Today’s issue in preview:
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An ignored market theme with huge upside quietly hits new highs
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This new “Trump Trade” could generate huge returns
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Is the market waking up to our “big AI income streams” idea? Pipeline stocks close in on all-time highs.
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Our very hot hand continues: Solar, silver, gold, copper, and oil stocks soar to new highs.
An ignored market theme with huge upside quietly hits new highs
Investors take note: Yesterday, a market theme with big upside potential quietly broke out to an important new high.
Over the past six months, I’ve frequently highlighted the emerging megatrends in health care, biotechnology, and genomics. More and more, it appears health care and drug development will be among the leading sectors of the next few years. Since September 1, the health care fund we track (up 16%) and the biotech fund we track (up 46%) have far outpaced the S&P 500 (up 7%).
Regular readers know that Boomer health care is one of our highest conviction long-term investment themes. The bull case here is simple: More than 10,000 Americans reach retirement age every day. This is the enormous Baby Boom generation entering the phase of life where health care and longevity spending skyrockets. 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.
As the trend tailwinds blow for the health care sector, the genomics subsector should do very well.
Genomics is the science of analyzing human DNA – often referred to as the “software code of life” – to create medicines and treatments. Years of innovation in this field have us on the brink of creating customized treatments based on an individual’s DNA… and even “editing” genes to cure disease.
Bulls on this sector highlight that AI could turbocharge its progress, making genomics one of the most promising fields in all of health care… one with trillion-dollar+ implications.
One way to track and trade the genomics theme is the ARK Genomic Revolution ETF (ARKG). It owns a basket of bleeding-edge genomic companies. Its largest holding, Tempus AI (TEM), is often cited as a premier way to play “AI in health care.” ARKG also holds significant positions in promising “gene editing” companies CRISPR (CRSP) and Intellia (NTLA).
Recently, the market sent a strong signal that the genomics trend is one you want to be involved in. ARKG has advanced 10.7% in the past month to reach a new one-year high.
This winning theme isn’t making front page news yet; it is still very much in a “stealth bull market.” As the word spreads, people on the sidelines will likely fuel this rally to run higher.
This new “Trump Trade” could generate huge returns
In January 2025, the White House acknowledged a new reality of threats against the United States with Executive Order 14186.
EO 14186 states that, “The threat of attack by ballistic, hypersonic, and cruise missiles, and other advanced aerial attacks, remains the most catastrophic threat facing the United States.”
The directive effectively launches the most ambitious infrastructure project since the Interstate Highway System, but this time the infrastructure is in orbit.
It’s called the Golden Dome.
For investors, this represents a multi-year niche investment opportunity inside the space and defense spending megatrends.
The media often compares the Golden Dome to Israel’s Iron Dome. Israel’s Iron Dome is a localized, ground-based shield that protects a small area. The Iron Dome intercepts and destroys short-range rockets and drones before they hit populated areas of Israel.
The Golden Dome is similar but increases the scope to a planetary scale – intended to counter intercontinental weapons across nearly 4 million square miles of the USA… rather than just small rockets in the line of sight.
To do this, the US is taking the battlefield into Low Earth Orbit using a network of thousands of satellites communicating in real time:
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Sensors to track heat signatures of launches globally
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AI-driven command nodes that calculate intercept/defense solutions in milliseconds
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Kinetic interceptors in space to neutralize threats.
Based on 2025 proposals, the Golden Dome will cost between $175 billion – $1 trillion. The estimates vary greatly based on scope and design. But even the low end of expected spending is enough to create a powerful investment theme.
Companies poised to benefit from the Golden Dome theme include:
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Rocket Lab (RKLB): If the Golden Dome needs satellites mass-produced at scale, RKLB is the factory floor. RKLB has built a name for itself through launches, but the real value of this $46B company lies in its Space Systems division, which will have far higher long-term margins and recurring revenue. It has already secured multiple contracts valued at over $800M from the Space Development Agency to build missile tracking systems.
