oil companies are best-suited to bring the Hydrogen Economy out into the spotlight. Their engineers are well-equipped to work with products on a molecular scale, as hydrogen requires. Not to mention that it can be pumped into natural gas pipelines and gas stations. The logistics behind hydrogen are similar to that of fossil fuels, and that's why Big Oil giants are shifting their attention to it.Elsewhere in the recessionary landscape, we're hearing a lot about a housing market crash. Well, that's not very likely. Because over the past 60 years, there have only been four instances of sustained home price contraction. The housing market moves at a snail's pace. And because of that, it takes a long time for strong home price appreciation to fall to negative growth. It would be unprecedented for home prices to plunge into the red from where they are today. From that perspective, anyone screaming “housing market crash!” is greatly overstating the situation. Demand is a proven, durable driver, even during recessions. It's still strong today. And considering that the current housing supply is so low, prices really can't depreciate. Home builders are losing confidence and are holding firm in their prices. And so are home sellers. We may see a brief decline in the market for a few months, but then it'll be business as usual once again.Now, what does that mean for Opendoor? Well, it sells homes over a 90-day period and gains a 5% commission per home sale. Home depreciation is usually around 1% per month. So, after three months, it may lose 3%, but it will still sell on a 2% gross margin. Indeed, it's still a positive gross margin business even if the pricing algorithms were terrible (and they're not). More likely, it should be able to reel in between 4% and 8% margins ¬– and that's not priced into the stock at all. Bottom line here: I'm very confident in Opendoor's model.Trading action this week indicates that the market is fully embracing a recession. Stocks are down. Yields are crashing. Oil is falling under $100. When a recession is happening, you have to think about what will happen after. Indeed, every recession is followed by an expansion. It's time to welcome the long-term thinking.

NIO (NIO) stock and other electric car stocks ⚡ are ready to turn the corner higher after the Chinese government announced it was considering “extreme measures” to boost manufacturing output. That's major news for Chinese EV stocks like NIO. China is the heart of the EV economy. In fact, 60% of global EV battery manufacturing happens there. So, as goes China's manufacturing output, so goes the EV industry. The faster companies can produce these vehicles, the faster they'll achieve profitability. And their stocks will quickly rise. China has also announced that it's extending tax breaks for first-time electric vehicle buyers. Those were set to expire at the end of this year. But considering continued economic choppiness and supply chain issues, it's extending the breaks into 2023 – and possibly beyond. That should drive continued demand. And with both demand and supply drivers bolstered, the bull thesis on EV stocks is strengthening. That's especially so for NIO, one of Luke's favorite EV stocks to buy today.#NIO #lidar #powell #selfdriving #bullwhip #michaelburry #fed #investing #stocks #stockstobuy #stockstowatch

Welcome back to our weekly podcast – Hypergrowth Investing – where Aaron Davis and I chat it up about everything from electric vehicles and augmented reality to cryptos and the metaverse. In this week's episode, we kick things off with a fire sale! Specifically, how Big Tech stocks are priced for an impending recession. But does that mean you should buy the dip with both hands? After all, companies like Amazon (AMZN) and Netflix (NFLX) are riding the struggle bus for a reason. Despite this, I'm still holding onto my Netflix subscription. Are you? Switching gears, we discuss the housing market – and compared to the previous housing bubble and subsequent crash, is there actually anything in common between now and 2007-08? Now, demand is falling in a way that's consistent to what we saw before the subprime mortgage crisis between 2007 and 2010. But the supply side of the housing market equation is about three to four times below where it would need to be to get an outcome like in 2008. We have far fewer homes on the market today – and a long way to go until home prices stabilize and then decline. With this setup, we'll likely get a return to pre-COVID housing conditions – meaning an equilibrium, not a crash.That said, the U.S. economy is very likely headed into a recession. The question is, will it be a shallow recession or deep recession? When most hear the “R” word, they go right back to 2008. But a normal recession isn't like what we experienced then. We're talking more like a 2% to 3% increase in unemployment. Wage growth may slow a little but should remain positive. And stocks could fall another 10% to 15% -- but nothing near as catastrophic as what we saw during the 2008 financial crisis.Believe it or not, a recession is actually a good thing. The economy and the markets can handle a downturn. What it can't deal with is stagflation – a decade of loss because we can't get a grip on runaway inflation. To ensure that doesn't happen, we need to stamp out inflation as quickly as possible. And a recession is the fastest way to do it. It'll wipe out the market's excess and set us up for a new bull market and a prolonged period of economic growth.Watch now to hear my full back-and-forth on what could be the biggest short opportunity since 2008.

