As part of this exercise we analyze the landscape in a deliberate chronological order starting at the 100,000 foot level and then successively going deeper into the lower layers culminating in concrete decisions about where and how we will invest our capital.

Here is the order in which we will discuss these matters and map out a SWAT portfolio plan for Sept and Oct.

• Macro forecast - broad economic dynamics that could impact our portfolio

• Market forecast - how markets could perform

• Q2 earnings - what we learned from earnings reports and the market reaction to them

• Current portfolio sectors and stocks - what we own today and why

• Stocks on our active watchlist - possible new adds to our portfolio

• Hedging strategy - what, when and how we will likely hedge

• Q4 forecast and plan - will we have a year-end Santa rally?

So why only Sept and Oct? Why not conduct this analysis for the rest of the year? For Sept - Dec?

Because this is a mid-term election year. I am expecting the Sept-Oct landscape to be vastly different from Nov-Dec and a lot depends on who wins more at the ballot box.

Aug was our 2nd best month this year (after an explosively higher May). We are well in the money YTD and running 2-3x all the major indexes.

While popular AI stocks went sideways to lower, we made more than 8 buys and 6 trims/sells. All these moves were surgically executed at price points guided by institutional activity levels. Our stock charts show readers where large buyers are buying and prices at which they are selling. By riding these giant coat-tails, we ensure that we enter a stock at better price levels and log gains when there is not much juice left in the squeeze.

Since our launch in 2022, we have delivered proven, solid returns for our readers...

…CAGR of +43%…an average annual return of +141%…23 multi-baggers…

Now, as we wrap up the Summer, it is time to ensure that we stay on the right side of portfolio profits for the rest of 2026. That’s what we will discuss in this new series of posts starting today…

But first a quick update on our publishing plans… we made some concrete decisions about the future of our S.W.A.T. (Sleep well at night) investing substack here.

The TLDR:

• We will continue publishing this substack through 2027 and beyond.

• We will re-open the annual subscription plan option in a few weeks.

• We will add exciting new content like an emerging tech small cap portfolio, a trading portfolio, a market BUY/HOLD/SELL signal and more!

• Our charts include highly reliable technical signals like large institutional activity levels which guide our buys, adds, trims and sells. See more here.

• Beachman AI (our internally developed AI agent) is serving well as a junior WS analyst and keeping our work on track.

• We will soon shut down our sister Salty trading substack.

• We will announce new pricing here in a few weeks. The monthly rate will be higher to encourage annual subscriptions. One of our key goals while deciding to continue this substack is to reduce the administrative burden, which includes managing multiple, legacy subscription plans…which will be phased out. Additionally, our costs have continued to increase for managing payments, data APIs, charting software, AI subscriptions, taxes, accounting etc. Publishing a substack is after all like any other small business…takes time, sweat and money to run.

Soon, we will send out more details and instructions on all of this.

Since our launch in 2022, we have continually improved our content to deliver proven, solid returns for our readers. Readers will attest to the immense value we provide for what we have charged through the years.

I hope you stick around as a paid subscriber and keep investing, multi-bagging and trading with us in 2027 and beyond.

If you are a free subscriber, now is the perfect time to try out our paid service to see what you are missing.

Markets are not going to wait for you…you don’t want to be caught on the wrong foot when things turn ugly.

Welcome to Beachman AI’s Investing Whispers, where we invest in market-leading stocks and ETFs with Beachman’s proven long-term record and a lower risk approach. Over the past 6 years, our structured investing has delivered an average annual return of +141% at a CAGR of +43% including 23 multi-baggers.

Subscribe now

Our chat line is open to all readers. It is FREE to join in daily discussions about markets, investing and trading. Use this link to chime in on the conversation: Beachman’s Chat Line

P.S. Stock Analysis (SA), my favorite financial research service, is offering a special discount exclusively for us. SA provides comprehensive, timely market data via a well-designed, easy-to-use experience and at a very attractive price point. Use the link StockAnalysis and the promo code “BEACHMAN” for an extra 10% discount.

Table of contents

• Macro forecast - broad economic dynamics that could impact our portfolio

• Market forecast - how markets could perform

• Q2 earnings - what we learned from earnings reports and the market reaction to them

• Current portfolio sectors and stocks - what we own today and why

• Stocks on our active watchlist - possible new adds to our portfolio

• Hedging strategy - what, when and how we will likely hedge

• Q4 forecast and plan - will we have a year-end Santa rally?

Lets dive in…

Macro forecast

In early May, I shared my forecast for Q2 and Q3. Here is a handy link to that post.

Then in late June, as many of the items in my bear case played out as expected, I refreshed my macro forecast. That mid-year forecast was again right on the money. We are now dealing with stubborn inflation, higher LT rates, possible Fed rate hikes (no more cuts), a very concerned consumer and ongoing geopolitical volatility.

