Speaker 1: 0:00

Goldman Sachs' top trader just issued a major warning. The AI bubble is showing cracks and Nvidia is down now for four weeks straight. 50% of the Nasdaq stocks are below their most important 50-day moving average line. But here's the twist Small caps are exploding while big tech is stumbling, and this could be the biggest market rotation in two years and most investors are missing it. On top of that, goldman's AI adoption tracker shows growth that is very, very slow. We've come from 9.2% adoption, 9.2 to now 9.7% Not exactly very exciting stuff.

Speaker 1: 0:42

And Nvidia, if you look at the stock chart here in Trade Vision, this is a weekly stock chart. Don't be confused. You can see, week after week after week after week, we're going lower. At the same time, there is a threat from custom chips manufacturers. It's Broadcom, for example, and look at that. Look at that. The last two weeks absolutely exploding. They're threatening NVIDIA's GPU dominance.

Speaker 1: 1:10

So the question is is the AI party as we know it over? And what does this mean for you? It's time to be more selective with AI plays, that's for sure. So let me walk you through the great rotation. If you want to get into this in a lot more detail than this, say, 10 minute video I'm going to be giving you a full workbook on everything we're covering here and more. You can download that for free at felixfriendsorg slash rotation and it'll just give you a lot more information, a lot more detail, a lot more everything on what we're talking about here. So market timing is everything, and I don't mean that we need to be absolutely right on market timing, but if we're absolutely wrong on market timing, we tend to suffer. So the great rotation is this the small caps, the Russell stocks, are actually rallying for once. They're winning, and the Nasdaq is slowing down significantly. Now, most of you are probably invested in the NASDAQ, right, if you are mostly invested in tech stock, write tech in the chat, and if you're mostly invested in other than tech, write OTT other than tech in the chat. Be a nice little poll there. But this difference, this gap between the up and the down, we've only seen this three times since COVID, and the last time was July 2024. Who remembers July 2024? That was just before the market really, really tanked.

Speaker 1: 2:36

Now there is an easy solution, in my humble opinion, and that is to follow the money, which is what we do. So there are sector winners. Some people are looking at healthcare. I'm also in healthcare. Staples Real Estate is gaining some momentum, but my personal picks are not actually those. We've been in healthcare for a little while, but it's actually biotech.

Speaker 1: 2:57

It is gold stocks, and I want to show you a little bit more why. So let's have a look at the stock chart for gold. This is again a day chart now, and what do you actually see here? You see the classic pattern that we teach and that Wall Street's been looking at for more than 50 years. You break out of that pattern, as we did here a couple of days ago, and you're off on one Now. We can predict this and especially, we look at the massive volume down here. We know we're onto a good thing and our gold stocks are doing very well.

Speaker 1: 3:29

Now, as a disclaimer here, I'm not telling you to buy gold. It's not financial advice. In fact, I don't buy gold ETFs, but I've got on the screen here. There's this GLD on the screen here. I buy gold miners because they potentially do a lot better than that. I'll give you an example of one. For example, groin. Again, I'm not telling you to buy this, but this has had a really, really beautiful run-up since our May entry there. This thing is now up about 130%. Gold is not up anywhere near as much, probably about 30%.

Speaker 1: 3:59

Now there are some more hidden opportunities, and that is the consumer is actually pretty strong. The defense sector is doing very nicely and, again, we've been exposed to this for a while. Why? Because government spending, and you know wars created by governments. Wars are generally created by governments. That go nuts in the chat down below If you think it's about freedom. No, it's about profit. Look at Ukraine. What started the Ukraine war? Essentially, yes, russian aggression and all that. Remember there's a gas pipeline that got blown up that went from Russia to Europe. Who's now the biggest supplier of gas to Europe? You answer that question. You follow the money. You have to answer that yourself. We've got robotics. Robotics is definitely some real opportunities there, and I've made some videos on this in the past.