Welcome, folks! It's that time of the week, when we release the latest episode of our podcast, Hypergrowth Investing. And in today's show, Aaron Davis and I take an in-depth look at the hot topic of the year – inflation!After a red-hot May consumer price index (CPI) print, stocks are tanking on fears that the Federal Reserve is no longer capable of providing a soft landing. With runaway inflation continuing to climb, the Fed will have to ramp up the rate hikes to avoid a stagflationary environment.The central bank is considering – and will likely execute – a 75-basis-point hike in June. That's big – it hasn't happened since November 1994. What's more, it increases the chances of a hard landing and a spiral into a recession, which some see as the only salve to persistent inflation.A “leak” of those plans to The Wall Street Journal allowed the market to prepare for this incoming blow and let the Fed hold onto its credibility. But the fact the central bank must resort to tactics of leaking information to the media shows that its credibility is on shaky ground. From here, it'll talk up a very hawkish path – and no one will be angered by a dovish surprise.But there's a precedent for this kind of “jumbo” hike. In fact, the last two times the Fed hiked rates at this level, it had to cut them in subsequent months. Jumbo hikes usually indicate that we're at the end of a tightening cycle. So, here's what I believe: The central bank will hike 75 bps in June and July, and then we'll hit the pause into the end of the year.While I'm bullish on the 12-month outlook for the market, the question on everyone's mind is: How low can stocks go? Assume a recession is going to happen, and then work from there. During the 2008 recession, corporate earnings dropped 60% – a massive wipeout. In 2000-01, corporate earnings fell about 30%. And during the recession of 1989-91, earnings dove around 25%.If we see a deep recession similar to 2008, earnings will fall 60%. And if we're hit by a shallower recession, like those of 1989 and 2000, earnings will drop closer to 30%. Well, in terms of balance sheets, both consumers and corporations are very strong. And so is the labor market. So, it's very likely that the recession we get will be shallow. If earnings do fall, it will be offset by some equity multiple expansion – usually between 25X and 30X. Applied to the S&P, you'd get a price target of over 4,000 within the next 12 to 24 months. Compared to current levels, we're looking at a fundamental bottom right now. In other words, the S&P is either fairly valued or undervalued today. And that means it's a great time to go dip-buying.

To kick off this week's episode, we check in with one of my favorites – SoFi stock. U.S. President Biden is considering cancelling some amount of student loan debt, which has created sentimental overhang on SoFi's business. You know what I think? It's time to rip off the Band-Aid already, Biden!At the end of the day, this student loan debt “sideshow” is really just a drop in the ocean. That is, it won't have a material impact on SoFi's business. And guess who knows that? SoFi's CEO. Over the past month, he's accumulated $1.1 million of SOFI stock – and year-to-date, he's gobbled up $2.3 million. I repeat: This student loan cancellation is a sideshow for SOFI stock. Don't sweat the dip and, instead, join in on the massive insider buying.But news from the White House hasn't been all bad recently. It's announced that despite the ongoing investigation into Chinese manufacturers' potential solar tariff circumvention, there will be no new solar tariffs for at least the next two years. This has kicked off a solar “gold rush,” where the next 24 months will see the most robust growth for the U.S. solar industry. The solar projects that were previously waiting in the wings will rush online. And those that were even considering this undertaking will accelerate their window to make it happen within this tariff-free time frame. Bottom line: Solar stocks are a great play here – but energy storage stocks are even better.Speaking of alternative energy, Aaron and I switch gears a bit to revisit EVs. GM recently announced its brand-new all-electric Hummer, and I've been convinced that legacy automakers can compete in the EV race. But I still don't think it's a reason to buy their stocks. For every EV they sell, there's a gas-powered car that they won't – which means they'll be cannibalizing their own sales. Trade below their historically low averages. And despite the lack of pizzazz surrounding the recent developer conference, I believe the Apple Car will happen. Apple is known for its tight lips and not releasing major news until a product is ready for market – and ready to change the world. I think that by 2026, there will be a lot of buzz about it.

