Core Insights - AI spending is projected to increase significantly, reaching $2.53 trillion in 2023 and $3.33 trillion by 2027, with a 44% year-over-year increase expected in 2026 [2][4] - The growth in AI spending is driven by the need for organizations to prioritize proven outcomes and the readiness of human capital and organizational processes [3][6] AI Spending Trends - The increase in AI spending will not be limited to a single theme; it will be diverse, with a notable 49% increase in spending on AI-optimized servers expected for 2026, accounting for 17% of total AI spending [4] - AI infrastructure is anticipated to contribute an additional $401 billion in spending in 2026 as technology providers build out AI foundations [4] Investment Opportunities - ETFs such as Invesco QQQ Trust (QQQ) and Invesco NASDAQ 100 ETF (QQQM) are well-positioned to benefit from the AI spending boom due to their heavy allocation to AI enablers and hyperscalers [3][5] - Enterprise customers are likely to increase AI expenditures with established vendors, which is favorable for large firms within QQQ and QQQM that can demonstrate return on investment [5][6]

Core Insights - Silver has unexpectedly emerged as a significant market story in 2026, with the iShares Silver Trust (SLV) showing year-to-date gains of approximately 16%–17%, outperforming traditional hedges [1] - In contrast, broader tech indices like Invesco QQQ Trust (QQQ) and SPDR S&P 500 ETF (SPY) have shown minimal positive returns, while gold's SPDR Gold Shares (GLD) has only seen single-digit gains [2] Market Dynamics - Silver was previously overlooked in favor of sectors like AI and semiconductors, but has recently experienced a breakout as prices surpassed multi-year ceilings, driven by increased industrial demand [3] - The supply of silver has not kept pace with rising demand, as most silver is produced as a by-product of other mining operations, leading to a structural deficit due to tight inventories and broadening demand across various industries [4] Broader Implications - Silver's role in renewable technology contributes to the Net Zero narrative, but the current rally is also influenced by macroeconomic factors such as easing rate expectations, geopolitical tensions, and a shift towards hard assets [5] - If the current momentum continues, silver may surprise markets further as both an industrial bellwether and a safe haven asset, although high volatility and rigid supply could lead to potential reversions [6] Investment Perspective - Silver is transitioning from a niche hedge to a strategic and tactical asset, with SLV's performance outpacing that of GLD, QQQ, and SPY, indicating that ignoring this shift could result in missing a standout investment opportunity [7]

Not even two full trading weeks into 2026 and the good news is already piling up for a slew of big name technology stocks. That brings benefits to investors engaged with the tech-heavy Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). With the help of Apple news, Alphabet's market capitalization topped $4 trillion for the first time, making it the fourth U.S. company to accomplish that feat. The other three are Apple, Microsoft, and Nvida — all QQQ/QQQM holdings. Speaking of Microsoft, Goldman ...

Core Insights - ETFs are recommended as an effective way for new investors to achieve diversification and start investing [1] - A consistent investment strategy, such as dollar-cost averaging, can lead to significant wealth accumulation over time [2] ETF Analysis - **Vanguard 500 ETF**: This fund tracks the S&P 500 and includes 500 of the largest U.S. companies, providing a strong foundation for most investors' portfolios. It has generated an average annual return of 14.8% over the last decade and 23% over the past three years [3][5] - **Vanguard Growth ETF**: This ETF focuses on growth stocks and has produced a yearly return of 17.5% over the past 10 years and 32.5% over the last three years [6] - **Invesco QQQ Trust**: Tracking the Nasdaq-100 index, this ETF has generated an average return of 19.4% over the last decade and 32.9% over the past three years, heavily weighted towards tech stocks [6] - **Global X Artificial Intelligence & Technology ETF**: This ETF offers exposure to international AI companies, with nearly 35% of its portfolio in international stocks. It achieved a 32% return in 2025 and an average of 36.4% over the past three years [7][8] - **Schwab U.S. Dividend Equity ETF**: This fund focuses on companies that can maintain and grow their dividends, with a forward yield of 3.8% and an average annual return of 11.5% over the past decade [9][11]

