The Hidden Money Rotation

SPEAKER_00 0:00

There's a quiet machine moving your money in a way you probably don't understand. And it's making the rich richer while leaving most retail investors stuck. Money right now is silently rotating out of the sectors everyone's talking about, and it's pouring into two sectors almost no retail investor has ever, ever looked at. And if you miss this rotation, you could spend the next 12 months watching the index crawl sideways while a small group of stocks quietly, you know, moonshots. You catch it, and you give yourself a real shot at outperforming the market without gambling on meme stocks and doing it responsibly. So by the end of this video, you'd understand why the biggest stocks keep getting bigger, why the index is actually rigged in their favor. And the three-step framework I use that I learned from my Wall Street mentors to follow the money between sectors and two very specific sectors money is flowing into right now. I'm going to show you the sectors, I'm going to show you the stocks, nothing held back, the exact tickets I'm watching. My name is Felix Preen, I'm an ex-investment banker. That's Winston back there, who's the brains behind it all. We're also the founders of the GOAT Academy, where my retired Wall Street mentors teach regular people, like you and me, the institutional playbook. And we've taught well over 20,000 students in the last six years, which is insanely fun. I'm also the co-founder of Trade Vision, where we give you actual data. We're going to use that today so you see how it works. And our mission is very simple: give regular people, you and me, access to the knowledge, the systems, the patterns that are usually locked behind bank's glass doors. All right, so let's start with the biggest picture. And I'm going to explain this in a way that actually makes sense because macro, you know, the big picture doesn't have to be complicated. Winston, are you here to explain the macro? You are, aren't you? Um come on over here, actually. Come on over this way. All right, sit down then. Okay, you're a good boy. He's here for an ear massage. I'm gonna try and do this while massaging ears in an appropriate manner. So think of the stock market and the economy like weather. You've got sunshine, you know, sunshine through my window, um, and that sort of thing. Uh you've got uh clouds, here are the um drawing skills, um, bit challenged, obviously. Uh, and and then you have, you know, storms. Uh, and and that's sort of the seasons. Seasons are changing. Now, your job as an investor isn't to predict the weather perfectly. It's impossible. It's pretty pointless. Your job is to dress for the weather we're actually seeing right now. So, what's the weather right now? What are we what are we seeing? Well, we're worried about inflation, aren't we? We're worried that rates might not come down as quickly as they will. And well, looks like the government is going back to the printing presses. So there is a lot of stuff going on here. So you're seeing central banks making moves, geopolitics, you know, wars, uh, energy, oil, all that stuff, and it all seems insanely complicated. But what is important to understand from all of it is that this is not 2021. In 2021, everything went up. You were a genius no matter what you picked, right? We're now in a world where what you own matters more than when you own it. Because when the macro weather changes, different sectors need different kinds of clothing, right? And there are two sectors right now about to get dressed for a very, very different kind of climate, the kind that we're looking for. And maybe this is the first time someone's explained to you macro without making your head hurt, if that's true. Uh put head in the chat and people will be very confused by that. Be interesting. But it's important to understand where you are. And all the smart people that I talk to, they all say this is no longer the buy whatever, buy the index, and it'll just be just fine. Now, by the way, I'm not a registered financial advisor, I'm not giving you financial advice. I'm just giving you my opinion on how I see the land. And my intention is to teach you some strategies and some systems that'll make you be able to make better decisions for yourself. Yeah, does that sound fair? Doesn't sound fair, put a fair in the comments down below. What you have to understand is that the way money moves now is different from the way money moved five or ten or twenty years ago.

Why Index Funds Favor Mega Caps

unknown 4:42

Okay.

