THE ROTATION IS IMMINENT
Over 50% of GDP growth has come from AI investments.
For a while, the AI trade was beautifully simple:
Your capex became my revenue
As bearish as I’ve become on the latest evidence, I must say that it all made sense when it first began.
However,
It’s now become clear that the majority of these allocations became dependent on OpenAI and Anthropic eventually fulfilling on over $5 trillion of obligations.
So the capex relationship is starting to break.
Bond markets, credit spreads, and price action are beginning to tell a very different story.
A story that began with the most important AI divergence of 2026.
Look,
We don’t need to go into the whole AI trade again (we’ve done extensive work on it.)
The only question that matters now is:
Where does the money go next?
We may already be seeing the answer.
Money is quietly leaving momentum and flowing back to value and quality names.
It’s why Offside Portfolio stocks like Workday (WDAY) are up 10% on a day when SanDisk (SNDK) lost 11%.
Last week, I broke down why mid-caps are the cheapest growth option in the market right now.
Today, we dig deeper into which companies make the cut.
My Mid-Cap Screen is Done.
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