welcome to barchart series of educational webinars designed to Enlighten you on a variety of investment ideas and Concepts to inform you of the features and tools bar chart provides related to these Concepts and offer some Traders insight to help you make a more informed investment decision today's subject top three investment Mega trends for 2025 and how to profit from the future and the discovery of the key investment Mega Trends poised to influence the market in 20125 and Beyond are essential to long-term portfolio success you know what market trends will be the drivers for substantial growth
in Alpha Beyond let's say short-term momentum and Jenny come lately feds now there are identify me Mega trends that are currently in place and will continue to impact markets for years and over the next decade to come hello everyone my name is John Rowan bar charts senior market strategist and I'm going to reveal what I believe are three Mega Trends hiding in plain sight that will Propel markets for years to come now are these the only Trends to drive markets of course not but I believe that these Trends will continue to offer growth and Alpha
plus should be recessionary proof in case of the inevitable now in addition I'm going to share some techniques and tools to help you hasch out your own megga Trend ideas and how barart can make an ease of that yman work now before we get started please welcome our moderator and Barts Project Director Jean Baker hello Jean and happy New Year happy New Year John how are you doing I am doing great I'm excited to be back at work being back with you yeah it's uh off to a great new year and it's funny I just
did a quick check uh last year 2024 you hosted 32 of these hourong sessions uh so yeah a lot of education for our Bart community that you've provided and uh we're looking forward to another great year ahead I know you've got a lot of exciting topics already planned out for our I do I'm excited to and hopefully we'll get at least 30 plus uh webinars in this year I think we're planning on that all right so let's jump off you ready to get going y way to go let's go all right cool all right just
reminded that today's session is for educational purposes only in decisions to buy sell will hold uh Securities commies or any the other Investments involve risk and best mean on the advice of a qualified Financial professional and under no circumstances shall we be liable for any losses or damage that you or any else incurs as a result of any trading or investment activity that you or any else engages on based on information or material you receive through barchart.com and our services now I will add that during the session today we will be looking at a number
of sectors industry groups and individual stocks in no way should they be construed as a direct endorsement now there's an importance of each viewer to do their own due diligence I'm simply laying out a case for these trends that I'm going to present and the evidence related to the price action of a basket of or specific stocks that are related to these Trends now I'm going to share some selected watch lists to help you get started by no means will they Encompass all of the potential stocks that could be influenced by these Trends and of
course our old friend past performance is not an in indication of future results okay so let's start off with our first mega Trend now it's no surprise that I lead off with AI that thousand pound gorilla that is influencing markets today this is going to be a generational technological advancement which is going to impact markets and our lives for years now it would be obvious or too easy for me to say that I just go out there buy nid or semi semi uh conductor chip companies and their competitors that are inating or catching up with
Nvidia instead I look at AI as a disruptor like a large Stone thrown into a Still Pond and that ripple effect as AI touches multiple sectors in Industries in other words you know we've gone from chips now we're talking about data centers and infrastructure build outs hardware and power security software and then eventually we're going to enter a cycle where Revenue growth is led by consumer adap adaptation and productivity utilization now keep in mind that markets are always looking forward and yes Trends are our friends but most lucrative investment opportunities don't necessarily come from past
winners particularly those that have had extraordinary returns but from those that are adaptive of this disruptor or have benefited it from its implementation okay so we're going to um look at some artifici icial uh intelligence stocks so let's go in back to barchart here and here I'm under the investment page investment ideas and our first theme list is AI stocks and so if I open that page up this is going to give you a list of all publicly traded stocks and ETFs you can find that in ETFs we're not going to talk a lot about
ETFs today but um more about the individual stocks and these are all different a I uh linked stocks now we know that this disrupter has been presence in what we would call the large Mega cap stocks are magnificent 7 you might have heard right and if I look at this through the lens of performance and I sort by weighted Alpa which looks at how much the stock has moved in in a course of a year but also it weights it more heavily towards most recent activity and I do that then you can see that you