Markets have been kept afloat via liquidity-based and narrative-based manipulation by this US administration. The US Treasury is actively using TGA funds to control yields here in the US and in other countries like Japan and Argentina. The White House is trying to keep the lid on oil prices via tweets about non-existent peace deals while military action is reserved for weekends when markets are closed.

Markets have reacted less and less to these dynamics. After all, one can only “Cry wolf” so many times before stocks, bonds and commodities start figuring out that there is nothing there there and that they need to start marching to their own market forces.

Here is my macro forecast for Sept - Oct:

• Right off the bat…here is an important one for us tech investors. There are now more than 300 active data center moratoriums in the US. This is likely to be one of the biggest election year issues for us here in the Beachman community. Watch polls, forecasts and results in Texas.

• Inflation will stay persistently higher. Ignore the narratives to the contrary. You and I know that everything we buy now costs more than it used to. Even Warsh has acknowledged that inflation has been elevated for 65 months now…more than 5 years.

• Oil, energy, agricultural and industrial commodities will stay expensive due to continued supply chain bottlenecks. Oil is up 62% YTD. The 3-2-1 crack spread increased +136% versus its long term average. Copper up +18%. Commodities as a basket +40%.

• Over the five years ending in 2019, the US added an average of 191,000 jobs a month. Now, its a paltry 26,000 per month. These anemic job market conditions will persist for at least 2 more years.

• Fewer jobs = lower economic growth = stagnant wages = less consumer spending = fewer jobs…..its a vicious cycle.

• We will NOT get a rate cut or rate hike before Nov. The US Feds cannot afford to do either for different reasons on either side.

• Market consensus is growing that the Fed is 1-2 rate hikes behind the curve. I am inclined to agree. There is just too much liquidity in today’s economy.

• The Trump admin’s attempts to push certain narratives and manipulate markets will continue to become less and less effective. They have already almost lost control of this situation.

• Consumers will get more squeezed by higher prices and stagnant wages. An interesting indicator to track here is whether restaurants, fast food places and retail stores ramp up the advertising of deals, discounts and promos. Already seeing more of this…which tells me that consumer spending has slowed down.

• ME military tensions will not ease up…they will continue to fester. There will be increasing damage to energy infrastructure in the ME…this will take years to repair and fully bring online.

• With the mid-term elections coming up in Nov, the US admin will turn on (at full blast) the fiscal liquidity and stimulus pump. Current polls show Dems winning back major gains in the House and possibly the Senate. So the ruling party has to play all their cards to stem the damage as best they can.

• Japan’s interest rates will have serious side effects to the US economy…the higher they go, the more they will draw back investments from the US to Japan.

To sum up the macro forecast….volatile geopolitics and large deficits are keeping the consumer under pressure as inflation rises and earnings power remains stagnant. AI infrastructure investments, fiscal stimuli (2025 OBBB bill) and US admin led market juggling are all losing their ability to further boost the economy.

Coming up next

This post is getting long in the tooth…so I will send this out now.

In my next post…in a few days, let’s apply this macro forecast to figure out how markets will behave in Sept and Oct. I will map out exactly what is likely to happen in stocks, bonds, cryptos etc…..and when over the next 7-8 weeks.

Our portfolio currently has 20% cash on hand and we have already logged solid gains for the year. So over the next two months, I am looking for opportunities to deploy some of that cash to further juice our returns. As I do this, I keep coming back to the phrase “surgically threading the markets…” because it is so apt this year.

And to be clear, we do not short term trade in our SWAT portfolio trying to gather pennies in front of a steam roller. After all, we want to sleep well at night without the worries of volatile up/down swings in our stock prices.

Look for my next post soon.

Cheers and thanks for your support.

• We will continue publishing this substack through 2027 and beyond.

• We will re-open the annual subscription plan option in a few weeks.

• We will add exciting new content like an emerging tech small cap portfolio, a trading portfolio, a market BUY/HOLD/SELL signal and more!

• Our charts now include highly reliable and consistent technical signals like large institutional activity levels which guide our buys, adds, trims and sells.

• Beachman AI (our internally developed AI algos and agents) is serving well as a junior WS analyst and keeping our work on track.

• We will soon shut down our sister Salty trading substack (link below).

• We will announce new pricing in a few weeks. The monthly rate will be higher to encourage annual subscriptions.

• One of our main goals while deciding to continue this substack is to reduce the administrative burden, which includes managing multiple subscription plans…they will be phased out. Additionally, our costs have continued to increase for managing payments, data APIs, charting software, AI subscriptions, taxes, accounting etc. Publishing a substack is after all like any other small business…takes time, sweat and money to run.

Since our launch in 2022, we have continually improved our content to deliver proven, solid returns for our readers.

A CAGR of +43%…an average annual return of +141% is nothing to sneeze at…

…and immense value for what we have charged through the years.

