A “best in class” AI play is poised to reach new highs. Do you own it?

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Today’s issue in preview:

• A “best in class” AI play is poised to reach new highs. Do you own it?

• A critically important indicator says the U.S. is booming. Invest accordingly!

• Revenue is soaring in this industry and will for years. How to invest.

• Learn our Top Themes to buy now

A “best in class” AI play is poised to reach new highs. Do you own it?

Credit: imaginima

Over the past two months, the Global X Cybersecurity ETF (BUG) has risen 49% to reach new all-time highs.

The price action in this single ETF shows the business world realizes the Agent Supernova is coming… a megatrend that will create both extraordinary financial opportunities and extraordinary risks.

In our March 16 issue, we introduced our Agent Supernova thesis.

After years of development, AI is now advanced enough to perform many everyday tasks people do … and the list is only getting longer. Over the next 12–24 months, AI “agents” will help manage factories, perform financial analysis, manage inventories, write software, design websites, create legal documents… and thousands of other tasks.

The Agent Supernova is poised to reorder how the world works. It will break and reform many businesses, industries, and societal norms.

Soon, a restaurant could have five different agents working in it. One agent to manage the cooking schedules of meals. One agent to manage accounting. One agent to manage the staff. One agent to manage the ordering and tracking of supplies. One general-purpose agent to manage the specialized agents and interact with the restaurant owner.

At home, another set of agents can perform tasks to help the heroic American mom. A “mom helper” agent could schedule dentist appointments for the kids, pay bills, renew the car insurance, write and send thank-you cards, order groceries, and remind the kids to do their homework.

Meanwhile, another set of agents will transform American factories. They will have agents managing logistics, accounting, production schedules, component part ordering, hiring and firing workers, and other critical functions.

Now, take those three examples and extrapolate that activity across the economy. We are on the cusp of an explosion of agents working 24/7/365 for individuals, businesses, and governments.

In addition to restaurant manager agents, mom agents, and factory management agents, our lives will soon feature legal agents, government agents, tax agents, teacher agents, negotiator agents, airport agents, hospital agents, writing agents, marketing agents, and the list goes on for days.

Within the next two years, the number of AI agents operating in the American economy isn’t poised to increase by 10X… or 50X… or even by 1,000X. Try at least 10,000X.

Of course, the business and investment implications here are huge. The Agent Supernova will transform many businesses and industries. It will end many businesses as we know them… while creating new ones at the same time. The economic deck is about to get reshuffled.

Over the past four months, we’ve detailed how the Agent Supernova is creating opportunities in data traffic, semiconductors, and neocloud stocks. It’s also poised to boost Cloudflare’s (NET) share price.

Cloudflare is one of the world’s leading Content Delivery Network (CDN) firms. A CDN is a network of physical servers deployed across the country that speeds up the delivery of website content. It reduces latency and bandwidth costs by bringing data and content closer to users.

In addition to this business, Cloudflare provides in-demand cybersecurity services, AI agent management services, and AI agent transaction services. This diversified suite of hardware and agent management services makes Cloudflare something of an AI agent “conglomerate,” and uniquely positioned to benefit from the coming agent boom.

Cloudflare’s unique position is driving strong growth. In 2024, its revenue grew 29%. In 2025, it grew 30%. Wall Street expects Cloudflare to maintain this high revenue growth through 2026 and 2027, with revenue projected to reach approximately $2.79 billion in 2026 (roughly 29% growth) and rise toward $3.6 billion by 2027. After a sideways consolidation over the past 10 months, the stock is poised to reach new highs.

The Agent Supernova is poised to hit our economy like a tidal wave. It will create enormous change and opportunity. Investing in businesses that keep agents operating safely and securely is a big way to benefit.

A critically important economic indicator says the U.S. is booming. Invest accordingly.

Credit: AlexLMX

Who knew having “Bancorp” in your company’s name would be almost as powerful as “AI” here in 2026?

AI is the most pervasive, most powerful force in the stock market today. This year, it is responsible for creating enormous stock winners like Micron (MU, up 271%), Intel (INTC, up 249%), Dell Technologies (DELL, up 235%), and Marvell Technology (MRVL, up 223%).

Given the momentum behind and interest in AI, companies of all shapes and sizes are trying to associate themselves with AI-powered innovation and productivity.

But perhaps they should brand themselves as benefitting from the regional bank trend.

