Before I began my investment career, I was an avid motorcyclist during my “crazy youth” in the 1980s.
And during that decade, my home state of California had not yet passed a helmet law.
Therefore, I have to admit, I didn’t always wear one. Sometimes yes, sometimes no, depending on the circumstances.
Obviously, helmets can and do save the lives of riders who get into serious accidents.
On the other hand, wearing a helmet can contribute to a fatal accident that a helmetless rider might have avoided.
How can this be true?
It’s simple…
We humans tend to convert potential safety benefits into performance benefits.
A motorcycle rider who is wearing a helmet tends to feel more invincible than a rider who isn’t. That sense of invincibility can lull a rider into developing bad habits, like excessively speeding or “splitting traffic” on the highway.
Bad riding habits, coupled with the sensory impairments that helmets cause, could explain why motorcycle deaths pretty quickly returned to their pre-helmet law levels, as shown by the chart below.
Disasters like these occur when risk often wears the guise of safety.
And it may surprise you to learn that it is the same on Wall Street.
So, in today’s Smart Money, I’ll explain why “safe” investing isn’t always as safe as it seems… and then I’ll share one risk worth taking.
Hint: It’s all to do with feeling.
Let’s dive in…
Familiar vs. Foreign
Because U.S. stocks have delivered consistent, world-beating results for nearly two decades, many American investors assume this delightful trend will continue long into the future.
Additionally, a second, less sensible factor also entices U.S. investors to load up their portfolios with U.S. stocks: familiarity.
Because U.S. stocks are more familiar than foreign stocks, they feel safer. After all, U.S. stocks have names like Starbucks, Apple, and McDonald’s… and do not have names like Daiichi Sankyo, Muenchener Rueckversicherungs, or Financière Richemont.
Even though these three foreign companies would be unfamiliar to most U.S. investors, they are, respectively, a $40 billion pharmaceutical company, an $85 billion worldwide insurance giant, and an $110 billion maker of luxury watches.
For many American investors, a foreign name is a deal-breaker. It adds complexity to an investment process that is complex enough in English. Therefore, even though most American investors can appreciate the value of international diversification, they cannot embrace it emotionally.
U.S. stocks simply feel safer than foreign stocks.
But, like the motorcycle helmet case study, “safe” isn’t always as safe as it seems.
This perception emboldens investors to continuously boost their allocations to U.S. stocks, no matter how high valuations might be.
But we American investors should never remain “overweight” in U.S. stocks and bonds simply because they are familiar.
We must remember that, as investors, the world truly is our oyster.
To be sure, America is home to millions of entrepreneurs who create and launch successful companies, year after year. Many of these companies issue stocks that become fantastic shareholder-enriching investments.
But the United States does not possess a monopoly on investment opportunity. In times like these, when the U.S. markets are featuring more uncertainty than average, and when U.S. stock valuations are much higher than average, select foreign markets deserve a closer look.
In other words, if a new cycle of outperformance by foreign stock markets is underway, we should try to maximize that opportunity by diversifying some of our capital into select foreign investments.
Here’s the best way to do that…
How to Diversify Into Foreign Markets
At Fry’s Investment Report, I have already initiated a cautious diversification into select foreign markets. Four of the eight “Buy” recommendations I have issued this year have been foreign stock investments.
The early results are encouraging, as all four are showing gains. More importantly, all four stocks have topped the results of the S&P 500 during the corresponding timeframes.
On average, the four new stocks have advanced 13.8%, compared to the S&P 500’s average gain of 5.7% during the corresponding timeframes.
I’ve been making the case for foreign stocks since the Trump administration announced its new tariff regime in early April. That was also when I recommended a “tariff-proof” company from our neighbor to the north to my Fry’s Investment Reportsubscribers.
Since my initial recommendation, less than two months ago, this foreign play has soared over 70%.
Now, I will continue to scout for outstanding investment opportunities here in the U.S. But as I have done throughout my 35-year career, I will also keep a close eye on emerging opportunities in overseas markets.
Sometimes, the best gifts come in foreign packages.
AI is reshaping hospitals… predictions from 2020, and where we are now… most people aren’t ready for AI… Luke Lango’s AI indices… Louis Navellier’s latest tech picks
You’re sitting on the exam table.
The doctor greets you, listens closely as you explain your symptoms, asks thoughtful follow-ups.
No typing. No screen between you. Just presence.
Behind the scenes, an “AI scribe” listens too – capturing every detail, filtering out chatter, and assembling your medical notes in real time.
As you leave, a printout with your care plan is already waiting. Meds updated. Labs ordered. The AI even flagged a scan from three years ago you’d forgotten about.
Your visit was efficient, thorough – and surprisingly human.
Welcome to the age of ambient intelligence in medicine.
Another day, another story of a cutting-edge AI application that’s revolutionizing our world
Yesterday, The Wall Street Journal ran a piece describing how hospitals are turning to “AI scribes.”
This is an ambient listening technology where an AI agent documents and takes follow-up actions based on everything that happens in a doctor-patient encounter.
After the conversation, the AI scribe uses the relevant information to accomplish a wide array of related tasks – updating medical records, drafting patient care plans, noting issues for future follow-up, and handling the discharge process, among other things.
Here’s The Wall Street Journal:
“We are just scratching the surface of what this technology can do,” says Dr. Lance Owens, regional chief medical information officer at University of Michigan Health, which uses Microsoft’s DAX Copilot ambient-listening technology.
“I see it being able to provide insights about the patient that the human mind just can’t do in a reasonable time.”
The AI “listens” through a desktop or mobile phone, then uses speech recognition software to process the conversation. It can tell the difference between irrelevant social chatter (“how are the kids?”) and pertinent medical topics, distinguishing voices and filtering background noise.
Back to the WSJ:
Researchers predict the systems will evolve into a 360-degree presence that extends before and after the medical visit: analyzing records before an appointment to identify red flags, prompting doctors about recommended tests and treatments based on patient symptoms, and teeing up follow-up actions like lab tests and prescription orders.
Transforming science fiction into tangible reality…today
Imagine humanoid robots assisting in hospitals, AI-driven systems managing entire supply chains, and autonomous vehicles navigating our streets (and airways). These developments are not decades away but unfolding now.
Unfortunately, many Americans remain blind to what’s at our doorstep…and they’re unable to imagine what’s coming.
In 2020, the authors of the book The Future is Faster Than You Think conducted a survey to determine if Americans were aware of – and ready for – the technological shifts that were approaching.
Among the findings:
About half doubted AI would surpass human intelligence during their lifetime
Fewer than one in four believed gene editing would be advanced enough to eliminate most genetic diseases within the next ten years
Over 70% couldn’t imagine a future where their brain connects directly to the cloud, allowing them to access information just by thinking
Nearly 70% of Americans didn’t expect flying cars to ever operate in cities like Los Angeles or Dallas within their lifetimes
Five years later, let’s check in on the progress toward each respective point.
AGI supremacy: Google DeepMind CEO Demis Hassabis and Alphabet co-founder Sergey Brin suggest artificial general intelligence (AGI) – AI with capabilities equal to or exceeding human intelligence – could arrive around 2030. Meanwhile, a survey of 2,778 AI researchers earlier this year revealed a 50% chance of AI being able to match human performance in a variety of tasks by 2028
Disease elimination: According to NPR, earlier this month, a 15-month-old patient was basically cured of a rare genetic liver disorder after DNA editing using CRISPR technology. Follow up will be necessary, but as of today “the bespoke therapy appears to have at least partially reversed his condition, reducing his risk of suffering brain damage and possibly even death”
Brain/cloud connectivity: According to Wired, last year, Neuralink successfully implanted its Telepathy device into a human, enabling the participant to control a computer cursor using thought alone
Flying cars: Joby Aviation is on track to initiate air taxi services in Dubai in the first half of this year. Plans are to begin passenger operations later this year or in early 2026. Just this morning, JOBY surged 20% after news broke that it has closed a $250 million investment round from Toyota. (Disclosure: I own JOBY.)
Today, the disconnect between expectations and reality continues…
A February 2025 YouGov survey found that only 7% of Americans believe household robots will become common within the next two years.
While two years is likely too aggressive for “common” to be the appropriate word, in March, CEO Elon Musk said Tesla will produce around 5,000 of its Optimus robots in 2025 and 5,000 next year. He also said that Optimus sales will roll out in the second half of next year.
From Musk, speaking of Tesla:
Long term, Optimus will be overwhelmingly the value of the company.
If the average American isn’t up to speed on how fast AI/robotics/humanoids are coming, they’re even more in the dark about how to invest in it
An April 2025 Axios Harris poll revealed that 77% of Americans prefer slowing down AI development to ensure safety and accuracy. While we’re sympathetic to this desire, a slowdown isn’t in the cards. We highlighted why in this Digest.
Rather than worry about job losses to robots or the dystopian version of AI, we think investors should zero in on declining AI input costs, advancements in coming AI iterations, and which stocks are best positioned to grow in multiples as AI takes over our world.
