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:

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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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The post This explosive, high upside sector is running higher. Do you own it? appeared first on MarketWise.

Today’s issue in preview:

• Stocks for investing in “the next big AI trade”

• The FSR bull market sends us an important message: The American consumer is alive and well.

• Four stocks to invest in an extraordinary new AI trend

• Our incredible track record continues to improve: Our thematic trades in Biotechnology, Canada, Cybersecurity, and Genomics reach new highs.

• Learn our Top Themes to buy now

Stocks for investing in “the next big AI trade”

Credit: piyaset

It turns out, being bullish on genomics was a great idea.

Last Friday, shares of medical diagnostics giant Natera (NTRA) leaped 21% to a new all-time high after the company reported outstanding second-quarter business results.

Natera is a genetic testing and diagnostics company that specializes in prenatal and cancer testing. Its Signatera blood test looks for microscopic pieces of tumor DNA in a patient’s blood. Doctors use it to detect whether cancer has returned following treatment.

Business is booming for Natera. Total revenue for the company grew 38% in the second quarter, driven by surging demand for its specialized diagnostics services.

Constant Money & Megatrends readers are not surprised to see the genomics theme surge to new highs. Over the past year, we’ve written over half a dozen research notes about the extraordinary upside potential of biotech and genomics.

Genomics is the science of analyzing human DNA – often referred to as the “software code of life” – to create tests, medicines, and treatments.

Years of innovation in this field have us on the brink of creating many customized treatments based on an individual’s DNA… and even “editing” genes to cure disease. Bulls on the industry believe it will get a giant “AI boost,” because super-intelligent computer programs can analyze genes and treatment effects so well… and have the potential to create drugs on their own.

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

The personalized approach to medicine that genomics offers has us on the cusp of a historic revolution in healthcare. Ten years from now, medicine will be transformed… and a lot of money will be made along the way.

As I mentioned on May 28, the ARK Genomic Revolution Multi-Sector ETF (ARKG) is one way to track and trade the genomics theme. 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 genetic diagnostic service firms such as Natera and Illumina (ILMN)… plus positions in promising “gene editing” companies CRISPR Therapeutics (CRSP) and Intellia Therapeutics (NTLA).

Natera’s excellent business results indicate soaring use of bleeding-edge genomic analysis to detect and treat illnesses.

Natera’s excellent stock performance suggests investors are beginning to appreciate the trend. We remain bullish on the genomics megatrend.

The FSR bull market sends us an important message: The American consumer is alive and well.

Credit: RiverNorthPhotography

Over the past five trading sessions, shares of Brinker International (EAT), The Cheesecake Factory (CAKE), and Texas Roadhouse (TXRH) reached new all-time highs.

These new highs are more evidence that the bull market in Full Service Restaurants (FSR) is alive and well.

They’re also the byproduct of a strong U.S. economy. And that’s important for your portfolio…

On July 21, I highlighted the emerging uptrend in FSR stocks, including Darden Restaurants (DRI, Olive Garden, LongHorn, Yard House), along with EAT, CAKE and TXRH.

These uptrends are important because they give us an informed, real-time analysis of American consumer health.

A full-service restaurant is one where you’re seated by a host, talk to a server, have your food brought to you, and hopefully leave a nice tip. This experience is different from a fast-food restaurant such as McDonald’s or Chick-fil-A.

It is also more expensive. The typical family of four going to a full-service restaurant knows it will be spending considerably more there than at a fast-food joint.

Because FSR bills are on the higher end of the dining cost spectrum, the earnings and stock prices of leading these chains are excellent “real world” indicators that signal a lot about the financial health of the American consumer.

After all, dropping $150 on dinner is not something most people do when they are broke. It is something people are more likely to do when they are gainfully employed, making money, and optimistic about tomorrow.

Driven by strong business performance, FSR stocks are in a clear uptrend, with some breaking out to new all-time highs.

Over the past eight months, I’ve written over a dozen research notes analyzing the soaring share prices of highly economically sensitive industry groups, including trucking stocks, railroad stocks, regional banks, manufacturing stocks, 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.

These economically sensitive firms are important “real world” indicators. They almost always do a better job of telling us what is happening in the economy than any media outlet or economist. And their uptrends are moving in a bullish upward direction for the U.S.A.

Soaring FSR stocks are key members of this growing list of positives.

