Typically, the most effective investments are those everybody else is ignoring.
Tom Yeung right here together with your Sunday Digest.
Maybe the 2 most terrifying phrases in funding is the time period: “Everybody is aware of.”
To development buyers, it represents the second when a promising commerce has grow to be too crowded.
- “Everybody is aware of that web shares are the subsequent large factor…”
- “Everybody is aware of Florida actual property can solely go up…”
- “Everybody is aware of that crypto will take over banking…”
In the meantime, contrarian buyers perceive that markets don’t reward what is clear… solely what’s misunderstood. If an investor had been thrown again in time to the 12 months 1999, it will have been much better to purchase shares of rising market ETF The India Fund (IFN) (+600% by 2006) than dot-com darling Cisco Techniques Inc. (CSCO) (-22% over the identical interval)
That’s why current feedback from OpenAI Chairman Bret Taylor ought to ring alarm bells. In an interview with Fox Enterprise, he rightly stated, “Everybody is aware of AI will rework the financial system.”
“The joy is genuine, and as a consequence, there’s an enormous quantity of funding,” Taylor mentioned in the course of the interview. “And lots of people are simply questioning, are we investing an excessive amount of, too shortly?”
Now, will the AI financial system burst in 2026 because the dot-com bubble did in 2000? Nicely, nobody is aware of that for certain. We could possibly be in for one more 5 years of supernormal features… or shares of the Magnificent Seven might fall 50%-80% subsequent 12 months and underperform for 20 years.
However what we do know is that some corners of the market are being completely ignored by the “everybody is aware of” crowd.
Eric outlines this reality in his brand-new “AI Collapse Survival” presentation. On this free broadcast, he identifies a class of shares he calls “AI Survivors,” firms proof against the technological disruption (and potential selloff) that AI might create. In different phrases, these firms look extra just like the missed emerging-market firms in 1999, somewhat than the costly Ciscos of that period.
To provide you a way of his technique, I’d like to stipulate three misunderstood sectors he’s eyeing… and why these areas are so ripe for a breakout in 2026 whereas the “everybody is aware of” crowd is trying elsewhere.
Planting the Seeds for 2026 Features
Let’s be trustworthy: Fertilizer just isn’t a traditionally engaging business.
Ammonium nitrate… phosphorous… potash…
A lot of it appears like dried cow manure and infrequently smells prefer it too.
That briefly modified in 2022 when Russia invaded Ukraine. Abruptly, Western nations had been threatening to boycott one of many world’s largest exporters of fertilizer – a transfer that threatened to show present shortages into an all-out panic. Costs of potash surged 170% from their 2020 lows, and the malodorous enterprise of fertilizer turned one which smelled extra like cash. Shares of fertilizer companies spiked 2X or extra between 2020 and 2022 and briefly turned a fascination on Wall Avenue.
Costs ultimately got here again to Earth as distributors rerouted provide chains and farmers quickly reduce, however there was loads of time to money in first.
Nevertheless, we’re now seeing a brand new bull market in fertilizer costs, pushed by tariffs, rising demand, and Chinese language restrictions on phosphate and urea exports earlier this 12 months. Beneath is a chart from the St. Louis Federal Reserve that exhibits the producer worth index for phosphorus-based fertilizer.
That’s why Eric is recommending shares of a selected fertilizer producer that ought to profit handsomely from this new bull market. It’s one of many world’s lowest-cost producers of its class, and its American manufacturing websites protect it from a lot of President Donald Trump’s tariffs.
Now, it’s important to notice that not each fertilizer agency will do properly. Nitrogen-based fertilizer costs have struggled as compared, attributable to structural weaknesses in its provide chain. Many producers are additionally high-cost, high-debt, or each.
That’s why it’s essential that you simply watch Eric’s latest presentation, the place he identifies the precise fertilizer firm to choose for 2026.
Powering the AI Revolution
Subsequent, we’ve pure fuel – an vitality commodity that doesn’t at all times mirror the value of oil.
Beneath is a graph of Henry Hub, the usual U.S. benchmark worth. Costs right now are 36% larger than in 2024 and 62% larger than in 2023. Excluding the 2022-2023 worth spike brought on by Russia’s conflict in Ukraine, we’re now on the highest seasonally adjusted level since 2013.
The rationale for the restoration is simple: Provide has did not hold tempo with demand.
On the manufacturing facet, American vitality companies have been hesitant to drill new fuel wells, given their vivid reminiscences of the 2015 business crash. Low oil costs have additionally restricted the quantity of pure fuel collected as a by-product of oil manufacturing. (Ordinarily, greater than a 3rd of fuel manufacturing is generated this manner.) The U.S. Vitality Info Administration (EIA) expects only a 1% improve in U.S. fuel manufacturing subsequent 12 months.