are magnificent s are found in the top quat trial of this list of potential AI stocks now um you know I want to move Beyond you know that first Big Splash and that's kind of what we're looking at here and so what I might do is if I'm in the AI stocks I might look at let's say you know the performance of let's say the last three months or performance in the last month or so and what I want to kind of do here is I want to see those stocks are starting to perform now
that maybe had a low alpha or a maybe even a a negative uh Alpha and re really these are the that next wave right the next companies that should start to benefit from the adoption of AI so again you looking here here we can see that AI the C uh C3 AI ink company uh you know in the last three months is up 38% but it's weighted Alpha for the last year is actually uh negative so maybe what this is this company is now just starting to appreciate or starting to feel the effects of this
next way of generative AI but again I want to move Beyond this I want to move Beyond this big first Big Splash first watch list I'm going to show you here is going to be called Data Centers and you know how is a data center become active or is it how is it built or even how is it powered so this watch list here entails many different companies that are in that process for instance mazte is a company that you can see that has done very well this year uh in terms of its chart performance
and this company is in the infrastructure construction of data centers and one of their key uh sectors in their portfolio of uh units is uh this electrical Transmission in other words this company makes the transmission lines that connects data centers to the power grid and so they have benefited very very well over the last year as more and more of these data centers are being created um another company Quant Services again this is a company has done very well of recent and um again this one specializes in Contracting Services of that transmission right that transmission
of power so how are our data centers being linked uh to the power grid but inside of this group also is you know this is a company tssi and if I go to tssi and this is kind of a little tip for you guys as you start thinking about your own ideas and your own trends that you're recognizing is you might discover a company that youve have heard of or you found that has benefited from one of your Trends and when you go to the main overview price page with these companies you will see what
sectors or what ETFs those um companies are involved in and so this one is in the engineering R&D Services Industry Group but it's also found in what is called the sector industry concentration of service management and consulting services so what does this company actually do well this company actually plans designs engineers and construct management of these particular data centers in other words these are this is an engineering company that is benefiting from all of these data centers that are being built around the world but again one of the nice features about bar chart is it
tells you where you find a lot of these stocks and this particular stock is found in the top 100 stocks now if you're not familiar with that tool if you go under stocks here is top 100 stocks and you can see that tssi is at the top of the list matter of fact this company has been at the top of the list for quite some time during this year and you can see that um here's a stock within one year has had almost 400% gains in just one year talk about the power of AI as
it reflects to some of these companies so that is a very good way to start helping you find your own potential uh opportunities so but let's go back to the data center I did and again I want to kind of just show you some tools here for instance under top performing stocks right emerging Trends and i' look at um over the last three months what has been the top performing stocks well look at here engineering and R&D Services has been the top performing Industry Group for for the last uh three months and if we click
on that box there's our TSS I but let's go back to our watch list and um you know inside of here we talked about mastic and Quant services but some of you might be familiar with vistra and constellation which are the independent power companies that you know they have some nuclear capabilities um but these are independent uh power companies or utility companies that are not regulated by Regional uh Power commissions so they have definitely benefited from the instant to demand for power so where do we go from there so we we've talked about this big
splash now we built we're building these data centers as well the next wave is going to be software and first software we're going to think about is um security software right we don't want our data center to be hacked but I also want to start thinking about as software moves from you know AI moves from uh security to you know consumer based objectives for instance you know booking travel or ordering food or shopping and you're going to hear uh a buzz were something called AI agents and there are a few companies out here currently um
that are in that have that space that AI agent space Salesforce service now even eBay uh um as AI agents uh Shopify uh DocuSign these companies are employing um AI agents to help their customers packaged software but let's start with you know if I asked P real quickly name a software company that is in uh data a data software and I think we could all agree that uh pal Ander would be one of those uh software security and again what we do is we come down here and we can see where they are found notice