Easier said than done.
This is a big challenge. Here’s how our technology expert Luke Lango just described it:
Artificial intelligence isn’t just another tech buzzword—it’s the engine of a full-scale economic transformation already sweeping through global markets.
But with hundreds of companies claiming an AI angle, it’s become nearly impossible to separate hype from real, compounding opportunity.
The AI boom is here. And it’s not just a tech trend—it’s a full-scale economic transformation sweeping across nearly every industry worldwide…
Investors need a way to cut through the noise and find the signal—to identify the best AI stocks, hold them, and ride this megatrend as it transforms the global economy.
That’s why we created three proprietary AI indices to help you capture maximum profits from this wave.
First, the AI Foundational Five. These are the five big tech leaders building and hosting the core AI models. They are the foundational layer for this entire boom.
Second, the AI Builders 15. These are the 15 top hardware and infrastructure companies powering AI’s rise, building the critical backbone.
Third, the AI Appliers 15. These companies are the innovators using AI to transform how we live and work, building apps and tools on top of the infrastructure.
Together, these baskets offer a complete roadmap to the AI megatrend. You should be invested in all three.
If you’re an Innovation Investor or Early Stage Investor subscriber, these baskets are available to you right now.
Meanwhile, if you missed this afternoon’s live event with legendary investor Louis Navellier, part of it covered how he’s investing in AI/technology today
The event centered around profiting from what Louis calls “Liberation Day 2.0.”
According to Louis, President Trump is working to implement a series of new “Liberation Day”-style moves with radical implications for taxes, domestic energy, and technology.
Zeroing in on technology, here’s Louis:
Big Tech, the U.S., and foreign governments have committed more than $2 trillion to AI, crypto, and cloud infrastructure since the election. Get ready for more.
The White House is reversing regulatory choke points. Innovation-first policy is back – and the smart money knows it…
Make no mistake, the implications for investors who position themselves correctly could be life-changing…
AI, robotics, and humanoid technologies represent not just the next big innovation, they mark the most transformative and disruptive leap forward in human history.
It’s not “coming” – it’s already started.
These technologies are reshaping every aspect of daily life. How we work, communicate, care for our homes, our health, our families – and the pace of those changes will only accelerate.
But with that disruption comes massive opportunity: a historic transfer of wealth to those who recognize the scale and speed of what’s unfolding.
Not sure of the right investments to capitalize on this shift?
Start small. Take a variety of starter positions. As AI/robotic/humanoid leaders emerge, you can add more to those while pruning your underperformers. After all, this is the type of market set-up where the returns from one homerun investment can make up for a handful of whiffs at bat – and then some.
But this technology won’t wait, or slow.
We’re at a turning point. Let’s do our best to capitalize.
Liberation Day 2.0 Summit begins today in less than an hour, at 1 p.m. Eastern.
Editor’s Note: Uncertainty is everywhere. Just look at the fact that more than 350 S&P 500 companies cited the word “uncertainty” on their latest earnings calls, the highest in years.
But legendary investor Louis Navellier says the real story isn’t about what’s unclear — it’s about three major economic shifts that are already happening with full clarity.
He calls it Liberation Day 2.0 — a sweeping trifecta of Tax Liberation, Tech Liberation, and Energy Liberation, powered by President Trump’s latest policies.
Louis believes this plan could unlock up to $10 trillion in new stimulus, create millions of jobs, and trigger a generational bull market.
In less than an hour, Louis is going live with a brand-new briefing — The Liberation Day Summit — where he’ll reveal:
A stock he believes could hand investors $5,000–$15,000 in gains
Three sectors set to dominate under Trump 2.0
Ten stocks he says to sell immediately
And the strategy he’s using to help readers capture big paydays
Don’t miss Louis’ full blueprint for turning today’s so-called “uncertainty” into tomorrow’s opportunity.
Now, take it away, Louis…
In the very first Sesame Street episode, in November 1969, Kermit the Frog attempts to describe the letter “W.” A hungry Cookie Monster chomps away at the subject matter, forcing Kermit to change his prepared speech to talk about “N”… then “V”… as sections of the letter disappear.
The segment proved so memorable that Sesame Street has continued to run some version of its “letter of the day” to the present.
Fast forward to today, and the American economy is now being brought to you by the letter “U.”
Indeed, uncertainty has become the fixation of media and Wall Street alike.
Eighty-four percent of the S&P 500 companies used the term “uncertainty” in their most recent earnings calls. Moody’s used it as a reason for their recent downgrade of U.S. debt.
In fact, this word has become so prevalent that the Federal Reserve’s April 2025 “Beige Book” (its twice-a-quarter commentary on current economic conditions) used it 80 times without people really noticing. (The April 2024 version mentioned the word only 11 times.)
Now, I want to acknowledge the word is useful in some cases.
But the word “uncertainty” gives many the excuse to be a bit lazy:
It lets the media create an invisible enemy to focus readership anger…
It causes financial analysts and investors to throw up their hands and say nothing’s for sure….
It allows CEOs of S&P 500 companies to blame something else if their performance falls short…
And it also hides some facts that are absolutely crystal clear to me.
So, in today’s Market 360, let’s review three items that are actually quite certain… what they has to do with President Trump’s three-part economic plan… why this plan matters to investors…
And one stock investors can buy right now to profit off of the president’s latest pro-business moves.
Certainty No. 1: Tax Liberation
Last week, President Trump’s “Big, Beautiful Bill,” a sweeping legislative tax proposal, passed the House. Here are three key reforms it includes…
Permanent middle-class tax cuts. It lowers the individual income tax rate. For example, the 15% bracket is dropped to 12% and 25% is lowered to 22%. There are also no taxes on tips or overtime – one of President Trump’s campaign promises.
Expanded family and child benefits. The child tax credit is permanently set at $2,000 per child. It also includes new MAGA savings accounts, with a $1,000 federal contribution for newborns.
Health and wellness savings expansion. Health savings accounts (HSAs) can be used on more than just doctor’s visits and medications. Americans can apply them toward things like fitness memberships, direct primary care and spousal flexibility.
However, President Trump isn’t stopping there… he also wants to use the revenues the U.S. makes from tariffs to cut income taxes for people making $150,000 or less. This would be the biggest change to the tax code since Trump’s first term, when he passed the Tax Cuts and Jobs Act.
These tax changes would be a huge boost for the middle class and economy. According to the House Ways and Means Committee, the Tax Cuts and Jobs Act drove wages higher, grew business investment by 20% and boosted GDP by a full percent. This could lead to trillions of dollars in additional growth over a decade.
All we need now is for the Senate to get on board, and then the Big, Beautiful Bill will become law.
Certainty No. 2: Tech Liberation
Artificial intelligence will continue to gobble up ever more electricity this year. Here’s why I’m so confident:
Last November, NVIDIA Corporation (NVDA) released its Blackwell chip, an AI platform that’s 3X to 4X faster than its predecessor. It’s also a power hog, with each B200 GPU unit consuming 1,200 watts, roughly what a household toaster needs. (Its predecessor used 700 watts.)
However, this 70% increase in power consumption doesn’t translate to 70% more electricity demand overnight. Blackwell chips can only be produced so quickly, and even the top cloud computing firms like Oracle Corporation (ORCL) and Microsoft Corporation (MSFT) have been forced to wait in line for supply.
During its first-quarter earnings call, Microsoft CEO Satya Nadella noted that profits at his firm would have been even higher if only they had the hardware.
That will change through mid-2026 as more Blackwell chips roll off the assembly line. Older generations of Nvidia’s Hopper chips will be replaced by these power-hungry Blackwell ones, and additional sites will be built to house all-new sets. More of these chips means more power will be consumed, straining an already tight U.S. energy grid further.
In addition, AI developers show no sign of lifting off the gas pedal.
Last month, OpenAI launched its latest GPT-4.1 model, an AI that’s roughly 20% better at coding than its predecessor GPT-4o. The firm followed up this month with a new AI coding agent, Codex, a powerful tool that can write code, fix bugs, run tests, and answer questions.
Not to be outdone, Alphabet Inc. (GOOG) unveiled a suite of AI-powered products at its I/O developer conference last Tuesday, May 20. This included a new series of AI models, AI-generated movies, next-generation smart glasses, and AI-powered wearable devices.
Perhaps most importantly, Alphabet revealed a new AI model, code-named “Deep Think,” that is more than twice as accurate as OpenAI’s best models at certain tasks.
This AI arms race will continue, driving up demand for power-intensive Blackwell chips. No AI company can afford to get left behind, and so we expect power-generation firms will continue to see strong demand.
Certainty No. 3: Energy Liberation
On President Trump’s first day in office, he signed three new energy executive orders that would “unleash America’s affordable and reliable energy and natural resources”:
Executive Order 14154, “Unleashing American Energy”: This order boosts energy independence and economic growth. It prioritizes expanding energy production on federal lands and offshore, increasing domestic mining of critical minerals, and ending the electric vehicle (EV) mandate to promote consumer choice. It also demands a review of regulations that hinder energy development.