Core Viewpoint - Nvidia is a key player in the AI space, highlighted during the Consumer Electronics Show (CES) in Las Vegas, which has drawn significant investor attention [1] Group 1: Nvidia's Market Position and Performance - Nvidia has the supply to meet strong demand for its H200 chips from China, indicating robust market conditions [2] - The company's market capitalization stands at $4.57 trillion, making it the largest in the world, which suggests limited upside potential but analysts remain optimistic about future share price appreciation [3] - Analysts from Bank of America express a positive outlook on AI-related semiconductor stocks, including Nvidia, despite anticipated market volatility [4] Group 2: Innovations and Future Outlook - Nvidia introduced Alpamayo, the world's first thinking model for autonomous driving, which enhances the capabilities of autonomous vehicles [3] - Analysts believe Nvidia is well-positioned to capture 70%-80% of the value created by the shift to parallel processing, thanks to its flexible ecosystem that offers a low cost of ownership as AI models evolve [5] - There is growing enthusiasm for Nvidia shares as 2026 progresses, which could benefit ETFs like QQQ and QQQM [5]

Core Insights - The S&P 500 is facing a concentration issue, with the top seven stocks representing about one-third of the index, leading to significant exposure to a few mega-cap technology companies [1] - The Invesco S&P 100 Equal Weight ETF (EQWL) offers an alternative by equally weighting the top 100 companies, limiting even large firms like Apple and Microsoft to approximately 1% of the portfolio [1] Performance Comparison - Since its inception in December 2006, EQWL has returned 271% over the past decade, outperforming the market-cap weighted SPDR S&P 500 ETF Trust (SPY) by 37 percentage points [2] - In the past year, EQWL gained 18.84%, compared to SPY's 17.34%, and has increased by 1.07% in early 2026, while SPY rose only 0.85% [2] Market Dynamics - Equal-weight strategies perform well when market leadership expands beyond mega-cap stocks, with early 2026 indicators suggesting a potential rotation, as evidenced by the iShares Russell 2000 ETF gaining 2.67% year-to-date compared to a modest 0.60% gain for the tech-heavy Invesco QQQ Trust [4] - Historical data indicates that equal-weight versions of the S&P 500 have outperformed market-cap weighted versions by an average of 1.05% annually over multi-decade periods [5] Rebalancing Strategy - EQWL employs a quarterly rebalancing strategy that systematically trims positions exceeding 1% and adds to those below 1%, facilitating a buy-low, sell-high mechanism [6] - The current sector allocation of EQWL includes Financials at 17.3%, Information Technology at 16.3%, and Healthcare at 15.2%, contrasting with market-cap weighted indices where Technology often exceeds 30% [7] Alternative Investment Options - The Invesco S&P 500 Equal Weight ETF (RSP) is another option that applies the same equal-weight methodology across all 500 companies, providing greater diversification into mid-cap names, although it has underperformed EQWL recently with a 13% gain over the past year [8] Future Outlook - Over the next 12 months, it is essential to monitor market breadth expansion and EQWL's quarterly rebalancing activity to assess the sustainability of its historical performance advantage [9]

