Right in line with our focus for 2026 ͏ ͏ ͏ ͏ ͏
͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
͏ ͏ ͏ ͏ ͏ ͏ ͏
[dylan-diary-email-header-btm]
[[link removed]]
_You are receiving this email because you are subscribed to BEHIND THE
MARKETS. If you no longer wish to receive these emails,
please unsubscribe
[[link removed]] here._
-------------------------
Dear Reader,
We’re getting to the time of year when all the banks start rolling
out their predictions for the next year.
I thought Goldman Sachs’ in particular, were worth sharing with you.
Here’s their top five.
[[link removed]]
[[link removed]]
First, central banks are rewriting the playbook.
Goldman Sachs’ bet is that the U.S. Fed is going to lower rates
twice, and it looks like Trump is going to pick somebody very dovish.
The thinking is that it will be Kevin Hassett.
Nobody knows for sure, but that’s a popular bet.
It seems like the world is getting used to a new inflation regime.
For many years, since post-World War II the regime was _lower rates,
low inflation_.
But it looks like instead of a 2% inflation rate, we’ll be targeting
3% - 3.5%. Which is not good.
This will create a lot more political instability as we go on and
people can’t afford to eat.
It’s going to be a problem.
Goldman Sachs’ second big takeaway is that AI CapEx is the new
Global Arms Race.
We’ve been talking a lot about this.
Hyperscalers (data centers) now account for 27% of S&P 500 capital
spending. Capital spending means companies investing in equipment and
building out plants.
The market has underestimated their spending. We’re still early in
the AI buildout - semiconductors, infrastructure, agentic AI software,
cybersecurity, data management…
Those are all in the slipstream of this happening. We have massive
opportunities in that, which we focus on quite a bit here at Behind
the Markets.
Goldman’s third big takeaway is that market concentration is high,
but fundamentals are doing the heavy lifting. We all know this.
Right now the top 10 U.S. companies represent 40% of the S&P 500, but
it’s different from the dot-com era in one big way.
The companies that really popped during the dot-com era were companies
that didn’t have any profits.
So in that way, this is more like the go-go sixties, and, frankly, the
twenties, where you had a lot of profits among a small group.
So unlike the dot-com boom, you still have good balance sheets, strong
earnings and mega big margins underpinning these.
Now the real opportunity, according to Goldman Sachs, is in small- and
mid-cap “picks and shovels” plays that enable the AI boom and
America First reshoring.
And this is exactly what we concluded…
Which is why we’re launching our new product, _America First
Fortunes, _a week from today.
If you would like to be first to hear about the product and join live
when we talk about our top America First Stocks next week, GO HERE NOW
TO REGISTER
[[link removed]].
Goldman Sachs also says private markets are stabilizing.
Their equity valuations are high, but they’re not supported by
earnings because most of these are small, private companies.
What we’re seeing here, though, is exit markets, IPOs, are really
reopening.
When there’s turbulence in the market like we saw after liberation
day, and the budget wasn’t passed and there was a shutdown,
investment banks tell companies that want to go public, “you gotta
wait.”
But now we’re starting to see the IPO market really open up, which
is great.
And finally, their fifth big trend for 2026 is economic security and
power demand will define the next decade.
Boy, oh boy, doesn’t that sound like what we talk about a lot?
“Economic Security” is what we talk a lot about with America First
Fortunes.
It says here in Goldman’s note, “governments are spending
aggressively on supply chain resilience, defense, energy transition,
infrastructure upgrades.”
Yes, yes, yes, and yes - we are doing all of this. That’s why
we’re launching America First Fortunes in a week.
Here’s your chance to join live when we unveil what we’ve been
working on all year long - JUST PRE-REGISTER HERE
[[link removed]].
There’s a big infrastructure project happening right here in
Florida. Port Everglades is being upgraded for a bunch of reasons
including national defense, container, petroleum, gas. It’s really
become a jet fuel hub.
Imagine a conflict happens and we need to get to South America or
whatever, for Venezuela and all this stuff - this is where all the
fueling for the military happens - very important.
We’re really upgrading our entire infrastructure.
We’re entering now an era of great power competition with China.
That’s the bottom line.
And we are too vulnerable to do that the way things are right now.
So we have to tool up here on our shores. We have to make sure we can
withstand something like this.
Remember, you watch those old World War II documentaries and you know,
it’s “Germany attacks France, takes over France” and then it
swings and goes after Britain, and then it goes to Russia. And then
America enters the war and starts outmanufacturing everybody.
And we don’t have that right now.
So, again, we need to be able to _really _scale up ship building,
cars, steel, all these things in case, God forbid, a war comes our
way.
We have a great power competitor on the block. Bottom line - we gotta
prepare for it.
And that’s what President Trump is doing.
I’m not one of these people who thinks Trump is a God-figure - I
don’t look at the world that way.
He’s not perfect - nobody’s perfect.
But I do believe he’s addressing serious issues.
And, as a result there are big moneymaking opportunities for us.
But more importantly, over time, our kids and grandkids will grow up
in a safer world.
So if we can align moneymaking opportunities with that, I’m all in.
If you’d like to join me, REGISTER HERE TO JOIN US
[[link removed]]
live next Thursday, December 11th at 1:00pm Eastern Time.
Have a great day. I’ll see you tomorrow.
"The Buck Stops Here"
[youtube button]
[[link removed]]
[facebook button]
[[link removed]]
[instagram button] [[link removed]]
Our mailing address is:
Behind the Markets, LLC
4260 NW 1st Avenue, Suite 55
Boca Raton, FL 33431
Copyright © 2024 Behind the Markets, LLC, All rights reserved.
You're receiving this email as part of your subscription to Behind the
Markets. For more information about our privacy practices, please
review our Privacy Policy
[[link removed]]
or our Legal Notices.
[[link removed]]
Behind the Markets
[[link removed]]
Unsubscribe
[[link removed]]