Executive Order 14156, “Declaring a National Energy Emergency”: This order declares a national energy emergency and directs federal agencies to use emergency powers to increase energy development. This includes identifying and utilizing domestic energy resources, streamlining leases and permitting processes, and expanding energy infrastructure. The goal is to make the U.S. more energy independent.
Executive Order 14153, “Unleashing Alaska’s Extraordinary Resource Potential”: This order is to expand resource development in Alaska. It focuses on boosting energy production, streamlining permits, and advancing infrastructure like pipelines and liquified natural gas (LNG) exports. It also restores oil and gas leasing in the Arctic National Wildlife Refuge and directs agencies to remove regulations that hinder development.
These three initiatives, I believe, may have the largest long-term impact on this country’s wealth and prosperity. The reality is we’re sitting on over $100 trillion worth of energy and natural resources right here in America.
That’s almost four times larger than our annual GDP and three times larger than our national debt. That means we can wipe out the national debt three times over just by tapping into the assets we have buried in our own backyard. This would be a game-changer for our economy.
All Part of President Trump’s Liberation Day 2.0
The reason why I believe tax liberation, tech liberation and energy liberation are certainties is because they fall under President Trump’s three-part economic plan. I like to call it Liberation Day 2.0.
Investors looking for a place to buy may want to investigate the president’s latest “liberation.”
On Friday, he signed a series of executive orders with the goal of “re-establishing the United States as the global leader in nuclear energy.” The orders slash regulations, with the aim to increase American nuclear energy capacity from 100 gigawatts to 400GW by 2050 and to “have 10 new large reactors with complete designs under construction by 2030.”
Nuclear stocks jumped on the news… but they still have plenty of room to run as AI’s need for power continues to soar. One of my favorite nuclear stocks at the moment is Vistra Corp. (VST).
This Irving, Texas-based company is one of the biggest power generators in the United States, with about 37,000 megawatts of power generated from natural gas, nuclear, solar and battery storage facilities. The company offers reliable and efficient power solutions to approximately 4 million customers – residential, commercial and industrial – in 20 states, and Washington, D.C.
And in March 2024, Vistra completed a $3.4 billion deal to acquire Energy Harbor, making it the second-largest American nuclear power provider.
It rates a “B” in my Stock Grader system, and I recommend it in several of my paid services. Investors curious about nuclear energy “liberation” should take a closer look at VST.
Of course, that’s not the only way to profit from Liberation Day 2.0.
And I’ll talk about some more ideas during my Liberation 2.0 summit today in less than an hour! It starts at 1 p.m. Eastern, but you still have some time left to reserve your spot. Click here and do so now.
During this summit, I’ll also discuss:
The three sectors I expect to dominate during the next phase of Trump 2.0 – and a top-ranked “buy” pick for each sector.
The sectors I believe will suffer the most as we transition to the new Trump economy – and 10 stocks my Stock Grader system and I say to avoid and/or sell now.
The strategy I’m using to help my readers target $2,500… $5,000… even $10,000 paydays.
And details on the Stock Grader system that’s helped me beat Wall Street at its own game for nearly five decades.
Stocks and bond are telling different stories… the “big, beautiful” budget bill scares fiscal conservatives… when will the Fed cut?… Trump 2.0 means “dump these stocks now”
Master trader Jeff Clark calls the chart below “the most dangerous chart in the financial markets.”
We’re looking at the iShares 20+ Year Treasury Bond Fund (TLT), an exchange-traded fund that tracks the action in long-term Treasury Bonds.
Source: StockCharts.com
Here’s Jeff’s analysis:
As bond prices fall, longer-term interest rates rise. And rising rates are bad news for stock prices…
TLT looks set to fall. That means longer-term rates are set to rise…
Stock market investors have ignored this situation, so far. TLT is down 8% over the past six weeks. Yet, the S&P 500 is sharply higher.
Somebody is lying.
Stocks and Treasury bonds typically move in the same direction. So, this sort of divergence is notable.
To illustrate Jeff’s point, below, we look at TLT (in black) and the S&P (in green) over the last two months.
Notice how they move roughly in parallel until the end of April when they sharply diverge.
Source: StockCharts.com
So, who is “lying?”
Let’s rephrase the question…
Whose assessment of upcoming market conditions is less likely to play out?
The divergence boils down to alternative outlooks about the economy and financial condition of our government.
The stock market is priced for rosier conditions while the bond market is more pessimistic.
To help us unpack the distinction, let’s begin with bonds.
Here’s Jeff:
[Bond yields are rising] at a time when the US Treasury has to refinance trillions of dollars in maturing debt, and when the US Government is trying to pass a budget that will add trillions more to the deficit.
The recent price action in long-dated bonds reflects the return of the “Bond Vigilantes.”
To make sure we’re all on the same page, the term “Bond Vigilantes” was coined by economist Ed Yardeni in the 1980s. It refers to bond investors who sell off Treasurys in response to what they perceive as irresponsible fiscal or monetary policies, like excessive government spending or inflationary policies. By dumping bonds, they drive up yields, effectively punishing governments with higher borrowing costs.
These investors act like “vigilantes” in the market, enforcing financial discipline when policymakers stray.
So, what policy “straying” is happening today?
Jeff referenced it a moment ago – the Trump Administration’s “big, beautiful” budget bill.
Here’s CNN Business:
The nonpartisan Congressional Budget Office estimates that President Donald Trump’s “big, beautiful bill” would pile another $3.8 trillion to that mountain of debt.
That kind of extra borrowing would only amplify growing concerns about America’s unsustainable financial trajectory.
For context on our current debt, the U.S. budget deficit grew to $1.83 trillion last year. That’s equivalent to 6.4% of U.S. economic output, marking the highest reading ever other than the COVID-19 pandemic.
And as of last month, (covering the first half of the fiscal year), the deficit climbed to more than $1.3 trillion. That is the second-highest six-month deficit on record (second only to Covid).
Then there’s the overall national debt that is ballooning – and accelerating. It’s now nearly $37 trillion, growing at more than $1 trillion about every 100 days.
The current debt-to-GDP ratio clocks in at 123%. This is unsustainable over the long term. Adding another $3 trillion of debt in the “big, beautiful” bill moves us in the wrong direction. We’re headed toward an economic or currency collapse.
The bulls’ response? A big yawn
Our government wasn’t exactly a paragon of fiscal responsibility prior to Trump’s “big, beautiful” budget bill.
You don’t rack up a national debt of $36.9 trillion without decades’ worth of unbridled reckless spending…and yet the stock market is less than 5% below its all-time high.
Bulls would argue that proclaiming “stock market doom” based on “federal spending gloom” is a paper tiger. So, assuming a defensive market posture today could be a self-inflicted stumbling block toward achieving your investment goals.
For this angle, let’s go to Luke Lango. From his Innovation Investor Daily Notes last week:
This debt fear cycle? It’s a rerun.
A tired, predictable, endlessly re-aired episode of “Wall Street Panic Theater.”
The U.S. debt has been ballooning since before the iPhone existed, and guess what? The market is up more than 600% since then.
Why? Because U.S. debt is backed by the most powerful, dynamic, innovation-rich economy in the history of the world.
Let’s just put it plainly: Amazon, Microsoft, Nvidia, Apple, Meta, and Tesla run the global economy. They generate trillions in market value, drive innovation in nearly every sector, and — crucially — they all pay taxes to Uncle Sam.
As long as those companies are thriving, the U.S. government will continue to find plenty of buyers for its debt.
So no, the debt panic isn’t something new. And every single time it’s popped up, it’s created a great opportunity to buy stocks.
This time is no different.
Now, bears might respond, “but even if the government avoids a reckoning, the bond market is still sending signals about inflation that you’re ignoring”
Last Friday, Chicago Federal Reserve President Austan Goolsbee said that President Trump’s tariffs – and threatened tariffs – are likely to keep the Fed from lowering rates until inflation trends are easier to see.
As to “threatened tariffs,” last Friday, Trump – frustrated with a perceived lack of progression with the European Union (EU) – called for a blanket 50% tariff on all EU goods to begin on June 1.
But on Sunday, following a call with EU Commission President Ursula von der Leyen, Trump agreed to push that date back to July 9. The market is jumping today on the good news.
While we’re pleased to have avoided a selloff, this “stop/start” of tariffs is prolonging and intensifying the economic uncertainty that’s kept the Fed on the sidelines so far this year. And it looks like “more of the same” is on the way.
Here’s CNBC:
The Fed likely will be on hold as it evaluates the ever-changing trade policy and how it affects inflation and employment.
“Everything’s always on the table. But I feel like the bar for me is a little higher for action in any direction while we’re waiting to get some clarity,” Goolsbee said…
“Over the longer run, if they’re putting in place tariffs that have a stagflationary impact … then that’s the central bank’s worst situation.”
“So I think we’ll have to see how big the impacts on prices are,” he added.
