Archive Category: Infinite Momentum Alert Archive

Yesterday was a brutal day in the market… and particularly for anything even tangentially related to the AI infrastructure boom. I’ll spare you a lengthy recap. The short of it is that the midterm election revealed a wave of backlash against data centers. Or more accurately, their energy usage, which is being blamed for rising utility bills.

You’ve probably seen the headlines by now. Google parent Alphabet (GOOGL) reported earnings on Wednesday, and Wall Street did not like the results. The shares tumbled by 12%, losing about half a trillion dollars in value. This impacts us directly because Alphabet is part of our Tech Titans portfolio.

Last week, I wrote that the tech trade is shifting again, noting that – after a multimonth stretch of underperformance – the “Magnificent Seven” were back from the dead and leading the market higher. It may surprise you to hear me say this, given that I’ve been trashing the Mag 7 all year. But I’m thrilled to see the world’s seven largest tech stocks back in the game. As I wrote last week, as long as the Mag 7 remain healthy and strong, the AI bull market has legs to run higher.

I spent some time in last week’s Performance Update discussing a shift that seems to be underway in the tech sector … and I promised to go into more detail this week. Here’s how I teed up this discussion:

If you’re just here for the headline numbers … I’m pleased to report our Infinite Momentum portfolio gained 3.4% last month compared with a negative 1.9% return from the four major benchmark indexes. That’s great – your money is continuing to compound at a rate well above the market’s! But there’s a bigger shift at play within the tech space that’s worth looking at more closely …