The Three Step Money Flow Method

Oilfield Services As Picks And Shovels

Reading Breakouts On Real Charts

Critical Minerals For The Electric Era

Position Sizing And Managing Risk

Next Steps And A New Teaser

SPEAKER_00 4:43

We have you probably heard of the SP 500, right? It's an index of the 500 largest US companies. And the SP is built on something called market cap weighting. And what does that mean? It means that the bigger the company, the more of the index it is. And the more money flows in, the more that company gets bought automatically. It's a CESOL, but the CESOL is broken. Think of it this way: if Microsoft is 10 times bigger than some smaller company, then 10 times more of your index fund money automatically buys Microsoft every single time you buy the SP. And because so many people are buying index funds passively, your pensions do it too, your 401k does it, you know, all those things. There's a wave of automatic demand for the biggest stocks in the world. And right now, the biggest companies make up about 40% of the actual index, right? Which is the highest concentration since 1972, last time we had an oil crisis. Ah, coincidence, right? So literally 10 companies are 40% of the index. So 10 are 40%, and then the other 490 are the remaining 60%. And it's just because passive investing has exploded. US ETFs now have something like 13 trillion in assets, it's it's meant to increase to 15 trillion this year. And it's easy, it's cheap, it's convenient, but it's a flywheel that is actually quite dangerous unless you understand it. It forces billions of dollars into the same stocks, the biggest stocks. And those bigger stocks go up and up and up until something terrible happens, in which case they'll go down really, really quickly too. But if you're just buying the index fund, you are buying mostly the top 10 companies, right? And that's just fine. The mega cap stocks are the real winners when your Microsoft's and the Amazons and the Nvidia's are going up. Last week was pretty good for them as I'm recording this, but it'll be different the week you're watching this. But when they stop being the winners, and we had a few months of that, like look at the NVIDIA charts, don't bagger all for like six months, you get stuck in this system. And a lot of sophisticated investors understand this, and that's why some of them deliberately buy things like a more concentrated version if they really want that exposure. They just want the biggest stocks where all the money is flowing. Well, why do I want the tail end? So you can double down on it. It's actually not a bad idea. I do that, by the way. Not with all my money, I'm not recommending it. It might not be right for you, but there's an ETF called OEF, and it actually just buys the SP 100. And it's done quite well. But my point for you is that most retail investors don't know this has happened. So if nobody ever explained this to you, then I'm very happy you found this video. So now you're probably thinking, okay, okay, how do I actually find the winning sectors that are about to win? And you know, can you get to the freaking point and hurry up, Felix? And that's fine. Uh fair enough. Um and I'm gonna do that. I'm gonna actually walk you through the actual stocks, how we find them, and look at the charts together for those of you guys who are a bit more advanced. I'm doing it intentionally in that order so the beginners can get the beginner bit, and those who want to push into a bit more advanced, stick around for the rest of the video. But I'm gonna do one better for you. If you want to join me as I'm recording this live the next day, literally I'm gonna run a live training session this weekend. Go to FelixFriends.org slash training, and we'll do a live session where we go much, much deeper for about two hours into this. Uh, and that's free. So feel exfriends.org slash training. I love doing those, they're insanely fun, and um, you're gonna get a lot of value out of that, FelixFriends.org slash training. Now, if you miss it, then there is also a short version, a compressed version, which I'll put down below in the link and I'll switch out the link for you so you can you can enjoy that. Uh, and and and that that'll also be learned there down below in the description. So check that out. But the mistake that irritates me, because I see almost everyone making it, is and and and I made it before I learned this playbook. You wake up, you check the news, you look at the SP 500, you stare at the same mega cap stocks everyone else is staring at, and you think, okay, what's moving today? And and you know, looking at the same stocks everyone else is looking at. But the big money, the institutional money, the alleged smart money, and I've got my doubts on that part, but they're just better trained. They're just educated, it's the educated money. I think that's actually the way to look at it. The educated money isn't sitting in the same stocks forever. It is always, always rotating. It is moving from the mega caps to beaten-down sectors, from tech to energy, from popular trades to unloved sectors, from expensive to cheap, from crowded to uncrowded, and so on. And your job is not to predict which mega cap will win. I believe our job is to follow the money, the actual flow of money, to see where it's moving before everyone else sees it. Mainstream media tells you far too late. Now, the good news is once you understand the framework, it is actually really not that hard. So let me give you a brief overview of the framework. And again, if you want to learn it in more detail, click on the link down below in the description. We map out the where are we, the weather report, right? That's the first step of the three steps. Where you know, you have to have a basic understanding of where is the world right now. You know, energy is scarce, minerals are scarce, defense spending, inflation, that kind of thing, just on a broad level, not deeply, just on a broad level. And then second, we want to look at the sectors and say, hey, which are filling up with money? Which ones have the strongest money tailwinds? And you rank them. You don't pick blindly, you rank based on where the money is actually