Speaker 1: 4:42

So, while everybody else is just chasing NVIDIA, there are other opportunities, which is basically what I'm trying to show you here. And the consumer strength well, you've got people like Mastercard. You've got people like Uber, who are actually putting really, really good numbers. Unity is a nice turnaround opportunity there and, as I say, the defense sector is benefiting from massive defense spending across NATO. And then you also have boring stocks like Verizon and things like that. And then in the robotics, well, again, I'm not going to tell you what to buy, but have a look at things. Something like Teradyne, which is kind of an interesting one Modest growth expected, but could be something here.

Speaker 1: 5:19

So what's our actual action plan here? Well, this is me right Not telling you what to do, but this is just the way I think about this, the way I've learned about this from my mentors, who are guys who worked on Wall Street for 10, 20, 30, 40, 50 years. We're trimming overvalued tech stocks. We're trimming stuff that's had a lot of run up, especially in tech. We're trimming growth stocks with crazy valuations Doesn't mean you have to get rid of run up, especially in tech, but trimming growth stocks with crazy valuations doesn't mean you have to get rid of them completely, but we're taking some profits there.

Speaker 1: 5:50

I am actually not a huge fan of small caps. I put that in here because that's what Goldman says, and I want to give you guys transparency. I'm personally buying this week just biotech and golf, and that might change week after week, because we've also got to look at what you already own. You don't want to pile on top and on top and on top of the same thing, but essentially in this small space, and some of my biotech and gold stocks are pretty small, but we're looking at good fundamentals. What are good fundamentals?

Speaker 1: 6:17

Well, to start with fundamentals. To start with, they have to have cash. Can they actually survive a bad period? And then don't think the AI story is over. But do you know what happens when you get innovation? What happens is the speed at which everybody expects innovation to come in goes like that, and then everybody gets disappointed. And then what actually happens is that the innovation comes in at that angle, but it goes much, much, much, much higher.

Speaker 1: 6:48

So, to make this a little bit clearer, this is time, and this here is speed of adoption. We are somewhere up there, in my humble opinion. Nobody knows exactly where, but what you want to avoid is holding the exciting AI stuff through this here, because this can be a period of years, maybe two years or something like that, and then the real money will be made. So, in this period where people are getting a little disillusioned with the speed of AI adoption, well, we make money out of oil services and home builders and gold stocks and biotech and all the stuff that's going to benefit from the lower interest rates, and then we're going to sell all those things, hopefully at a profit, and then we're going to plow them back into the AI trade when that starts to get really exciting again.

Speaker 1: 7:38

So my warning to you is don't chase the rotation. Wait for pullbacks whenever you want to enter something. Don't develop FOMO. That's really important. But this rotation, in my humble opinion, could define the next six months of the market, and Goldman's data shows we had that critical inflection point. So you want to learn more about that. Download the free full workbook at felixfrontsorg. Slash rotation. It's completely free. Just ping your email in it and you get it straight away, because most people get left behind and most people don't really understand rotations.

Speaker 1: 8:12

And rotation is not about perfect market timing. That is not what this is about. It's about the money going from one sector to another sector, to another sector, and then probably going back to where you started. Now you could argue why not start in the first sector and just stay there, because that sector will then do very little? Well, this sector here goes up a lot, that one goes up a lot, and then these people buy back in with much more money. You're still sitting here with your original money. That's ultimately what this is about.

Speaker 1: 8:42

So we follow the money, we follow the rotations through the sectors and all we got to do is just look at the money, look where the money is pouring in, look at the sectors, and I showed you a couple here earlier. Look at AVGO Money is pouring into that one. Look at biotech Well, the money actually hasn't poured into that one yet. I think it will, but it hasn't yet only sort of moderately, and it's breaking out here off that upward trend that I put in there with that blue line. So potentially there is a lot more upside here. I'm not promising you any upside, but if you just look at where we were in 2021, when interest rates were really, really low, there's some real opportunity there and I'm not going to leave that opportunity on the table. I don't know about you. So do your research, learn phoenix trends at all. Slash rotation. You got some value out of this video. Share it with a friend. All the best.