that it is in one of the top 100 stocks but it's in the services packages software sector group and if I open it up again we can look at the multiple of companies now in this particular uh industry grouping we have a lot of software companies to look at as matter of fact is 227 so what you might do is you might screen and screen on very particular software in other words AI software or computer software now I have a custom view that I've created for myself that's called comparative which shows me the industries and
then I can again I can sort by the industries and look at you know which one of those software companies that I might want to be more concentrated um particularly on so we're going to start thinking about um these software companies that are going to start helping consumers adapt to our AI or are going to H bring forth increased productivity now the next we ripple from software for will be uh cloudbased information and Quantum U Computing them and I'm sure uh some of you have been well aware that these types of software companies have been
have a lot of strong Ro momentum so let's go to a cloudbased um software company and again this is in our services pack prepack package softwares and again what I would be looking for in in the in these types of scenarios is you know I want to find those companies that have have done well but maybe not have done as well as the other companies that have been on the Leading Edge and what I might want to see is you know how their performan has been in the last three months last six months um and
you know then what I'm going to do is you know I'm going to kind of look at let's say the relative strength so let me give you a good example of that as we think of this ripple effect of software so a lot of these data centers are going to create a lot of data right and then data processing so here's a stock that I came across uh Pega systems and they're in both the computer soft software Industry Group but that very specific peer group of consumer uh computer processing and data prepar preparation and there
they are there and so again what I'm probably going to do here is you know this is the that wave that second third fourth wave that are coming away from that initial Splash and what I'm going to do here is I'm gonna look for those that have let's say a good performance let's say in the last month but I don't want to see an elevated uh RSI for instance here's one that has RSI is in you know above 70% that would be overbought I want to find those that are now getting above 50 or maybe
in the high 50s or in the low 60s to as a potential candidate that I want to start to see gain on that that momentum for this particular Industry Group and so if I do that and I go down here right let's go I think it's all at the bottom here let me do this just do this by performance I think we will help me a little bit better um where am I looking for here be patient with me here oh here we go data storage Corporation all right so this is what I was talking
about so yeah weighted Alpha not too bad uh you know relative and in the last you know month or so this stock is starting to feels like it's starting to move again and if we look at this in terms of that relative strength uh lens right uh it's not you know it's not in that overbought territory it's still you know just a 1250 then it's been you know kind of on the Move um after have a major correction you know over the last six months so if I go into data storage Corporation I look to
see what this company is about right this is one of those clouds storage uh computer infrastructure companies but this is a key buzzword I want you to start watching for when we talk about looking for software companies to invest in and you're going to hear this a lot there's software as a service and and you know the acronym on this is going to be sa a so you're going to hear this a lot and this this is going to be the buzz word that's going to drive a lot of investment in these different types of
soft c c customers or companies so be aware of that um over the next we'll say six months or so so let's thread off of again let's thread off of AI centers and you know data centers and you know recently Microsoft CEO said that excuse me in a recent interview said that you know they have enough chips they just don't have enough power so I think what we're going to talk about now is oh by the way um all these watch lists that I'm showing you or these links that are in our slides will be
in the slides when um this session is recorded session comes available on our web page or in YouTube so you'll have access to them but let's talk about the green energy Revolution and the power demand from EVs and data centers is going to double uh and the growth uh at conservative estimat are is going to represent about 9% of the total us electrical Generation by uh 2030 so let me um we're going to look at a couple different uh groups in the energy space but I want to share this chart with you and this is
how America's electricity mix could evolve over the next few years now I want to start with the pink which is nuclear and that's where vistra and constellations have done very well you know nuclear is going to be U Limited in terms of its growth there's not a lot nuclear plants being built um matter of fact it takes like decades to build a nuclear plant but notice where the growth is going to come from it's going to come from wind and solar as well as gas power in other words natural gas so if you are thinking
about investing in energy I want you to concentrate on wind solar and natural gas as those power sources that are going to help uh with the expansion of the grid so let's go back to our investment page and we have clean energy right where is that power going to come from right building a data center right those uh equipping a data center is really a one-time expense but power consumption is ongoing and is a recurring cost so where is that power is going to come from and I just showed you that solar now if we