flowing, and then we pick the leaders inside the winning sectors. So you might have noticed we don't look at stocks in step one, we don't look at stocks in step step two, we only look at stocks in step three. And I'm not making this up. This is what I learned from my Wall Street mentors. And this framework, by the way, it's evergreen. It works in bull markets, it works in sideways markets, it works in bear markets, it works in Trump markets, it works in all markets. So let me give you one sector that I like. It's actually, yeah, and one sector that we've been in for a little while, but the money is flowing into and it's looking pretty sweet right now. And the way I want you to look at this is picks and shovels. During a gold rush, the people who get rich are not always the miners. It can be the people selling the picks and the shovels, the equipment, the infrastructure. And in oil and gas, there's something very similar. You've got the producers, the companies drilling for oil and gas, and then you've got the machinery companies, the ones that are selling the drilling equipment, the compressors, the complex tools that make you know it's impossible to get oil out of the ground, and the companies that maintain it, the companies that build the pipelines, the companies, you know, you get the idea. And I see money rotating into this pretty hard. Now, you might be wondering why. Well, first, the world needs energy. AI needs more energy than anything we've ever seen. So there is more drilling, there is just more build-out. Um, the Middle East is blowing up its infrastructure, that has to be mended. And it also means that oil prices are higher, which means companies in, say, the US or in other parts of the world that are safe will spend more money to, you know, drill more. So it means machinery companies that support the oil infrastructure are in this beautiful, beautiful uptrend. Same is true for liquefied natural gas, LNG, right? It's the energy play for the next decade. Demand is gonna grow to some crazy level, and you need pipelines on it and terminals and export infrastructure. It's all machines, it's all equipment, and their backlog is exploding. And then you've got the energy security thing. There is a geopolitical thing going on if your head's been stuck in the sound, but it's actually a good thing. A lot of the world's energy flows to these choke points, and when these choke points, like straight off a moose goes unstable, countries around the world go, okay, we need more storage, we need more infrastructure, we might need new pipelines, you know. Again, all good for these machinery companies. So, what companies am I watching myself? And and I I tell you how I come up with these. Um, I literally go into Tradevision and there is a new AI feature, and there is a, and I'll show you to do this. Click it on a watch list, and you can, it'll make a popular stock watch list for you. But you can change it and you can say, hey, uh, give me um oil and gas machinery stocks, right? And it'll do that for you. Um, I have a list here for war and inflation macro hedges, for example, and we have those, and we've got some of these oil companies, some gold companies and so on on there too. And it's a great place to start your research. Okay, so here is the first stock that I like, which is called BKR, Baker Hughes. You can then just open the stock chart. We'll look at that together in a second. But first, what do they do? Picks and shovels for oil and gas, one of the biggest oil food service companies in the world. And in their earnings just, they said they think that the Gulf, the Strait of Hormous, might be closed for shipping until the end of the year, right? Which means massive, massive just change in construction and the world's gonna go bananas because it's missing all the Middle East oil. So they're building an offshore LNG terminal in Texas, for example. Now, when I look at a stock chart like this, and we'll come back to these in a second, I'll tell you exactly what I'm looking for. But there's another one I found that the AI spit out for me earlier, and it's NPK, a similar issue but smaller player. It provides temporary work side infrastructure for energy and construction projects, right? Smaller company stocks up pretty significantly in the last year. You can see that they really are on a on a tear, but that doesn't mean it's too late in my book. 80% institutional ownership, strong buy consensus from analysts. Again, I'm not selling you the stock. I don't care whether you're interested, I'm definitely not telling you to buy it. You're gonna come to your own conclusion on that. But I tell you what I like about it. And this gets this is where we get a little bit more advanced. I'm gonna go into a lot more detail if you join me for the live session. Again, links down below. If you miss it, watch the video. Stocks move in heartbeat patterns, right? Like that. And the way I look at that is you see this high, you see that high, you see that high, you see this high. They're pretty much all at the same level, right? Same is true actually for the lows. They're also pretty much all in the same zone. So, what am I looking for? I'm looking for stocks that go sideways like this and do very little, which it has actually done since February or so. And then I want us to break out of the recent highs. So when we exceed these highs here, and it wouldn't take a lot for that to happen. I'm gonna put a line in there for you so you can see what I'm talking about. About 1528. Okay, I'm not telling you to buy it at 151028. Don't do that. You know, you've got to come to your own conclusions, you've got to have risk management, you're gonna have a whole package. You can't just have a stock tip. Stock tips are actually very dangerous. But to me, we break out of this and I want to buy it at around 1528. Now you might be thinking this goes against every piece of logic you've ever heard. Why would you want to overpay? Why wouldn't you buy it now at 1510? Well, you want to really understand that and why Wall Street insists on that. Wall Street likes to overpay a little bit, and it makes a lot of sense. And it just has to do with probabilities and risk, um, and it's just