Time to Add MORE High Secular Growth Sectors + Crypto To Our TR Ultra Growth Playbook
Hey Reader,
While the equity markets morphed from the Terrible Tuesday, April 9 Global Tariff War Declaration to the "The TACO Recovery Trade" --we sit here, July 22, with
A) A historic case of stock market volatility whiplash
B) A full recovery of our AI Data Center Tech Stack and GDXU record highs--up over 53.5% so far in 2025 vs the 6.66% S&P 500 index
C) Our investment in the oncoming nuclear power plant expansion (traditional and SMRs) via Centrus Energy Corp. is our biggest 2025 gainer, up 237% --who thought that would happen?
D) But make no mistake--the 5-year secular AI Data Center ("AIDC") Tech Stack + AIDC Power Supply + AIDC Power Transmission + Agentic/Robotic/Software/CyberSecurity AI applications spend is still historic and hard to fathom.
In fact, according to McKinsey, the global and sovereign addition of AI-related data center capacity between 2025 and 2030 is estimated to require $7.9 trillion in capital expenditures. This figure highlights the substantial historical financial investment necessary to scale global AI data centers, power generation, and power transmission to meet the anticipated demand for inferential, agentic, and robotic AI functionality.
Key Point: The US stock market is still a 2025-2030 AI build-out driven stock market, but add another $trillion for the second and third derivative AI sectors + now
1) Crypto deregulation and AI encryption
2) Next Gen Edge AI computing (NON-data center edge server/PC/cell phone AI)
3) Next Gen SMR nuclear power plants rollout
4) Next Gen AI Cyber Security enhancements
5) Next Gen AI Robotics and Customer Service, aka "Digital Labor"
6) Next Gen EVTOL Electric Vertical Take-Off and Landing with AI piloting
7) Next Gen AI-enhanced Quantum Computing as-a-service
8) Next Gen AI Drones and Warfighting technology
See a pattern there?
And look--this is a LONG game folks--but I will say the new massive deregulation activity at the Federal level is going to speed up this global technology transformation in not just the USA. The global powers are now in an AI tech horse race--and losing is not an option. The result of the race to the holy land of AI--Artificial General Intelligence is ON like Donkey Kong (OK aging myself), and there is no turning back.
And this infrastructure spending makes the internet spending look like an asterisk.
Note: MAYBE, just maybe, we poor suffering Verses AI shareholders will see the day when their edge computing platform Genius will break out of the agentic AI tech stack and actually, make us some money (ps hope is not a strategy :)>
Question: How does the US Economy Stay So Strong With These Import Tariffs?
Here's a puzzle that's been bothering me: how can we be seeing substantial tariff revenues, flattish inflation, and a stronger-than-expected economy, all at the same time?
In other words, if U.S. companies are already paying upwards of $100 billion in tariffs, their only two choices are to pass that cost along to customers or to absorb it in the form of smaller (or non-existent) profit margins. So we should either be seeing stickier inflation, or less hiring--or even layoffs. And yet, we have neither so far.
And the answer--the missing puzzle piece, if this rosy situation continues--is that foreign exporters are cutting their prices. Japanese automakers, for instance, reportedly slashed prices by 19% in June for vehicles shipped to North America. China's factory prices slid 3.6% last month--the sharpest drop in two years.
Think of it this way: take an import that cost $1,000 last year. Now, let's say it faces a 20% tariff. However, the exporter cuts its price even further. Suddenly, you have tariff revenues and price deflation for the end consumer, without any hit to the importer's margins.
This is an extreme example, of course. However, it gives a sense of the myriad behind-the-scenes adjustments currently underway that could explain how we can have a sizable amount of tariff revenues (now the fourth-largest income source for the U.S. government), without a bigger economic toll — at least, as of yet.
The Short-Term Game Plan--PATIENCE--Add New Positions in the HIGHLY Predictable August + September Profit Taking Pull Backs!
Look--we are sitting on historic profits--it is not a time to get greedy. It's time to shave some profits off your biggest winners to build some cash to take advantage of the VERY predictable market "consolidation" aka profit taking.
TR Ultra Growth Date Center Tech + Power Stack - Gains, Buy Under Pricing Company Ticker Yield BuyPrice Q3 25 Investment Buy 1 YR Target 07.22.25 $ Gain % Gain Under $ Price Nvidia NVDA SOLD $29 $168 $139 476% 10%+ Pullback SuperMicro SMCI SOLD $136.6 $1,140 $1,003 734% 10% + Pullback Applied Micro AMD $95.0 $154 $59 13% 10% + Pullback Taiwan Semi TSM $83.5 $146 $63 54% 10% + Pullback Broadcom AVGO 1.6% $62.9 $249 $186 296% 10% +Pullback Arista Networks ANET $137.0 $386 $249 182% 10% + Pullback Pure Storage PSTG SOLD $33.2 $54 $21 63% Uranium X ETF URA $21.9 $32 $10 45% 10% + Pullback Centrus Energy LEU 6.0% $31.9 $216 $184 577% 10% + Pullback TQQQ TQQQ $28.7 $60 $31 88% 10% + Pullback SOXL SOXL $17.4 $27 $10 57% 10% + Pullback Verses AI VRSSF HOLD -65% HOLD Vertiv VRT $25.3 $125 $100 394% 10% + Pullback 3X GDX Miners GDXU HOLD $41.930 $81.02 $39 93% ANY pullback!
