The AI Inference Phase: Finding the Beneficiaries in a Battleground Market

Happy MLK Day. I’m enjoying an extra day of "rest" but... I can’t help it. I have to reach out to my peeps because, like the AI Inference stage, my gears never stop turning either.

The Case for Broadening The case for broadening keeps getting stronger. While the infrastructure side of AI has become more challenging, enough groundwork has been laid to change the world for the next 50 years. This is the inference and utility phase I’ve been talking about for months.

Beneficiaries vs. The Disrupted There’s still opportunity on both sides, but the beneficiary side is getting interesting. A lot of these names were ignored for years and are now valued reasonably:

• Healthcare: Currently screening well.

• Consumer Staples: Popping up on my scanners.

• Financials: Showing strength, but selective.

• Industrials and Materials? No secret there with my "things I can drop on my toe" theme in full melt-up.

Sector labels won’t save you. You have to own the right names. META and GOOG both sit in "Communications," but one is in the doghouse while the other remains a disruptor. Adobe, for now, sits on the "disrupted" side of the ledger.

The Volatility Factor This is a battleground market. Flexibility is everything. Last summer, I warned that options markets weren't pricing in this disruption. Since then, Vol prices popped massively. Two months ago, I shifted how I express upside specifically to avoid getting wrecked by Vega. If you don’t understand those levers, you probably shouldn't be trading options. Options can be wonderful, but also unforgiving if you don't know what you're doing.

Bottom Line If you aren't staring at this for 15 hours a day, you need to follow someone who is. My options programs are built by a pro who has managed a billion dollars through multiple regimes.

Now who around here is like that?

Later,

Hans