Latest / Felix Nikolas Prehn's Podcast / Felix Prehn - Why the Economy Hasn’t Crashed Yet + Stock Market News 19 February 2026

Transcript

Felix Prehn - Why the Economy Hasn’t Crashed Yet + Stock Market News 19 February 2026 · Felix Nikolas Prehn's Podcast

• 0:00
  SPEAKER_00: Right now, there is 650 billion.
• 0:03
  SPEAKER_00: That's a billion with a B being pumped into artificial intelligence by just four companies.
• 0:10
  SPEAKER_00: And where that money lands and where it doesn't could be the single biggest determining factor whether your portfolio is going to go up or down this year and the coming years.
• 0:22
  SPEAKER_00: And meanwhile, Wall Street's biggest bank just released a secret list of stocks they believe are completely mispriced and insulated from AI disruption today.
• 0:36
  SPEAKER_00: I'm going to tell you what's on that list.
• 0:38
  SPEAKER_00: Why?
• 0:38
  SPEAKER_00: Because they send that list not to retail investors, not even to CNBC or anybody else.
• 0:44
  SPEAKER_00: No, they send it only to their large institutional customers.
• 0:49
  SPEAKER_00: And I think we deserve to see the list, don't you?
• 0:52
  SPEAKER_00: Do you think we deserve to see the list?
• 0:54
  SPEAKER_00: If you do, put list down below and I'll give you the link in just a second.
• 0:57
  SPEAKER_00: It's down in the description as well.
• 0:59
  SPEAKER_00: Because you see, whether you own tech stocks or bank stocks, you just have an index fan sitting in your 401k and sort of hoping for the best, the rules of Wall Street have just changed.
• 1:13
  SPEAKER_00: And most retail investors have no idea.
• 1:16
  SPEAKER_00: And as I read this just now, I'm here to see on holiday, somewhere glorious.
• 1:20
  SPEAKER_00: You can guess where, you get a golden cookie.
• 1:22
  SPEAKER_00: And I thought I think people deserve to make this to understand this.
• 1:26
  SPEAKER_00: So let's get to it in this video as quickly as humanly possible.
• 1:31
  SPEAKER_00: And my promise to you is that by the end of the video, you'll understand the three forces keeping the economy from crashing.
• 1:39
  SPEAKER_00: Why that might not actually be good news for the average American and how to position your portfolio based on what JP Morgan is actually doing with JP Morgan money, not what they're telling ZNBC, right?
• 1:52
  SPEAKER_00: The real stuff.
• 1:52
  SPEAKER_00: Now, if you don't know who the heck I am, my name is Felix Prix.
• 1:55
  SPEAKER_00: I'm an ex-investor and banker.
• 1:56
  SPEAKER_00: I've seen how the inside really works.
• 1:59
  SPEAKER_00: I'm usually supported by a very smart gold in the tree, but he didn't come on this trip.
• 2:03
  SPEAKER_00: This country has uh quarantine rules.
• 2:06
  SPEAKER_00: But I'm also the founder of the Goat Academy, where my retired Wall Street mentors teach regular investors institutional strategies.
• 2:14
  SPEAKER_00: These are guys who worked at Goldman Sachs, at JP Morgan, at Bear Stearns, at you know, that woman bust.
• 2:21
  SPEAKER_00: All right.
• 2:21
  SPEAKER_00: Um, it wasn't him, he says.
• 2:23
  SPEAKER_00: But guys who've worked in these institutions for decades, and we've taught well over 20,000 students over the last six years, and it's tremendous fun.
• 2:32
  SPEAKER_00: I'm also the co-founder of Tradevision.io, where a lot of my data and news always comes from.
• 2:37
  SPEAKER_00: And I'm dedicating my retirement, sort of traveling retirement, to give regular investors access to the knowledge that is really usually only taught to Wall Street bankers by their boss, right?
• 2:50
  SPEAKER_00: So this is not what's in press releases, this is the analysis that happens usually weeks and months before it goes on to mainstream television.
• 2:58
  SPEAKER_00: And if you've been paying attention to financial news lately, and and you shouldn't, by the way, it's usually just nonsense, but the government is, well, a little unpredictable.