After a 20%+ pullback and then snap back higher market, a typical tech pullback is as predictable as me cooking my famous Italian meatballs for Tuesday night's Italian wine night! First, we just had seven straight UP trading days.
Our $GDXU 3x Gold Miners is up nearly 100% since we added it in early April. Goldman Sachs reports that trading volume from retail traders/ETFs from the April low was $50 billion in new money in the market — that was a record 40% of all new money in stocks.
Retail traders LOVE the one-day options--trading volume in extremely short-dated contracts tied to the S&P 500 has surged this summer, with more than 2.1 million of them changing hands, on average, every day, according to the latest data from Cboe Global Markets Inc. That accounts for more than 61% of total daily activity for S&P 500 options, which includes contracts of various maturities.
I have Alexandria Wilson-Elizondo, Goldman Sachs' co-CIO of multi-asset solutions, on my Money Mavericks streaming/VOD/Podcast next week--I think she is spot on for her call that "the market" needs a breather--here is her call on CNBC this morning
Sectors We Are Opportunistically Adding On a Normal Late Summer Pull Back
Expanding beyond the TR AI Data Center Tech Stack is PRUDENT diversification--and there are big opportunities with the AI Stack mostly fully priced.
Examples? Gold Miners (in addition to GDXU!) — $AEM, $HL, $KGC — as you can sell put options on pullbacks to lower your cost basis and generate income. The thesis is simple-- as long as the US dollar continues to be sold by global central banks aka debased as the US national debt skyrockets by $trillions (and be prepared to be a little shocked at how much more your non-US vacation is when your dollar-denominated credit card bill arrives!)
2) Transformational Crypto Disgial Asset CLARITY Act-- passed the House and goes to the Senate with a positive vote almost certain after Summer recess. That opens the door for $ETHU, $BULL, MARO/MARA, WULF, BITF, $BITX, SOLZ, $SOLT and the pubco Ethereum "Stakers" like $BMNR, $SBET etc.
3) US Based Tariff Wars Winners--like recycled clothing from $REAL and ThredUp $TDUP and any secular growth industry/company that produces its goods 100% in the United States tariff free!
4) The Top 25% of US Households by Annual Income--which account for 80% of discretionary spending in the US economy/GDP and financial assets under management -- $GS, $JPM, $EXPI, $SG, $BHR, $LIND, $VIK, $YETI, $LCID, $PK, $SCHW
5) The BOTTOM 50% of US Households by Annual Income--who are using BNPL credit like $AFRM $UPST $AMZN and shop value retail $TGT, $SCVL, $WMT, $MCD
But Here Is the BIGGEST Secular Transformation Affecting Investing in All The "Next Generation" Techno Wonders
To set the tone for the next 5+ years of micro/small/mid, and large-cap stock market investing in the fast-emerging next-generation technologies, where I truly beleive will be life changing wealth created in the next 5 years, I need you to understand a major transformation in the US capital markets — something I, along with others, call "The Attention Economy."
Here is what I mean by this concept. Floating above the world's economics, the digital revolution has created a new economic revolution and wealth-building power that one of my favorite thinkers, Kyla Scanlon, has dubbed “the attention economy.”
Stay with me. Her premise is irrefutable--that in her words, “the ability to attract and capture digital attention has become a form of power, and it's not just the rise of Donald Trump or Zohran Mandami in the NYC Mayor race-- the attention economy is actually reshaping not just politics but it's reshaping the actual economy too”.
Her insight is simple: that MONEY (or votes or speculative trading) increasingly follows the things that can attract DIGITAL attention. And it’s this dynamic that is influencing how people--especially those digitally addicted GenZ’ers--make their decisions not just about careers--but how and where they invest their money and manage their finances in general.
Key Point: With $8 trillion in new capital invested in U.S.-based stock and bond funds over the last 24 months, there is significant firepower for a massive RISK ON more speculative stock market in the fast-emerging next-generation stocks.
Here is part of a fantastic interview with Kyla by my friend Ezra Klein in the NY Times (he was very helpful in getting me to be an occasional economics contributor at the NYT). I publish this article in my newsletter as I am sure most of our subscribers are NOT NYTimes subscribers 🙂).
