After a bearish period and cautious articles by yours truly, I thought it would be helpful for readers to hear the other side of the coin.
Today I’ll share a recent piece by tech expert James Altucher on what he’s seeing on his side of the Pacific.
Chats with our American counterparts suggest they’re very optimistic about the year ahead.
Hearing these differing perspectives is more important than ever as you begin to position for 2026.
Is 2026 shaping up to be the next 2008? Or are we at half-time in a bull run or heading higher?
Here at Fat Tail, we think it’s time we sat down and discussed this for our readers.
That’s why all Editors here at Fat Tail are convening for a mammoth round table event we are calling ‘After AI’.
No consensus. No house view. Just honest debate and actionable ideas.
To get access to our discussion, simply sign up for our After AI Roundtable Here.
With that, I’ll leave you with James to hear his perspective on the past few weeks.
Charlie Ormond,
Small-Cap Systems and Altucher’s Investment Network Australia
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To an outside observer, it might appear that the stock market is going through hell.
Over the past few weeks, investors have been sweating bullets over concerns about an AI bubble.
The longest government shutdown in US history didn’t help matters either.
And if that wasn’t enough, concerns about President Trump’s tariffs have added more uncertainty to an already shaky situation.
Investors continue to fret and flip-flop about next month’s interest rate decision.
But here’s the thing.
Beneath all the doom and gloom, I’m still optimistic.
I wanted to provide you with an update on three recent developments that tell a story every long-term investor should pay attention to…
Nvidia Crushes Doubts About AI
Last week, NVIDIA Corporation (NVDA) released its earnings report.
The AI chip maker brought in US$57 billion and expects US$350 billion in sales over the next 14 months.
Its latest chips are already sold out.
Demand is coming from everywhere.
On the company’s earnings call, founder Jensen Huang rattled off a long list of name-brand customers, including: RBC, Eli Lilly, SAP, Salesforce, Caterpillar, Toyota, Tesla, and all the big tech companies.
These companies spend billions on AI because it makes them money. The technology pays for itself.
Just a week earlier, one of the world’s most famous investors placed a massive bet on AI.
Warren Buffett’s Berkshire Hathaway bought nearly US$5 billion of Google stock.
This represents one of the largest tech investments in Berkshire’s history.
Buffett spent 60 years finding companies trading below their real value.
He avoided tech stocks for most of his career. When he finally buys tech, people notice.
Jobs Report Beats Expectations
We’ve also seen the government release its September jobs report.
Employers added 119,000 jobs during the month. August saw a small decline, so this mattered.
The report also showed workers earn more per hour, giving them more money to spend.
A strong fall jobs report matters for one reason.
The holiday season is approaching. Many businesses depend on the holidays for most of their annual profits.
More workers means more shoppers.
But the jobs report wasn’t the only positive signal…
Walmart Surprises Wall Street
Also, last week, Walmart delivered a surprise.
The company beat expectations, and executives sounded far more confident than Wall Street anticipated — predicting a strong end to the year.
This matters because Walmart serves as a window into the American consumer.
The company reaches every type of shopper, from budget-conscious families to higher-income households looking for value.
When Walmart does well, it means consumers have money.
As the world’s largest retailer, what happens at Walmart often reflects what’s happening across the economy…
And Walmart executives feel good about what’s coming.
Looking Ahead
Markets will always have ups and downs. Times like this remind us that uncertainty never fully goes away.
But the fundamentals matter more than daily swings. And recent news painted a picture of an economy with real strength underneath.
Companies are spending massive amounts on AI infrastructure. Nvidia’s results show that spending is generating real returns.
The September jobs report and Walmart’s strong sales numbers show that consumers might be doing better than many people believe.
Investors who stay patient and invest in strong companies will do well.
The key is staying focused on the fundamentals rather than getting spooked by daily market swings.
Based on what I’m seeing, the fundamentals remain strong.
And that should be plenty of reason to be optimistic.
Regards,
James Altucher,
Investment Network Australia
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