• 3:08
  SPEAKER_00: Tariffs are flying around like confetti, the average American household is paying an extra$1,300 per year because of those tariffs.
• 3:16
  SPEAKER_00: I know you're getting huge tax refunds, which is tremendous.
• 3:21
  SPEAKER_00: Uh I hope this will work out.
• 3:23
  SPEAKER_00: That's not a political statement, by the way.
• 3:25
  SPEAKER_00: I can see the arguments pro and against tariffs.
• 3:27
  SPEAKER_00: I can see the sense of bringing manufacturing home.
• 3:29
  SPEAKER_00: There's a lot of logic in that.
• 3:31
  SPEAKER_00: But consumer sentiment is, to use a technical term, and I need to explain that, it's in the toilet.
• 3:37
  SPEAKER_00: So yet the S P 500 is basically flat, it's going absolutely nowhere.
• 3:43
  SPEAKER_00: Banks are talking about strong loan pipelines, and the Treasury Secretary, good old Scott, is out there calling for a blockbuster 2026, right?
• 3:54
  SPEAKER_00: So the economy is doing, well, either great, it's about to collapse, or we're all living in some sort of elaborate financial trim and show where the script doesn't quite make sense.
• 4:06
  SPEAKER_00: And it's a little bit the last one.
• 4:09
  SPEAKER_00: So um the reason why this is actually happening is potentially very profitable.
• 4:16
  SPEAKER_00: And if you know where to look, which you will if you keep keep watching, you'd be in a much better position.
• 4:21
  SPEAKER_00: Right.
• 4:22
  SPEAKER_00: So here's my framework.
• 4:23
  SPEAKER_00: And I will try to put some stuff on the chart here for you.
• 4:25
  SPEAKER_00: The guys will knock something up that makes it a little bit more comprehensible for all of us.
• 4:30
  SPEAKER_00: But my framework for understanding what's really happening is the following.
• 4:34
  SPEAKER_00: I call it the three pillars.
• 4:35
  SPEAKER_00: Once you see it, you can't unsee it.
• 4:37
  SPEAKER_00: Sorry about that.
• 4:38
  SPEAKER_00: Um, close won't come up, I promise, or off I promise.
• 4:41
  SPEAKER_00: But these are literally the three forces that are propping up the economy.
• 4:45
  SPEAKER_00: They're the scaffolding on a building that maybe should have already been taken down.
• 4:51
  SPEAKER_00: So let's break them down one by one.
• 4:53
  SPEAKER_00: I give you pillar number one, I'll give you all the CTAs as well there, all the list and everything else is down below in the description if you're just one of those hit and run type guys, but you won't know what the heck you're looking at because you're just looking at a list.
• 5:04
  SPEAKER_00: So, you know, uh stick around.
• 5:06
  SPEAKER_00: Um, pillar number one, AI spending is the single largest driver of private demand in the American economy.
• 5:14
  SPEAKER_00: We're not talking about ChatGPT helping you write emails anymore.
• 5:18
  SPEAKER_00: We're talking about Microsoft, Amazon, Alphabet, Meta spending$600 billion plus this very year on AI infrastructure.
• 5:29
  SPEAKER_00: So to put that in perspective, that's more than the entire GDP of Sweden.
• 5:33
  SPEAKER_00: I don't really know what the Swedes make.
• 5:34
  SPEAKER_00: What do the Swedes make?
• 5:35
  SPEAKER_00: They make great cracker bread, we know that much.
• 5:37
  SPEAKER_00: Any Swedes watching?
• 5:38
  SPEAKER_00: Put it in the chat.
• 5:38
  SPEAKER_00: What do you guys make?
• 5:39
  SPEAKER_00: Um, I'm not sure.
• 5:41
  SPEAKER_00: It's a lovely country, amazing people, but I have no idea what they make, but apparently it's bigger than them.
• 5:45
  SPEAKER_00: Um so Goldman, Goldman's actually the lovely bankers, the ones who really care.