This year 2026, we are running more than 2.5x the major indexes. We are surgically navigating these volatile macro and market waters with an in-built macro hedge and cash on hand to deploy.

Soon, we will send out more details and instructions on our future publishing and pricing plans.

If you are a free subscriber, now is the perfect time to try out our paid service to see what you are missing.

Markets are not going to wait for you…you don’t want to be caught on the wrong foot when things turn ugly.

At the beach here, we continue to experiment with chart setups and technical indicators using TradingView. I have designed and developed several signals for reliably buying, selling and trimming positions.

This post provides an update on the latest chart setup and technical indicators that I use for both investing and trading. This is the 5th such how-to post over the past 5 years…because our thought process and approach keeps evolving as we constantly hunt for better technical signals.

Our ultimate goal is to have INFORMATIVE and ACTIONABLE charts.

Please bookmark this post as needed for easy future reference…

Welcome to Beachman AI’s Investing Whispers, where we invest in market-leading stocks and ETFs with Beachman’s proven long-term record and a lower risk approach. Over the past 6 years, our structured investing has delivered an average annual return of +141% at a CAGR of +43%.

Subscribe now

Our chat line is open to all readers. It is FREE to join in daily discussions about markets, investing and trading. Use this link to chime in on the conversation: Beachman’s Chat Line

For Beachman’s other portfolio, check out Beachman’s Salty Trades, with 8 multi-bagger picks cooking, using bottoms up research and technical signal based trade ideation and execution. We recently logged our 23rd multi-bagger stock and trade gains of up to +69%.

P.S. Stock Analysis (SA), my favorite financial research service, is offering a special discount exclusively for us. SA provides comprehensive, timely market data via a well-designed, easy-to-use experience and at a very attractive price point. Use the link StockAnalysis and the promo code “BEACHMAN” for an extra 10% discount.

Keeping it simple

I like to keep things simple when it comes to my investing process. I look at a ton of underlying data and several metrics for a given company. However, I prefer to boil things down to a few attributes that really matter to me, with a strong preference for leading indicators and trends.

I follow the same mantra when it comes to stock charts. Fewer indicators that provide the most actionable information at any point in time.

Let’s use the 1day charts below for NFLX and TEAM (further below) as examples.

Technical indicators

This is the chart setup that I currently use. My charts have two sections with several unique indicators in each. I usually look at about 6-8 months of daily price history on a logarithmic price scale (right axis).

Main section

• Daily price bars (BLACK bars. Left tick shows the opening price. Right tick shows the closing or current price. Height shows the high and low for the day).

• 8-day simple moving average (GREEN line) depicts 8 days’ price history.

• 20-day simple moving average (ORANGE line) which tracks 1 month’s price.

• 50-day simple moving average (RED line) depicts 3 months’ price history.

• 200-day simple moving average (BLUE line) shows what happened over the past 1 year.

• 200-week simple moving average (PURPLE line) shows what happened over the past 4 years.

• Price volume profile (Horizontal RED or GREEN bars on right axis) denoting collective buy or sell tendency at each price level for the timeline on the chart.

• Daily trading volume (GREY vertical bars at bottom of main section).

• 20-day simple moving volume average (PURPLE dashed line) denoting 1 month’s average daily trading volume.

Key indicators (on main section)

• Beachman’s preferred Buy price points (“BUY” black text & GREEN dotted horizontal lines).

• Institutional activity levels (Thick GREY dashed horizontal line) where large funds tend to either buy or sell the stock.

• Resistance price level (Light ORANGE shaded rectangular box) where the stock could face downside pressure.

• Support price level (Light BLUE shaded rectangular box) where the stock could experience strong buying.

• Bottoming signal (YELLOW/GREEN chevron vector) that marks a bullish shift & strong upward, positive price momentum.

• Topping signal (RED down arrow triangle) that marks a bearish shift & strong downward, negative price momentum.

Lower section

• Inertial RSI (RED GREEN line), a dynamic relative strength indicator that adjusts its lookback period to reduce market noise and improve trend clarity.

• Overbought / Oversold warnings (RED or GREEN vertical shaded lines).

• Extreme Overbought / Oversold signal flags (little RED or GREEN squares) in both the main section and the lower section of the chart.

• MoneyFlow Momentum (BLUE ORANGE line) indicating more buying momentum (BLUE) or more selling pressure (ORANGE).

What Beachman looks for

Reading charts, often, seems to be more of an art than a science. However, the indicators above help me eliminate much of the ambiguity so that I can clearly decide what to do next.

BUY and SELL signals

Those YELLOW/GREEN chevrons and RED down arrow triangles (in the main section) tell me when there is a bullish pivot towards strong upward, positive price momentum….and vice versa. I may use them (on the 1d chart) to enter a new position, to add to an existing position or to trim a current holding. I could also use them to identify when a stock may have truly bottomed or is ripe for a significant tumble lower.

