☕ This could be one of the biggest AI deals so far

Howdy! 👋 

And just like that…  

The US 10YR yield is at the highest level in 24 years, and the markets are in a foul mood. 

Again. 

“Highest” is not the same as “high.” 

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The markets are the only store on earth where people fear a sale.  

Here’s my playbook.  

1 – This could be one of the biggest AI deals so far 

According to the Financial Times, SpaceX is in talks to borrow $40 billion to buy Nvidia chips.  

Details are hard to come by, but apparently this looks like about $10 billion in bank loans plus about $30 billion in investment-grade debt. Exactly the kind of borrowing big, conservative lenders treat as lower risk.  

Apollo is reportedly expected to lead, Pimco is reportedly kicking the tires, and the FT says a deal could close in 2027. 

Morgan Stanley estimates the industry may need about $1.5 trillion in outside financing for AI infrastructure by 2028. I think that’s low, btw. 

The naysayers naturally read this kinda thing and shout “bubble” or their new fave “circular financing” without understanding what that actually is. Either way, I wouldn’t want to take that bet and hope you don’t either. 

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Keith’s Investing Tip: Many investors fear change but the world’s best, most successful investors embrace it because they recognize that it ushers in tremendous profit potential every time. 

I’ll be here if you need me.   

2 – Wall Street finally caught up, welcome to the party!  

Wall Street's biggest banks have updated their year-end targets for the S&P 500. (Read) 

The verdict?  

Higher.  

Most of 'em now expect AI-driven earnings to outweigh the war in Iran, higher inflation and the energy jitters. Stifel is at 7,900 while Goldman, JPMorgan, Morgan Stanley, Deutsche Bank and Jefferies are all at 8,000. Citi, HSBC and UBS go to 8,100. 

The irony of course is that many of those same bank analysts will now ignore the monster move that they missed… I think that’s a tremendous disservice to their clients but that’s just me. 🤦‍ 

I hope you haven’t! 

Keith’s Investing Tip: Companies that hesitate become footnotes but the ones who lead become empires. Invest accordingly… in optimism. 

3 – The real story: Silver 

Deutsche Bank's Daniel Ghali expects silver to average $70 per troy ounce in the second quarter of 2027. That is a quarterly average, not a year-end target. It’s also roughly 14% above where silver trades now, about $61.40. In the same breath, he’s calling for a surplus, according to a report this week. 

Many investors are wondering if they should stock up or sell out. 

Here's the part the headline skips. 

In March, the same bank had silver at $100 by year-end. Now it's $70 by mid-2027.  

That isn't a knock on Deutsche, btw. 

Forecasting commodities is a lot like guessing the weather from the bottom of a mine shaft. 

The real story is solar.  

When silver became nearly a third of what it costs to build a panel, manufacturers did what any welder does when rod prices spike: they found a way to use less. In other words, high prices cured high prices. 

Complicating matters, silver is politically charged and gets more speeches, posturing and pontificating per ounce than any metal I know.  

MyPOV hasn't changed.  

A bar of silver doesn't grow earnings, pay a dividend, or reinvent itself when a customer engineers it out of a product.  

Great companies, on the other hand, do.  

If silver is your hedge, size it like a hedge. Otherwise, I suggest building a portfolio around businesses that generate huge amounts of cash and have the potential to win in any metals market. 

Keith’s Investing Tip: Keep it stupid simple. 

4 – Webull's Chinese takeout problem 

Webull markets itself as an American company with headquarters in St. Petersburg, Florida, and an office in New York. Roughly 28 million users worldwide. 

A bipartisan House Committee, the Select Committee on China, says that’s not the whole story. (Read) 

According to its report, Webull is tied in structural ways to the Chinese government. Much of its engineering runs out of mainland China, where about 62% of its workforce sits.  

So why does this matter, you might wonder? 

Under Chinese law, companies can be compelled to hand data over to Beijing.  

Eeek. 

Webull, of course, rejects this, saying that the U.S. customer data stays in the U.S. Seems to me that they might want to ask Jack Ma (who founded Alibaba) how standing up to Beijing worked out. 

The markets doesn’t care either way. 

Webull stock is down ~27% as I type. 

I could make the argument that it rebounds but, frankly, why bother when there are plenty of great stocks with what I believe to be far higher profit potential without the baggage or the drama. 

Keith’s Investing Tip: China will do everything in its power to ensure that it has a place on the world stage. You can invest in China if you want – and a lot of investors do – but I think “because” of China makes a whole lot more sense. 

5 – Could I have been wrong about Jag? 

Source: Jaguar

 Two years ago, Jaguar unveiled a rebrand featuring models in bright outfits, slogans like "copy nothing"… and zero cars. Not one. Even Unka Elon chimed in with "Do you sell cars?" 

At the time, I wrote: 

"This decision, however, seems so ill-conceived and so misguided that I am hard pressed to imagine Jag has a way out. 🤔" 

Well, here's their answer. (Read) 

Jag pulled the wraps off the Type 01 yesterday.  

It's an all-electric, four-door grand tourer starting at about $130,000 here in the U.S. Across the pond, it's £130,000. Same number, very different price. 🤦‍♂️ 

The specs are no joke.  

Up to 450 miles of range. 0–62 mph in 3.2 seconds. Jag says it's the most powerful and aerodynamic Jaguar ever built. However, it’s also 5.2m long and 2m wide (roughly 17 feet by 6.5 feet) which means it won’t fit into many UK parking spaces nor a lot of others around the world. 

Even so… 

I may need to eat a slice of humble pie if that’s true and buyers do, in fact, line up. 

Hmmm. 🧐 

Now where to find one to look at it in person. Jag all but wiped out its dealer network so that presents a unique problem in and of itself. 

Bottom Line 

Profit potential is directly correlated to the ability to change your mind when presented with accurate information that contradicts your perception and your beliefs. 

You got this — I promise. 

As always, let’s MAKE it a great day! 

Keith 😀