It is a bright and shiny day when the individual investor outflanks the institutional funds, but that is exactly what has been happening in the markets as of late.
Bank of America Securities released a report today 7/8 showing that the institutional parties, hedge funds and ETFs “sold their positions much more than bought shares in 8 of the past 9 weeks.”
Conversely the private wealth investors and individual investors (i.e. you and me) bought more than they sold in 28 or the last 30 weeks! Give me a high five – people.
It makes you want to belt out the tune “We Are the Champions” from Queen! Go ahead, I will wait till you finished! Ok, enough, you sing rather poorly.
The little guy can, and is, carrying the markets to fresh high levels all time. This is to be celebrated and brings me to my hypothesis of the month of July.
The individual investor wants to own stock and to heck with the uncertainty, the tariff noise, the geopolitical issues and the Fed not cutting and the dollar not strengthening.
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We are expecting quarterly robust and strong earnings reports, starting this week. Never mind that many CEO / CFOs refused to give future guidance on the second quarter results… due to the tariff malaise on April2.
2. The AI window is now open for business and the little guy investor is seeing it for what it is, an all-out opportunity for gaining real wealth. A once in a generation opportunity, maybe three generations.
3. That AGI window is not the kind that is closing any time soon and is open for business at least into the year 2028, and many believe, like me 2030. So, the little guy realizes that the opportunity to buy the best of breed in AI stocks at premium prices, is well… the price you pay to play in today’s game. This is what is called “going long” in the best way possible, and if the shares increase faster than expected, well the cash register will ring when we want it to ring. In some instances, national pundits have begun to talk about the 5x and 10x multipliers of the big names. Microsoft which at $496 a share has been given at least one upgrade over three to four years to reach $800, yes $800. That is a 60% uplift over the next 4 years or 15% per year. Bet you would take that. Nvidia is being given a clear runway to $340 per share, from $160 today. Nvidia is a 51 P / E today, no matter, I guess. the list goes on and on, GE Vernova the big energy company for the AI Data Center build outs was $460 one month ago now today at $530 and seeking a $650 figure in late 2026. Will there be ups and downs – of course as there is no straight lines in investing.
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Finally, I do not think we can stop this runaway train of AI now that the countries of the rest of the world are leaning in hard, and seeking Sovereign AI for their own culture, their borders, for technological autonomy, national security, data privacy, economic competitiveness, and domestic collaboration and civilian success.
This is only a partial list: UAE, Canada, Japan, Taiwan, France, China, EU (European Union), UK, Saudi Arabia, Italy, Germany, Brazil, Indonesia, African Union, Sweden and India.
With such news now out on the table, I would like to hear your counter arguments or any other thesis you may be yelling at me through your mobile phone.
Results are not typical. I teach methods that have made other traders’ money, but that does not guarantee you will make any money. Success in trading requires work and dedication. Past performance does not indicate future results. All trading carries risks.