• 5:50
  SPEAKER_00: They're really big into supporting the local bunny rabbit rescue charity, that sort of thing.
• 5:56
  SPEAKER_00: Um, they say that this matches the 90s telecom investment boom.
• 6:01
  SPEAKER_00: Uh-oh.
• 6:02
  SPEAKER_00: Uh so been there before, right?
• 6:04
  SPEAKER_00: That's when I started investing.
• 6:06
  SPEAKER_00: Now, when these big four companies say they're spending money on this, they're saying we're investing in the future.
• 6:11
  SPEAKER_00: They say it's a generational opportunity, which basically means we have no idea if this will pay off, but if we don't spend money on it, and our competitors do, we'd be toast.
• 6:22
  SPEAKER_00: That's sort of why there is probably a little bit of overspending going on.
• 6:26
  SPEAKER_00: And AI-related stocks or the AI-related sectors, the companies, are about 40% of GDP growth last year.
• 6:38
  SPEAKER_00: Tech is 75% of all the SP 500 profits.
• 6:43
  SPEAKER_00: So why has the economy not crashed yet?
• 6:46
  SPEAKER_00: Well, this is a big part of that.
• 6:47
  SPEAKER_00: Those guys are just spending money.
• 6:49
  SPEAKER_00: They have a lot of cash flow, they're spending it, but they're also borrowing a lot and they're spending it.
• 6:53
  SPEAKER_00: It's a tsunami of corporate money being dumped into the good old American economy.
• 6:59
  SPEAKER_00: But it creates a risk, it creates concentration fragility.
• 7:04
  SPEAKER_00: Yeah, that's a fancy term, isn't it?
• 7:05
  SPEAKER_00: Say you're a semiconductor company selling chips to these big four companies.
• 7:10
  SPEAKER_00: Business is amazing, right?
• 7:11
  SPEAKER_00: Your software company that might get disrupted by AI.
• 7:15
  SPEAKER_00: Well, JP Morgan's data shows that the long semiconductor, short software trade has made 35% so far this year.
• 7:22
  SPEAKER_00: What does that mean?
• 7:23
  SPEAKER_00: They bought semiconductor stocks and they sold short software companies.
• 7:28
  SPEAKER_00: Not recommending this, but they've made 35% on that.
• 7:30
  SPEAKER_00: The guys do know how to, you know, run a market.
• 7:33
  SPEAKER_00: But both sectors are at historical extremes.
• 7:36
  SPEAKER_00: Tech stocks are really, really expensive, and software stocks are really, really, really cheap.
• 7:40
  SPEAKER_00: Historic extremes.
• 7:42
  SPEAKER_00: And there is always an opportunity in the historic extreme.
• 7:45
  SPEAKER_00: So pillar one is holding up the economy, but it's also creating massive winners and massive losers with the market.
• 7:52
  SPEAKER_00: And a bit more detail on that in just a second.
• 7:54
  SPEAKER_00: Now the second pillar, and this one is, and actually, maybe I should mention this first.
• 7:59
  SPEAKER_00: You're wondering, well, how do I find the winners, right?
• 8:01
  SPEAKER_00: Anybody thinking I'll put a put a W in the in the comments down below.
• 8:04
  SPEAKER_00: Well, Wall Street has rules for that.
• 8:07
  SPEAKER_00: The same rules were not made up last week or last month or last year.
• 8:10
  SPEAKER_00: They've been around for like 50 years, and nobody knows them except the people who've actually worked on Wall Street usually.
• 8:17
  SPEAKER_00: So what am I going to do?
• 8:18
  SPEAKER_00: I'm going to teach them to you.
• 8:19
  SPEAKER_00: In this video, no, it would make this insanely long, and I'm on holiday.
• 8:22
  SPEAKER_00: Uh, but on Saturday, we're going to run a live session, be morning time for you lot on the East Coast, and it'll be afternoon for um the Brits and those of you in the Soviet republics of Europe.
• 8:34
  SPEAKER_00: So go to phoenixfronts.org slash training, I think it is, or webinar.
• 8:40
  SPEAKER_00: So link down below in the description.
