Oil prices surge to two-week winning streak as Iran supply fears grip markets
Although Nvidia (NVDA) got hit with profit taking after its earnings announcement, as I have repeatedly warned, all the covered call option writing on the stock sometimes makes “the tail wag the dog.” The stock should hit $300 per share by the end of 2026 and $500 per share by the end of the decade, so back up the truck and keep buying Nvidia on any dips.
Our data center-related stocks also all beat and guided higher due to rising order backlogs. I should also add that Eli Lilly (LLY) recently hit it out of the park with its earnings announcement, and of course, our gold stocks also announced record sales and earnings.
My growth portfolios rose on Monday when the Dow Industrials plunged 814 points on Monday and when NASDAQ dropped over 291 points. Clearly, due to the gold stocks I recommend, as well as the continued strength in data center-related stocks.
Most of the market carnage on Monday was in financial stocks, especially the companies impacted by Blue Owl’s private credit redemption freeze. Specifically, Blue Owl recently announced that it permanently restricted investors from exiting one of its retail funds. Namely, Blue Owl Capital Corp II. This news caused the stock prices of Ares Management, Apollo Global Management, KKR, Blackstone, and TPG to all sell off.
Since private credit is now a $3 trillion per year industry and does a lot of the lending that Dodd-Frank made difficult for banks, the U.S. now has a “shadow banking system.” In the event that there is a private credit “Black Swan” event that disrupts credit markets, then the Fed may have to step in to provide liquidity and/or slash key interest rates to help stabilize the situation.
Despite the recent volatility, we are in the midst of the strongest economic growth that we will witness in our lifetimes. Whether GDP growth hits 5% as I predicted on Fox Business or 6% as Howard Lutnick predicted, or even possibly 15% as President Trump said is possible, there is no doubt that 2026 will go down as the strongest year for GDP growth ever recorded. With an accommodative Fed that will be cutting key interest rates due to AI productivity gains, the stock market is expected to gather even more momentum in the upcoming months.