Remember when your biggest investment worry was whether to buy the dip on Apple? Those were simpler times. Now we’re living in a world where the U.S. government has basically become the world’s most powerful stock picker – and it’s making some people ridiculously wealthy.
Here’s what’s happening: Uncle Sam has started building what insiders call the “President’s Portfolio” – basically taking equity stakes in companies deemed critical to national security. And every time Washington gives a company its blessing, that stock goes absolutely bonkers.
We’re talking about gains that would make a crypto bro blush:
- MP Materials – This rare-earth mining company jumped over 200% in two months after the Defense Department decided to invest
- Intel – Climbed 90% in two months once the feds took a 10% stake (yes, Intel is cool again, apparently)
- Trilogy Metals – An Alaskan mining firm that literally soared 200%+ in a single day on news of White House involvement
It’s like having a cheat code for the stock market, except the cheat code is the entire U.S. government.
The strategy here isn’t rocket science: Washington is building a “supply chain arsenal” covering everything from chip makers to battery producers to rare earth miners. They’re adding roughly one new holding per month, which means there’s probably another moonshot brewing somewhere in the pipeline.
Meanwhile, we’re also living through what many are calling an AI bubble – and honestly, it’s getting pretty wild out there. OpenAI just hit a $500 billion valuation (that’s bigger than most countries’ GDP), while regular investors got completely shut out of the action. It’s like watching your friends get rich at a party you weren’t invited to.
But here’s where it gets interesting: companies like Robinhood and Coinbase are working on “tokenization” – basically turning private shares into crypto tokens that anyone can buy. Imagine being able to own a piece of the next OpenAI from day one, instead of watching VCs get all the fun.
The bubble vibes are strong right now. We’ve got startups making circular deals (OpenAI swapping equity for chips with AMD and Nvidia), flying taxi companies actually getting their aircraft off the ground, and quantum computing stocks hitting new highs. It feels a lot like late 1999, when the Nasdaq doubled in its final blow-off top.
Here’s the thing about bubbles though – they can stay “stupid” way longer than anyone expects. Mark Cuban made his billions selling his startup at the peak of dot-com mania, proving that sometimes the best strategy is to ride the wave while it lasts.
The smart money isn’t fighting this trend – they’re following it. Whether that means front-running the government’s next investment, finding proxy ways to bet on private AI companies, or just accepting that we’re living in the weirdest market ever, the key is staying agile.
Because when this bubble eventually pops (and it will), the people who saw it coming and prepared accordingly will keep their fortunes. Everyone else? Well, let’s just say there’s a reason they call it a bubble.
For now though, Uncle Sam’s stock picks are printing money. And in a market this strange, that might be the most normal thing happening.