look at solar companies in this uh watch list you can see that if we do it on a performance basis you know a lot of solar companies have been hammered this year but I'm telling you that the grid cannot grow and power data Cent power for data centers will need to come from solar so I think there's opportunity in this trend that there are going to be opportunities in the Solar sector matter of fact remember I showed you top performing stocks and if I go into one month of recent and I look at the top
10 industry groups solar is one of those groups so solar is starting to get uh noticed again and First Solar is one of the largest solar pan panel companies but I think there's other solar companies that we could look for in um our process now let me go back to um our investment clean energy and let's go and do this on a performance basis and we'll look at um you know Alpha we get at Alpha here and we can see that bloom energy which by the way is a renewable energy company right they are both
they generate distribute renewable energies solar and wind and they are based in California where renewable energies is mandated and next Tera is another company that is in the r renewable space as well so these companies have benefited it over the last year or so and they have had a bit of a correction I think kind of throwing the baby out with the bath water as solar stocks have been um underperformed but you can see next Tera you can see where uh they have a lot of their electrical plants again here's Tesla again Tesla is more
into the battery uh space so about back in may we did a webinar on the power infrastructure and our guest at that time told us that yeah wind and power are going to be important for the growth of the grid but that we need to have battery storage and so I want to kind of show you this company now this is stem and again look at our performance here this has a super negative weighted up in other words it's telling you that this stock has been down for the past year but look at the performance
here in the last month right it's doubled in the last month last three months and so if we open that up and we look at what this company does this is an artificial intelligence company who's driven clean energy storage system the C company has advanced Energy Solutions that uses AI analytics to tell a customer if it should be using power from battery power onsite generation or Off the Grid so we've just talked about onside generation and we talked about the power grid let's talk about battery power so let's go to our next walk watch lless
which is battery power and these are all battery power companies now there are all different mix here some of them are in lithium some of them are in uh you know solar generation power storage systems um again I'm going to go into a performance here and that's do this by weighted Alpha and full disclosure top of the list here is eos energy Enterprises and I do own this stock I own it outright and I have some leaps some leap call leaps in this stock now if you're not familiar with this company this company has innovation
of looking for a power storage not in lithium but in zinc Batteries Now what makes the zinc story a little bit a better storage bage battery storage story is you know if anybody used a rechargeable lithium battery you know that there's a deaggregation of the lithium battery you know after about a hundred times you've used that little doublea battery it only stores about half right or it only lasts about of time and if you think about if we were going to scale to build a liening battery imagine a giant uh ever ready battery you know
for utilities you know the amount of lithium that you'd have to use on the size of that battery would be the size of a house this company has figured out that zinc battery storage can give them that scalability but also not that decoration of recharging uh a battery so I think this is a kind of a company that is poised that the market is sty just starting to recognize of a unique battery idea again look at some of the other ones that are at the top of this list now what I like about the battery
storage idea now I don't know if es is one that is going to be the outperformer the one that's going to take leadership in this group but it feels to me this is kind of like the beginning of like the Nvidia story right this is going to be that that next generation and if we look at a lot of these batter companies you look at their prices they're very very reasonable price companies so I think youd have to do your due diligence on this one and again there are I think there are a lot of
opportunities in the battery uh space so I wanted to kind of show you one other thing here and and I know I have my friend Jim Van muon in here is uh in the room because Jim sent us a question question and so under news we have something called chart of the day and Jim is in charge of chart of the day he writes an article about a different chart and just recently Jim wrote an article on ES um EOS energy storage and by the way if we look at some of the other ones that
Jim has done of recent there's our tssi as well so good job Jim and recognizing those uh companies that are on the advancing Ripple wave of AI technology all right so again you know these battery companies are just getting noticed I think they're cheap and you know as more data and more solar is produced we're going to need more batteries uh to help them store right that's the dilemma with the power grid is that you know the sun doesn't always shine and the wind doesn't always blow and so you know during the day of these