Bond traders – more than stock traders – are viewing the markets as does Goolsbee. We see this by returning to TLT, which Jeff Clark highlighted at the start of this Digest.
TLT targets U.S. government bonds with maturities for 20+ years. Such long-dated Treasuries serve as a barometer for the market’s long-term outlook on inflation. When long-term bond yields rise sharply, it often reflects concerns that inflation will remain elevated for years – not just temporarily.
With this context, here’s Jeff:
Now it looks like TLT is set to lose the support of the $84 level. If that happens, we could see a quick drop to the October 2023 low near $78.
That would put long-term interest rates near 5.6%, or even a bit higher. We haven’t seen long term rates that high in 20 years…
Either long-dated bonds or stocks are due for an epic reversal. Either Treasury bonds need to rally to catch up with the action in stocks, or stocks are going to be pulled down to match the action in bonds.
As I write Tuesday, TLT is rallying alongside stocks. So, advantage bulls, at least for the moment.
Legendary investor Louis Navellier is urging investors to resist “in or out” thinking and, instead, zero in on the stock market winners and losers of President Trump’s agenda
While speaking of the stock and bond markets in binary “up” and “down” terms is helpful in providing 30,000-foot perspective, the reality is far more complex.
Many stock sectors and market themes can reward investors handsomely – even during uncertain market conditions that weigh on the average stock.
Here’s Louis with how he’s playing today’s uncertainty under Trump:
There will be plenty of winners in the new Trump era. After all, the tariffs were just one part of a broader new policy and economic framework.
And it’s already in motion, even though the media has been playing catch-up. I’ve been calling it Liberation Day 2.0.
And it favors 1) Tax liberation, 2) Tech liberation and 3) Energy liberation. Plenty of stocks are going to benefit from that.
Essentially, we’re talking about a dramatic shift toward economic policy that favors domestic production, strategic resources, and U.S.-centric infrastructure – particularly in areas like energy and AI tech.
This Wednesday at 1:00 p.m. Eastern, Louis is holding his Liberation Day 2.0 Summit. He’ll be walking through:
The three sectors he expects to dominate during the next phase of Trump 2.0 – and a top-ranked “buy” pick for each sector
The strategy he’s using to help his readers target $2,500… $5,000… even $10,000 paydays
And details on the Stock Grader system that’s helped him beat Wall Street for nearly five decades
But it’s not just about having a strong “offense” today. Investors must play defense against the potential losers of Liberation Day 2.0.
Back to Louis for the corners of the market he’s urging readers to avoid:
Businesses with China-dependent supply chains
Companies with low-margin consumer brands
Subsidy-dependent “green” stocks
Companies with globalist business models
One illustration that Louis provided as a warning is Kohl’s Corp. (KSS):
It lacks the pricing power of premium brands, and it doesn’t have the volume advantage of discount chains.
That leaves Kohl’s squeezed in the middle – and with tariffs potentially driving up input costs, the pressure on margins is only going to get worse.
Even before tariffs entered the picture, the company was struggling with declining same-store sales, falling foot traffic, and ongoing margin compression.
The latest earnings report showed a steep drop in profitability, and forward guidance didn’t inspire much confidence either.
Editor’s Note:With economic policy poised to make a dramatic turn under the second Trump administration, the old playbook no longer applies. The winners of the past decade may become the laggards of tomorrow, and companies built on fragile foundations already showing signs of stress.
Luckily, my InvestorPlace colleage Louis Navellier has a system that can highlight which stocks are thriving under the new administration and tariff regime.
This system is the same quantitative engine Louis’ been using for nearly five decades – the system that helped him identify winners like Apple Inc. (AAPL) and Amazon.com Inc. (AMZN) long before they became household names.
In 2024 alone, it showed Louis’ premium members how to take a $7,500 investment… and walk away with:
⦁ A $2,093 gain on Novo Nordisk…
⦁ A $5,500 gain on Axcelis Technologies…
⦁ A $7,647 gain on Powell Industries…
⦁ A $14,000 gain on YPF…
⦁ And even a whopping $45,360 gain on Vista Energy.
That’s without using options, penny stocks, or any other high-risk strategies.
Additionally, Louis’ system can also reveal which stocks you should avoid.
Louis is hosting his Liberation Day Summittomorrow, Wednesday, May 28 at 1 p.m. ETto show you how to use system to separate the winners and losers in this new Trump-era economy.
He is joining us today to dive deeper into the companies most vulnerable to the economic forces already reshaping the market. Some are household names, but don’t let that fool you: the fundamentals are eroding, and institutional money is heading for the exits.
Take it away, Louis…
Target Corp. (TGT) recently reported earnings… and they basically missed the broad side of the barn.
That’s unfortunate. Target was once a great company and a fantastic stock. Maybe it will be again someday… but I don’t think that’s coming anytime soon.
They’ve lowered their guidance and analysts are slashing their estimates.
While some investors might’ve been surprised by the results and the stock’s subsequent drop, I knew weak numbers were in the offing. My quantitative Stock Grader system tells the tale…
For its Fundamental Grade, Target gets a “C” grade… not good, but not terrible either. But when it comes its Quantitative Grade, it gets an “F.”
That “F” means nobody’s buying TGT… at least nobody with real money. Even if folks are still spending some at the register, there’s no cash from investment banks, pensions, or hedge funds flowing into the stock.
And that gives Target a Total Grade a big, fat “D.”
Naturally, management blamed President Donald Trump’s tariffs for Target’s terrible earnings. And they’ve got a point. Target imports a full 30% of its products from China, where tariffs may be down from their heights, but they’re nowhere near zero… and they’re not going back there either.
But Target’s got a lot more problems than tariffs.
It lost conservative customers in the Obama/Biden era by going too “woke”… and it’s losing liberal customers now after abandoning its DEI ways. Target has alienated customers on both sides of the aisle.
It hasn’t rated well in my Stock Grader system for three years now.
But as investors, the main thing with Target we should be aware of is their same-store sales declined 3.8%. Same-store sales at Walmart Inc. (WMT), by comparison, rose 4.5% in its latest earnings report.
To put it bluntly, Walmart is beating Target. And Walmart, of course, is the largest grocery retailer in America right now, and that’s bringing in a lot of middle-class shoppers.
Plus, Walmart remains the best positioned of its peers to withstand any lingering trade war. Two-thirds of what Walmart sells in the U.S. is “made, grown, or assembled in America,” Chief Financial Officer John David Rainey noted at a recent investor event in Dallas. And much of its imports come from Mexico, which will end up escaping most tariffs.
As you might expect, WMT scores an “A” in Stock Grader… and I recommend it to my paid readers in some of my services.
You might say Target is a victim of Trump 2.0.
Now there will be plenty of winners in the new Trump era. After all, the tariffs were just one part of a broader new policy and economic framework.
And it’s already in motion, even though the media has been playing catch-up. I’ve been calling it Liberation Day 2.0.
And it favors 1) Tax liberation, 2) Tech liberation and 3) Energy liberation. Plenty of stocks are going to benefit from that.
So, today, I want to give you an idea of what to expect in this new economic regime.
But Trump 2.0 will produce plenty of losers as well.
So, I’ll share the details on one more well-known retailer that my system does not like right now.
A Dramatic Economic Shift Is Coming
There was a time for a few weeks this year when I started to feel like a broken record.
I had been saying for months that President Donald Trump’s tariffs were being used as a negotiation tool to make better trade deals and push the onshoring of manufacturing to the U.S.
In short, I said that most of them wouldn’t be permanent, and that we shouldn’t worry too much.
Once this reality became clear to the rest of the market, we saw one of the sharpest reversals in market history. (Though, like we just saw with Target, there will be some victims.)
Now, while everyone else is digesting what just happened, it’s important to prepare for what’s next… Liberation Day 2.0.
Essentially, we’re talking about a dramatic shift toward economic policy that favors domestic production, strategic resources, and U.S.-centric infrastructure – particularly in areas like energy and AI tech.
That’s great news for those corners of the market. But the truth is some companies are dangerously misaligned with the way things are heading. They’re tied to outdated globalist business models, razor-thin margins, or subsidy pipelines that are drying up.
With the help of my Stock Grader system, I’ve started building a short list of stocks that look especially vulnerable right now. These are not obscure microcaps. Some are well-known names that still carry “blue-chip” reputations – but under the surface, the fundamentals are deteriorating.
Based on what my Stock Grader system is picking up, I believe investors should be especially cautious around four key risk profiles…
The Four Danger Zones
1. China-Dependent Supply Chains
These companies depend on low-cost overseas manufacturing – often centered in China. In a world where tariffs are sticking and reshoring is accelerating, that’s a recipe for rising costs, geopolitical risk, and supply disruption. Margins get squeezed, operations get slower, and valuations often can’t keep up.
2. Low-Margin Consumer Brands
Retailers and consumer-facing names with razor-thin margins are facing a profitability cliff. They don’t have the pricing power to absorb tariff-driven cost increases. And as inflation continues to bite, consumer demand is softening. My system is already picking up on flagging operating margins, declining earnings revisions, and negative trend scores across several of these names.