• 8:41
  SPEAKER_00: You click on that, grab yourself a free seat.
• 8:44
  SPEAKER_00: We have not run one for like sort of a European uh daytime audience in about six months, and I might not do it again.
• 8:52
  SPEAKER_00: So scrap that chance and please be on time because the last time the room's full, and people were like, I can't get in.
• 8:58
  SPEAKER_00: Well, you gotta be on time.
• 8:59
  SPEAKER_00: That's a big lesson in life.
• 9:01
  SPEAKER_00: Matt, pillar number two.
• 9:03
  SPEAKER_00: Um, look, the top 10% of American households drive half of all consumer spending in the United States, which is, of course, is a record.
• 9:14
  SPEAKER_00: Not a great record, but it's a record of sorts.
• 9:16
  SPEAKER_00: So why does that matter?
• 9:17
  SPEAKER_00: I'm not a socialist, obviously.
• 9:19
  SPEAKER_00: I'm a former banker.
• 9:20
  SPEAKER_00: Do you think I was a socialist?
• 9:22
  SPEAKER_00: Uh but look, consumer spending is the lifeblood of the US economy.
• 9:26
  SPEAKER_00: It's more than two-thirds of your entire economy, it's just the consumer swiping plastic, right?
• 9:34
  SPEAKER_00: So why is the government so bullish on a blockbuster 2026?
• 9:39
  SPEAKER_00: Well, for those people whose portfolios are up, whose home values have climbed, who got big tax cuts and yes, huge tax refunds, well, they have a lot of money.
• 9:51
  SPEAKER_00: And that's the top 10%.
• 9:52
  SPEAKER_00: And guess what?
• 9:53
  SPEAKER_00: They're probably going to spend more money.
• 9:55
  SPEAKER_00: So it could actually be really, really good for the stock market.
• 9:58
  SPEAKER_00: And we've seen the data, the spending goes up about 10% a year.
• 10:03
  SPEAKER_00: Now, the spending by the lower and middle income households actually declines.
• 10:07
  SPEAKER_00: So it's just it's capitalism, right?
• 10:10
  SPEAKER_00: It's not fair, it's not nice, but you can decide whether you want to be part of the winners or whether you want to be part of the complaining non-winners.
• 10:19
  SPEAKER_00: Um, there's a suggestion there for you.
• 10:22
  SPEAKER_00: So this is not politics.
• 10:23
  SPEAKER_00: Uh, I'm just saying this is how it works.
• 10:26
  SPEAKER_00: If you have capital, you make a lot more money if they pump the market and it goes up.
• 10:31
  SPEAKER_00: If you don't have any capital, well, then you get proportionately poorer.
• 10:36
  SPEAKER_00: And it's very unfair.
• 10:37
  SPEAKER_00: I get it.
• 10:37
  SPEAKER_00: You can, you know, go demonstrate, but it's not going to change anything because, you know, politicians don't really care, and JP Morgan isn't going to listen, and Wall Street's going to do whatever it does to make the most money.
• 10:48
  SPEAKER_00: So we have this weird number though, because the total economic number looks really brilliant, right?
• 10:55
  SPEAKER_00: Um, there's this wealth effect effect, the stock market goes up, home prices go up, rich people feel richer, so they spend more, and that shows up in GDP growth.
• 11:05
  SPEAKER_00: But a lot of people are getting more vulnerable and they're getting their incomes inflated away, so they're spending less.
• 11:15
  SPEAKER_00: Stuff gets more expensive.
• 11:17
  SPEAKER_00: It's incredibly unfair.
• 11:19
  SPEAKER_00: Now, I don't believe we can change the system, you and I.
• 11:22
  SPEAKER_00: I'm not a system changer, but I believe if we learn the tools of the guys who are making all the money, we can make potentially a lot more money.
• 11:31
  SPEAKER_00: So join me Saturday, FelixFrence.org slash training.
• 11:35
  SPEAKER_00: Links down below.
• 11:36
  SPEAKER_00: Now, the third pillar, and I promise to give you that list, you're like, give me the list, Felix.
• 11:43
  SPEAKER_00: Look, pillar three is probably a little bit controversial.