Institutional activity levels

The thick GREY dashed horizontal lines in the main section denote price levels where large funds tend to either buy or sell the stock. Now, we do not know whether they were buying or selling at that price, however we can make a good, informed guess by triangulating that price level with:

1. The price volume profile (Horizontal RED or GREEN bars on the right axis of the main section) which denote collective buy or sell tendency at each price level. A RED bar denotes that there was more selling at that price versus a GREEN bar signaling more buying at that price.

2. The resistance (light ORANGE) / support (light BLUE) rectangular price boxes.

3. Overbought/oversold and Moneyflow momentum signals on the bottom section of the chart.

Remember, one has to triangulate the 3-5 indicators mentioned above to get a clearer understanding of what institutions are doing at a price level. I lean towards buying when they are heavily buying and vice versa.

I have back tested these signal against multiple, past market drops and surges. It seems to be quite reliable, except in choppy, sideways price action.

Mean reversion

In the lower section of the chart, the vertical RED or GREEN shaded lines tell us if a stock is overbought or oversold respectively. The darker the color, the more valid and actionable the signal. When little RED or GREEN squares appear in either chart section, they indicate stronger overbought / oversold conditions.

Now if these signals coincide with strong institutional buy or sell signals as well as with a bottoming chevron vector signal or a topping red arrow triangle…collectively…well, that’s an I-must-do-something Holy Trinity on a chart…Alleluia!

Price trend

When a shorter time frame moving average crosses above a longer time frame moving average, it usually denotes bullish, higher demand for the stock. 50DMA crossing above the 200DMA is called a golden cross (bullish signal) and vice versa is called a death cross (bearish signal). The crossovers between the 20DMA and 50DMA are useful for trend following. Similarly the 8DMA and 20DMA can be used effectively for momentum trading.

Everyone has their preferences for how they digest information and how they communicate with others. Similarly, investors tend to lean on their personal favorites when it comes to technical indicators on a stock chart.

For me, an indicator should be actionable or else it is just noise on the screen. I like to try out new chart indicators, but I quickly take them off it they are not helping.

Less is more when it comes to technical charts.

Oh btw, irrespective of what all the signals are telling us, sometimes the best course of action is to sit on our hands and do nothing.

We invest in market-leading stocks and ETFs with Beachman’s proven long-term record and a lower risk approach. Over the past 6 years, our structured investing has delivered an average annual return of +141% at a CAGR of +43%.

Our chat line is open to all readers. It is FREE to join in daily discussions about markets, investing and trading. Use this link to chime in on the conversation: Beachman’s Chat Line

For Beachman’s other portfolio, check out Beachman’s Salty Trades, with 8 multi-bagger picks cooking, using bottoms up research and technical signal based trade ideation and execution. We recently logged our 23rd multi-bagger stock and trade gains of up to +69%.

P.S. Stock Analysis (SA), my favorite financial research service, is offering a special discount exclusively for us. SA provides comprehensive, timely market data via a well-designed, easy-to-use experience and at a very attractive price point. Use the link StockAnalysis and the promo code “BEACHMAN” for an extra 10% discount.

We are more than 60% allocated to the AI theme with a strong leaning towards GPUs, ASICs, AI networking and AI energy. In spite of the recent market chaos, we are still sleeping well at night…well ahead of all the indexes.

Today, we discuss our latest new position. We added this AI memory stock to our portfolio after conducting extensive research and analysis of the memory sector landscape and value chain. Yes, memory stocks are “cheap” by historic standards. The likes of Micron MU and Sandisk SNDK are minting money and counting their cash flows all the way to the bank. But then the recent leverage driven crash in the South Korean stock market (driven primarily by 2 memory stocks) gives us reason to be cautious.

The key question for investors is whether this crunch, this pricing power and these profits are sustainable in a notoriously cyclical industry.

If you want to follow our portfolio pivot journey…why and how we do it…read our latest post here, including links to our previous writings in this series. There is more work to do on this front…our portfolio is being tweaked in real time…so stay tuned.

Welcome to Beachman AI’s Investing Whispers, where we invest in market-leading stocks and ETFs with Beachman’s proven long-term record and a lower risk approach. Over the past 6 years, our structured investing has delivered an average annual return of +141% at a CAGR of +43%.

Subscribe now

Our chat line is open to all readers. Join in daily discussions about markets, investing and trading. Use this link to chime in on the conversation: Beachman’s Chat Line

For Beachman’s other portfolio, check out Beachman’s Salty Trades, with 8 multi-bagger picks cooking, using bottoms up research and technical signal based trade ideation and execution.

We recently logged our 23rd multi-bagger stock and trade gains of up to +69%.

