One of our top energy recommendations keeps producing winners day after day. Are you benefiting?

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Today’s issue in preview:

• One of our top energy recommendations keeps producing winners day after day. Are you benefiting?

• This business megatrend is creating dozens of big winners… and will for years to come.

• How to trade the stock market’s most important trend from here

• Learn our Top Themes to buy now

One of our top energy recommendations keeps producing winners day after day. Are you benefiting?

Credit: sefa ozel

This week, the bull case we’ve been making for oil stocks got a lot stronger.

The boost came in the form of new all-time highs for oil giant Chevron (CVX), Canadian oil giant Cenovus (CVE), Canadian oil giant Canadian Natural Resources (CNQ), oilfield services firm Tidewater (TDW), oilfield services firm NOV (NOV), oil drilling firm Patterson-UTI (PTEN), U.S. oil producer SM Energy (SM), and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).

These new highs make the oil and gas sector one of the market’s leading trends.

Last September, I made the case for going long the emerging uptrend in oil and gas stocks: As the global economy grows, oil demand will remain solid. However, importantly, U.S. shale oil production growth appears to be peaking.

Flatlining supply from this region would remove a critical and reliable source of production growth that has been in place for more than a decade. Plus, oil was very cheap relative to gold and other assets, indicating good value.

With all that in mind, we’ve written frequently and bullishly about owning Canadian oil giant Suncor (SU),ExxonMobil (XOM), and oilfield service stocks like those in the SPDR S&P Oil & Gas Equipment & Services ETF (XES).

Both SU and XOM are up more than 44% since our September call. XES is up 69%.

When I recommended oil and started trading it from the long side, I did not factor in the potential bullish driver of the Iran War. That’s been a “bonus” driver of gains in oil stocks. Sometimes, the dice rolls in your favor.

Although positive news related to the Iran War could emerge at any time and trigger a short-term correction in oil and oil stocks, the long-term picture remains bullish. I see three reasons why this is the case.

One: Critical oil infrastructure in the Middle East has been damaged. Oil flows will not return to pre-war levels for possibly over a year. This supports oil prices north of $80 per barrel, which supports large cash flows for oil and gas firms.

Two: Most countries maintain substantial above-ground “buffer” supplies of oil and refined petroleum products in the event of market disruptions such as the Iran War. Over the past five months, much of these buffer supplies have been depleted to compensate for the loss of Middle Eastern flows. They must be replenished.

The coming restocking of buffer supplies will support oil prices north of $80 per barrel… which, again, supports large cash flows for oil and gas firms.

Three: Although oil stocks have enjoyed a large run since our September call, they aren’t up much over the past ten years. Adjusted for dollar debasement over the past decade, key oil and gas ETFs are down significantly. This is not an aging bull market that has attracted too many fans and too much capital. It is the opposite of that.

Avid Money & Megatrends readers know that I like to know both the bull and bear cases for any trend… but I care a lot more about what the market thinks of those cases than anything else. You can be bullish on an industry or theme all you like, but if the market is going against you, then your bullish thesis isn’t worth much.

As for the bull case for oil stocks, the market is enthusiastically supporting it. Our guidance remains: Stay long oil stocks.

This business megatrend is creating dozens of big winners… and will for years to come.

Credit: Jezperklauzen

This week, shares of Replimune (REPL), Vir Biotechnology (VIR), Exelixis (EXEL), and RenovoRx (RNXT) all reached new one-year highs.

This means it’s a bull market in oncology stocks.

The companies above aren’t household names, but they are all significant players in the cancer treatment business. Their new highs indicate the Boomer healthcare megatrend is alive and well. It’s a megatrend generating new stock market winners virtually every week.

For more than three years, I’ve made “Boomer healthcare” one of my highest conviction long-term investment themes. This means I’ve been bullish on biotech, genomics, and healthcare in general. In more than 20 Money & Megatrends research notes over the past year, we’ve been very bullish on stocks and ETFs related to this trend.

Regular readers are familiar with the bull case here. 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 healthcare 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. Dermatology. Cardiology. Radiology. Oncology. Anesthesiology. Ophthalmology. The list goes on.

Investing in many healthcare 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 healthcare industry.

Unfortunately, an aging Baby Boomer population means more cancer cases the U.S. healthcare system must treat each year. Just over 2 million Americans are expected to be diagnosed with cancer in 2026. In 2020, the comparable estimate was about 1.81 million new cases.

Age is the single most important risk factor for cancer overall. Cancer incidence is roughly 350 cases per 100,000 people at ages 45–49, but rises to more than 1,000 per 100,000 among people aged 60+.

The median age at cancer diagnosis is 67, which is where much of the Baby Boom generation is now concentrated.

More cancer cases mean more spending on cancer diagnostics and treatments… which means strong tailwinds for the companies mentioned above and the oncology-focused Tema Oncology ETF (CANC). This unique ETF is up 61% over the past year. It’s yet another profitable facet of the Boomer healthcare megatrend.

