This explosive, high upside sector is running higher. Do you own it?

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Today’s issue in preview:

• This explosive, high upside sector is running higher. Do you own it?

• This industry has enormous upside potential. How to trade it from here.

• The most important bull market the mainstream media isn’t covering for you

• Learn our Top Themes to buy now

This industry has enormous upside potential. How to trade it from here

Credit: Walter Cicchetti

After trading sickly for two months, it looks like the trend in space stocks is getting healthy again.

Money & Megatrends readers in good standing will recall our belief that space-related industries will enjoy tremendous growth and generate many large stock market winners over the next five years.

On Sept. 22, 2025, I wrote a bullish piece on space stocks and said it’s a sector that the “public could go wild for.” I stated the bull case like this:

When people think of investing in space, they often go towards the business of launching rockets and Elon Musk’s SpaceX. But many of the most promising “space stocks” are in the business of space-based communication platforms and equipment. Think government surveillance, military communication, GPS, internet service, and cell service.

The best big picture fundamental case for space stocks right now is that the Trump administration believes America is in a hugely important competition with China and other countries for “space dominance.” This means regulatory and financial support for the U.S. space industry.

… Top performing individual space names worth checking out include Rocket Lab (RKLB), BlackSky (BKSY), Planet Labs PBC (PL), and AST SpaceMobile (ASTS).

Soon after our note, many space stocks soared 50%-100%, powered in part by anticipation of SpaceX’s (SPCX) gigantic IPO in June.

After that runup, however, space stocks experienced a large correction. I viewed this correction as natural, given its huge preceding run-up. No sector runs higher week after week in a straight line. The space trade needed to “work off” a lot of froth and enthusiasm.

As you can see in the one-year chart below of the Procure Space ETF (UFO), the space theme looks to have formed a bottom in the mid-$40 per share range.

This is also where the fund traded in a sideways consolidation earlier this year. UFO used this price level as a base to mount an assault on the $48-per-share area, which it reached last week.

This bit of positive price action is enough for me to say the space theme is likely in a healthy uptrend again, which means the tailwinds are shifting back in favor of long positions.

We still like the names above and the ETF above… and we’ll be sharing more ideas and analysis on this trend soon.

The most important bull market the mainstream media isn’t covering for you

Credit: Traimak_Ivan

If you’re looking for some good news or a reason to be optimistic on America, look no further: The Invesco S&P SmallCap Industrials ETF (PSCI) is in a bull market… and just pennies from reaching a new all-time high.

That’s good for America… and good for your 401(k).

PSCI is one of the most important ETFs you’re probably not following. It holds a diversified basket of critical but lesser-known U.S. manufacturing firms.

These companies typically don’t make the front page. There’s no “rock star” CEO like Elon Musk in this area of the market.

These firms operate with little fanfare, providing critical equipment and services the U.S. economy cannot function without. You may not know them, but you most certainly encounter their products when you walk into an office, turn on your car, or flip on the lights.

Our factories, vehicles, homes, and cities cannot function without their specialized pumps, motors, filters, fans, valves, fasteners, tools, gaskets, wiring, bearings, and switches. These businesses are the backbone of the American economy. And they are doing great.

In late 2025 and early 2026, I frequently highlighted how many critical, yet unrecognized U.S. manufacturers were reporting excellent business results and enjoying rising stock prices. At the time, PSCI was regularly registering new all-time highs.

However, PSCI suffered an Iran War-induced selloff alongside the broader market. Shares dropped 14% in six weeks. Since then, PSCI has surged to new highs. As you can see in the chart below, the fund is in a beautiful three-year uptrend.

This exceptional price strength means the economy is doing very well. We are making and buying lots of trucks, tractors, concrete, steel, engines, HVAC systems, data centers, power plants, transmission lines, and communication networks.

The stock market is one of the world’s greatest forecasting mechanisms. It tends to look ahead 6-12 months. When an industry is in a recession, its stock prices will rise before the news media says it is recovering. When an industry seems to be doing well, its stock prices will decline before the news covers its downturn. This is often called “discounting the future.”

There’s a variety of negatives at work inside the U.S. economy. Stock market bears and pessimists can find all kinds of reasons to avoid stocks. But new all-time highs in industrial stocks mean the evidence is working against them.

This explosive, high upside sector is running higher. Do you own it?

Credit: gorodenkoff

This morning, shares of giant biotechnology firm Amgen (AMGN) advanced 1.3% to reach a new all-time high.