3. Subsidy-Dependent “Green” Stocks
Companies that depended heavily on environmental, social and governance (ESG) mandates or government subsidies to make their business models work are falling out of favor. With the policy agenda shifting toward energy security and domestic resource extraction, clean-energy names are losing their tailwinds.
4. Globalist Business Models
These are service firms – consulting, logistics, financials – that were built around open-border economics and global integration. But the new policy focus is on American manufacturing, domestic infrastructure, and national resource independence. Many of these “international” operators are starting to look like relics of the last cycle.
Now, let’s take a look at one stock caught in these crosshairs…
Stock to Sell Before Liberation Day 2.0
The company I’m talking about is a perfect example of what I mean when I talk about “Danger Zones” – specifically, the “Low-Margin Consumer Brands” category.
Sure, it’s a well-known name with brand recognition and thousands of retail locations. But under the surface, the picture isn’t nearly as reassuring. My Stock Grader system recently gave it a “F” rating, and for good reason.
Kohl’s Corp. (KSS) has an operating margin of about 3.5%. Profit margins are less than a percent.
Not much room for error when things are that tight, folks.
The company is operating in one of the toughest spots in retail. It lacks the pricing power of premium brands, and it doesn’t have the volume advantage of discount chains.
That leaves Kohl’s squeezed in the middle – and with tariffs potentially driving up input costs, the pressure on margins is only going to get worse.
Even before tariffs entered the picture, the company was struggling with declining same-store sales, falling foot traffic, and ongoing margin compression. The latest earnings report showed a steep drop in profitability, and forward guidance didn’t inspire much confidence either.
I should also add that the company has had some trouble retaining its leadership recently. Essentially, they’ve had a revolving door in the C-suite.
Even worse, institutional demand for the stock is fading. Along with weak revisions, deteriorating cash flow metrics, and a bad macro setup, it’s no wonder the stock earns an F-rating.
In short, Kohl’s is caught in the wrong place at the wrong time – and investors would do well to steer clear.
Don’t Miss What’s Coming Next
Now, I believe most of the changes that will happen will be for the good of the country. But there’s no denying that there will be casualties.
Kohl’s is just one of them. I’ve identified a handful of others that will be caught in the crossfire, too.
The point is the markets are already adjusting. Capital is moving. And the old leaders? They’re being left behind.
That’s why it’s important to get up to speed on what’s coming.
The three sectors I expect to dominate during the next phase of Trump 2.0 – and a top-ranked “buy” pick for each sector.
The sectors I believe will suffer the most as we transition to the new Trump economy – and 10 stocks my Stock Grader system and I say to avoid and/or sell now.
The strategy I’m using to help my readers target $2,500… $5,000… even $10,000 paydays.
And details on the Stock Grader system that’s helped me beat Wall Street at its own game for nearly five decades.
If you care about what happens to your money… if you want to stop guessing and start positioning yourself for what’s coming now… Make sure to be there on Wednesday.
Louis Navellier hereby discloses that as of the date of this email, that he, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Plus what these certainties have to do with Trump’s three-part economic plan…
In the very first Sesame Street episode, in November 1969, Kermit the Frog attempts to describe the letter “W.” A hungry Cookie Monster chomps away at the subject matter, forcing Kermit to change his prepared speech to talk about “N”… then “V”… as sections of the letter disappear.
The segment proved so memorable that Sesame Street has continued to run some version of its “letter of the day” to the present.
Fast forward to today, and the American economy is now being brought to you by the letter “U.”
Indeed, uncertainty has become the fixation of media and Wall Street alike.
Eighty-four percent of the S&P 500 companies used the term “uncertainty” in their most recent earnings calls. Moody’s used it as a reason for their recent downgrade of U.S. debt.
In fact, this word has become so prevalent that the Federal Reserve’s April 2025 “Beige Book” (its twice-a-quarter commentary on current economic conditions) used it 80 times without people really noticing. (The April 2024 version mentioned the word only 11 times.)
Now, I want to acknowledge the word is useful in some cases.
But the word “uncertainty” gives many the excuse to be a bit lazy:
It lets the media create an invisible enemy to focus readership anger…
It causes financial analysts and investors to throw up their hands and say nothing’s for sure….
It allows CEOs of S&P 500 companies to blame something else if their performance falls short…
And it also hides some facts that are absolutely crystal clear to me.
So, in today’s Market 360, let’s review three items that are actually quite certain… what they have to do with President Trump’s three-part economic plan… why this plan matters to investors…
And one stock investors can buy right now to profit off of the president’s latest pro-business moves.
Certainty No. 1: Tax Liberation
Last week, President Trump’s “Big, Beautiful Bill,” a sweeping legislative tax proposal, passed the House. Here are three key reforms it includes…
Permanent middle-class tax cuts. It lowers the individual income tax rate. For example, the 15% bracket is dropped to 12% and 25% is lowered to 22%. There are also no taxes on tips or overtime – one of President Trump’s campaign promises.
Expanded family and child benefits. The child tax credit is permanently set at $2,000 per child. It also includes new MAGA savings accounts, with a $1,000 federal contribution for newborns.
Health and wellness savings expansion. Health savings accounts (HSAs) can be used on more than just doctor’s visits and medications. Americans can apply them toward things like fitness memberships, direct primary care and spousal flexibility.
However, President Trump isn’t stopping there… he also wants to use the revenues the U.S. makes from tariffs to cut income taxes for people making $150,000 or less. This would be the biggest change to the tax code since Trump’s first term, when he passed the Tax Cuts and Jobs Act.
These tax changes would be a huge boost for the middle class and economy. According to the House Ways and Means Committee, the Tax Cuts and Jobs Act drove wages higher, grew business investment by 20% and boosted GDP by a full percent. This could lead to trillions of dollars in additional growth over a decade.
All we need now is for the Senate to get on board, and then the Big, Beautiful Bill will become law.
Certainty No. 2: Tech Liberation
Artificial intelligence will continue to gobble up ever more electricity this year. Here’s why I’m so confident:
Last November, NVIDIA Corporation (NVDA) released its Blackwell chip, an AI platform that’s 3X to 4X faster than its predecessor. It’s also a power hog, with each B200 GPU unit consuming 1,200 watts, roughly what a household toaster needs. (Its predecessor used 700 watts.)
However, this 70% increase in power consumption doesn’t translate to 70% more electricity demand overnight. Blackwell chips can only be produced so quickly, and even the top cloud computing firms like Oracle Corporation (ORCL) and Microsoft Corporation (MSFT) have been forced to wait in line for supply.
During its first-quarter earnings call, Microsoft CEO Satya Nadella noted that profits at his firm would have been even higher if only they had the hardware.
That will change through mid-2026 as more Blackwell chips roll off the assembly line. Older generations of Nvidia’s Hopper chips will be replaced by these power-hungry Blackwell ones, and additional sites will be built to house all-new sets. More of these chips means more power will be consumed, straining an already tight U.S. energy grid further.
In addition, AI developers show no sign of lifting off the gas pedal.
Last month, OpenAI launched its latest GPT-4.1 model, an AI that’s roughly 20% better at coding than its predecessor GPT-4o. The firm followed up this month with a new AI coding agent, Codex, a powerful tool that can write code, fix bugs, run tests, and answer questions.
Not to be outdone, Alphabet Inc. (GOOG) unveiled a suite of AI-powered products at its I/O developer conference last Tuesday, May 20. This included a new series of AI models, AI-generated movies, next-generation smart glasses, and AI-powered wearable devices.
Perhaps most importantly, Alphabet revealed a new AI model, code-named “Deep Think,” that is more than twice as accurate as OpenAI’s best models at certain tasks.
This AI arms race will continue, driving up demand for power-intensive Blackwell chips. No AI company can afford to get left behind, and so we expect power-generation firms will continue to see strong demand.
Certainty No. 3: Energy Liberation
On President Trump’s first day in office, he signed three new energy executive orders that would “unleash America’s affordable and reliable energy and natural resources”:
Executive Order 14154, “Unleashing American Energy”: This order boosts energy independence and economic growth. It prioritizes expanding energy production on federal lands and offshore, increasing domestic mining of critical minerals, and ending the electric vehicle (EV) mandate to promote consumer choice. It also demands a review of regulations that hinder energy development.
Executive Order 14156, “Declaring a National Energy Emergency”: This order declares a national energy emergency and directs federal agencies to use emergency powers to increase energy development. This includes identifying and utilizing domestic energy resources, streamlining leases and permitting processes, and expanding energy infrastructure. The goal is to make the U.S. more energy independent.
Executive Order 14153, “Unleashing Alaska’s Extraordinary Resource Potential”: This order is to expand resource development in Alaska. It focuses on boosting energy production, streamlining permits, and advancing infrastructure like pipelines and liquified natural gas (LNG) exports. It also restores oil and gas leasing in the Arctic National Wildlife Refuge and directs agencies to remove regulations that hinder development.
