recipes for healthy food: This Might Be Big T's Most Controversial Call Yet

Big T recently released this controversial video…

Where he said Nvidia could help fund your entire retirement…

WITHOUT you having to buy a single share.

Has he lost his mind?

See the proof for yourself, and you’ll be the judge.

He will even share his personal brokerage statement with you…

Showing how he has personally made hundreds of thousands of dollars in the last 12 months with this secret.

Regards,

John Burke

In case you missed it, here’s Big T’s Digital Asset Daily

If you’ve spent the last year feeling like the only person you know who isn’t getting rich, you’re not alone.

I hear the same thing constantly from friends, family, even strangers on the street when they find out what I do for work. It comes out as an almost embarrassed confession: “Everyone around me is making money on AI stocks. Am I doing something wrong?”

Let me say this plainly.

Sitting out a mania is one of the hardest things you will ever do as an investor. You will feel left behind. You will start to wonder whether the rules you’ve always trusted – buy quality, don’t overpay, don’t chase the crowd – have stopped working.

They haven’t.

And I can show you why… Because we’re about to watch the same playbook unfold again. The last time it happened, the people who refused to chase looked foolish for about a year. Then they looked like geniuses.

They’ve Run This Play Before

On Wednesday, I showed you why I can no longer tell my own family to simply “buy the S&P 500.”

Elon Musk’s private aerospace giant, SpaceX, is widely rumored to be preparing for a massive initial public offering (IPO). And behind the scenes, the firms that run America’s biggest indexes have been loosening the rules that decide what lands in your retirement account.

Nasdaq, FTSE Russell, the index behind Vanguard’s enormous total-market fund, and (by proposal) S&P have all moved to fast-track giant new listings, in some cases within days of an IPO.

The machinery that’s about to force-feed SpaceX into millions of 401(k)s has done this exact thing before. It has chased the hottest, most expensive stocks on the market and dropped them straight into ordinary investors’ accounts. The blueprint is 26 years old.

The last time this happened, everyday investors who bought near the peak paid the price of 15 years of sub-3% annual returns. They literally made less than 3% per year for 15 years.

In late 1999, at the peak of internet mania, Yahoo was the hottest stock around. After the close on November 30, S&P announced that Yahoo would be joining the S&P 500, with the change taking effect December 7.

In the single week between that announcement and the day it actually entered the index, Yahoo’s stock jumped 24%.

Nothing about Yahoo’s business had changed in those seven days. The only thing that changed was that every index fund on Earth was now required to own it. And they all had to buy at once.

When a stock joins an index, the funds tracking it don’t get to wait for a good price. They buy what the rulebook tells them to buy, at whatever the market is charging that day, in one great forced rush.

That is precisely the price-blind demand now lining up behind SpaceX.

Yahoo kept climbing into the new year, and then the bubble burst. The stock cratered along with the rest of the internet darlings… And the index funds that had been marched in at the top got to ride it all the way down as it dropped from a high of $118.75 to as low as $4.41.

And it wasn’t just Yahoo. As the bubble swelled, the S&P committee waved in a whole parade of high-flyers near the very top. Names like AOL and Global Crossing, companies that would soon crater or collapse into bankruptcy.

The irony is that millions of investors believe index funds protect them from bubble behavior. But at major market peaks, the index itself can become the mechanism that concentrates everyone into the exact same overheated trades.

The bigger and more euphoric a company becomes, the more money passive funds are forced to pour into it, regardless of valuation. It’s why Financial Times correspondent Robin Wigglesworth recently called this dynamic “the biggest bagholder exercise of all time.”

The “Chump” Who Was Right

Now picture the investor who sat all of this out in 1999.

For months, they looked like the village idiot. Neighbors were doubling their money in dot-coms. Co-workers were quitting their nine-to-fives to day-trade. And there sat the disciplined investor with their boring, sensible portfolio, plodding along, clearly missing the boat.

Then the boat sank.

The Nasdaq peaked on March 10, 2000. Over the next two and a half years it got hammered down 78%. It took 15 years for it to climb back to even. The S&P 500 lost about half its value. By 2004, more than half of public dot-com companies had failed.

Amazon was a genuinely world-changing company – one of the greatest businesses ever built. The problem wasn’t the company. The problem was the price investors paid during the frenzy.

Even after becoming one of the most dominant companies in modern history, Amazon’s stock still collapsed more than 90% after the dot-com peak, before it eventually recovered.

Being right about the technology did not protect investors from overpaying for it.

So if you feel like a chump right now for staying disciplined while everyone else piles into the hottest AI stocks, understand that in hindsight you will be the one standing on the right side of history.

The careful investor of 1999 looked foolish for a little over a year. Then they spent the next decade watching the crowd claw its way out of an 80% crater.

That uncomfortable, left-behind feeling you have if you’re being selective, instead of rushing into the latest AI darlings, is very often what being early to the right answer feels like.

The Dot-Com Playbook Is Back

If you think the dot-com era was a one-time mistake, consider that they ran this exact play again just a few years ago with Tesla.

In December 2020, Tesla became the largest company ever added to the S&P 500. Index funds were forced to buy somewhere between $50 and $90 billion of it, at the top of a year in which the stock had risen roughly 700%.

The shares jumped about 14% the day the addition was announced. Two years later, the index investors who’d been force-fed Tesla at around $232 a share were still underwater – sitting below what they paid – even though the broader S&P 500 had risen over the same stretch.

Tesla may ultimately become one of the defining companies of this generation. That still didn’t stop index investors from overpaying for it at the height of the frenzy.

Now it’s SpaceX. It has a rumored price tag near $1.8 trillion, despite posting roughly $4.9 billion in losses last year.

It also has a tradeable “float” of just 4.3% of its shares. That means the vast majority of the company will remain locked up and unavailable to the public. Compare that to Microsoft, where 99% of its shares trade freely.

Think of it like trying to force a firehose of water through a tiny drinking straw. You’re cramming an estimated $15-30 billion of forced, must-buy institutional demand into a tiny sliver of available stock.

And yet, the index machinery is lining up to buy it on your behalf.

Sitting Out the Madness Was Never Sitting Out the Profits

Here’s what I need the disciplined reader to hear: Refusing to chase the herd is not the same as refusing to make money. You do not have to choose between keeping your sanity and growing your wealth.

While the crowd and the index piled into the hottest, priciest names of the last cycle, the real money was made by the people who chose deliberately. Who bought early, in asymmetric setups, before the forced buyers ever showed up.

That’s the whole idea behind our Asymmetric Edge publication: Find the opportunity underneath the obvious story, take a measured position while it’s still cheap and ignored, and let the crowd arrive later and pay up.

The crowd will line up on June 12 to buy one of the most expensive IPOs in history. The index will shovel even more in behind them. We’re not playing that game. We’re choosing what we own – early, and on our own terms. Daily Editor Teeka Tiwari recently recorded a briefing walking through exactly this approach. You can watch it here.

Remember this: The disciplined investor of 1999 never felt vindicated on the way up. They felt it on the way down, when the same people who’d called them too cautious were down 80%, and they still had their capital, intact and ready to put to work near the bottom.

If you’ve been feeling early and alone lately, it’s worth remembering that’s exactly where the disciplined investor was standing in late 1999.

Sitting out the madness is not about avoiding risk. It’s about refusing to overpay for it.

Don't Watch the Future Happen. Own It!

Houston Molnar