91¶¶Òõ

Listen to the audio version of this article (generated by AI).

91¶¶Òõ sees 40% upside from here… the graduation boos tell a story (but not the one you think)… why Jonathan Rose and Marc Chaikin want you to watch what the money is actually doing…

As I write on Wednesday, oil prices are down about 4% on reports that a U.S.-Iran framework deal could restore traffic through the Strait of Hormuz within a month of a final agreement.

Iranian state television claimed to have a copy of a draft memorandum of understanding, in which Tehran commits to return commercial shipping to prewar levels – though Iran and Oman would jointly manage traffic through the strait, and U.S. forces would withdraw from the area.

As I write, stocks are wavering near record highs as traders weigh whether the deal will actually close.

Such caution is warranted. This conflict has had plenty of moments that looked like breakthroughs – only to give way to the next round of escalation. So, the pattern here suggests patience over enthusiasm.

Still, this appears to be real progress, so we’re encouraged.

We’ll keep you updated as this story evolves.

The Nasdaq 100 index has exploded 30% in less than two months

It’s been less a “rally” and more a “rip.”

But this meteoric performance raises an obvious question…

Is this sustainable? Or are we one bad data print away from the pinprick that pops the “AI Bubble” that the bears have been predicting?

Before we spiral into speculation, let’s check in with someone who has actually been right about this market.

Legendary investor 91¶¶Òõ has been carefully analyzing this rally and the broader market. His read isn’t what the bears are hoping for.

From Louis’ latest issue of :

Today, we’re facing an environment that’s eerily similar to the late 1990s — and that’s giving us an incredible opportunity.

Our friends at Bespoke recently released a chart comparing the NASDAQ’s performance during the Internet Boom in the late 1990s, driven by Netscape, and the AI Revolution driven by ChatGPT in 2022.

The conclusion is striking: ChatGPT did for AI what Netscape did for the internet – and in turn, created an incredible boom in related technology stocks.

In fact, the NASDAQ’s current path is incredibly similar to its path after Netscape. In other words, the AI Revolution parallels the Internet Boom – we’re essentially reliving it!

Louis isn’t ignoring the skeptics or the bear case. He’s quick to acknowledge that a breather – especially in the Nasdaq – wouldn’t be surprising.

Those odds increase as we head into summer – usually, a bumpy time of year for the broad market. But if/when such a pullback arrives, Louis urges investors not to overreact.

Expect normal volatility within a healthy bull market – but don’t view it as the beginning of the end.

In fact, circling back to the Dot-Com parallel, Bespoke notes that a pullback would mimic the Nasdaq’s dip between late May and October 1998.

This bullishness comes with a caveat

The gains that Louis anticipates aren’t for the broad market or your average consumer discretionary stock.

For the most part, they’re for the stocks related to the AI infrastructure buildout.

But if that’s where you’re invested today, here’s Louis with his forecast:

Personally, I think our AI and data center stocks will be another 30% or 40% higher between now and the end of the year.

And the reason why is simple: Companies’ sales and earnings continue to accelerate due to massive order backlogs.

These massive order backlogs ensure that the AI Revolution and data center boom will persist for at least the next three years. They also ensure that AI and data center stocks’ earnings will continue to accelerate for the foreseeable future.

And those who recognize this opportunity stand to prosper immensely in the coming years.

It’s an audacious claim: 30% to 40% higher by year-end – from a market already up 30% since late March.

But while bears might object, the underlying earnings data support it. Hyperscaler capex keeps climbing. AI infrastructure backlogs are real. And the stocks sitting in the middle of this AI buildout are generating years’ worth of average returns in just weeks – sometimes days.

Invest accordingly.

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Is AI really taking entry-level jobs? Here’s what the data actually says

Now, let’s turn to a storyline that speaks directly to the question of how long this bull can run.

On May 8, at the University of Central Florida’s College of Arts and Humanities graduation, a speaker named Gloria Caulfield – VP at Tavistock Development Company – stepped to the podium and told the graduating class:

The rise of artificial intelligence is the next industrial revolution.

The crowd didn’t politely clap. They erupted in boos. Someone yelled, “AI SUCKS!”

Caulfield stepped back from the podium, turned to the other speakers onstage, and asked, genuinely bewildered: “What happened?”

The next day – May 9 – at Middle Tennessee State University, music executive Scott Borchetta told graduates that “AI is rewriting production as we sit here.”

More boos.

Borchetta’s response:

Deal with it. Like I said, it’s a tool.

A week later, on May 15, tech billionaire and former Google CEO Eric Schmidt took the stage at the University of Arizona. Schmidt’s appearance drew protests for multiple reasons – including a personal legal matter – but when he compared AI to past technological revolutions, the stadium booed.

He acknowledged it:

I know what many of you are feeling about that.

I can hear you. There is a fear.