These three initiatives, I believe, may have the largest long-term impact on this country’s wealth and prosperity. The reality is we’re sitting on over $100 trillion worth of energy and natural resources right here in America.
That’s almost four times larger than our annual GDP and three times larger than our national debt. That means we can wipe out the national debt three times over just by tapping into the assets we have buried in our own backyard. This would be a game-changer for our economy.
All Part of President Trump’s Liberation Day 2.0
The reason why I believe tax liberation, tech liberation and energy liberation are certainties is because they fall under President Trump’s three-part economic plan. I like to call it Liberation Day 2.0.
Investors looking for a place to buy may want to investigate the president’s latest “liberation.”
On Friday, he signed a series of executive orders with the goal of “re-establishing the United States as the global leader in nuclear energy.” The orders slash regulations, with the aim to increase American nuclear energy capacity from 100 gigawatts to 400GW by 2050 and to “have 10 new large reactors with complete designs under construction by 2030.”
Nuclear stocks jumped on the news… but they still have plenty of room to run as AI’s need for power continues to soar. One of my favorite nuclear stocks at the moment is Vistra Corp. (VST).
This Irving, Texas-based company is one of the biggest power generators in the United States, with about 37,000 megawatts of power generated from natural gas, nuclear, solar and battery storage facilities. The company offers reliable and efficient power solutions to approximately 4 million customers – residential, commercial and industrial – in 20 states, and Washington, D.C.
And in March 2024, Vistra completed a $3.4 billion deal to acquire Energy Harbor, making it the second-largest American nuclear power provider.
It rates a “B” in my Stock Grader system, and I recommend it in several of my paid services. Investors curious about nuclear energy “liberation” should take a closer look at VST.
Of course, that’s not the only way to profit from Liberation Day 2.0.
And I’ll talk about some more ideas during my Liberation 2.0 summit tomorrow. It starts at 1 p.m. Eastern, so you have less than 24 hours left to reserve your spot. Click here and do so now.
During this summit, I’ll also discuss:
The three sectors I expect to dominate during the next phase of Trump 2.0 – and a top-ranked “buy” pick for each sector.
The sectors I believe will suffer the most as we transition to the new Trump economy – and 10 stocks my Stock Grader system and I say to avoid and/or sell now.
The strategy I’m using to help my readers target $2,500… $5,000… even $10,000 paydays.
And details on the Stock Grader system that’s helped me beat Wall Street at its own game for nearly five decades.
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
The leather jacket is coming off… what the latest moves of Nvidia’s founder mean for AI’s future…
Editor’s Note: Financial titan Louis Navellier has spotted a drastic change forming beneath the surface of today’s market. He’s calling it Liberation Day 2.0.
To Louis, this isn’t just a market story. It’s the start of an American economic supercycle, driven by three major catalysts already in motion: Tax Liberation, Tech Liberation, and Energy Liberation. He’s confident that, together, they could ignite a $10 trillion stimulus wave, launch a new era of job creation, and potentially kickstart the next great bull market.
Tomorrow, Wednesday, May 28 at 1 p.m. ET, Louis will lay out the full blueprint during his Liberation Day Summit – including the name and ticker of a stock he says could hand early investors a $5,000–$15,000 payday.
If you’re unfamiliar with Louis’ work, today’s featured essay is the perfect place to start. He walks you through part of the core thesis behind this movement… and why positioning ahead of it could be the most profitable decision you make all year.
You can tell a lot about a person by what they wear.
That saying is usually meant as a reminder that people judge your professionalism and character based on your appearance.
But sometimes defying expectations says a lot.
You rarely see Nvidia Corp. (NVDA) CEO Jensen Huang without one of his leather jackets – it’s his signature look at product launches, keynotes and investor events.
Until last week…
While accompanying President Donald Trump to the Middle East, Huang showed up in Saudi Arabia wearing a suit and tie to meet the Crown Prince of Saudi Arabia.
This was a signal that something big was happening.
You see, behind closed doors, a major international deal was taking shape. One that not only opened the floodgates of AI investment from the Middle East, but also potentially handed Nvidia a new kind of global influence.
So today, let’s go over why this Saudi deal – and two more catalysts – will change America’s economy forever, and unleash a torrent of money, and opportunity, for savvy investors.
Plus, I’ll go over a step you can take as soon as Wednesday, May 28, that will put you in line for the next round of Trump administration-fueled AI wealth.
Let’s jump into it…
All Dressed Up to Ink a New Deal
During his visit, Huang unveiled a massive new partnership between Nvidia and Saudi Arabia’s HUMAIN – a cutting-edge AI firm.
Specifically, Nvidia will ship 18,000 Blackwell chips to Saudi Arabia to build out a 500-megawatt AI data center.
Huang stated:
AI, like electricity and internet, is essential infrastructure for every nation. Together with HUMAIN, we are building AI infrastructure for the people and companies of Saudi Arabia to realize the bold vision of the Kingdom.
This is only the first phase, though. Over the next five years, the plan includes scaling up to several hundred thousand Nvidia GPUs, establishing what are termed as “AI factories” to drive innovation in cloud computing, robotics and other forms of AI.
Make no mistake, this isn’t just another business deal. This is Nvidia cementing its position as the core infrastructure provider for the global AI Revolution.
Here’s what I mean…
Saudi Arabia wants to diversify its economy away from oil. One of the ways it can do that is by becoming a major global hub for AI.
Now, HUMAIN was founded by Saudi Arabia’s Public Investment Fund. So, the signal here is clear.
There’s a global race for AI dominance. Nvidia is in the lead, and it’s pulling further and further away from the pack. And it should stay on any smart investor’s “buy list.”
I would be remiss if I didn’t mention that this wasn’t Nvidia’s only major deal this week.
First, the company announced something called DGX Cloud Lepton, which is a new service that’s going to make its AI chips directly available to more AI developers through the cloud.
This will allow Nvidia to continue to dominate the AI space if everybody programs for it.
Secondly, according to recent reports, Nvidia is in advanced talks to invest in PsiQuantum, a startup working on building commercially viable quantum computers.
This would mark a major investment for Nvidia in the quantum computing space.
Why does this matter?
See, Nvidia has grown rapidly in recent years, thanks to artificial intelligence and its AI chips. The company still plans two more future iterations of its Blackwell chip. But by the end of the decade, Nvidia may be unable to put more transistors on a chip as they approach the “atomic” level.
Quantum computing represents the next frontier beyond AI. While today’s AI runs on Nvidia’s GPUs, tomorrow’s computing challenges may require quantum computers.
By getting in early with PsiQuantum, Nvidia is positioning itself at the intersection of today’s AI boom and tomorrow’s quantum revolution.
Bottom line: Jensen Huang isn’t just thinking about this quarter or next year. He’s carving a path into every critical technology that will define computing for the next decade.
Nvidia: Still the ‘Stock of the Decade’
The point is Nvidia has defied the skeptics and cynics this year.
When the market was under pressure from tariff tensions and interest rate uncertainty, the company maintained exceptional earnings growth, sales acceleration, and institutional buying. My system model gave it a “Buy” rating for most of the year based on these metrics – a clear signal of its continued leadership.
Now, this shouldn’t be a surprise. Everybody knows Nvidia is a fantastic company.
But here’s the reality. My system flagged Nvidia’s strength long before the developments I discussed with you today.
If you’ve been a longtime reader of mine, you know Nvidia has been and continues to be the shining star. I’ve gone on record saying it is the “stock of the decade,” and I stand by that. It remains far and away the leader of the AI Revolution.
And it clearly shows no signs of slowing down, either.
I won’t beat around the bush; Nvidia has brought me and my premium readers a lot of success. In fact, I brought my readers’ attention to the company in 2016, when it was trading for a split-adjusted $1.
Those who followed my lead would have made roughly 7,000%!
And the good news is, if you missed out, Nvidia is still a “Buy” according to my proprietary system.
But Nvidia won’t be the only company at the forefront of the next wave of the AI Revolution…
Liberating the Tech Sector
Nvidia’s Middle East deal and moves into quantum computing are just one example of President Trump’s three-part economic plan, which I’ve been calling “Liberation Day 2.0.”
This part is Tech Liberation.
In addition to helping the big AI chipmakers like Nvidia make huge deals across the world, the White House also has begun reversing regulatory restrictions on things like artificial intelligence, crypto, and cloud infrastructure.
Private capital is flowing fast – with more than $2 trillion committed to domestic tech projects so far.
The message is clear: Innovation-first policies are back, and the smart money knows it.
Add it all up, and we’re talking about a massive transformation of the American economy that could send a $10 trillion shockwave through the markets.
The moves we’ve seen from the Trump administration so far are just the beginning.
So, on Wednesday,May 28, at 1 p.m. Eastern, I’m hosting my Liberation Day 2.0Summit to reveal the other two parts of President Trump’s three-pronged strategy… and more about the three companies my system has flagged as the biggest potential winners.