utility companies have enough power to service these compan these data centers during the day it's during the night time or when the solar is not being created that they need to store that Excess power uh during the daylight hours okay so I've made my case or plug so to speak for uh Power um but let's shift our gears from advancing technology to advancing demog graphics and let me go back to my slides here so every day 10,000 Americans turn 60 and by the end of this year 42 million will become 65 years old and 20%
of the population will be 65 years are older by 2023 so this large segment of our population this contains Baby Boomers and gen X's has continually throughout their life cycle has influenced consumer behavior and spending patterns now as they reach this end of their life cycle so to speak um they arrive with the largest concentration of wealth in history so I think what the market has done is has recognizes services and products that are needed to sustain life for instance surgical medical surgical devices but I don't think the market has really fully in taken in
the consumption patterns that seniors are conducting and I would call them more of our quality of Lifestyle now we'll talk about healthc care in a second um but I'm talking also about seniors um senior housing uh travel and Leisure this experience over material Goods um again housing more of a comfortable uh assisted housing and then finally we're going to talk about and I don't want to be morbid here but I think you're going to be very fascinated about this group the end of life arrangements so let's first start with medical devices and whoop let's go
back to bar chart and I'm I don't know if you're familiar with a lot of Med surgical medical devices but I think two of the one that come to my mind in Boston specific and I think it this Striker strier and I think these companies you know here's a fiveyear chart here these companies um and the market has been aware of this demographic shift right um they made medical devices that help improve the quality of life of older individuals and again we can go into the surgical medical instruments and apparatuses and again in here you
can find a lot of these and again I think a lot of these you know you can see their Alphas are strong and their performances over the 52 weeks have done well and that is really a really just a Improvement of the case of this demographic space again um let's see where is there is Striker and again if we go and look at what they do right uh you know they are you know they make hips and Joint Replacements and I don't know I'm sure folks that are have friends or relatives are in that 60
or above category you probably know somebody also who's had a hit for a knee replacement so these companies have done really well I want to start thinking about medical devices that are going to help improve the quality of life and let's say um you know seniors that are living longer for instance diabetes devices eye care heing aids and D dare I even say cosmetic surgery right so let's move beyond what we is obvious and let's start moving into let's say Senior Living and so these are a was of companies that either have senior living facilities
or support Senior Living sub facilities again I'm going to look at this from a performance basis and I just want to kind of point out a couple again I'm going to sort this by weighted Alpha and the one that comes to the top is this American Healthcare re and if you're not familiar this is a relatively new read but they are in the medical office buildings senior housing skilled nursing facilities hospitals and healthcare related facilities again based in California where you find a lot of retirees the other one that is intrigues me is this Addis
and again again you know you can kind of see the stock has been trading in kind of a sideways action but of as of recent over the last year so it's starting to find starting to make a move and again this company here is in the Home Care uh segment again talk about quality life who doesn't have a grandparent who has as in their later years they don't want to live in a nursing home right they want those services to come to them and so here's a company that is does that right it gives uh
uh Physical Therapy occupational therapy speech therapy skilled nursing and they do it all at the individual's homes but there are other companies in here uh that are what I would say senior Healthcare living centers you know these above 50 community centers so again and you do that due process and looking it let's talk about the AIL body Sy let's be a little bit more positive here for a moment and we talk about this generational wealth that seniors are bringing um to the table right and you know I have a an aunt she's 75 years old
she's recent Widow but you know I just she I just visited with her over the holidays and she's telling me she's going to take three vacations this year two of them are abroad by the way have you seen how strong the dollar is uh if you go to try to uh book a a European Vacation boy is it cheap my family normally uh has a ski vacation we usually look at Utah and Colorado and we went and looked at found that we can fly the whole family to Austria and ski the Alves for a lot