Four stocks to invest in an extraordinary new AI trend

Credit: imaginima

Cloudflare (NET) CFO Thomas Seifert recently ran the numbers. And he says that in the near future, web traffic from AI programs will far exceed traffic from real, actual humans.

Cloudflare is a key provider of equipment and services that keep Internet sites up and running smoothly, so it has unique insight into web traffic trends.

On the company’s recent earnings call, Seifert said that in five years, non-human web traffic will be as much as 1,000 times as much as human traffic.

“In other words, humans will be a rounding error on the internet, not because human traffic goes down, but that’s just how fast we’re seeing non-human traffic grow,” Seifert said.

Avid Money & Megatrends readers won’t be surprised to hear that AI agent traffic is on the up… and will be for years.

On March 16, we urged readers to prepare for the “Agent Supernova” our nickname for the coming explosion in AI agent usage.

Years of development have made AI advanced enough to perform many everyday tasks people do now… and the list of tasks is only getting bigger.

In the next 12–24 months, AI agents will assist with managing factories… performing financial analysis… managing business inventories… writing software… designing websites… creating legal documents… and thousands of other things.

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.

This is the coming Agent Supernova. Agents working with people. Agents working with other agents. Agents running businesses. Agents negotiating and haggling with other agents.

The Agent Supernova is about to introduce billions of “AI workers” into our economy to perform all kinds of roles… with very little day-to-day human oversight.

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

The bigger the impact a megatrend can have on our world, the bigger the capital gains it can generate in your portfolio. This is why the Agent Supernova is such a big opportunity. It’s why we will be writing about and investing in this trend for years.

One compelling theme inside the Agent Supernova megatrend is internet traffic. Just one AI agent working for a business can create enormous amounts of web traffic.

Remember, agents work much faster than humans. They don’t take breaks or vacations. They can search for information and transact at the speed of light. An explosion of agent usage will generate an explosion of internet traffic.

In our initial profile of this trend, we highlighted these companies poised to benefit from it:

Cisco (CSCO): CSCO benefits significantly in the agentic world because it sells the equipment that enables data to move. CSCO provides switches (which move data between machines within a data center) and routers (which move data across networks). As AI becomes more agentic, CSCO’s infrastructure keeps these systems connected.

Ciena (CIEN): CIEN provides optical networking equipment that enables data to move at very high speeds over long distances. CIEN is one of the leaders in the optical space along with Lumentum (LITE) and Applied Optoelectronics (AAOI).

Arista Networks (ANET): ANET builds the high-speed switches that sit inside data centers, similar to CSCO. ANET has carved out a much narrower niche in AI chip-to-chip communication, which should mean it benefits more from the agentic world over the next few years. Expected revenue growth is 27% in 2026, up to $11.5 billion.

Akamai Technologies (AKAM): AKAM is a global cloud computing and cybersecurity company best known for its massive distributed network. It helps businesses deliver websites, applications, video, and digital services quickly and reliably while protecting them from cyber threats.

Since our original note, the basket above is up an average of 21%. Given that we are in the first inning of the Agent Supernova… and trends recently highlighted by Cloudflare’s CFO, we believe this trend has much further to run.

Market Notes

• Our recommendation to invest in cybersecurity via Palo Alto Networks (PANW) continues to pay off. The stock is up 143% since our March recommendation and reached a new all-time high today.

• Our recommendation to invest in the Boomer healthcare trend continues to pay off. Healthcare diagnostics giant Labcorp (LH) reached a new all-time high today.

• Our recommendation to invest in the genomic megatrend continues to pay off. Synthetic DNA giant Twist Bioscience (TWST) jumped 6.5% today to reach an all-time high. The stock is up 287% this year.

• Our recommendation to invest in the defense trend continues to pay off. Defense giant RTX (RTX, formerly Raytheon) reached a new all-time high today.

• Our recommendation to get long the biotechnology megatrend continues its winning ways. The iShares Biotechnology ETF (IBB) reached a new all-time high today.

• Our recommendation to invest in critical resource-rich Canada is a winner. The iShares Canada ETF (EWC) reached a new all-time high today.

Regards,

Brian Hunt
Editor, Money & Megatrends

An urgent message from our colleagues:

Have YOU prepared for Trump’s New Dollar??

Enacted through Executive Order 14241, issued by the U.S. Treasury – all U.S. citizens will soon be forced to use America’s new money… But only a handful will understand how to turn it into new wealth.

Don’t be left behind – get the full story here.

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