After a few weeks of pulse-checks on the major players in the electric vehicle space, my co-host Aaron Davis and I revisit NIO stock. COVID lockdowns and supply chain shakeups in China have been weighing on the company, but now things seem to be easing. Shanghai has moved to end its two-month lockdown, giving hope that any new lockdowns in the future will be shorter and much less intense. The Chinese economy can't withstand more dramatic slowdowns, and citizen pushback against strict lockdowns is getting stronger. This means that COVID protocols won't be a deterrent to production, and EV stocks are catching a bid on that – NIO stock included. The company already has very strong demand and has now successfully expanded into Europe. And we're hearing murmurs that NIO is trying to break into the U.S. market. If supply chains continue to normalize, NIO's sales could see tremendous growth.Bigger picture, China's recent lockdown and supply chain strife is almost the last domino to fall, so to speak. Over the past year, global supply chain issues have been easing. And in some cases, things seem to be back to pre-pandemic levels. If supply chains are running smoothly, that means there is greater supply -- a strong driver of deflation. And as this continues to improve, inflation will become less and less of a problem.Further, something incredible is happening in the markets right now… something I haven't seen since March 2020, when COVID first shook the world. That is, insider buying! Transactions among insiders has continued at unprecedented levels. Spikes like this have historically coincided with a near-term bottom right after a major selloff. After all, these are the folks who know the ins and outs of their businesses intimately -- more than any outsider could ever know. Fundamentally speaking, if they're buying, you want to be buying too. This insider buying trend is only getting bigger, and I'm insanely bullish on this trend.

Snap stock's earning report hit like the markets like a gut punch. Not since the emergence of COVID-19 have I heard something so terrifying as Snap's remarks on the advertising industry. As a result, Snap shares were off nearly 40% Tuesday after reporting that it would miss its second-quarter targets. So what are you to do? Do you sell whatever Snap shares you own? Do you buy more on the cheap? Folks, don't overthink this one… We think this is a golden opportunity to buy into what we believe will be the cornerstone of next-generation tech companies!The only impediment right now is the ad slowdown. But come on… that won't last. Snap is a super-sticky social media platform with 330 million daily active users, reaching 75% of the 13-to-34 year-old demographic across 20+ countries. When the ad slowdown ends (and it will end), Snap will come out on the other side stronger than before. Here's the thing – Snap isn't even trying to be a social media company anymore. Rather, it's on the precipice of becoming the next-gen leader in the shift from a 2D to a 3D-enabled internet. I talk about this in depth in this week's podcast.Bottom line: Snap stock is a fantastic long-term play on an emerging next-gen technology. At current levels -- if you're looking to buy and hold for the next three years -- I just can't recommend passing this one up.

We kick things off this week by digesting inflation as we see it through the lens of the consumer price index (CPI) print for April, which came out last week. And there's good and bad news. It's lower than what it was -- but higher than what we expected. Does this mean we've hit peak inflation?I'm one of those people who believe it has. As we enter the back half of 2022, the year-ago laps are going to be much tougher, and it'll be harder to have a hot year-over-year print. That's why many -- us included -- believe peak inflation has arrived. But that's not the major indicator.Instead, we want to see inflation decelerating in the month-over-month rates, which has slowly begun. But does that mean inflation will go away anytime soon? Probably not. I think we've got a long way to go to fight this battle and it will be a rather painstakingly slow process to return to ~2% inflation rates. We're talking another 16 to 20 months.The 10-year yield has begun to stabilize and, thanks to easing inflation, should continue to do so. And that will allow stocks to push higher if earnings remain strong. Although, in the event oil marches higher this summer with rising demand, inflation may jump as well -- and with rate hikes projected from the Fed, that could be a recipe for disaster for the 10-year and for stocks.However, I've noticed a ton of insider buying at Spotify (SPOT), Shopify (SHOP), DocuSign (DOCU), and SoFi (SOFI), where execs have all been buying the dip in a big way. And that's because these management teams believe in their ability to cut expenses, ride through the market volatility, and grow rapidly on the other side. Indeed, insider buying volume has spiked to a two-year high. And simultaneously, insider selling has dropped to a two-year low. The last time this happened was in March 2020 -- right around the bottom of the pandemic-driven selloff. This is a pretty bullish indicator. The fact that insiders are buying and not selling has us excited about the stocks they're accumulating.To hear more, hit the jump to watch and listen now.

