Locator: 51004INVESTING.
Yesterday I said investing at the moment? Boring!
Really boring.
Well, that lasted all of 18 hours. Today, unbelievable. The market has already forgotten the hawk, Kevin Marsh. I wonder what his nickname will become -- "K" as in the "K economy"?
Right now, my interest (not investing interest but overall interest, for various reasons):
- energy, particularly oil, particularly the Bakken (of course)
- AI (the whole enchilada)
- ETFs: particularly SCHB, SCHD, SCHG, IHE
- Big Banks
- entertainment, media, home hubs.
Look at Micron today, up another 85 points. The one-year graph:
Net worth vs annual income. What does Gemini have to say
about this conundrum?
Query:
Investing. What do you find the more interesting
or the more important metric -- annual income or net worth for a retiree
who has no W-2 income.
I don't think there's anything new in the above reply but I love discussing these things with Gemini.
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Wow, these discussions with Gemini are very, very helpful.
I haven't added to my investments in energy (oil, natural gas) companies in decades except with very minor exceptions.
My energy portfolio is holding back my net worth. But wow, the dividends that are thrown off supports my FI ratio (noted above).
Ninety percent of my passive income from dividends is re-invested -- that data point alone is amazing -- so my legacy energy company portfolio holding back my net worth is more than "paying" for my FI ratio but also for the opportunity to invest in a) the tech sector -- pretty much done now; and, b) the new sectors to which I am pivoting.
An aside: for the grandchildren I have a website that I call "financial independence," not "retirement."
From June 4, 2026, link here:
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AI Investing
Like all biological phenomena and revolutions, this current AI revolution will also follow the standard "S" curve.
Point A, about 2023: it had become obvious that one should have began investing heavily in AI by now. Interestingly, the term "Magnificent Seven" (Mag 7) was coined in 2023
by Bank of America analyst Michael Hartnett. He created the nickname to
describe a group of seven dominant, high-performing U.S. technology
stocks—Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and
Tesla.
Point B, about 2028, will be the last opportunity to continue investing aggressively in AI. The Mag 7 will have greatly expanded by then. One might argue we'll see a resurgence of "a" Nifty Fifty.
Between points A and B aggressive investors need to continue aggressively invest in AI, but transition from the Mag7 to the Towering 20.
Many of these new twenty companies will be the results of IPOs between now (2026 and 2028).
Unless there are indications that the growth/excitement of the current AI revolution continues beyond 2030,
the investor needs to pivot. And pivot quickly. The market -- certainly
the AI market -- could plummet 20 to 25 percent once the average
investor sees what is going on. One may already need to consider
pivoting from the current Mag 7 to something new.
Between
now and then, keep reading everything you can on societal and
geo-political changes. The trick will be to anticipate the next Mag 7.
My own hunch: pharmaceutical companies that focus on "healthspan
expansion" and even, perhaps, "biological age reversal." Beware
charlatans.
It's not too late to invest in the current AI
revolution, but by next year this time -- maybe sooner -- investing in
the current Mag 7 will be challenging -- the real winners (investors) will be those who correctly anticipate the Towering 20 in 2030. Maybe we will see thirty such tickers by 2030 ... "thirty for 2030" --- "30 for 30."
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Disclaimer
Briefly
Briefly:
I am
inappropriately exuberant about the Bakken and I am often well out front
of my headlights. I am often appropriately accused of hyperbole when it
comes to the Bakken.
I am inappropriately exuberant about the US economy and the US market.I am also inappropriately exuberant about all things Apple.See disclaimer. This is not an investment site. Disclaimer:
this is not an investment site. Do not make any investment, financial,
job, career, travel, or relationship decisions based on what you read
here or think you may have read here. All my posts are done quickly:
there will be content and typographical errors. If something appears wrong, it probably is. Feel free to fact check everything.
If anything on any of my
posts is important to you, go to the source. If/when I find
typographical / content errors, I will correct them. Reminder: I am inappropriately exuberant about the Bakken, US economy, and the US market.I am also inappropriately exuberant about all things Apple. And
now, Nvidia, also. I am also inappropriately exuberant about all things
Nvidia. Nvidia is a metonym for AI and/or the sixth industrial
revolution. I've
now added Broadcom to the disclaimer. I am also inappropriately
exuberant about all things Broadcom. Now, I've added Amazon. And QCOM.Longer version here.