• 11:45
  SPEAKER_00: So let me explain.
• 11:46
  SPEAKER_00: There's a theory floating around Wall Street, discussed in places like Bloomberg and the Wall Street Journal, which is Bezos' little um, you know, tabloid paper, that the current administration, El Presidente, has kind of a back-off button when it comes to economic policy.
• 12:05
  SPEAKER_00: And the argument goes like this: political success is tied to economic success.
• 12:09
  SPEAKER_00: The market tanks, approval ratings tank, and therefore there's a built-in sort of pressure release valve.
• 12:16
  SPEAKER_00: And we saw that play out in 2025.
• 12:18
  SPEAKER_00: Remember when the tariffs went up, the market freaked out, and there was a 90-day pause announced, and the SP posted the biggest daily gains since 2008.
• 12:27
  SPEAKER_00: Investors took this as confirmation that there is a flaw, that if things get bad enough, policy will adjust.
• 12:35
  SPEAKER_00: Now, I don't know if that's a healthy way to run the economy, the sort of uh, you know, but it's just politics.
• 12:40
  SPEAKER_00: You can see the sense in it.
• 12:42
  SPEAKER_00: If you're in politics, you want to stay in power, their midterms coming up, they're gonna want to win them, right?
• 12:47
  SPEAKER_00: So it creates a weird bubble though, where everybody assumes someone will step in until one day, well, guess what?
• 12:55
  SPEAKER_00: What if they don't?
• 12:56
  SPEAKER_00: What if they step in too late?
• 12:57
  SPEAKER_00: But for now, this belief is functioning as a psychological support for the market.
• 13:03
  SPEAKER_00: And that's very important because it creates opportunity.
• 13:06
  SPEAKER_00: And opportunity is, I believe, in the JP Morgan list, so I'm gonna give it to you.
• 13:12
  SPEAKER_00: But if you just have a list of stocks, well, you're betting.
• 13:17
  SPEAKER_00: Because do you know the actual rules that Wall Street uses to pick those stocks?
• 13:21
  SPEAKER_00: Not the stuff they tell, you know, retail investors, but the frameworks they teach in the big banks, right?
• 13:27
  SPEAKER_00: So that's what we're gonna cover in our free training on Saturday.
• 13:30
  SPEAKER_00: I'm gonna break down the rules, the same ones that I've learned from my mentors who've done this for decades on Wall Street.
• 13:35
  SPEAKER_00: So if you want some institutional insight, not guessing, not just a cheat sheet of list of stocks, go to FelixFrans.org slash training.
• 13:44
  SPEAKER_00: Link is in the description.
• 13:47
  SPEAKER_00: Now the link to the actual list is also down in the description.
• 13:52
  SPEAKER_00: So you might want to take advantage of both of them.
• 13:54
  SPEAKER_00: So you now understand the three pillars.
• 13:57
  SPEAKER_00: You understand more about the economy than 98% of economists.
• 14:00
  SPEAKER_00: I'm one of those.
• 14:02
  SPEAKER_00: We're a bunch of lunatics, really.
• 14:04
  SPEAKER_00: We're mostly wrong and quite happy about it because they're usually quite overpaid in banks.
• 14:09
  SPEAKER_00: But the real question is, how do the smart money guys trade this?
• 14:15
  SPEAKER_00: Because what I learned from my mentors, guys who worked in these banks for decades, is that what the banks say publicly and what the trading desks actually do are often different.
• 14:26
  SPEAKER_00: Now, this list comes from the trading desks, not my list, not promise or profits, and we're telling you to buy it, just sharing some information with you.
• 14:33
  SPEAKER_00: Because this market Intel note from JPM is internal stuff, right?
• 14:39
  SPEAKER_00: Shh, don't tell them.
• 14:41
  SPEAKER_00: Um what's their key message?
• 14:42
  SPEAKER_00: There's a quote, um, if I can remember correctly, it's something like we're getting closer to the end of the AI obsolence narrative, suggesting a dip buying opportunity within the mega cap check sector.
• 14:55
  SPEAKER_00: They want to sound smart.
