(While Everything Else Dies)
| | | Hey there, Garret Baldwin here. | The fastest rate hike cycle since the 1980s should have killed tech stocks. Instead, the Mag 7 went to the moon while everything else got crushed. | | | | Here's why - and how to position for what comes next. | The Great Divergence | Since March 2022, the Fed rocketed rates from zero to 4.25%. REITs got slammed. Regional banks imploded. Small caps bled out. But Apple, Microsoft, Nvidia, Google, Amazon, Meta and Tesla? | Different planets. | Strip out the Mag 7, and most investors would be flat or negative for two years. These seven stocks ARE the S&P 500's gains. | Why Cash is King | The reason is simple math. They have hundreds of billions in cash. They don't need to borrow. Higher debt costs are irrelevant when you're sitting on a fortress balance sheet earning 5.5% on cash while your competitors scramble for financing. | The Sorting Mechanism | But here's the deeper game: rates became a sorting mechanism, not a market killer. | The bottom 493 S&P stocks? | Crushed by borrowing costs and slowing growth. | Double hit - expenses up, revenues down. Meanwhile, AI growth narratives continue running well above GDP. | Nvidia's earnings estimates exploded in 18 months while industrial companies fight for survival. | Gravitational Force in Action | This creates what I call gravitational force. | In volatile times, money crowds into "safe growth." The cash-rich tech giants with AI exposure become the only game in town. | I track this through my FNGD system - it predicted the English guilt crisis, Silicon Valley banking crisis, and every major leverage unwind since 2022. | Right now, it's telling us the strength remains concentrated in Mag 7 while 40% of Russell 2000 companies are unprofitable. | Your Trading Playbook | Your playbook depends on what happens next. | If rates fall, the rest of the market can finally breathe. Russell 2000 rotation becomes the trade. Small caps, industrials, cyclicals - they get oxygen again. | If rates stay high, this sorting mechanism continues. Mag 7 keeps pulling indices higher while everything else suffocates. | Tomorrow's CPI won't touch the Mag 7 - they're insulated. But it'll move everything else. | Watch the Russell's reaction. | That's your tell for whether the great rotation finally begins or if we stay in this bifurcated market for months ahead. | The math is brutal: cash-rich AI companies versus debt-loaded everything else. | Position accordingly. | Stay positive, | Garrett Baldwin | P.S. Make sure to join me live tomorrow at 8:45 AM ET, where I'll dissect the upcoming CPI data release and help you find real-time trading opportunities. | | | | | "Someone Knew" About $35.97M in 48 Hours | While ALAB exploded 2,200% and NBIS delivered $4.3M returns, retail traders got blindsided again. | But smart money left footprints BEFORE every move:
• $1.6M bet → $35.97M (ALAB)
• $679K bet → $4.3M (NBIS)
• $62K "lottery ticket" → $2.7M (TTD) | | | | The surveillance console detected ALL of these BEFORE they happened. | Stop trading blind. Start following the institutional footprints that matter. | WATCH THE VIDEO | See exactly how the surveillance system spotted these million-dollar moves before anyone else knew. | | | |
|
| | | | | Update your email preferences or unsubscribe here © 2025 Disclaimer: Neither TheoTrade or any of its officers, directors, employees, other personnel, representatives, agents or independent contractors is, in such capacities, a licensed financial adviser, registered investment adviser, registered broker-dealer or FINRA|SIPC|NFA-member firm. TheoTrade does not provide investment or financial advice or make investment recommendations. TheoTrade is not in the business of transacting trades, nor does TheoTrade agree to direct your brokerage accounts or give trading advice tailored to your particular situation. Nothing contained in our content constitutes a solicitation, recommendation, promotion, or endorsement of any particular security, other investment product, transaction or investment.Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Past Performance is not necessarily indicative of future results. PO Box 24790
Christiansted, Virgin Islands 00824, United States of America | | Terms of Service |
|
|
|
|
|
0 Response to "Why the Mag 7 Ignore Interest Rates"
Post a Comment