Make no mistake, the implications for investors who position themselves correctly could be life-changing. So, be sure to save your spot now so you don’t miss your chance on the next wave of this AI-fueled economic boom before it takes off.
Sincerely,
Louis Navellier, Senior Analyst, InvestorPlace
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Are your holdings on the move? See my updated ratings for 112 stocks.
Source: iQoncept/Shutterstock.com
During these busy times, it pays to stay on top of the latest profit opportunities. And today’s blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Stock Grader recommendations for 112 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
Upgraded: Buy to Strong Buy
Symbol
Company Name
Quantitative Grade
Fundamental Grade
Total Grade
ADP
Automatic Data Processing, Inc.
A
C
A
AEP
American Electric Power Company, Inc.
A
C
A
AU
Anglogold Ashanti PLC
A
C
A
BAP
Credicorp Ltd.
A
B
A
CBOE
Cboe Global Markets Inc
A
B
A
CCEP
Coca-Cola Europacific Partners plc
A
C
A
CSCO
Cisco Systems, Inc.
A
B
A
DUK
Duke Energy Corporation
A
C
A
EQT
EQT Corporation
A
B
A
EXC
Exelon Corporation
A
C
A
GME
GameStop Corp. Class A
A
B
A
KR
Kroger Co.
A
C
A
LYG
Lloyds Banking Group plc Sponsored ADR
A
B
A
MELI
MercadoLibre, Inc.
A
B
A
NGG
National Grid plc Sponsored ADR
A
C
A
NOK
Nokia Oyj Sponsored ADR
A
C
A
RY
Royal Bank of Canada
A
B
A
SAN
Banco Santander S.A. Sponsored ADR
A
B
A
SBS
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP Sponsored ADR
To stay on top of my latest stock ratings, plug your holdings into Stock Grader, my proprietary stock screening tool. But, you must be a subscriber to one of my premium services. Or, if you are a member of one of my premium services, you can go here to get started.
Sincerely,
Louis Navellier
Editor, Market 360
Article printed from InvestorPlace Media, https://investorplace.com/market360/2025/05/20250527-blue-chip-upgrades-downgrades/.
Our offices are closed today in honor of the men and women who died while serving in our military. If you need assistance from our Customer Service team, they’ll be happy to assist you when we open tomorrow at 9 a.m. Eastern time.
After the April 3 selloff, legendary investor Louis Navellier made a bold call: The market would rally hard – and fast.
Just 25 trading days later, the S&P 500 had erased its losses. And while many on Wall Street were shocked, Louis’ subscribers weren’t.
Over the past two years, they’ve seen Louis nail three major predictions:
Biden would drop out of the presidential race (made way before the media caught on)
Trump would win the 2024 presidential election and bring in a pro-growth policy wave
And the “trade panic” was just the start of a bullish realignment
Louis just made a new prediction. In today’s essay, he’ll tell you about it. It involves what he calls “Liberation Day 2.0.”
You’ll also get details on a little-known stock that’s perfectly positioned to benefit from what’s coming next. It’s a company flying under Wall Street’s radar… but tied directly to AI, energy, and infrastructure – the core of Louis’ “Liberation Day 2.0.”
Then, this Wednesday May 28, Louis is going one step further. He’ll be unveiling his full “Liberation Day 2.0” blueprint, along with three more stocks his system has flagged with explosive upside potential. He’ll be giving away those names totally free. You can register for the event right here.
Enough introduction. I’ll let Louis take it from here.
Have a wonderful Memorial Day, and welcome to summer!
Jeff Remsburg
After the big “Liberation Day” selloff on April 3, I made a bold prediction.
I told everyone that we would see a huge rally soon – we just needed to wait for the dust to settle first.
And that’s exactly what happened.
The folks at Bespoke pointed out that the S&P 500 was down more than 15% year-to-date on April 8. But in the next 25 trading days, the S&P 500 erased these losses.
Source: Bespoke Investment Group
The media is acting like this spectacular rally came out of nowhere – a sudden, unexpected development that no one could have predicted.
But that’s not true.
Over the past two years, I’ve made three big predictions that all came true – from Joe Biden’s departure from the presidential election to Donald Trump’s return the White House to the trade pivot we’re seeing now.
So, today, I want to show you why I made these predictions and how they unfolded.
More importantly, I’ll make my next big prediction.
And I’ll show you one stock that will benefit from what’s coming next.
Three Big Predictions
1. Biden’s Dropout: Back in December 2023, I said President Biden wouldn’t make it to the 2024 general election. I’ve been around the markets and politics for over four decades. So, I’ve learned a thing or two about how things work behind closed doors. And I knew party insiders wouldn’t risk running a candidate they couldn’t prop up through the finish line. I also said a Democrat from California would likely replace him. I picked the wrong one – I expected Gavin Newsom, but it turned out to be Kamala Harris. Still, the pattern played out exactly as I said it would.
2. Trump 2.0: Next, throughout 2024, I told my premium readers that Donald Trump would win the presidential election. When most analysts were still hedging their bets, I was explicit: A second Trump term was coming – and investors needed to prepare. And after Trump won the election, I further prepared readers for what to expect from Trump 2.0.
I said that Trump would 1) aim to end the “manufacturing recession” and lay the groundwork for a true “Made in America” revival… 2) roll back environmental restrictions and unleash American fossil fuel production… and 3) go “all-in” on AI by removing bureaucratic hurdles and launch a full-scale effort to ensure the U.S. leads the global race. Since then, we’ve seen these forecasts begin to play out in real time.
3. The Trade Panic – and the Pivot: Then, when Trump took office, I said that tariffs were coming. And when they came in April 2025, I warned that the media would panic and that volatility was likely. But I also said this was Step 1 in a broader strategy to reroute global trade, bring critical industries back onshore, and realign the tax code to favor working- and middle-class Americans. I predicted that most countries would come to the negotiating table and said investors shouldn’t worry. I said that most of the “reciprocal” tariffs would go away for major U.S. trading partners – so long as they agreed to play fair. Sure enough, by May, trade truces started piling up. Markets rallied. And the so-called crisis began to fade.
If you think this rally is the end of the story – you’re missing the bigger picture.
Here’s What’s Next on the Trump 2.0 Agenda
What we’re seeing now is the rollout of a much bigger framework I’ve been tracking for months. I call it Liberation Day 2.0.
Here’s what it includes:
1. Tax Liberation President Trump’s proposal to use tariff revenue to cut income taxes for Americans earning under $150,000 could unleash a wave of consumer spending. If history is any guide, these cuts could lift wages, fuel business investment, and add trillions to GDP over the next decade.
2. Tech Liberation Big Tech, the U.S., and foreign governments have committed more than $2 trillion to AI, crypto, and cloud infrastructure since the election. Get ready for more. The White House is reversing regulatory choke points. Innovation-first policy is back – and the smart money knows it.
3. Energy Liberation The U.S. is sitting on more than $100 trillion in untapped energy and mineral resources. New executive orders are clearing red tape on mining and drilling projects nationwide. This may be the beginning of a generational boom in strategic materials, rare earths, and domestic energy.
The question now is simple: How do you position your portfolio to capture this wealth-creation opportunity?
One way is to buy a stock in the “crosshairs” of the Liberation 2.0 policies.
One Trump 2.0 Stock to Buy Now
I recommended Powell Industries Inc. (POWL) to my premium members in December 2023 because of its “history of posting big earnings surprises.”
Over the previous five quarters, this Houston-based developer and manufacturer of equipment and systems for electrical infrastructure had posted earnings surprises of 305.6%, 400%, 233.3%, 130.3%, and 62.5%.
Since then, Powell has skyrocketed for peak gains of 300%.
Now, earnings surprises – even big ones – tend not to produce that much profit.
However, exposure to the exploding artificial intelligence market does.
While I didn’t mention “AI” once in my original “buy” alert, in the months after I recommended Powell, it became clear that its products and services were crucial components in the giant AI data centers known as “hyperscalers.”
Indeed, we started talking about Powell as an AI data center beneficiary as early as June 2024… and the stock went on to double in the months after that.
You see, as AI grows, so does the demand for reliable, scalable data centers – essential infrastructure for AI workloads. These facilities require customized, fully integrated electrical solutions to ensure reliability, efficiency and performance.
Powell’s other major clients include petrochemical plants, pulp and paper mills, oil and gas producers, utilities, and transportation facilities. That makes it uniquely positioned to benefit from the trifecta of Trump 2.0’s Tax, Tech, and Energy Liberation policies.
The company has already laid the groundwork to support this growth, building relationships with hyperscaler operators and the companies that rent space within those giant data centers (known as “co-locators”).
And this groundwork is already paying off.
During its second quarter in fiscal year 2025, Powell reportednew orders totaling $249 million, and its backlog remained at $1.3 billion. Second-quarter revenue rose 9% year-over-year to $279 million, just shy of estimates for $282.68 million.
Earnings increased 38% year-over-year to $46 million, or $3.81 per share, compared to $33.5 million, or $2.75 per share, in the second quarter of 2024. Analysts expected earnings of $3.44 per share, so Powell Industries posted a 10.8% earnings surprise.