P.S. Stock Analysis (SA), my favorite financial research service, is offering a special discount exclusively for us. SA provides comprehensive, timely market data via a well-designed, easy-to-use experience and at a very attractive price point. Use the link StockAnalysis and the promo code “BEACHMAN” for an extra 10% discount.

Table of contents

• Beachman’s latest market whispers

• New position add - AI memory stock

• Beachman’s plan

• Conclusion

Beachman’s latest market whispers

Here is what is top of mind for me these days in early August…

• The recent surge in riskier AI financing has surprised me….on two fronts 1. Solid companies like NVDA and AVGO are putting up their balance sheets as collateral for very large deals. 2. The companies being funded through these deals (e.g. OpenAI, neoclouds) still have to prove their business models. This is venture investing on steroids and the historical track record for such investing is not good…very few home runs…only 1 in 100 venture investments succeed.

• Things seem to have quietened down a bit in SK markets…perhaps taking a small break. But I dont think we are all clear as yet. Leverage issues usually take 2-3 flushes. Now it seems that Japanese and Singaporean investors might be heading the same way?

• I am now on the island (PR) and loving my beach time!

• I am still very concerned about the persistent rise of long term interest rates. Shenanigans, primarily by Bessent, continue…the most recent example being the US Treasury selling Euro bonds to supply Japan with US$ to shore up the falling Yen. This is a form of QE without calling it so. Soon enough, these dance moves will cause the shit to hit the fan in late 2026 or early 2027…the bond market will revolt and there will be a larger wash out in stocks. Winter is coming.

• We are through the bulk of the Q2 earnings season, but some more reports yet to come. Markets have not been forgiving for missing estimates, for not raising forward guidance, for dropping margins and cash flows. Interestingly, they have also not rewarded better than expected performances as much as before. These +/- 10% swings in stock prices are getting tiring and investors want to S.W.A.T. Sleep Well At Night.

• As I look at my stocks scorecard, many, many of the stocks that I follow seem overvalued…many AI and tech stocks are still priced for perfection through 2030…as if revenues and profits for the next 4-5 years are already on the books.

• Important: We have to keep an eye on election predictions starting in Sept/Oct. If the GOP is going to lose less or even win, then markets will rally. And vice versa. Also Texas is critical to monitor because there are almost 600 AI data center projects in that state…

New position add - AI memory stock

Memory is becoming one of the most important pieces of the AI data center build out because GPUs are only as useful as the data they can access. AI models need enormous amounts of data to be constantly moved between memory and the GPU, and if that memory can’t keep up, expensive GPUs sit idle waiting for information to process. As models get larger and workloads become more complex, the demand for HBM, DRAM and high-performance storage keeps rising. Adding more GPUs doesn’t solve the problem if you can’t feed them fast enough.

This is exactly why we investigated this space and added a memory stock to our portfolio. Let’s take a closer look at this company now…

Read more

We are more than 60% allocated to the AI theme with a strong leaning towards GPUs, ASICs, AI networking and AI energy. In spite of the recent market chaos, we are still sleeping well at night…well ahead of all the indexes.

Today, we discuss the AI networking landscape. We identify the current market leaders in each layer of the stack and more importantly:

1. The company at most risk of being sidelined soon.

2. Who is likely to be the next-gen winner.

This is a sector currently undergoing rapid transformation…new technologies emerging while others are becoming obsolete: 800G giving way to 1.6T optical, PCIe 5 getting upgraded to PCIe 6, DSP-based modules under pressure from linear pluggable optics, pluggable modules facing threats from co-packaged optics. As investors we need to sharpen our pencils on what we want to own and when.

If you want to follow our portfolio pivot journey…why and how we do it…read our latest post here, including links to our previous writings in this series. There is more work to do on this front…our portfolio is being tweaked in real time…so stay tuned.

Welcome to Beachman AI’s Investing Whispers, where we invest in market-leading stocks and ETFs with Beachman’s proven long-term record and a lower risk approach. Over the past 6 years, our structured investing has delivered an average annual return of +141% at a CAGR of +43%.

Subscribe now

Our chat line is open to all readers. It is FREE to join in daily discussions about markets, investing and trading. Use this link to chime in on the conversation: Beachman’s Chat Line

For Beachman’s other portfolio, check out Beachman’s Salty Trades, with 6 multi-bagger picks cooking, using bottoms up research and technical signal based trade ideation and execution…where we recently logged our 22nd multi-bagger stock and trade gains of up to +69%.

P.S. Stock Analysis (SA), my favorite financial research service, is offering a special discount exclusively for us. SA provides comprehensive, timely market data via a well-designed, easy-to-use experience and at a very attractive price point. Use the link StockAnalysis and the promo code “BEACHMAN” for an extra 10% discount.