This week, regional bank stocks are dominating the “New 52-week highs” list.

Regional bank firms soaring to new highs this week include Horizon Bancorp (HBNC), Five Star Bancorp (FSBC), Southside Bancshares (SBSI), Trustco Bank Corp NY (TRST), Mid Penn Bancorp (MPB), Old Second Bancorp (OSBC), Peoples Bancorp (PEBO), Westamerica Bancorp (WABC), Origin Bancorp (OBK), Hope Bancorp (HOPE), S&T Bancorp (STBA), Byline Bancorp (BY), Connectone Bancorp (CNOB), and OFG Bancorp (OFG).

These regional banks are much smaller firms than giants like Bank of America (BAC) and Wells Fargo (WFC). For example, BofA’s market cap is $416 billion. Most of the names above are under $4.16 billion in market cap, or less than 1% of the size of BofA.

Regional banks derive a greater share of their profits from “plain vanilla” banking activities, such as regional business loans, real estate development loans, and mortgage lending, than some “mega banks” do. This makes a regional bank highly sensitive to the economic health of its region. Its profits and market value will rise and fall with the area’s ability to create new businesses, operate existing ones, and pay back home loans.

Right now, regional economies across America are doing well… which is driving a broad bull market in banks and the SPDR S&P Regional Banking ETF (KRE), which has soared to a new all-time high.

Over the past four months, I’ve written over a dozen research notes that analyzed the soaring share prices of trucking stocks, industrial stocks, diesel engine makers, steelmakers, shopping mall operators, and hotel chains.

At the end of each note, I pointed to their soaring stock prices and told readers that the U.S. economy is doing much better than most people think. Today, let’s add regional banks to this large and growing list of “real-world” economic indicators that reflect a strong U.S. economy. We’re booming. Conduct your financial affairs accordingly!

Revenue is soaring in this industry and will for years. How to invest.

Credit: RiverNorthPhotography

This week, the assisted and senior living industry sent us a powerful reminder: There’s money to be made in the Boomer health care megatrend.

As evidence, we point to the new all-time highs reached this week by America’s largest assisted- and senior-living firms, Welltower (WELL) and Ventas (VTR). Both firms are giants of the industry. Both stocks are up more than 40% over the past year. Both reached new all-time highs this week.

Avid Money & Megatrends readers know that Boomer health care is one of our highest-conviction long-term trends. If you forced me to put all of my portfolio into Boomer health stocks, I would not object in the least.

The bull case here is as follows: More than 10,000 Americans reach retirement age every day. The U.S. population aged 80 and older is projected to roughly double, from 14.7 million in 2025 to 29.4 million by 2045.

This is the enormous Baby Boom generation entering the phase of life where health care and longevity spending skyrocket. For many boomers, a typical month involves going to see at least one doctor to have something looked at, removed, or treated.

This means many health care businesses are experiencing huge demand now – and will for at least the next decade. It means boom times ahead for many “ology” businesses, stocks, and careers, such as dermatology, cardiology, radiology, oncology, anesthesiology, and ophthalmology. The list goes on.

Investing in many health care businesses over the next decade will be investing with a gale-force tailwind at your back. If you’re a parent and worried about your child getting a job, just point them to the booming health care industry.

Giants Welltower and Ventas get most of the press related to the senior living industry. But stocks of smaller industry players CareTrust (CTRE), Sabra Healthcare (SBRA), and Omega Healthcare (OHI) are also in bull markets and trade near all-time highs.

Although these are relatively big businesses, they usually fly under the radar of most investors. But perhaps they shouldn’t. The Boomer health care trend is a big one… and it will last for many years. I’m still bullish.

Market Notes

• Global banking giants Royal Bank of Canada (RY), Banco Santander (SAN), US Bancorp (USB), Barclays (BCS), Citizens Financial Group (CFG), and Webster Financial (WBS) all reached new highs today. This is a broad bullish signal for the economy.

• Insurance giant Allstate (ALL) reached a new high today, which is another bullish signal for the economy.

• Our November 24^th recommendation to own healthcare stocks is paying off. Centene (CNC), Roivant Sciences (ROIV), and diagnostics giant Guardant Health (GH) all reached new highs today.

• Our November 25^th recommendation to own drone leader Kratos Defense & Security (KTOS) is up 10% today.

Regards,

Brian Hunt
Editor, Money & Megatrends

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