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We've had a crazy sell-off in the market and very down 8% ABGO 8% Micron 13% AMD almost 15% cyber security is going down the banks are going down everything is going down everything is blowing up and a lot more people are feeling the pain fear and greed index in extreme fear territory sitting at 21 and the NASDAQ is down 5 and a half% on the day we haven't seen it since the April selloff the tariff selloff of 2025 and That's all due to the elections.
So, I'm getting a lot of concerns, a lot of questions on the elections, what kind of stocks we should be buying due to the election results and what will happen to the S&P after we've had the election. And that was my answer. I showed them the chart of the S&P since 2008. I said, "This is the chart over the last 20 years.
We had Republicans won, we had Democrats, we had wars, we had recessions, we had market crashes, we had every every name in the book. We've had it. all the COVID and everything you could imagine. Yet, the market kept on going up. So, whoever wins buys the dip and stay invested and that's what I'm personally doing.
You need a little bit of patience. You need to focus on the fundamentals on the earnings, earnings growth, uh you know, the numbers. Not much about the sentiment and what's going to happen here and what's going to happen there, especially on Twitter because everything is overexaggerated. I mean, I looked at Twitter this morning.
I saw we're in a 1929 crash or something. That's nearly not not too bad, you know, compared to other markets. But if you look at the RSP index, which is mainly the equal weight index, it's down 2.7% on the day. That means that a lot more people are feeling the pain as the pullback is broadening out to other sectors.
Now that to a lot of people that's a bearish sign, but I personally believe it could potentially be bullish because normally whenever a pullback happens, it happens with a specific category of names. In this case, it was AI. It started with AI and as AI stocks go down, there's a lot of leverage in AI and a lot of people like Leopod and others, they get margin called.
So they have to sell gold, they have to sell other kind of assets, the bank stocks, any other stocks not AI for them to cover the margin requirement that it got issued on AI stocks. So once you start seeing that you start seeing all correlations go to one, that normally means that we're closer to the end of a pullback than we're closer to the beginning.
So it's not really as bearish as a lot of people claim it to be. Now, I'm personally more optimistic on AI and data centers under this Congress than a lot of the people on X. And this is mainly because I believe AI is too big to fail. 25% of US GDP growth is coming from AI. Any president or anyone that just ignores AI and wants to completely ban AI would be taking a lot of money out of the system, out of local communities, out of uh you know, a lot of them contribute to schools and other things.
So, I just don't believe they will just ban data centers altogether and we're never going to have AI or data centers go up again. But the most important one is Texas because most of the projects are planned in Texas. This is more important than any other state. And this state was flipped into the other party.
They won by 52.8%. It shocked a lot of people and a lot of people lost a lot of money betting on the previous you could say party continuing but that did not happen and they were able to flip it. Now I'm going to take a look at what the governor herself said the new governor. Okay, this is what she said about AI.
She said when I am governor I will issue a ban on all data center approvals until the law can be passed by the legislature to protect Texans. Now, when you go on X, you only look see a ban because it gets a lot of attention. But no one's no one continues the sentence. She don't just want to ban them.
She want to ban them until they pass certain laws for them not to be built near local communities, not to consume electricity and waters from local communities that could cause prices to rise. So, they want to build them, but in more remote locations and other locations. They contribute a lot of money, a lot of taxes being paid.
They don't want to ban data centers. They just want to ban them until they can regulate them a little bit. And I don't think there's anything wrong with that. There's nothing wrong with having certain regulations. We're gonna see what regulations they come up with. But, you know, that was way overdue and it's happening right now.
So, I don't believe it will kill the way I trade. I don't believe we're never going to have data centers again. But, I just believe it's going to take a little bit more time. It's going to be more paced, a little bit slower. We're going a little bit too fast. And I I just don't see anything wrong with that.
So that does not tell me that those kind of people or mainly in Texas that's what matters. They don't want to just ban data centers forever, but they want to ban them until they can pass certain regulations to regulate them. It's as simple as that. And if you think about it this way, it doesn't really mean that this is the end of the AI trade.
But it means that if we're going to be pacing them on a slower pace, uh some stocks deserve lower valuations. Invaria is trading at 15 times earnings. Okay, ABGO is trading at 18 or 17 times. A lot of those stocks are trading at crazy low valuations. Nibbius is down 50% on the months. That was a darling of YouTube.
It's down 50% on the months. So, a lot of that stuff got priced in. And that's why I try to tell people don't get carried away by the sentiment. So, a lot of people look at what's happening. They look at the elections and they say, "Oh, I'm not buying in VIA because AI will be paused." But how much is priced in in VIA at 15 times earnings?
I would argue a lot is priced in. At 60 times earning, not a lot was priced in, but at 15 times, you know, other stocks are trading even lower. I think a lot is spiced in in terms of AI being more paced, AI being slower. And this is not necessarily bearish for Invaria, especially from the current valuations.
Now there's an important twist to this whole story is that if they want to actually and have power you could say to pause or to regulate data centers then if we have anything ending with the war in Iran that could lower oil prices if oil prices go down inflation goes down if inflations go down then interest rates go down and they would stimulate the economy more which is very bullish for stocks and the S&P 500 and the growth stocks in general.
So there's also a bullish side of the story. It's not all bearish, not all like the world is going to end. And it's hard not to believe the world's going to end. If you look at the heat maps and you look at all the charts that are showing stocks that are going down a lot. Now, I showed you guys this chart before of the support from a major bottom that we had in April of 2025.
Then we bottoms there again in early 2026. I told you guys if we break the support, uh this market is likely going lower. Uh so far we did kind of break the support. I don't know where we going to close on that, but the market looks a little bit weak to me. Although I believe the sign or the fact I should say that RSP is going down and that the sell-off is broadening out is telling me that some people are getting margin called on AI stocks and they're having to sell other stocks to cover margins on AI which tends to happen near market bottoms.
It does not happen near market tops. This is what happened to Leopod, the big one in in love's AI stocks and it happened to other people. It happens in every pullback and I think we're having the same thing right now and potentially be nearing the end of the beginning. But don't let the sentiment affect you from finding opportunities.
Don't just look at what's happening. look at what's happening relative to what's priced in in a lot of stocks and ask yourself if this is actually justified or if it's unjustified and don't miss out on some amazing opportunities because you believe this time is different. Uh maybe this time is different, but I personally don't believe it's different.
I think over the next 10 years we'll be glad we bought the stocks we did. And that's my opinion on the market. Hope you enjoyed it. It was not financial advice. If you'd enjoy it, please press the like button and maybe consider subscribing. So, I'll talk to you in another video.
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