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L3Harris Technologies (LHX): LHX is becoming the dominant player in space tracking and sensors. In late 2025, it secured an $843M contract to build 18 satellites for the Space Development Agency’s Tranche 3 Tracking Layer – a vast network of satellites in Low Earth Orbit. Many legacy defense players, such as Lockheed Martin (LMT) and Northrop Grumman (NOC), are weighed down by very slow development cycles. In a world where rapid mass production is key, LHX is likely to come out as a winner.
Like him or not, there’s no debate that Donald Trump likes to spend taxpayer money. One of his favorite ways to spend is on the military. Since warfighting is so high-tech these days, more military spending means more space-based weapons spending. This makes the Golden Dome theme one to watch.
Is the market waking up to our “big AI income streams” idea? Pipeline stocks close in on all-time highs.
It looks like the market is waking up to our “big AI income streams” idea. The Alerian MLP ETF(AMLP) has climbed 5.2% over the past 11 trading sessions and is closing in on an all-time high.
In early 2024, I began seeing the natural gas pipeline business as the best way to earn lots of passive income from the AI boom.
Given AI’s enormous promise, the world’s largest and wealthiest companies are embarking on the biggest capex spending cycle in history. Giants such as Google, Meta, Microsoft, and OpenAI are spending hundreds of billions of dollars a year on data centers, AI chips, and other infrastructure components.
All that AI infrastructure is poised to consume vast amounts of electricity. S&P Global estimates that global electricity demand will increase by nearly 50% by 2040.
I’ve frequently mentioned how AI’s growing power demands are a bullish driver for natural gas. Natural gas is the preferred clean-burning fuel for power plants that support AI data centers. This is why I believe natural gas producers such as EQT (EQT), Antero (AR), Expand Energy (EXE), and Range Resources (RRC) are compelling long-term stock ideas.
However, all the natural gas in the world isn’t worth much if you can’t transport it to customers.
This is where America’s vast natural gas transportation, processing, and storage industry comes in. An extensive network of pipes crisscrosses America to allow energy companies to transport natural gas from the wellhead to the power plant. If we get an AI-driven boom in natural gas consumption, then by default, we get a boom in natural gas transportation.
This is all great news for companies in AMLP. It’s the world’s largest ETF focused on pipeline operators. It holds the “who’s who” of American energy pipeline operators. The fund’s current yield is over 8%. This is an incredibly high yield in a world where your typical dividend ETF yields 3% – 4% and corporate bond funds yield 5.5%.
The typical pipeline operator is not your conventional “high-risk, high-reward,” AI play. It’s not going to soar 500% in one year as some AI stocks can. Instead, it’s a boring and predictable business that generates regular cash flows and shareholder distributions. And it’s getting an AI boost that will last for years. AMLP’s recent surge higher tells us the market is waking up to this big story.
Market Notes
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As I write, silver is trading for $100 an ounce. It’s up 216% over the past year. Many silver mining stocks are hitting new highs as a result.
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Our September 29, 2025, bullish note on oil stocks is proving to be incredibly well timed. Oil stocks of all shapes and sizes reached one-year highs today. New highs include oil giant ExxonMobil (XOM), Haliburton (HAL), Baker Hughes (BKR), and Suncor (SU).
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Our September 23, 2025, bullish note on solar stocks is proving to be incredibly well timed. The Invesco Solar ETF (TAN) climbed 2% today to reach a new one-year high.
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Our longstanding recommendation to own copper stocks to play AI and electrification is paying off like a broken slot machine. The Global X Copper Miners ETF (COPX) reached a new all-time high today. It’s up 120% in the past year.
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My June 2025 recommendation to own critical resource stocks is a big winner. The VanEck Rare Earth and Strategic Metals ETF (REMX) reached a new all-time high today. It’s up 170% since June 1, 2025.
Today’s Trend Leaderboard
Top performing themes and trends over the past month. (Click the image to view our Global Trend Tracker database.)
Regards,
Brian Hunt
Editor, Money & Megatrends