“So Kayla, what is different about the economy that you live in, that you see, that you feel Gen Z is experiencing, from the way us GenX or Boomers describe or understand the economy?”
Kayla “One of my pieces that went far was “Gen Z and the End of Predictable Progress.” It was based on my research over the past year. I’ve been traveling on a quasi-book tour, visiting numerous college campuses and conferences. I’ve been speaking with young people about their experiences with the economy and their thoughts on the future. They don’t feel there’s that “path of predictable progress” that their parents or grandparents might have had. David Brooks had this piece about the rejection generation that I think encapsulates it really well. He said: The Gen Z-ers are facing rejection after rejection. First, it’s hard to get into college, and then when you graduate from college, it’s hard to get a job. I think that element of always being rejected from everything — or at least feeling like you’re being rejected from everything — creates those elements of nihilism that show up in how Gen Z-ers might spend, save, or invest.
Tell me about your “barbell theory” of Gen Z.
Essentially, people are responding to economic uncertainty and the lack of a predictable path forward in two ways. One path is tool-belt pragmatism, where people return to the trades, becoming plumbers or electricians, taking a path that isn’t as speculative and uncertain as accumulating debt and attending college.
Other GenZ people (born 1997-2012) are going a memecoin gambling or sports-betting type of route.(Toby here: the level of gambling addiction in 18-44 year old males in 2025 is stunning--19% ie, tens of MILLIONS, are classified as “high risk problem gamblers.) THUS--you have these two ends of extreme risk. Both of those are responses to that path of getting a college education, getting a white collar job, and going off into the sunset, not really working anymore.”
Okay, Toby's back — we are going to be opportunistically adding several higher-risk, higher-reward positions to benefit from the transformation event of the new crypto-based Genius Bill, which deregulates a lot of the crypto world. One big reason is that crypto is the living, breathing child of the attention economy. In addition, the MEME stock mania was another phenomenon of the attention economy.
But now these older GenZ investor/speculators are driving demand for the fascinating transformational technologies that are NOW supported by the Trump Administration and in the middle of the Attention Economy feedback loop.
Also, data shows retail investors 20-45 are TRADING stocks 10x more than Gen X and Boomers--they are the fuel for these stocks with exciting revolutionary technology stories--that are getting a LOT of digital attention (YouTube/X/Reddit/StockTwits/ etc etc etc) with tens of millions of clicks a DAY on the exciting revolutionary technologies coming to the world in the next 36-48 months.
Our New Sectors and Stock Picks
The Trump Administration is also massively supporting ALL these revolutionary technologies, which massively feed these self-reinforcing Small Cap Stock Market Attention Feedback Loops:
Crypto & Crypto Infrastructure (see above
Quantum Computing--Rigetti RGTI QUBT IBM
Electric Helicopters/EVTOLs-- JOBY/Archer
Small Nuclear Reactors: SMR/OKLO/NNE/ASPI/ and of course LEU up 636% since June 2023!
AI-Based Digital Labor Replacement: Physical Labor-based Robotics & AI Customer Service (picks to come )
AI Cyber Security/EDGE computing Platforms--Cloudflare (NET), Fortinet (FTNT), CrowdStrike CRWD, ARM, QCOM
Digital+ Drone Warfare & Space: Palantir PLTR AVAV KTOS AVAV LUNR RCAT LUNR ASTS AXON
Back to Klara
“Tell me about your 'barbell theory' of Gen Z.” Essentially, people are responding to the economic uncertainty and the lack of a predictable path forward in two ways.
One path is tool-belt pragmatism, where people return to the trades, becoming plumbers or electricians, taking a path that isn’t as speculative and uncertain as accumulating debt and attending college. Other people are going a memecoin gambling or sports-betting type of route. You have these two ends of extreme risk. Both of those are responses to that path of getting a college education, getting a white collar job, and going off into the sunset not really working anymore.
"One of the things you write is that “traditional economic substrates are land, labor, capital — bedrock inputs to make stuff. But now, the foundational input is attention.” Walk me through that." That’s an argument that we used to need things to raise money or move through the world. But now you can just have attention. The idea is that attention is increasingly becoming an infrastructure that people have to build upon. So no longer is the economic foundation something like land, which is very physical labor, a person, capital or actual money. It’s attention, then narrative.
And then, increasingly, we have speculation on top of both of those. Speculation is the operating layer. It operationalizes attention and makes it move throughout the world, as you can now attach actual dollar signs to the amount of attention you’re gathering. Prediction markets are a prime example. Polymarket has a Substack, and they wrote about a man who bet on Mamdani in the mayoral race in New York. And he made $300,000 from it. He was essentially seeing where attention was going, making inverse bets based on that, and identifying where the story and narrative were flawed. He was able to operationalize that attention was going in the wrong direction, the stories were incorrect, through speculation via predictive markets.