Are the boos warranted?

It’s tempting to read the boos as confirmation that AI is eating the job market alive. But let’s look at the actual numbers…

The Federal Reserve Bank of New York tracks college labor market outcomes on an ongoing basis. As you can see in the chart below, dating back to 1990, the unemployment rate has been ticking higher since 2023, but it’s nothing out of the ordinary…

Source: Fed data

Now, a naysayer might respond…

Jeff, the wave is still cresting, so don’t look at unemployment yet. Instead, you should look at underemployment.

Fair.

The term “underemployment” refers to a situation in which a person’s employment is considered inadequate relative to their skills, training, or financial needs.

So, what is it telling us?

Well, the most recent data puts the underemployment rate for recent college graduates at 41.5%.

Pretty high, right?

Actually, no.

As you can see below, this is almost exactly in line with where that number has sat across the last three decades.

The chart below dates to 1990, with the blue line showing “Recent graduates” and the red line showing “College graduates.”

Source: Fed data

The overall picture is not as bad as the boos suggest.

Of course, the picture isn’t uniform. Stanford economists studying payroll records have identified that early-career workers – ages 22 to 25 – in fields with heavy AI exposure (think customer service, data entry, junior software development, basic accounting) have seen a relative decline in available roles.

At the same time, sectors insulated from AI – nursing, agriculture, education – continue to hire heavily, which balances out the national averages.

But the overall bottom line is that the broad displacement narrative is running ahead of the actual data.

That’s not to say that the AI jobs apocalypse isn’t coming – it could be. But for now, the boos are worse than the bite.  

But it’s not a clear runway

What does it say when the data are normal, but the narrative is intensely pessimistic?

It illustrates that the perception of damage doesn’t need to match its reality to drive outcomes.

And that dovetails with the risk to the AI bull we’ve been watching, thanks to analysis from our technology expert, Luke Lango, editor of .

Remember that the students doing the booing – warranted or not – vote.

And Luke is concerned that this negative sentiment has political ramifications for AI, with a very specific timeline.

We covered Luke’s full 2028 thesis in our May 19 Digest. In short, Luke believes the political backlash against AI will crystallize into AI-curbing legislation right around the 2028 presidential election cycle. That, he argues, is when the curtain falls on this AI bull.

Those stadium boos, in other words, aren’t just a cultural moment – they’re the kindling Luke’s political thesis is built on.

Now, his conclusion isn’t “get out of the market.” It’s the opposite – which actually aligns with Louis’ takeaway…

Make your money while the window is open over the next two years.

As we wrap up this section, I’ll leave you with this…

The graduation boos are increasingly loud today – even while the employment data remains sturdy overall.

What do you think happens to that political clock when the data finally start catching up to the fear?

Jonathan Rose and Marc Chaikin: watch what the money is actually doing

Let’s step back.

Louis says 40% higher… Luke says sentiment and legislation will take down this AI bull…

If the tipping point arrives sooner than we’d like, how do we navigate the coming bull/bust timeline?

By watching what the money is actually doing.

We track capital flows, institutional positioning, and the hard signals – and position ourselves accordingly.

That’s precisely the framework our trading expert Jonathan Rose, editor of Masters in Trading, has built his career around. And with market veteran Marc Chaikin, founder of Chaikin Analytics, to walk investors through what they call the “Convergence Trigger.”

Why this trading approach is powerful in today’s market

Jonathan isn’t a buy-and-hold investor. He’s a defined-risk trader – someone who captures short-term moves in both directions with the maximum loss established before the trade is ever placed.

In his Masters in Trading: Advanced Notice service, Jonathan has posted an all-time average gain of 95% across all trades – winners and losers – in an average hold of just 46 days. And since volatility spiked in the wake of Liberation Day last April, that average has climbed to 233%.

Marc has spent 60 years building analytical tools that institutional investors pay serious money for. His Power Gauge and Money Flow indicators track where the big players are actually moving capital – in real time.

Together, they’ve back tested nearly 200 trades using .

When both signals align on the same trade, the results are striking: an 81%-win rate and 147% average gain. The combined signal also helped avoid two out of every three losing trades.

They’re not predicting the market. They’re reading what the market is already telling them – but before the crowd figures it out.

During tomorrow night’s event, the two experts will dive into all the details. .

Bringing it all together

Louis can be right about 40% upside, and Luke can be right that the AI trade has a shelf life.

The question isn’t which narrative wins – it’s how you position to profit from both with some margin of safety for timing curveballs…which is where Jonathan’s and Marc’s trading framework kicks in.

For investors who want the AI upside Louis sees – with defined risk on the downside if the narrative deteriorates faster than expected – tomorrow night’s event is the right place to start.

To reserve your seat, and we’ll see you at 8 p.m. Eastern.

Have a good evening,

Jeff Remsburg