President Trump Buys Our Top Growth Stock

Commentary

The recent disclosure that President Trump owns a lot of AI and data center-related stocks means he will likely do everything in his power to boost the fate of these stocks. Now that the U.S. controls much of the world’s energy supply and military power, the world must rely more on U.S. leadership.

Meanwhile, other top economies are struggling. The Wall Street Journal said China’s economy is losing its momentum due to risks associated with energy costs and supplies during the Iran war. Specifically, the Journal said consumer spending in China has fallen to its slowest rate since 2022. Furthermore, the Journal said China’s industrial output, investments, and real-estate sector all showed signs of deterioration.

Here are the most important developments recently and what they mean:

– Although the Trump Administration continues to signal that the negotiations with Iran are progressing, a definitive agreement keeps getting postponed. Furthermore, the fact that the U.S. had to strike missile targets in South Iran just demonstrates how difficult the negotiations have become. The strongest negotiating point the U.S. has is that Iran does not want to cap their oil wells, since it would take months to restart.

– The Iranian Revolutionary Guards Corps (IRGC) said that the possibility of a return to war with the U.S. was “low.” Specifically, Mohammad Akbarzadeh, deputy political chief of the IRGC Navy, said, “The possibility of war is low because of the enemy’s weakness, the armed forces are lying in wait with full magazines.” This comment has crude oil prices plunging. I expect that crude oil prices will remain elevated for the next few months, so many energy-related companies will be reporting strong earnings for the next couple of quarters.

– The other big news emanating from Iran was that the Internet was being turned back on. The Wall Street Journal recently reported that the Iranian Internet blackout threatens up to 10 million jobs in Iran due to the fact that businesses could not communicate with their clients. It will be interesting if Iran can try to control the Internet and promote their propaganda.

– The best way to describe Ferrari’s new EV, Luce, is that it is “polarizing.” With a price tag of $650,000, the Luce is expected to be a failure, since that is a lot of money for an EV. Despite utilizing a famous Apple designer for the interior, the Luce is not inspiring or aspirational. Frankly, I am worried about Ferrari, since their recent models, like the 849, have poor styling. The Luce styling is also problematic.

– This is a good time to point out that the European Union (EU) is systematically destroying the auto industry, since they are forcing companies to make EVs and hybrids that are heavy and compromise handling as well as ride quality. Britain is also largely implementing the EU’s oppressive rules. Alfa Romeo, Jaguar, and Maserati are all expected to fail due to a poor reception for their EVs, since these are emotional brands. I should add that particulate filters on exhaust systems are making European vehicles quieter and less exciting, even on Ferraris. It will be interesting if any European manufacturers want to divert more of their production to the U.S., where oppressive emission and noise regulations do not exist.

Overall, I expect the rally to continue in AI and data center-related stocks between now and the end of 2026, since sales and earnings of many of the stocks in our portfolio remain so strong, especially for AI and data center-related stocks. Furthermore, since it will take up to three years to fulfill current data center order backlogs, I anticipate this spectacular sales and earnings momentum to persist well into 2027, 2028 and 2029.