We kick off this episode by tackling a topic that's been trending lately -- the “Everything Bubble.” So… what does that even mean?Well, it requires a look back to 2008. When the financial world was on the verge of ruin, the U.S. Federal Reserve pumped enormous amounts of stimulus into the economy. Those policies were meant to be a temporary medicine for the great financial crisis, but they stuck around as the economy struggled to get its groove back. And in 2020, when COVID-19 struck, the pattern repeated -- the Fed pumped tons of stimulus into the economy without taking any out. We call it “market heroin.”And all that excess liquidity the economy's enjoyed for so long has contributed to this “everything bubble.” It's why housing prices have soared, why stock valuations have ballooned, why start-ups have raised enormous amounts of capital for cheap. And if the Fed is forced to pop this bubble, the economy will be in the worst shape it's been in our lifetimes.The key to making the most of the market washout is finding those fundamentally great -- yet demolished -- stocks among the wreckage. And one of our favorites is still SoFi (SOFI). The stock got clobbered in sympathy with Upstart's poor guidance and subsequent nosedive. Yes, they're both fintech companies with exposure to lending, but they are so profoundly different that this selloff in SOFI stock is ludicrous. We saw this same irrationality in the last go-round of social media earnings. Meta (FB) had an awful print, and then all social media stock tanked. Snap (SNAP) dropped around 40% and then -- after reporting fantastic numbers -- jumped 50%. The behavior of the markets right now doesn't make sense. Put on your blinders and ignore the noise. Invest in what you have a high degree of confidence in and hold for the long term.The more conviction you have, the more you'll be rewarded.

What happens at Netflix stays at Netflix… including a distinct lack of innovation.Which is why, last week, Netflix (NFLX) stock dropped quite the bomb with its quarterly report. The company's growth not only stalled out -- it crashed and burned. After reporting the loss of more than 200,000 subscribers, NFLX stock fell into a tailspin. Is this fail indicative of a broader trend for other streaming stocks? Luke doesn't think so. This problem is endemic to Netflix. Luke breaks down Netflix's current problems, beginning with its long history of robust innovation. After all, Netflix was the first successful DVD delivery service. Soon after, it pioneered solo streaming and original content. But since then, Netflix hasn't executed on its new innovations, while other streaming competitors have caught up to Netflix's original content ambitions. As a result, NFLX is feeling the burn. But there is a company going above and beyond original content to incorporate some great value-adds… It's a unique sports-focused streaming service that's integrating sports betting with picture-in-picture viewing. If it succeeds, it could easily surpass 10 million, 15 million, 20 million subscribers in the U.S. alone, making great revenue at high margins. So forget Netflix stock for now, and consider streaming stocks that are innovating their way into new phases of hypergrowth.

In this week's episode, Aaron and I discuss the market's most major recent developments, including re-assessing my bull thesis on QuantumScape stock.As it stands, the long-term thesis remains intact for QS stock. While electric cars and EV charging stocks remain in focus in the here and now, we can't talk EVs without discussing energy storage. And QuantumScape projects to be the leader in solid-state batteries, long-term. Are we going to see an acceleration toward clean energy, where everyone has an energy storage solution to power their homes? And when is it the right time to buy QS stock? We break down the timeline here and where it's all heading.However, what's soon to be driving the market's action is a rare phenomenon that offers a generational buying opportunity -- divergence. Every once in a while, a company's stock price diverges from its revenue and/or earnings trend line. While revenues and earnings continue to move higher, the stock price sinks lower. This opens a window of divergence that continues to widen. Eventually, as that window stretches larger, stocks snap back to their equilibrium to move in tandem with earnings. And the divergence becomes a convergence. When that happens, the returns are massive.But the market is made of many moving parts, so this divergence isn't the only piece to watch. Of particular note, we're watching earnings season for hints as to what's yet to come.Over the coming weeks, more and more companies will report earnings. With a spiking Treasury yield, price-earnings (P/E) multiples are compressing -- and the trajectory of earnings will determine where stocks go. This could be really good or really bad for stocks. But we're not in the business of making lofty predictions. We've still got a long way to go, so get comfortable.We're wading through some bigger topics here, so make sure you catch this week's full episode!Subscribe on Youtube: https://www.youtube.com/c/HypergrowthInvesting?sub_confirmation=1