the smarter play. So come and join me on the live session for that. But that's what I'm looking at here. I'm gonna look at the Baker Hughes chart, the one I just pulled up before, which again, literally the AI just spits out for you. So you need to know nothing at all about it, about the sector, and it'll just spit out for you these companies. Um, and you could obviously refine your prompt a little bit more than I just have. Um, and what do you see here? Well, you see highs here, right? And here and here, and then there were some over here. But where do we close on that? So the close was actually about there, right? And then it went down. So all we wanted is to exceed that little previous high, and we just did that on Friday. And institutions are loading up the boat because I can see it in the volume. Again, I'll break that down for you on Friday. So I'm liking it. I'm liking it. That's all I can say. And have we done this before? Well, go back on the chart. We had sideways action here, right? And then we break out of it there. Was that a good play? Yeah, we actually flagged that with that line in there. That was one of our early in the year plays. And again, I'm not always right, I'm not telling you to buy things, you know, you you get the idea. Or even you go back to the bottom of the market here, you had that zigzaggedy thing there, you break out of it here, volume explodes, and boom, right? Bada boom, bada bing, that kind of thing. So we like it. Now, if you have never heard of the sector, if you've never ever looked at oil service machinery stocks, let me know in the comments. Literally, put just mu in the comments because it's new to you and it'll be helpful. And also let me know whether it's helpful. Put another helpful in there as well. Now, the second stock, and this is a little bit easier to understand, perhaps, is called mining and quarrying of non-metallic minerals and other metals. I know. Exciting, right? And it also seems a little bit random until I explain while the world is about to need way more of this stuff than we've ever heard of. Right? So again, we can go into our little AI lab, so you don't know anything about it, and just say, I'm just gonna edit the one up here and just say, give me um critical mineral stocks. Okay. There we go. Pizza, come on here, come on. What have you got under your right? And now you've got a bunch of companies that are in that space. By the way, in a browser, you can literally zoom out on this and literally zoom out on the browser, and it sort of becomes your your your workspace, I think, for investing, all your ideas, uh, all the news that you want on the on the spaces you want. You can adjust it to the news that you want. You know, I like looking at the SP day chart, for example. Uh, you could change that to whatever it is that you're looking at. And it's just kind of a workspace that you can build, you can arrange with all the stuff that you want, with all the charts of all your stocks and so on. And I think it's just super, super useful. And I I should mention there is a there is a pre-sale to get access to this AI feature. Um, once it's properly released, it's still in better mode. Uh, it'll it'll cost you more. And there's a free trial to that. So check it out. If you try to go down below, there's a link, I think it's feedexpense.org slash tradevision, I want to say. Anyway, there's a link down below. Click on that. Grab yourself a free trial. And it's just it's just a really lovely way to kind of keep all your ideas about. And I love that we can, you know, move things around as you as you wish, as as makes sense to you. Change your prompts, change your your universe for for investing, you know, whatever it is that you want to look at. But the reason mining and minerals are so important is that the world's gonna need so much of them. It's electric vehicles, lithium demand's growing just 25% this year, and also batteries, right? The world is becoming more electric. And then we got solar and wind, renewable energy. They all need battery storage because it isn't sunny at night. And if you haven't noticed, uh, the grid needs modernization, all of that needs lots of minerals, and then you've got defense applications, AI data centers, they all need ridiculous amounts of power and cooling, and that all needs minerals too. And countries don't want to be dependent on other countries for their minerals, so the US government just literally mobilized about 30 billion in financing to develop their domestic mineral supply chain. So it's government demand too. So let me hit you with some companies, three tickets that I'm I'm looking at right now. The first is Societat Chimica y Mineral de Chile, uh, SQM. And um it is one of the biggest, if not the biggest lithium producers in the world. Um, and they're growing. They're growing their Australian operations, they're partnering with Chile's state-owned mining company to crease capacity. Uh, they are spending pretty big. And if you look at the chart again, and again, again, if you're more interested in this sort of side of investing, join me, join me on the live event, or if you miss it, join the pre recorded. We had a sideways motion here, which is exactly what I looked for. We broke out of it a bit timidly. We're potentially on the way up again. So, what where would I be interested? I'd be interested at this at about what's that price? I literally want to pay more than it's trading at right now. I want to pay about$95.50. Why$95.50? That's the previous high. I want to buy slightly above that. And again, you might think that's mad. That's what the big boys do. So come and join me. Come and join me and learn how they do that. So that's the first one. And then we have, secondly, UEC, the Uranium Energy Corp. They've just started production at a uranium mine in South Texas. It's the first new US uranium production facility to come online in over a decade. Why does it matter? US government wants domestic uranium. They don't want to buy it from Russia, right? So it's important to them. And UEC is now the only US producer with two active uranium mining operations. One is in Wyoming and the other this Texas one. They can also process 4 million