• 14:57
  SPEAKER_00: They're basically saying it's almost time to buy the freaking dip.
• 15:00
  SPEAKER_00: Right?
• 15:00
  SPEAKER_00: So the panic selling in AI stocks is almost over.
• 15:03
  SPEAKER_00: Maybe it's time to start buying.
• 15:06
  SPEAKER_00: But not everything, not everything equally.
• 15:09
  SPEAKER_00: Because what's actually been happening is that investors started to panic about AI disrupting, well, guess what, everything.
• 15:15
  SPEAKER_00: Software companies might be obsolete, banks might not need as many employees, freight and logistics companies could be automated, they'll just be little robot running it all.
• 15:24
  SPEAKER_00: And that created a sort of a fear.
• 15:26
  SPEAKER_00: Well, it's a sell.
• 15:27
  SPEAKER_00: We'll figure out what it was all about later.
• 15:29
  SPEAKER_00: And it pushed a lot of stocks down.
• 15:31
  SPEAKER_00: And JP Morgan thinks those prices are mispriced.
• 15:34
  SPEAKER_00: Now, what does mispriced mean?
• 15:36
  SPEAKER_00: Mispriced in my book means cheap.
• 15:38
  SPEAKER_00: No, I never buy a stock because I think it's cheap.
• 15:41
  SPEAKER_00: I only buy a stock if what?
• 15:43
  SPEAKER_00: Money is flowing into it.
• 15:45
  SPEAKER_00: Wall Street money is flowing into it.
• 15:46
  SPEAKER_00: I'll teach you how to spot that on Saturday.
• 15:48
  SPEAKER_00: So let's talk about this obsolescence fear.
• 15:52
  SPEAKER_00: That's that's that's obviously JP Morgan, but who who says obsolescence?
• 15:56
  SPEAKER_00: Anyway, you know, things becoming irrelevant.
• 15:59
  SPEAKER_00: So if you've been doing this for a little while, you'll you'll know by now that Wall Street discovers a sort of new existential threat to freak out about.
• 16:07
  SPEAKER_00: In 2020, it was everything will be remote forever.
• 16:10
  SPEAKER_00: No one's gonna go back to the office, right?
• 16:12
  SPEAKER_00: In 2022, it was interest rates will destroy the economy and they'll stay high forever.
• 16:17
  SPEAKER_00: And now it's AI will replace everything.
• 16:20
  SPEAKER_00: And AI will disrupt a lot of businesses.
• 16:23
  SPEAKER_00: It's for sure, it's real.
• 16:24
  SPEAKER_00: Um, but what JP Morgan bots are saying, and again, I'll vaguely remember sort of the quote here, says, we do not think that AI will eliminate all software companies, which is amazing, isn't it?
• 16:37
  SPEAKER_00: It's groundbreaking stuff.
• 16:39
  SPEAKER_00: Good job, these guys get paid seven figures to come up with this dribble.
• 16:42
  SPEAKER_00: Real revolutionary stuff.
• 16:44
  SPEAKER_00: Not all soft car companies will die.
• 16:47
  SPEAKER_00: Um I'm glad they get paid more in a bonus than most of you probably make in a year or in ten, right?
• 16:53
  SPEAKER_00: This is life's fair, right?
• 16:55
  SPEAKER_00: But the useful part is that they actually identified that the market might have gotten ahead of itself in pricing in AI disruption.
• 17:04
  SPEAKER_00: So the positioning data shows software companies basically are beaten to within an inch of their life.
• 17:11
  SPEAKER_00: And it's statistically, when we're in that level where they're just lying on the floor bleeding and just panting gently, um, we're oversold.
• 17:19
  SPEAKER_00: And then they also put in some data there on actual AI adoption in businesses.
• 17:22
  SPEAKER_00: Companies with paid AI subscriptions grew to about half of all the companies.
• 17:28
  SPEAKER_00: But that's about 90% growth from a year earlier, and they all expect to increase the AI spending.
• 17:35
  SPEAKER_00: So AI is real, right?