Table of contents

• Beachman’s latest market whispers

• AI interconnect value chain

• Beachman’s plan

• Conclusion

Beachman’s latest market whispers

Here is what is top of mind for me these days in early August…

• Margin and leverage can be fatal if not risk managed. We saw this in South Korean markets that have taken major losses on the chin…forever changing many people’s lives for the worse. Here in the US our own “Leo” faced his own major liquidation event right on the eve of his wedding. Hope the reception had good music and food to lighten up the mood.

• At the home front, it is hot and humid as Summer drags on. Thankfully, we have about 50% less mosquitoes this season…I hate those mofos. This month I head to PR for my summer island time…I cannot wait to lounge on my favorite beach again.

• I am now very concerned about the persistent rise of long term interest rates. Warsh and Bessent are playing with fire. This is likely the reason why the shit will hit the fan in late 2026 or early 2027…the bond market will revolt and there will be a larger wash out in stocks. We have not seen nothing yet.

• Meanwhile Q2 earnings reports are mostly positive and in spite of the recent drop in stock prices, stocks remain generally overvalued…many being priced for perfection through 2030.

• Important: We have to keep an eye on election predictions starting in say Sept/Oct. If the GOP is going to lose less or even win, then markets will rally. And vice versa.

AI interconnect value chain

As per latest estimates, the combined 2026 hyperscaler capex is running around $750B, up about 70%+ from last year, with 2027 estimates touching $1T. This train is not yet slowing down…although investors are raising more questions now. The mega caps are in a race to capture marketshare. Google’s co-founder, Larry Page, reportedly said "I'm willing to go bankrupt rather than lose this (AI) race."

AI infrastructure boils down to 4 things: compute, memory, power, and networking…the last being the “wires” connecting GPUs to GPUs and CPUs, to memory chips and hard disk storage and to other servers and remote data centers.

AI models are becoming more capable and complex at the same time, needing more GPUs which in turn generates more data traffic between them. The interconnect layer is being forced to scale as fast if not faster than the compute layer sitting on top of it. A cluster of 10,000 GPUs is worthless if they can’t talk to each other fast enough e.g. Meta recently reported that their AI data centers are running at 60-70% utilization…GPUs are sending messages and waiting for responses. Every % loss of utilization equates to loss of revenue, profits and cash flows….loss of shareholder value.

Now, the bottleneck-boys or the chokepoint-chaps fintwit will, on a dime, quote a list of 10 or 17 or 26 AI networking stocks that you must buy asap in order to 2x or 3x your money. But most of these lists are predicated on copy and paste of others’ ideas, a shallow understanding of the technology and an even thinner research effort on where it is heading next.

Over the past week, we did our homework in this space to confirm that we own the stocks with the strongest forward prospects. We also identified what we do not want to own i.e. who’s business is eroding beneath the surface. We then pinpointed the companies that are likely to be the next-gen winners and when.

Let’s dive further into this wonderful world of AI networking…

Read more

Read more

Today, we discuss three such changes that we recently made. We added 2 new positions and closed out another…all these three stocks were part of our 50%+ allocation to AI.

If you want to follow our portfolio pivot journey…why and how we do it…read our latest post here, including links to our previous writings in this series. There is more work to do on this front…so stay tuned.

Welcome to Beachman AI’s Investing Whispers, where we invest in market-leading stocks and ETFs with Beachman’s proven long-term record and a lower risk approach. Over the past 6 years, our structured investing has delivered an average annual return of +141% at a CAGR of +43%.

Subscribe now

Our chat line is open to all readers. It is now FREE to join in daily discussions about markets, investing and trading. Use this link to chime in on the conversation: Beachman’s Chat Line

For Beachman’s other portfolio, check out Beachman’s Salty Trades, with 5 multi-bagger picks cooking, using bottoms up research and technical signal based trade ideation and execution…where we recently logged our 22nd multi-bagger stock and trade gains of up to +69%.

P.S. Stock Analysis (SA), my favorite financial research service, is offering a special discount exclusively for us. SA provides comprehensive, timely market data via a well-designed, easy-to-use experience and at a very attractive price point. Use the link StockAnalysis and the promo code “BEACHMAN” for an extra 10% discount.

Table of contents

• Beachman’s latest market whispers

• New position 1: An AI networking market-share grabber

• New position 2: An AI power provider delivering behind-the-meter energy

• Closed an existing AI energy position

• Coming up next

Beachman’s latest market whispers

Here is what is top of mind for me these days…

• Personally, I am deep into my summer mood and mode…so life has slowed down a bit. Enjoyed the World Cup soccer tourney and happy that Spain won it with class and superior football. I am looking forward to a few more weeks of baseball, Puerto Rico beach time, gardening and family/friends bbqs.

• Markets are slowing down, typical for this time of the year, as we head into the peak Q2 earnings season. Estimates are trending higher and all in all reports are expected to be good. But our attention will be focused on guidance and estimates for the next 9-12 months.

• Macro readings are also relatively stable - inflation, labor, rates, energy prices…note that I said relatively stable. The US admin is using everything in their tool box to keep macro in check…after all this is an election year.