less than we would cost us to go to let's say Utah or Colorado So my aunt has three trips plans she owns two homes she has a winter apartment and she has a summer home uh you know she's very active she plays tennis three times a week and the other two days during the week she's in the doctor's office complaining about her knees and shoulders um she has eats her breakfast and lunch at home that's where she prepares her meals but she dines out literally every night with her friends and when she's on these these
trips and excursions she pays for insurance that helps protect her home and her appliances so let's look at this in terms from a performance aspect right uh American Express right a lot of seniors have American Express cards they really cater to let's say the more wealthier individuals uh it travels uh again if you're not familiar with this company right they um help folks plan travel plans uh bookings booking.com right I mean you probably heard of them well that's shorted by weighted Alpha uh United Airlines right the largest world's World International carrier Delta is the largest
domestic carrier um front door I'm sure you're probably not familiar with this company front door is American Home Shield that company that ensures your home and your appliances uh to help pay for that unplanned or breakdowns of essential home assistances um again a unique story here's uh chef's warehouse and if you're not familiar with this company this company basically is the Costco of restaurants fine dining and hotels right they provide Specialty Foods and products so again you know seniors are coming to this time of life and they have money to spend so I really do
believe that even if we do have a recession which a lot of folks says we're not going to we're going to have this soft Landing that I think these industries are going to Buck the trend because seniors have money to spend and look at some of the others compan here we got cruises at the top here as well so here's a demographic spending pattern again this demographic is a large democra is is dictated or influence mark markets for many many years as they gone through but now they're at this time in life where they have
money to spend and they are spending it okay so let's do this now I don't want to become morbid here but the reality of life is that eventually it comes to an end and if we think about this demographic and this is a watch list which I would call the end of life arrangements and here are a very select few companies that are in that business yeah it's not an exciting business and it's not something that we probably don't want to face the reality and mortality of our lives but I want to just get play
out a very interesting scenario for you for instance let's again let's look at this from a performance basis Carriage Services right and if you're not familiar with this company um you know a recent this year a stock that has been on the rise and its profile is is a leading provider of death care services and products in the United States including funeral homes motor Vehicles cemeteries and so if we look at Carriage services and this is a small cap company right it's not a very large company but look at the Returns on this company now
this one-year growth is 57% now the three-year growth is a negative because they have just had a lot of Acquisitions but this is a company that's growing and this is some stats from just for the most recent quarterly statement that they they had a 27% increase in pre-need sales in other words that planning for end of life their Gap net income grew by 112% year over-year and they increased their guidance because they have now had three consecutive quarters of over a hundred million in Revenue so again you think about this in terms of those Dynamics
or metrics this is very similar to let's say an AA story or you know a technology grow story and if you go to their website which is really really fascinating um this segment that they work in is a $25 billion do segment and they can and it tells you that only about 80% of that revenue is is currently unsolicited right and so the look at the their um their margin their profit margin and this is what I really like about this company is it's one of two publicly traded companies in this particular segment now notice
Lo where they are located where their um funeral homes and cemeteries are California Texas Florida North Carolina Tennessee high concentration of seniors so you have a company that's basically a monopoly in a very Niche uh Industry Group this is a small C company it's probably not getting a lot of notice but actually if you go into their in investor faction and you look at in who the industrial institutional investors you will see that it's Black Rock um State Street Vanguard um you know oak tree all those repido companies are um in in institutional Investments all
right now let's go back to this list uh where is it uh life end of life and I you know I kind of want to be lighthearted here at the end is I put in Walmart in here and some you gonna say Walmart why why got a Walmart in here well did you know that through Sam's Clubs you can order a casket I bet you folks didn't know about that so this is kind of just a a P me cheek here at the end all right so let's do this I want to talk about risks
in the market for this year but I do see um um to see if we can answer some of our questions here so give me a chance here Gan to kind of read through some of these while John is reviewing the questions I just want everybody to remember that our chart off offers multiple level levels of membership uh we have a free membership and that actually unlocks a lot of the different tools in the site uh we also have what we call barchart plus and barchart Premiere both of those are going to afford you the