Core Viewpoint - The Invesco QQQ Trust (QQQ) has historically performed well, with the potential to triple investors' money over the next decade, requiring an average annual return of 11.6% [1][15] Performance History - Over the past decade, QQQ has delivered an average annual return of just over 20%, despite significant drawdowns during the COVID pandemic in 2020 and again in 2022 [2] Future Potential - The future performance of the Nasdaq-100 will depend on several factors, including the ongoing AI revolution, which is expected to impact various sectors significantly [3][5] - The long-term growth potential of AI and quantum computing is substantial, but much of this potential may already be reflected in current stock prices, potentially limiting future returns [6] AI and Technology Investment - Major tech companies have committed significant resources to AI infrastructure, with initial returns being positive, but the ultimate return on investment remains uncertain [7] - The "Magnificent Seven" tech stocks (Nvidia, Apple, Microsoft, Amazon, Alphabet, Meta Platforms, and Tesla) constitute approximately 44% of QQQ's portfolio, making the ETF's performance heavily reliant on these companies [9][10] Valuation Concerns - Current valuations are high, with the S&P 500 trading at about 22 times forward earnings and the "Magnificent Seven" at 29 times, near record highs [12] - Higher starting valuations typically lead to more modest future returns, although strong earnings growth can sustain high stock prices [13] Earnings Growth Outlook - The potential for the AI revolution suggests that Nasdaq-100 components may maintain above-average valuations for some time, allowing for a long-term investment horizon to weather market fluctuations [14] - The ability of major tech companies to continue generating strong earnings growth is crucial for achieving the necessary returns over the next decade [15]

Core Viewpoint - The Invesco QQQ Trust, despite being one of the best-performing ETFs since its inception, is viewed critically by some investors who prefer quantitative analysis and value stocks with growth potential [1]. Group 1: Investment Strategy - The focus has shifted from individual stocks to ETF strategies that may outperform the market or provide better risk protection [1]. - The analyst emphasizes the importance of quantitative analysis and believes that mathematical insights drive investment success [1]. Group 2: Investment Preferences - The investment approach includes a diverse range of assets such as large caps, midcaps, small caps, international stocks, gold miners, and REITs [1]. - There is a notable skepticism towards sell-side analysis, which is often considered inadequate [1].

Core Viewpoint - Retail investors have demonstrated significant growth and sophistication in their trading strategies, achieving strong returns in 2025 by effectively buying the dip during market downturns, challenging previous perceptions of their investing capabilities [2][3][12]. Retail Investor Performance - Retail investors capitalized on market dips, with 2025 being the second-best year for dip-buying since the early 1990s, according to Bespoke Investment Group [3]. - Individual traders purchased over $3 billion in equities on April 3, 2025, during a market decline, showcasing their willingness to invest amid volatility [7]. - Retail investors' portfolios outperformed institutional baskets tied to artificial intelligence and software, indicating a higher profit-to-loss ratio [5]. Shift in Investment Focus - From May 2025 onward, retail investors shifted their focus from single stocks to exchange-traded funds (ETFs), particularly the SPDR Gold Shares (GLD), which saw inflows surpassing the last five years combined [4]. - The gold-focused ETF experienced a record surge of over 65% in 2025, reflecting the growing interest in commodities amid market fluctuations [4]. Market Sentiment and Strategy - Retail investors have been more accurate in their market reactions compared to institutional investors, particularly during emotionally driven trades [9]. - The "TACO trade" strategy, which encourages buying stocks during market downturns caused by policy decisions, has gained traction among retail investors [10]. Evolution of Retail Investors - The participation of retail investors surged in 2025, with flows increasing over 50% from the previous year, reaching levels not seen since the meme stock craze of early 2021 [13]. - More than one-third of 25-year-olds moved significant sums to investment accounts since turning 22, indicating a growing trend of younger investors entering the market [12]. Changing Perceptions - The narrative surrounding retail investors has shifted from being viewed as "dumb money" to being recognized for their increasing sophistication and ability to make informed investment decisions [14][15]. - Retail investors are now seen as central to market dynamics, with their strategies aligning more closely with those of institutional investors [18].

Key Points The S&P 500 is on a roll, but another index fund has nearly doubled it during the AI era. The QQQ ETF offers exposure to the 100 largest Nasdaq stocks. The QQQ is trading at a modest premium to the S&P 500. 10 stocks we like better than Invesco QQQ Trust › An S&P 500 (SNPINDEX: ^GSPC) ETF might be the gold standard of investing. Even the world's most successful investors like Warren Buffett swear by it, and plenty of hedge funds keep S&P 500 ETFs in their portfolios. The index tracks ...