While Powell has pulled back from its all-time highs from earlier this year, it remains on a solid growth trajectory. For 2025, analysts expect Powell to post $1.12 billion in revenue, up from $1.01 billion in the previous year. Earnings are expected to climb to $14.17 per share, up from $12.29 a year ago.
Right now, Powell earns a “B” rating in my Stock Grader system… and I think it’s a good “buy” under $227.
But buying Powell Industries is just a start.
More ambitious investors will want to join me on Wednesday, May 28, at 1 p.m. Eastern. That’s when I’ll be doing a free broadcast where I’ll walk you through the full Liberation Day 2.0 blueprint.
I’ll also share some details on three stocks my Stock Grader system has flagged with even higher “buy” ratings than Powell’s – companies I believe could double or triple as these policies unfold. (Register here now.)
This system is the same quantitative engine I’ve been using for nearly five decades – the system that helped me identify winners like AppleInc. (AAPL) and Amazon.com, Inc. (AMZN) long before they became household names.
And that, in 2024 alone, showed my premium members how to take a $7,500 investment… and walk away with:
Louis hereby discloses that as of the date of this email, Louis, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
While the media scrambles to explain the rally, he’s been tracking this economic shift for months…
Editor’s Note:While the market reels from President Trump’s “Liberation Day” tariffs, legendary investor Louis Navellier says something much bigger is happening just beneath the surface.
He’s calling it Liberation Day 2.0 – and according to his research, it could unleash up to $10 trillion in new stimulus, create millions of high-paying jobs, and spark the next phase of a generational bull market. But only if you know where to look.
What’s driving it all? A three-pronged strategy the president is already rolling out – Tax Liberation, Tech Liberation, and Energy Liberation – each one designed to jolt different corners of the U.S. economy.
In a brand-new presentation called The Liberation Day Summit, Louis lays out a detailed plan for how he’s preparing his readers to profit from this unprecedented shift. He even gives away the name and ticker of one A-rated stock he believes could hand investors a $5,000–$15,000 payday in the coming months – and it’s completely free to watch.
To help prepare you for this event, Louis is joining us today to share a bit more about what he sees coming down the pike.
After the big “Liberation Day” selloff on April 3, I made a bold prediction.
I told everyone that we would see a huge rally soon – we just needed to wait for the dust to settle first.
And that’s exactly what happened.
The folks at Bespoke pointed out that the S&P 500 was down more than 15% year-to-date on April 8. But in the next 25 trading days, the S&P 500 erased these losses.
Source: Bespoke Investment Group
The media is acting like this spectacular rally came out of nowhere – a sudden, unexpected development that no one could have predicted.
But that’s not true.
Over the past two years, I’ve made three big predictions that all came true – from Joe Biden’s departure from the presidential election to Donald Trump’s return the White House to the trade pivot we’re seeing now.
So, today, I want to show you why I made these predictions and how they unfolded.
More importantly, I’ll make my next big prediction.
And I’ll show you one stock that will benefit from what’s coming next.
Three Big Predictions
1. Biden’s Dropout: Back in December 2023, I said President Biden wouldn’t make it to the 2024 general election. I’ve been around the markets and politics for over four decades. So, I’ve learned a thing or two about how things work behind closed doors. And I knew party insiders wouldn’t risk running a candidate they couldn’t prop up through the finish line. I also said a Democrat from California would likely replace him. I picked the wrong one – I expected Gavin Newsom, but it turned out to be Kamala Harris. Still, the pattern played out exactly as I said it would.
2. Trump 2.0: Next, throughout 2024, I told my premium readers that Donald Trump would win the presidential election. When most analysts were still hedging their bets, I was explicit: A second Trump term was coming – and investors needed to prepare. And after Trump won the election, I further prepared readers for what to expect from Trump 2.0.
I said that Trump would 1) aim to end the “manufacturing recession” and lay the groundwork for a true “Made in America” revival… 2) roll back environmental restrictions and unleash American fossil fuel production… and 3) go “all-in” on AI by removing bureaucratic hurdles and launch a full-scale effort to ensure the U.S. leads the global race. Since then, we’ve seen these forecasts begin to play out in real time.
3. The Trade Panic – and the Pivot: Then, when Trump took office, I said that tariffs were coming. And when they came in April 2025, I warned that the media would panic and that volatility was likely. But I also said this was Step 1 in a broader strategy to reroute global trade, bring critical industries back onshore, and realign the tax code to favor working- and middle-class Americans. I predicted that most countries would come to the negotiating table and said investors shouldn’t worry. I said that most of the “reciprocal” tariffs would go away for major U.S. trading partners – so long as they agreed to play fair. Sure enough, by May, trade truces started piling up. Markets rallied. And the so-called crisis began to fade.
If you think this rally is the end of the story – you’re missing the bigger picture.
Here’s What’s Next on the Trump 2.0 Agenda
What we’re seeing now is the rollout of a much bigger framework I’ve been tracking for months. I call it Liberation Day 2.0.
Here’s what it includes:
1. Tax Liberation President Trump’s proposal to use tariff revenue to cut income taxes for Americans earning under $150,000 could unleash a wave of consumer spending. If history is any guide, these cuts could lift wages, fuel business investment, and add trillions to GDP over the next decade.
2. Tech Liberation Big Tech, the U.S., and foreign governments have committed more than $2 trillion to AI, crypto, and cloud infrastructure since the election. Get ready for more. The White House is reversing regulatory choke points. Innovation-first policy is back – and the smart money knows it.
3. Energy Liberation The U.S. is sitting on more than $100 trillion in untapped energy and mineral resources. New executive orders are clearing red tape on mining and drilling projects nationwide. This may be the beginning of a generational boom in strategic materials, rare earths, and domestic energy.
The question now is simple: How do you position your portfolio to capture this wealth-creation opportunity?
One way is to buy a stock in the “crosshairs” of the Liberation 2.0 policies.
One Trump 2.0 Stock to Buy Now
I recommended Powell Industries Inc. (POWL) to my premium members in December 2023 because of its “history of posting big earnings surprises.”
Over the previous five quarters, this Houston-based developer and manufacturer of equipment and systems for electrical infrastructure had posted earnings surprises of 305.6%, 400%, 233.3%, 130.3%, and 62.5%.
Since then, Powell has skyrocketed for peak gains of 300%.
Now, earnings surprises – even big ones – tend not to produce that much profit.
However, exposure to the exploding artificial intelligence market does.
While I didn’t mention “AI” once in my original “buy” alert, in the months after I recommended Powell, it became clear that its products and services were crucial components in the giant AI data centers known as “hyperscalers.”
Indeed, we started talking about Powell as an AI data center beneficiary as early as June 2024… and the stock went on to double in the months after that.
You see, as AI grows, so does the demand for reliable, scalable data centers – essential infrastructure for AI workloads. These facilities require customized, fully integrated electrical solutions to ensure reliability, efficiency and performance.
Powell’s other major clients include petrochemical plants, pulp and paper mills, oil and gas producers, utilities, and transportation facilities. That makes it uniquely positioned to benefit from the trifecta of Trump 2.0’s Tax, Tech, and Energy Liberation policies.
The company has already laid the groundwork to support this growth, building relationships with hyperscaler operators and the companies that rent space within those giant data centers (known as “co-locators”).
And this groundwork is already paying off.
During its second quarter in fiscal year 2025, Powell reportednew orders totaling $249 million, and its backlog remained at $1.3 billion. Second-quarter revenue rose 9% year-over-year to $279 million, just shy of estimates for $282.68 million.
Earnings increased 38% year-over-year to $46 million, or $3.81 per share, compared to $33.5 million, or $2.75 per share, in the second quarter of 2024. Analysts expected earnings of $3.44 per share, so Powell Industries posted a 10.8% earnings surprise.
While Powell has pulled back from its all-time highs from earlier this year, it remains on a solid growth trajectory. For 2025, analysts expect Powell to post $1.12 billion in revenue, up from $1.01 billion in the previous year. Earnings are expected to climb to $14.17 per share, up from $12.29 a year ago.
Right now, Powell earns a “B” rating in my Stock Grader system… and I think it’s a good “buy” under $227.
But buying Powell Industries is just a start.
More ambitious investors will want to join me on Wednesday, May 28, at 1 p.m. Eastern. That’s when I’ll be doing a free broadcast where I’ll walk you through the full Liberation Day 2.0 blueprint.
I’ll also share some details on three stocks my Stock Grader system has flagged with even higher “buy” ratings than Powell’s – companies I believe could double or triple as these policies unfold. (Register here now.)
This system is the same quantitative engine I’ve been using for nearly five decades – the system that helped me identify winners like AppleInc. (AAPL) and Amazon.com, Inc. (AMZN) long before they became household names.
And that, in 2024 alone, showed my premium members how to take a $7,500 investment… and walk away with:
Louis Navellier hereby discloses that as of the date of this email, that he, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