I think we usually see the attentional economics and revolution as being primarily about digital media. But the way you’re describing it — and I think this is true — sounds like it’s a weird bastard child of digital media and the financialization of everything. It’s the ability to bet endlessly. Venture capitalists, day traders, and crypto enthusiasts are all betting. In a way, when we just give things our time, we are making a bet about what’s important.
"People always talk about the attention economy, but you’re also talking about the speculative economy layered on top of that."
Yes. Influencers get money through views, and that’s the monetization of the attention economy, more or less. But now we’re able to bet on where attention goes. Influencer is a very box situation: You have a video that gets a million views, and you make your money. Blah, blah, blah. But people can also now bet on how many views your video might get. This creates a multidimensional aspect to the attention economy.
It also creates a feedback loop. I watched Mamdani and Trump, observing how the betting markets drive feedback loops — where people see something happening, and then they begin posting more about it, and then the thing happens more frequently. You can also see it in the betting market. They start posting more about it or giving it more money, or whatever it might be. One, it turns attention into capital, because money follows it. And two, it just makes it more real. It’s a way that something starting small can become exponential just through these feedback loops — if it’s sufficiently viral and people keep picking it up.
Where money goes, attention follows — and where attention goes, money tends to follow. So it creates a really, quite nice feedback loop — nice in terms of structure, not necessarily in terms of its effects. And it’s exciting to watch. It was fascinating to watch what happened with Mamdani with the prediction markets and how that moved him. I think it has always kind of been this way with prediction markets: People aren’t betting on what they think. They’re betting on what they think other people think.
They’re essentially betting on the attention economy itself and using the stories that people are telling to determine where their money should go. And then, more money follows it. It’s crypto in a sense.
"You said attention is a foundational input. That’s true for a particular set of products. But does your theory of attention as a major infrastructural input say anything about the big parts of the economy that we just don’t pay that much attention to — things that don’t have big narratives around them? Or is that just sort of not part of this theory?"
There’s the physical world, and there’s the digital world. The attention economy is particularly relevant in the digital world. There are elements of attention that can serve the physical world. If care workers need a new policy approach, the more attention they can devote to it, the better. That’s how you get things done — having a bunch of people talking about it!
Thanks Klara!
So Tranformity Research and a group of other equity research teams are getting together to create a real-time "Attention Economy Index" that tracks public and private attention economy beneficiaries --a pefect example was the 245% melt-up of $OPEN in just the last few days when a hedge fund manager Eric Jackson posted the $1 was really worth $82--he has 83,000 followers on X--Open Door has 39k followers on StockTwits as well. Our plan is to have the Verses AI Genius Platform to monitor EVERY significant public stock market bulletin board and financial publication in real time 24/7 to get ahead of this new massive attention economy phenomenon and the speculative nature of the GenZ generation.
Stay Tuned!
AND PS: We are sending this update to current and former subscribers -- IF YOU ARE NOT CURRENTLY SUBSCRIBED to TR Ultra Growth newsletter, you CAN RENEW by clicking here and for a little as $97 get ALL our upcoming buy recommendations on the "Next Generation" sectors and leaders whose valuations will get boosted by the digital attention economy and 20-35-year-olds who now trade stocks and crypto instead of playing golf (or getting married!)---here is your link to re-subscribe
https://www.transformityresearch.com/tr-ultra-growth
2) Here is our master list of the primary AI Data Center Tech Stack plays and Infrastructure Components and Players
Finally, here are some critical updates on your Transformity Research subscriptions.
Since we had many problems getting our digital systems back up and running. While we have renewed over 70% of our TR Ultra Growth and All-Access subscriptions, way above average for the investment research publishing world. We have extended the non-renewed subscriptions to May 2.
Here is the subscription link for TR Ultra Growth renewals --1 and 2-year subscriptions--gett'r done
The same goes for All-Access memberships—we will close the existing All-Access Discord Trading Room very soon and send new invitations to those who have renewed their one-year or two-year All-Access Pro subscription (which now includes TR Ultra Growth and Ultra Monthly Income subscriptions!).
Here is the All-Access PRO subscription renewal link One Year
Note: The renewal system is working perfectly now--but if you are still having a problem getting in, EMAIL Gary The Tech Support Guy at gary.hlusko@gridtech.io
Toby
Tobin Smith--Founder/CIO Transformity Research/Wealth Management/Transformity Capital Markets
Founder of ChangeWave Research (now part of S&P Global Research ) /2X NY Times Best Selling Author ChangeWave Investing & ChangeWave Investing 2.0 published by Random House/Editor Transformity Ultra Growth/Ultra Monthly Income/All Access Trading Room/Managing Member TransMed One TSIG LLC/ 14-Year Contributor on Fox News' Bulls & Bears /Host @ Fox Business