Amgen is the largest holding in the iShares Nasdaq Biotechnology ETF (IBB), so its strong performance helped push the fund to a new all-time high.

These important moves mean the biotechnology bull market is alive and well… and full of opportunity. They also make our recommendation to invest in this theme a very large winner.

On Aug. 18, 2025, I sent a research note to colleagues outlining my bullish view of the biotech sector’s price action. Since then, I’ve written more than a dozen updates on the biotech bull market, as IBB has risen 46.8%, far outpacing the S&P’s 19.5% return.

IBB focuses on large biotech firms such as Amgen (AMGN), Vertex Pharmaceuticals (VRTX), and Gilead Sciences (GILD). The S&P Biotech ETF (XBI), which focuses on smaller biotechs, has risen 76.9% compared to the S&P’s 19.5% return.

The biotechnology sector comprises companies working on cures and treatments for hundreds of diseases. When investors grow interested in this industry, the returns can be incredible. During the last biotech bull market, the sector soared 300% over four years.

Biotech performed poorly from 2021 through 2025, so most investors are indifferent to it. But I see major potential here. This industry is poised to generate many stock market doubles and triples over the coming decade.

The fusion of AI plus biology will generate dozens of compelling stock narratives over the coming years. Researchers running superintelligent AI programs will be able to run millions of digital simulations of drugs and treatments. This will put medical innovation into overdrive… and create many big stock market winners.

Companies that leverage AI to “crack the code” for various diseases, treatments and drugs will enjoy 100%… 500%… even 1,000%+ stock rallies.

In many cases, these rallies will happen thanks to stories and potential… rather than a company generating revenue or earnings.

Capitalizing on many of today’s biggest stock market trends means focusing on promise over profits. The biotech sector holds the potential for both.

Biotech has another powerful factor working in its favor: Virtual anonymity.

The investment public is largely indifferent to the biotech industry right now. Investment newsletter sales related to biotech are tiny. Biotech specialists posting on X get scant attention. CNBC does not have a show devoted to biotech. Presentations on biotechnology stocks are not popular at investment conferences.

If I were to bring up biotech investing to a group of casual, amateur investors, I’d get blank stares in return. This “state of indifference” is very bullish for biotech stocks.

When the investment public is indifferent towards a powerful theme, it tells you valuations have not been bid up to unrealistic levels… so there’s plenty of room to grow into high valuations. Plus, it means there’s a lot of money on the sidelines that could eventually pile into the trend, sending it much higher.

In other words, “A strong industry uptrend + public indifference towards that industry” is one of the greatest moneymaking equations in all of finance.

Investors with the time to spend on picking individual biotech stocks and managing the positions can generate large returns in a biotech industry uptrend. For example, over the past year, at least 14 companies with “therapeutics” in their names have delivered returns of 300%+ or more.

If you don’t want to spend time researching and managing individual biotech stock positions, ETFs can get you exposure to this industry. XBI and IBB are worth considering.

The biotech industry has tremendous price momentum working in its favor… plus the investment public is largely indifferent to its success. This is a powerful combination that makes more new highs a high-probability bet.

Market Notes

• The uptrend we highlighted in psychedelic medicine stocks has become a big winner. The AdvisorShares Psychedelics ETF (PSIL) is up 55% since our bullish March 16 note. The fund is benefiting from expectations that the U.S. government will ease regulations related to psychedelic treatments.

• Our September 2025 recommendation to own oil and gas stocks continues to be a winner. The Energy Select Sector SPDR Fund (XLE) reached a new all-time high today. XLE is the world’s largest oil stock ETF.

• Our recommendation to own oil and gas pipeline stocks continues to be a huge winner. The Alerian MLP ETF (AMLP) reached a new all-time high this week.

• The bull market in health care diagnostics we’ve been highlighting continues to generate winners. Diagnostics giant Labcorp (LH) reached a new all-time high today.

• The Iran War and its constriction of Middle Eastern oil supplies continue to work to the advantage of U.S. oil refiners. Industry giants Marathon Petroleum (MPC), Phillips 66 (PSX), and Valero Energy (VLO) reached new all-time highs today.

Regards,

Brian Hunt
Editor, Money & Megatrends

An urgent message from our colleagues:

SpaceX ‘Dark Energy’ Replaces Foreign Oil

For years, we’ve been told SpaceX is a rocket company. But according to new satellite images from 300 miles above the Earth’s surface, there is something very strange going on at SpaceX right now that has nothing to do with space. It could soon replace our need for foreign oil forever and ignite a $10 trillion boom for the stocks involved.

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