In the meantime, the demand facet paints an much more bullish image, due to the insatiable electrical energy wants of AI knowledge facilities. A single ChatGPT question takes 10 or extra occasions the vitality of a Google search, and creating a brief AI video can use 2,000 times that figure. Analysts at Goldman Sachs forecast that AI will drive a 165% improve in data center power demand by 2030.
That’s triggered a brand new rush to construct combined-cycle fuel turbine energy vegetation. The EIA now expects one other 18.7 gigawatts (GW) of fuel technology capability to come back on-line by 2028 in America, in comparison with zero in 2024.
American liquified pure fuel (LNG) exports have additionally risen round 17% this 12 months to 12 billion cubic ft per day (BCf/d), and the U.S. Division of Vitality expects that determine to succeed in 26 BCf/d as soon as U.S. LNG export initiatives below building are accomplished. Some analysts say that U.S. fuel demand might rise as a lot as 27% from 2024 levels by 2030.
To experience this wave, Eric has picked one particular American driller with outsized upside due to its low breakeven prices, high-quality belongings (averaging 17 years of remaining stock life), and an irresistible inventory worth. Actually, even the corporate’s oil belongings will stay worthwhile till West Texas Intermediate (WTI) costs drop beneath $45.
To seek out the title of this firm, click here.
Conducting the AI Revolution
Lastly, one missed element of the AI Revolution is the uncooked metallic wanted for the wires, connectors, cooling techniques, chips, and shielding wanted for AI knowledge facilities:
Copper.
This uncooked materials has been on a tear in current months, leaping from $6,031 per metric ton in 2020 to $9,835 per metric ton in June 2025, as pictured beneath.
Costs have since risen additional to $11,000, and one mining CEO is now warning that it might improve to $15,000 next year on provide disruptions and the shortage of latest manufacturing websites. Eric believes this new supercycle ought to flip the refined-copper stability right into a deficit of roughly 150,000 tonnes subsequent 12 months. As he places it in a current Fry’s Funding Report replace (subscription required):
Copper is likely one of the most weak hyperlinks within the world provide chain for the vitality transition and AI build-out. With out greater than $200 billion of latest funding, the world merely gained’t have sufficient copper. For context, Wooden Mackenzie estimates that whole copper-mining funding over the previous six years reached solely about $76 billion…
So, the short-term story is straightforward; demand is rising quicker than anticipated, provide is rising slower than anticipated, and the market is already slipping into deficit.
Some copper miners have already seen worth motion of their shares. Southern Copper Corp. (SCCO) has risen 60% thus far this 12 months, whereas Hudbay Minerals Inc. (HBM) is up 125%.
However one firm has but to get better… and Eric is seeing it as a coiled spring ready to go off. This firm is a pacesetter in world copper manufacturing and has additionally pioneered a cheap methodology for extracting copper from waste rock. This expertise might ultimately add 20% to its pretax earnings.
The agency additionally generates a big quantity of gold as a by-product of its copper mining operations. Actually, one in all this agency’s mines is so wealthy in valuable metallic that the copper it produces has detrimental unit money prices.
Now, you may be capable of guess the title of this miner. Eric has been recommending and speaking about this firm since 2020. However to make certain you’re investing in the suitable agency, I’d extremely counsel watching his presentation, the place he reveals particulars about this decide for 2026.
“Zigging” Whereas Everybody Else “Zags”
Within the late Nineties, Eric labored at Grant’s Worldwide, a agency targeted on worldwide markets. Whereas everybody in America was fixated on dot-com shares, Eric was recommending overseas firms like Thailand’s Minor Worldwide Group (MNILY), Germany’s Adidas (ADS), and, in fact, The India Fund.
These suggestions had been made in 1999… the 12 months dot-com mania was reaching its peak. And all three massively outperformed U.S. tech. Over the next years, every one scored 1,000% features or extra.
As we speak, Eric is as soon as once more warning that markets are starting to look frothy. Buyers are convincing themselves that this technological revolution is totally different, and that the outdated valuation norms now not apply. In spite of everything, if “everybody is aware of” one thing will change the world, why shouldn’t you purchase it at any worth?
However very similar to the dot-com increase, right now’s AI Revolution comes with rising dangers. Shares will seemingly hold going up within the medium-term… however what occurs if (or when) the underside falls out?
That’s why it’s rising equally essential to purchase sectors that “nobody is aware of,” at the same time as costs within the “everybody is aware of” camp hold rising. Eric covers all this, and extra, in his new “AI Survivors” special presentation.
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We’ll function “better of” Digest items in the course of the holidays, and I’ll see you again right here after New 12 months’s.
Till then,
Thomas Yeung, CFA
Market Analyst, InvestorPlace
