I’ve said recently that GDX is my favorite investment idea in the world right now, and that hasn’t changed. My thesis has been that gold and gold miners could get dragged down with everything else in a broader market liquidation, only to come roaring back and eventually make new highs. So far, that scenario appears to be in play, and I’m watching it closely.
But there’s another idea that’s rapidly becoming my second-favorite developig investment opportunity in the market, particularly with a multiyear time horizon. It’s a corner of tech that I think could eventually replace AI and semiconductors as the market’s next major leadership trade, and one whose long-term prospects may actually be improving as the rest of the technology sector begins to unravel.
I wanted to write a quick note about why it’s still near the top of my shopping list, and why a continued market selloff could make the opportunity even more compelling. Eventually if stocks keep beefing it people are going to look around for what they want to buy on pullbacks…and while I’ve already listed some ideas here…there’s one that is standing out to me that I love the idea of, with a multi-year timeline.
In essence, I actually think it could be the risk on trade that would replace the AI/semi trade as the next big trend higher to outperform (eventually), so I wanted to write about it.
First I want to be clear: I am not advocating buying this dip with any particular gusto today. In fact, I think the tech selloff may be nowhere near finished. For all I know, it could just be getting started. There is still an enormous amount of speculative excess to unwind, particularly in AI and semiconductors. For more on how oversold can always get “oversold-er-er”, read this:
But if you’re somebody who wants to start building exposure as the sector plunges, there’s one ticker I continue to love..and it’s a small niche inside tech that I think could outperform the rest of the sector in a massive way in the coming years.