opportunity to really dig in and customize uh a lot of your searches and you'll be able to create multiple watch lists uh create different custom views to apply to them like John has a performance view showing right now on his screen so if if you haven't tried a plus or Premier membership I really highly suggest that you do so for this next New Year get yourself off to a good start with your trading uh and if you have any questions just contact support at barchart.com they'll be happy to help you through that thanks Jean so
I have a new question ask about my comp comparative View and this is what kind of gan's talking about so Bart offers these default views and I've been spending a lot of time on the performance but I you can create as a a a member you can create custom views and I do have one that I call the comparative now I also have one that Jim vanon has helped me with that he uses for his chart of the day and what you do is you can come into your screener here and you can create a
custom view based on um you know multiple different kinds of screenings in through the custom views now this is for screening uh as well but for for custom views so let's go back um so on down in the bottom here you will see where it will say create your own custom view that's how you can do you can do those elements and so one of my comparative one that I use uh one of the filters that I use is in in the industry with that that the company is in so that that was that question
I think gri asked um you know I see some nayay are here you know that AI is like a cannabis stock you know listen I'm telling you AI is here to stay it's not going away it's just how can we decipher or find those alpha or trading opportunities based on Market momentum Trends and also performance of and yes I agree that solar stocks a lot of them have become have been under power but I'm going to tell you watch that webinar that we did in May with my guest Larry sta on the infrastructure and he
will tell you that we cannot move forward into the next generation without significant increase in power and solar is going to be part of that matter of fact in that presentation he talks about how many solar plants are being built across the United States so again um I don't know which one is going to survive or which one's going to take the leadership I just know that we cannot get to the next level of electrical demand without solar power um um so Michael says that American Home Shields has been shifting their workload to AI pattern
companies American Auto Shield so there you go thanks a lot Michael great information that's AI generative idea uh ashad says American L is the largest carrier in the world by the way just to let you know so I went in looked at it and it says that in terms of Passenger United is actually just a little bit ahead of American Airlines now just mind my data might be old or um but the two of them are literally relatively the same um so Robert asked do I think small caps are out set to perform I think
small caps is going to be a very difficult segment to you know Encompass I think you need to look for those small cap companies that have positive growth uh positive cash flow uh earnings growth you know a lot of small comp small cap companies and again you know for instance that battery company that I mentioned that they still have not turned a profit so they are suscep susceptible to Capital cost so I would be very very um um particular about looking that potential small caps companies um so I see we got a lot of them
and Jim my buddy Jim V says Will trump affect solar wind I think he will but I think you know the monies that has been allocated through other acts from the previous administration is already in in the works in the pipeline so he might eliminate some U tax credits or something to that effect but I'm I'm tell tell you Jim um again watch that webinar that was in May on the power grid um it's not going to happen without power okay so here we're at the top of the hour um a lot of great questions
if I didn't get into all your questions um you know send them to support at barchart.com and um we will um try to help you answer those questions all right so let me go back to my slides and I want to talk about some risks for 2025 so you know the markets over the last two years we've had double digigit growth we have this concentration of a very few stocks have really kind of taking the leadership and the whole Market has really done well because of excess liquidity and that has really drove uh earnings that's
is really what drives the market is earnings so any changes in liquidity or earnings is going to have an effect on the market and this is going to be something that we need to watch for and particularly in this year I think we're entering into a year that has more risks that we've had in past years on the horizon that could trip up the mar the market and again this isn't an importance of looking for diversification in your portfolio you don't want to put all your eggs in one basket but I do believe that power
generation and an aging population aren't going away and I do think that those will be more recessionary proof but let's talk about what those risks could be or that change in liquidity so taxes either real or hidden you know yes this Administration says they're going to try to cut taxes but there's no guarantee that it's going to get pushed through Congress but many states and many M municipalities have a balanced budget amend amendments or agendas and some many of the states that have recently have experienced some natural disasters floods hurricanes wildfires um those States and