• 17:37
  SPEAKER_00: The everything doomed narrative, that might be a little bit, just a little bit teeny tiny bit overdone.
• 17:43
  SPEAKER_00: So the part you've been waiting for, the basket of stocks that JP Morgan has created, which they believe are most mispriced and uh insulated from AI disruption.
• 17:53
  SPEAKER_00: That word's not mine.
• 17:54
  SPEAKER_00: Um so these are companies that their trading desk is going, is buying or recommending that their customers buy, um, which is important because it's not just a piece of paper, it's what they actually may be doing.
• 18:04
  SPEAKER_00: So let me walk you through the sectors and highlight a couple of the names.
• 18:07
  SPEAKER_00: I'm not gonna give you the every single name, but so I say you can look them up in our free community.
• 18:12
  SPEAKER_00: Um, and if you can't find it, a lot of people will write in the comments, I can't find it, Felix.
• 18:16
  SPEAKER_00: Well, did you go into the free community and did you click on YouTube or video workbooks?
• 18:23
  SPEAKER_00: There's a channel in there called Video Workbooks.
• 18:25
  SPEAKER_00: It'll be in there.
• 18:26
  SPEAKER_00: You can find it there.
• 18:27
  SPEAKER_00: You can ask me a question about it, but you'll find it in there.
• 18:31
  SPEAKER_00: So who do they like?
• 18:32
  SPEAKER_00: In tech, they like cybersecurity, CrowdStrike, Palo Alto, uh, Okta, Zscaler, and Sentinel One.
• 18:39
  SPEAKER_00: The logic is pretty straightforward.
• 18:41
  SPEAKER_00: AI creates a lot more data, it creates a lot more attack surfaces, it makes attacking easier.
• 18:46
  SPEAKER_00: So you need more defense, right?
• 18:48
  SPEAKER_00: Because AI has just got more ammunition.
• 18:50
  SPEAKER_00: So the hackers become more powerful, so you need bigger walls.
• 18:53
  SPEAKER_00: They also like Datadog ServiceNow Hubspot, companies that help other businesses manage their tech.
• 18:59
  SPEAKER_00: So these are kind of pick and shovel type businesses.
• 19:02
  SPEAKER_00: And then interestingly, they also have Microsoft on the list.
• 19:06
  SPEAKER_00: Even though Microsoft is one of those hyperscalers spending all that money, JP Morgan sees them as insulated because they're selling AI tools to everybody, right?
• 19:15
  SPEAKER_00: Think cloud computing, think open AI, think co-pilot.
• 19:18
  SPEAKER_00: And then in the really sexy sector, according to Goldman Sachs, uh JP Morgan, not my words, uh, it's in there, I promise.
• 19:26
  SPEAKER_00: They say in financials.
• 19:27
  SPEAKER_00: They like the Bank of New York Mellon, they like the NASDAQ, NASDAQ Inc., not the index, NUDIS and S ⁇ P Global.
• 19:35
  SPEAKER_00: Those two companies were the ones who uh uh fingered the 2008 collapse, and MSCI.
• 19:41
  SPEAKER_00: So these are sort of financial infrastructure companies because we need data, we need indices, we need credit ratings, no matter who cooks them up.
• 19:49
  SPEAKER_00: And AI doesn't actually get rid of these, AI needs more data.
• 19:53
  SPEAKER_00: And there are also some real estate plays in there that they like.
• 19:55
  SPEAKER_00: BXP, which is uh formerly the Boston properties lot, CBI and Jones Lang LaZelle.
• 20:02
  SPEAKER_00: Why actually a chat with a good friend of mine yesterday who's in commercial property management, and we're talking about how marvelous AI is to automate a lot of the stuff that they're currently doing manually, and it'll make things a lot cheaper to run.
• 20:15
  SPEAKER_00: So I can kind of get that there.
• 20:16
  SPEAKER_00: Um any consumer names you might recognize?
• 20:18
  SPEAKER_00: Yeah, Celsius, you know, knock that stuff back, it'll it'll kill you.
• 20:22
  SPEAKER_00: Um, Kavana, Elf Beauty, and Wayfair.