pounds of uranium per year. Where's the demand coming from? AI data centers are being powered by nuclear energy. Right? The Germans, my lot, yes, I'm German, I'm sorry. And half the audience leaves the room. I shouldn't mention that I was a banker and I was a lawyer too. It couldn't possibly get any worse. Winston, come on. Make us relatable and likable. But seriously, like the Germans canceled all their power plants, nuclear power plants, because it wasn't green. And now they've restarted them because Bill told them to. Did I say that out loud? Anyway, that's what's happening there because otherwise they have to buy the energy from the French. So the demand is real, and it's these kind of companies that I think are going to benefit from this. And again, we're not going to go into too much charts here because I don't want to uh scare you off. But if you look at it and zoom out a little bit, what do you see? What do you see? You see a stock that's not doing a lot, right? Precisely. It is doing what? It's doing very little at all. So is this the point where I want to buy it? No, but it's on my watch list because we had a tremendous rally up, the CST collapse, and the lows have been getting higher and higher. So there is a trend here. I think it's too early on this, by the way. Um, but I think there is a trend here that this may reverse. And when it does, I'll be very interested in this and some of the other. There are some other Uranian stocks as well that we've talked about before, but this is one I'm looking at right now. Uh the third one is um is CMP, another minerals, rare earth play here. And what do we see? We see again we are the cusp of breaking out of this, right? So I'd be interested in this about$27. So I need the price to go up about$1.50 before I'm interested. And I know you think I'm a lunatic. Uh, if you think I'm a lunatic, put a lunatic in the in the in the comments down below. It'd be interesting to see that. Because we've all been taught the wrong thing. Uh I'll teach you the Wall Street thing, and then you can judge whether or not that's the right thing for you. Uh, but maybe you just want to stay up to date with this and then just create, just create a news thing and say, hey, give me um mineral, mineral and rare earth news. Okay. There you go. Now you got yourself some mineral and rare earth news. It's going to keep updating automatically. So I'm going to check out the Trade Vision link that I put down below. So you understand the sectors, you understand the thesis that money flows between one and to the other. So how do we put our money to work? Well, the first thing is position sizing. Only risk what you're going to afford to lose from that bucket. My positions are usually built so I can lose a maximum of 1%. Doesn't mean the position is 1%, but the risk management makes sure the risk is maximum 1%. And that's how I sleep really, really sweetly at night. Now you can also buy individual stocks or you could buy an index fund. Both is a fair thing to do. And I would suggest to scale it to stuff. Don't dump like, you know, huge amounts of your money into a new thing you don't fully understand yet, and so on. But what I want you to really take away from this is that there are sectors. So you look at the stock market as a I look at it sort of as a chessboard, really. And there are all these fields, and excuse the uh crude drawing, but there are all these sectors or industries, and you know, maybe maybe that one up there is tech or rather software, and maybe this one is you know uranium, uh, and maybe that one is oil and gas, and maybe this one are you know gold miners and so on. And money will flow from here to there and from there to here. Um, and it therefore means less money is in here, and now more money is in here. What do you think is going to happen to the stock prices in those sectors? So it isn't it isn't just one market that goes up and down like the idiotic news reports every day. The money is still there, it's just moving around. And most people don't realize that. There is this tactical allocation that the big boys do, the Wall Street guys do, the hedge funds do, the traders do. And I might be in a position like that for a year or two, or maybe a month or two. It just depends on whether the money is still there. When the money starts to leave, and I leave with it. And it allows you to look at a market, even when the market is like, you know, shitty on the surface, the SP is down, say, or we're going nothing. I'm like, well, okay, but we're doing really well on the oil and gas services stocks, or we're doing really well on construction stocks, or we're doing really well on insurance or healthcare stocks, or uh the last two weeks it was electronic components, and before that it was actually oil and gas stuff, before that it was defense stocks, before that it was mining stocks, and it changes. Now, is it a huge amount of work to keep track of this? About an hour a week, I would say. And if you don't have an hour a week, well, you're in trouble. Uh, because I don't know what you're doing with your time, but you probably are working, what, 40, 50, 60 hours a week, especially if you count the commute and so on. And that's all time you spend to make money, and then you don't find an hour a week to actually manage that money, or maybe you simply lack the skill set and the education to manage the money. And that's really what this is all about. So we help to give you that skill set. So join the live training, or if you miss it, watch the what's the short version I'll put down below in the link. And if this framework of sector investing is starting to click for you, write follow the money in the comments. Because that's all we do. We just follow the money. We're not smarter, we're not better informed, we just follow the money. And as I say, if you want to go deeper into Wall Street's actual playbook for picking those stocks and sectors like this, join me. Uh click on the link down below. And I thank you for watching. And I hope it's been useful for you. All the best. Right now, social media is exploding with claims that the incoming Federal Reserve chair has a secret plan to cancel America's 39 trillion debt.