I live in North Carolina we're already hearing that our taxes are going to go up because they have to re build a lot of this infrastructure energy and electricity we just talked about the demand for energy is going going up it's going up by 10% in the next five years well Rising demand means Rising prices and insurance and Health Care are always things that um you know the you know de death and taxes so to speak but uh those are things that we that are continuing to increase so if the consumer has to deal with
Rising taxes higher electrical costs and Rising insurance and Healthcare that just means there's less money in their paycheck for investing or that liquidity you know there are there are sectors in California and in Florida homeowners whose electric and insurance bills are more than the mortgage that is absurd unemployment we see a sudden rise in unemployment over the last four years the government has been one of the largest uh employers the largest sector has been the hospitality and um travel sector there's your demographic uh influence but we have seen over the last year year and a
half a contraction of J new job openings two or three years ago there was two to three jobs for everybody who was on the employment line that number has shrunk and that could be a headwind for the market and recession deflation I know that um this might not be a popular thought but what col Catalyst could constrict the growth well monetary policy right the FED has been lowering the short-term rates what if uh interest rates are inflation is sticky right persistent there is a very small chance right now but there's a lot of talk about
Economist that says that by the end of the year if inflation does not come down then the FED will start raising rates again what do you think the market will think about that fiscal challenges right we're coming up against um our debt ceiling right we have to pass a new debt ceiling what if conservative Republicans who want the government to be more fiscally responsible um you know stamp their feet and we don't we know we we got a government clo shutdown for few weeks or a months global economic slowdowns why why is this our stock
market rip roaring well we have one of the strongest economies in the global uh you know in in the world well many other economies you know G8 economies are not doing well um and are in global slowdowns what if that contagion U fills over into our uh especially if you know we have um tariffs right that could restrict global trade globalization de globalization asset bubbles uh you know home assets uh or you know look at some of the asset recent asset bubbles for instance potentially crypto or mem stocks right if one of those implodes what
would happen and then can geopolitical risk and then Market mechanics um you know this concentration of these Mega cap stocks waiting in the broader indexes are attracting a line share of passive investment allocation so there's two risks here first is as these stocks get bigger as the nvidias and the apples of the world become trillion two trillion three trillion five trillion right they're going to take a larger line share of passive interet that means less investment in you know these secondary markets these kind of markets that we just looked at right you look at the
NASDAQ The Q's the top 10 weightings inside of the q's represents 50% of or greater than 50% of the cues so the other side of that risk is what if one of these uh Mega cap companies stubs their toes or a couple of them stubs their toes the benefit of an ETF is that we we disperse risk over many stocks but if you have a large concentration in a very few stocks then the etf's purpose of risk management of single stock risk actually comes accelerated so if one of these Mega caps you know tumbles or
has you know a bad quarter or multiple quarters uh that could be a huge headwind um to the market as the broader indexes fall now it doesn't mean that there might still be opportunities in um active investing but you know the average home investor who sees the stock market going down because the indexes are going down that's going to probably make them a little cautious about investing okay um I hope you guys enjoyed today's session again the final takeaway is that in the coming year Market momentum AI Innovation Mega cap leadership will likely Remain the
drivers for the broader indexes and Beyond these trans transation transformation of uh trends like gen of AI green energy adoption and procurement as well as a shifting po population de demographics presents a very significant opportunity for Capital Growth in Alpha generation and these catalist could unlock value despite the headwinds from a elevated value valuations uh D accelerating earnings growth and recession risks okay so I hope you guys enjoy um today's session again as Jean says um here in our slides there are those data excuse me those watch lists that I showed and um again what
I would encourage you is if you're not a subscribed member whoops um take advantage of our you can take advantage of our Premier package which you can try out for a 30-day process so I look for that opportunity okay Gan that's our first one of the Year I hope folks like that one uh next week uh we're going to talk about oh yeah Trad volume we're going to look at volume I believe volume is a very important technical indicator but we're going to look at some very specific technical analysis tools that are based on volume
and we're going to show you how you can apply that to your technical analysis okay until next time folks uh be safe out there the best of health manage your risk and the good of all Trading