• Markets are now not swaying to news on ME wars, Ukraine wars, tariff decisions, political or fiscal narratives…btw, there are no important laws being passed…so markets dont care anymore.

• Important: We have to keep an eye on election predictions starting in say Sept/Oct. If the GOP is going to lose less or even win, then markets will rally. And vice versa.

Read more

Welcome to Beachman AI’s Investing Whispers, where we invest in market-leading stocks and ETFs with Beachman’s proven long-term record and a lower risk approach. Over the past 6 years, our structured investing has delivered an average annual return of +141% at a CAGR of +43%.

Subscribe now

Our chat line is open to all readers. It is now FREE to join in daily discussions about markets, investing and trading. Use this link to chime in on the conversation: Beachman’s Chat Line

For Beachman’s other portfolio, check out Beachman’s Salty Trades, with 5 multi-bagger picks cooking, using bottoms up research and technical signal based trade ideation and execution…where we recently logged our 22nd multi-bagger stock and trade gains of up to +69%.

P.S. Stock Analysis (SA), my favorite financial research service, is offering a special discount exclusively for us. SA provides comprehensive, timely market data via a well-designed, easy-to-use experience and at a very attractive price point. Use the link StockAnalysis and the promo code “BEACHMAN” for an extra 10% discount.

Table of contents

• Q2 earnings analysis and stock scorecards in alphabetical order

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Some of the bombastic fintwit voices have quieted down…fewer podcast appearances…less live X (twitter) spaces discussions…not that many YTD return…

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Themes → Risks → Picks → Hedges → Speculation

…because this is a learning substack…a teaching substack. Many of my readers are college and high school students who want to learn how to invest.

In the daily market craziness, sitting in front of my screens, it is easy to forget this. I need to remind myself of what we are doing here…why we invest.

Every year, around this time, we adjust and pivot our portfolio towards the next 12-18 months…yes, well in advance. This proactive strategy has enabled us to deliver market-leading returns which are posted here….an average annual return of +141% at a CAGR of +43%.

For example, for 2025-2026, we identified specific AI sub-sectors that would dominate along with a few other themes that almost no one was talking about. We bought stocks like ALAB and BE in the $30s and $40s and MRVL in the $70s and rode them higher for sweet multi-bagger gains. Our barbell-hedge, non-tech positions have served as a critical balancing force in this year’s extreme volatility returning up to +77% along the way and helping our portfolio hit YTD all time highs this week.

Now we are doing it again…looking forward, planning ahead and tweaking our portfolio today to ensure long term gains without heed to short term fintwit rah-rah and FOMO noise.

We like to sleep well at night…this is the S.W.A.T. way.

Here is the chronological list of posts in this series that follow our line of thinking and plan of action:

Map of 4-5 quarters starting in Q4 2025

Beachman plan for Q2 and Q3

Top questions to frame up our pivot exercise

Five strongest secular tailwinds in the US economy

Our updated macro forecast for Q2 and Q3 (same post as above)

We have already started putting money to work in these new directions. Every earnings cycle, we get fresh business performance information on stocks that we own. It allows us to also find other stocks that meet our high bar for fundamental strength, growth potential and attractive valuation. My shopping list is ready and we recently added 4 new stocks to our portfolio….two of them in the last few weeks…we even exited 2 positions that did not meet our current needs.

Today, we will dive deeper into our re-organized S.W.A.T. portfolio…including our six investment sectors.

Welcome to Beachman AI’s Investing Whispers, where we invest in market-leading stocks and ETFs with Beachman’s proven long-term record and a lower risk approach. Over the past 6 years, our structured investing has delivered an average annual return of +141% at a CAGR of +43%.

Subscribe now

Our chat line is open to all readers. It is now FREE to join in daily discussions about markets, investing and trading. Use this link to chime in on the conversation: Beachman’s Chat Line

For Beachman’s other portfolio, check out Beachman’s Salty Trades, with 5 multi-bagger picks cooking, using bottoms up research and technical signal based trade ideation and execution…where we recently logged our 22nd multi-bagger stock and trade gains of up to +69%.

P.S. Stock Analysis (SA), my favorite financial research service, is offering a special discount exclusively for us. SA provides comprehensive, timely market data via a well-designed, easy-to-use experience and at a very attractive price point. Use the link StockAnalysis and the promo code “BEACHMAN” for an extra 10% discount.

Table of contents

• Our re-organized S.W.A.T. portfolio

• Coming up next

So let’s dive in…..

Our S.W.A.T. portfolio

Over the next 12-18 months, I want to allocate my capital towards sectors and specific sub-sectors that I think will provide the highest ROI…without chasing pure momentum stocks that swing +/-10% on a daily basis due to short term trading.

When a stock swings that much every other day, every week…it is actually a sign of weakness in that stock and in the market overall.

