Before we begin, check out yesterday’s Podcast:
Deep Dive: Hardware Bottlenecks Shatter Deceptive Market Highs
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[00:00 – 05:57] The Illusion of Calm & The $350B Liquidity Drain: The Dow breaking 53,000 is a mirage built on dead volume (sub-200M SPY shares). A massive $350 billion liquidity vacuum is actively forming as the Fed’s Reverse Repo Facility runs dry, meaning capital will be pulled directly out of commercial bank reserves to absorb new government debt.
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[05:57 – 10:44] The Death of Forward Guidance & Market Concentration: New Fed Chair Kevin Warsh has officially killed the “dot plot.” The market is flying blind into sticky wage inflation (3.5%) and weak job growth, relying entirely on algorithmic flows blindly funneling capital into just 7 tech giants that carry a third of all US corporate earnings.
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[10:44 – 16:15] The 2028 AI Hardware Brick Wall: The entire $1.3 trillion AI CapEx narrative just hit a physical limit. Nvidia’s next-gen “Kyber” server racks are severely delayed to 2028 due to physical manufacturing bottlenecks (specifically cooling and circuit board midplanes). The digital dream is colliding with the reality of physics.
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[16:15 – 21:09] The Institutional “Hard Asset” Land Grab: While retail traders pile margin debt into semiconductor software, the “smart money” is hoarding physical infrastructure. We track massive physical capitulations: TerraWulf locking Anthropic into a 20-year data center lease, Broadcom securing a 5-year Apple ASIC deal, and Lockheed snapping up advanced sonar monopolies.
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[21:09 – 36:25] The Consumer Squeeze & Market Absurdity: We break down the “Export Valve Tax” driving up local gas prices, the corporate theater of “Trump accounts” enriching legacy asset managers, and the comedy of Strategy Inc. dumping Bitcoin to pay fiat dividends. Plus, a look at the “Ozempic effect” permanently crushing alcohol stocks (STZ) and a fully automated AI bot-war ravaging Reddit.
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[36:25 – 42:18] The H2 2026 Defensive Playbook: How to pivot from digital hope to physical reality. We outline the strict stress-test targets for the bottom 450 companies of the S&P: massive cash-flowing physical operators trading at 4x to 12x multiples, including Stellantis (STLA), Barrick Gold, Copper Miners (CUPX/CUPP), and Greenbrier Companies (GBX).
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[42:18 – End] Tactical Moves & Options Masterclass: Actionable steps for tomorrow’s opening bell. We cover the U.S. Bancorp (USB) catalyst upgrade, the sovereign risk warning to avoid Zim Integrated Shipping, and a masterclass breakdown of why the Long-Term Portfolio (LTP) achieved a sub-zero net basis on its 2028 Nike (NKE) structure by relentlessly selling premium, compared to a retail trader just “hoping” the stock goes up.
It’s good to have a background for our portfolio discussion as we move into the 2nd half of 2026.
It’s been a great month for our $700/Month Portfolio, which is at $136,461, which is up $11,088 since our June 2nd Review but only up $3,616 since our June 16th Review and that’s a slowing pace we should be very concerned about although, overall, we predicted we’d make $2,326/week and that should be $11,630 in 5 weeks – so we’re actually performing almost EXACTLY as expected or, as I said in the June 16th Review:
“Everything is proceeding as I have foreseen… muhahahaha!!!“
I also said: “See, you don’t have to be the Dark Lord of the Sith to do this – it’s just math…” and it still is! If you CONTROL your portfolio and analyze each position and you KNOW how they should perform in a flat market or an up 20% or down 20% market – then you are not very likely to be surprised by the results, right?
At the moment, we’re a month away from year 4 of this project and, at this pace, we have a 314.8% gain divided by 47 months is 6.69% per month x 12 months is an annual 80.37% return (simple), which means we will be turning this $136,461 into $1M in just 3.2 years. That’s IF we can keep up this pace – which is unlikely, but I’ve been saying it’s unlikely for the last 4 years and the market, with it’s non-stop rally, keeps proving me wrong!
We are now 38 months away from hitting our $1M target (at this pace), which would be September of 2029 and, since our original goal was to hit $1M in 30 years (8/25/52) – I’m pretty happy with how far ahead of schedule we are!
To be clear to our new Members – this portfolio is on track to turn $136,461 into $1,006,641 in 3.2 years – so you haven’t missed much as we still have $863,539 (632%) left to gain!
This is just the mathematical grind of our “Be the House – NOT the Gambler!” strategy playing out in a small (not so small anymore), no-margin portfolio. For those who are new – here’s me discussing the strategy with Forbes.
We began back on August 25th or 2022 with $700 and each month we add $700 and, of course, reinvest our profits. We are doing this using NO MARGIN rules and we are continuing to do so – even though we now have over $100,000 and do qualify for Portfolio Margin accounts but the assumption is this is IRA/401K money.
Despite the huge gains, this is a VERY CONSERVATIVE portfolio as our goal here is to teach our Members that you don’t need a lot of money and you DON’T need to swing for the fences to make very good money making a series of small, conservative bets using our VALUE INVESTING STRATEGIES. In the past year, our 12 prior Portfolio Reviews were:
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- How to Become a Millionaire by Investing $700 per Month – Part 46/360
- How to Become a Millionaire by Investing $700 per Month – Part 45/360
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How to Become a Millionaire by Investing $700 per Month – Part 44/360
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How to Become a Millionaire by Investing $700 per Month – Part 43/360
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How to Become a Millionaire by Investing $700 per Month – Part 42/360
- How to Become a Millionaire by Investing $700 per Month – Part 41/360
- How to Become a Millionaire by Investing $700 per Month – Part 40/360
- How to Become a Millionaire by Investing $700 per Month – Part 39/360
- How to Become a Millionaire by Investing $700 per Month – Part 38/360
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How to Become a Millionaire by Investing $700 per Month – Part 37/360 – Year 4 Begins!
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How to Become a Millionaire by Investing $700 per Month – Part 36/360 – 3 Years In!
- How to Become a Millionaire by Investing $700 per Month – Part 35/360
We spent A LOT of money in the past month and we’re down to just $18,583 (13.6%) in CASH!!! and I’m not happy about that AT ALL – so I’m going into this review LOOKING to cash out anything that I don’t ABSOLUTELY want to own for the next 30 days:
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- CAG – Although it’s down, this is the kind of trade we want to rotate into – no out of! If we sell 5 Jan $14 calls for $1.40, that’s $700 and the net of the spread is $2,825, so we’re collecting 24.7% for 6 months while we wait to see if things pick up (earnings are next week (15th).
- This is, overall, a potentially $6,000 spread so we have $3,875 (182%) upside potential PLUS two more sales of $700 ($1,400) for another potential 65.8% in premium sales.
- You can see how we get to 80% a year, right?!?
So our goal, to clarify, is to raise CASH!!! – It doesn’t HAVE to be through closing positions, does it?
HELE –
IN PROGRESS