• 20:26
  SPEAKER_00: Then we have some industrials, uh, C A CI, Lados, Trimble, essentially defense and government contractors, basically.
• 20:33
  SPEAKER_00: And then there is an interesting one, which is sort of the contrarian one.
• 20:36
  SPEAKER_00: And I always like a contrarian one.
• 20:37
  SPEAKER_00: This was called CH Robinson Worldwide.
• 20:41
  SPEAKER_00: I know it's the stock you discussed with your family over, you know, Witos or Cornflakes this morning.
• 20:47
  SPEAKER_00: Say, darling, have you seen the stock chart of CH Robinson Worldwide?
• 20:50
  SPEAKER_00: I know what the heck is this?
• 20:51
  SPEAKER_00: It's a freight brokerage company.
• 20:54
  SPEAKER_00: It got absolutely hammered.
• 20:56
  SPEAKER_00: It's down 25% in a single day recently because of fears AI could automate freight matching, basically.
• 21:03
  SPEAKER_00: But JP Morgan is betting that's overdone.
• 21:06
  SPEAKER_00: They have an overweight rating on them.
• 21:08
  SPEAKER_00: This is sort of the Wall Street, well, it's bleeding.
• 21:12
  SPEAKER_00: Let's buy it.
• 21:13
  SPEAKER_00: Um, even if it's a bleeding AI robot.
• 21:16
  SPEAKER_00: But look, I'm only very clear, I'm not telling you to run out and buy these stocks.
• 21:20
  SPEAKER_00: This is JP Morgan's view.
• 21:21
  SPEAKER_00: So this isn't financial advice.
• 21:22
  SPEAKER_00: I'm not a registered financial advisor, anything like that.
• 21:24
  SPEAKER_00: I just think we deserve to understand what's going on out there, not just for this dip, but any other future dip.
• 21:31
  SPEAKER_00: So I think hopefully what I'm teaching you here is going to be relevant for a long period of time.
• 21:37
  SPEAKER_00: But the takeaway, I think, is that Wall Street isn't panicking.
• 21:41
  SPEAKER_00: They're looking for the overreactions and they're positioning for the reversal.
• 21:44
  SPEAKER_00: So give yourself that full list, the mispriced list, every single one of them, the full list, the PDF is in our community, it's a free community.
• 21:52
  SPEAKER_00: Um, and then you click into that video workbook channel and you find it right in there.
• 21:56
  SPEAKER_00: And make sure you join me for the live training on Saturday.
• 22:00
  SPEAKER_00: Today, and I'll teach you the actual three steps of how to pick those stocks with confidence, how to follow the money.
• 22:08
  SPEAKER_00: Because I think that's the single biggest, lowest hanging fruit we have as investors is to actually have a system, a structure, an automation.
• 22:18
  SPEAKER_00: And look, I'm fairly bullish on the US economy for the year.
• 22:21
  SPEAKER_00: You're gonna get a new Fed share, he's gonna lower interest rates, biggest tax refunds ever, 600 billion plus spent by just four companies on AI infrastructure in the US.
• 22:30
  SPEAKER_00: It's kind of hard to see how we screw this up.
• 22:33
  SPEAKER_00: Doesn't mean we won't.
• 22:34
  SPEAKER_00: Wall Street's got a knack for that sort of thing, but I think there is a very large upside narrative here.
• 22:40
  SPEAKER_00: Now, do I follow the narrative?
• 22:42
  SPEAKER_00: No.
• 22:42
  SPEAKER_00: Do I follow my belief system?
• 22:44
  SPEAKER_00: No.
• 22:44
  SPEAKER_00: Do I follow my conviction?
• 22:46
  SPEAKER_00: Absolutely freaking not.
• 22:48
  SPEAKER_00: What I follow is the money.
• 22:49
  SPEAKER_00: And the money tells the whole story.
• 22:51
  SPEAKER_00: And I'll teach you how to follow the money.
• 22:53
  SPEAKER_00: Join me Saturday, phoenixfriends.org slash training.
• 22:56
  SPEAKER_00: And I wish you a beautiful, beautiful year, great success, and um enjoy yourself.