How to trade the stock market’s most important trend from here

Credit: Petrovich9

Has the bull market in AI infrastructure turned into a dangerous bubble that will soon pop and wreak havoc on the economy?

Or is this bull market taking a healthy break… and poised to resume its tremendous production of stock market winners?

This is one of the biggest, most consequential issues in all of business and investment right now.

The status of this critical trend has become one of the great sagas of the business and investment world… a source of intense disagreement among industry bulls and bears. It’s a trend whose outcome could have large effects on your portfolio.

Given AI’s enormous promise, large tech firms such as Alphabet (GOOG), Amazon (AMZN), and Microsoft (MSFT) have invested over $1 trillion in AI infrastructure. They are on pace to invest over $700 billion this year alone and more than $3 trillion after that.

Both the scale and the velocity of this investment boom are unprecedented. It is the largest collective investment effort in history.

Big Tech’s historic investment boom has made the entire “AI infrastructure” trend responsible for a large share of America’s GDP growth and stock market returns over the past two years. It has also drawn the skeptical scrutiny of many widely followed investment analysts who claim the trend is a bubble… one that will soon explode and cause tremendous damage to stock prices and the global economy.

If this hugely consequential trend isn’t the most important trend in the stock market, then it is certainly in the top three.

I believe the AI infrastructure trend has years to run. I believe the world’s smartest, most connected tech CEOs who have the greatest access to information on AI advancement and return on AI infrastructure spend like Elon Musk, Jensen Huang (Nvidia), Satya Nadella (Microsoft) and Andy Jassy (Amazon) just might know more about the AI trend than the bearish armchair quarterbacks know about it.

As much press as AI gets, let’s remember that less than 1% of the global population pays for top-tier AI programs. And I estimate less than 20% of large companies believe AI has made a meaningful impact on their businesses. It’s probably closer to less than 10%.

This revolutionary technology hasn’t yet proliferated, achieved mass adoption, or had mass impact.

Regular readers know I care a lot more about what the market thinks of any stock, trend or theme than what any one person thinks of it, including me. You can be bullish or bearish on a trend all you like, but if that trend is moving strongly against you, then your idea isn’t worth a hell of a lot in my book.

Over the past six weeks, we have published a special series of research notes analyzing the semiconductor trend, which is a key part of the larger AI infrastructure investment megatrend. We’ve also analyzed the trend of computer memory giant Micron (MU).

But a thorough analysis of any trend as large and diverse as AI infrastructure is a mosaic of facts, figures, and stock price action. The trend in optical networking stocks is a key part of this mosaic.

Optical networking equipment is a critical ingredient of the AI infrastructure boom. This equipment allows data to be transferred quickly and efficiently between parts of AI computing chains. Think of optical networking as a critical part of the “AI data traffic highway system.”

As a result of Big Tech’s enormous AI infrastructure spending, optical network equipment makers Lumentum (LITE) and Coherent (COHR) have enjoyed soaring revenues, and their stocks are among the market’s biggest winners over the past two years.

Since reaching a high in June, Lumentum’s stock has moved in line with the semiconductor sector, which we’ve been tracking closely.

As you can see in the one-year chart below, Lumentum is trading within a directionless sideways consolidation. It, like the VanEck Semiconductor ETF (SMH), is like a “becalmed” sailboat on a windless sea. The trends of other important parts of the AI infrastructure trade – electric power component makers, neoclouds, and data center cooling firms – look much the same.

This entire, hugely consequential trend continues to move sideways.

I’ll keep you updated on this world’s most important trend. It won’t be long before we get meaningful price action that provides direction for trading semis, optical networking, and other key components of AI infrastructure.

Market Notes

• Our recommendation to own farm machinery giant Deere & Co. (DE) is working well. The stock reached a new all-time high today.

• Japanese banking giants Mitsubishi UFJ Financial Group (MUFG), Mizuho Financial Group (MFG) and Sumitomo Mitsui Financial (SMFG) hit new highs along with Spanish giant Banco Bilbao (BBVA).

• The Boomer healthcare theme we recommended continues to do well. Pharma giant Pfizer (PFE) , along with Vertex Pharmaceuticals (VRTX), Biogen (BIIB) , and Regeneron Pharmaceuticals (REGN), reached new one-year highs today.

• Our September 2025 recommendation to get long the oil and gas uptrend continues to pay off. The State Street Energy Select Sector SPDR ETF (XLE) hit a new high today. Individual plays ConocoPhillips (COP) and Canadian Natural Resources (CNQ) also reached new highs today.

• Our January 28th recommendation to own the AI application layer is paying off. Zeta Global Holdings (ZETA) just hit a new yearly high, which means it’s now up 56% since our initial recommendation.

Regards,

Brian Hunt
Editor, Money & Megatrends

An urgent message from our colleagues:

Elon Musk Just Did Something He’s Never Done Before

This February, Elon spent millions to send a message to 125 million Americans. Most people ignored it. But Wall Street veteran Whitney Tilson couldn’t stop thinking about it, and says what Elon was really saying explains everything about what’s unfolding in America’s economy right now.

He’s sharing his full analysis, free, here.