Here are my sector / sub-sector choices including target % allocations:

I have 4 main groups and 2 barbell hedge groups…

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Using diff…

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Themes → Risks → Picks → Hedges → Speculation

Every year, around this time, we adjust and pivot our portfolio towards the next 12-18 months…yes, well in advance. This proactive strategy has enabled us to deliver market-leading returns which are posted here….an average annual return of +141% at a CAGR of +43%.

For example, for 2025-2026, we identified specific AI sub-sectors that would dominate along with a few other themes that almost no one was talking about. We bought stocks like ALAB and BE in the $30s and $40s and MRVL in the $70s and rode them higher for amazing multi-bagger gains. Our barbell-hedge, non-tech positions have served as a critical balancing force in this year’s extreme volatility returning up to +77% along the way.

Now we are doing it again…looking forward, planning ahead and tweaking our portfolio to ensure long term gains without heed to short term fintwit rah-rah and FOMO noise.

We like to sleep well at night…this is the S.W.A.T. way.

Here is the chronological list of posts that follow our line of thinking and plan of action:

Map of 4-5 quarters starting in Q4 2025

Beachman plan for Q2 and Q3

Top questions to frame up our pivot exercise

Five strongest secular tailwinds in the US economy

Our updated macro forecast for Q2 and Q3 (same post as above)

We have already started putting money to work in these new directions. Every earnings cycle, we get fresh business performance information on stocks that we own. It allows us to also find other stocks that meet our high bar for fundamental strength, growth potential and attractive valuation. My shopping list is ready and we recently added 4 new stocks to our portfolio….two of them in the last 2 weeks.

Today, we will discuss our latest new position…a stock that is benefiting from one of the strongest secular themes playing out.

Our next post will dive deeper into our re-organized S.W.A.T. portfolio…including our six investment sectors, stocks within each of them and whats on our shopping list.

Welcome to Beachman AI’s Investing Whispers, where we invest in market-leading stocks and ETFs with Beachman’s proven long-term record and a lower risk approach. Over the past 6 years, our structured investing has delivered an average annual return of +141% at a CAGR of +43%.

Subscribe now

Our chat line is open to all readers. It is now FREE to join in daily discussions about markets, investing and trading. Use this link to chime in on the conversation: Beachman’s Chat Line

For Beachman’s other portfolio, check out Beachman’s Salty Trades, with 5 multi-bagger picks cooking, using bottoms up research and technical signal based trade ideation and execution…where we recently logged our 22nd multi-bagger stock and trade gains of up to +69%.

P.S. Stock Analysis (SA), my favorite financial research service, is offering a special discount exclusively for us. SA provides comprehensive, timely market data via a well-designed, easy-to-use experience and at a very attractive price point. Use the link StockAnalysis and the promo code “BEACHMAN” for an extra 10% discount.

Table of contents

• Our latest new position: An AI infrastructure revenue growth and FCF compounder

• Coming up next

Read more

Themes → Picks → Risks → Hedges → Speculation

Every year, around this time, we refer back to our 8-step SWAT Sleep-Well-And-Tight investing process to adjust and pivot our portfolio towards the next 12-18 months…yes well in advance. This proactive strategy has enabled us to deliver market-leading returns which are posted here….an average annual return of +141% at a CAGR of +43%.

We plan for both right tail opportunities and left tail risks. We then identify the strongest investing themes and sectors for the next 12-18 months. And, we start allocating our cash towards those opportunities.

For example, for 2025-2026, AI was of course an important theme to pursue. However, we identified specific AI sub-sectors that would dominate this year along with a few other themes that almost no one was talking about. We bought stocks like ALAB and BE in the $30s and $40s and MRVL in the $70s and rode them higher for amazing multi-bagger gains.

We also mapped out what is likely to happen in each of the next 4-5 quarters starting in Q4 2025 and published how we planned to position our portfolio to maximize our returns in each of these 3-month time periods. As part of this rolling quarterly exercise, about a month ago, I laid out my Beachman plan for Q2 and Q3.

Now we are starting our portfolio pivot towards 2027.

Last week, I shared the top questions I am using to frame up this exercise. Today, we will sharpen our pencils on the macro forecast. Then we will discuss how I am re-organizing my SWAT portfolio for the next 12-18 months and the new themes that I want to invest in.

We have already started putting money to work in these new directions. Every earnings cycle, we get fresh business performance information on stocks that we own. It allows us to also find other stocks that meet our high bar for fundamental strength, growth potential and attractive valuation. My shopping list is ready and we recently added 4 new stocks to our portfolio….two of them in the last 2 weeks.

Welcome to Beachman AI’s Investing Whispers, where we invest in market-leading stocks and ETFs with Beachman’s proven long-term record and a lower risk approach. Over the past 6 years, our structured investing has delivered an average annual return of +141% at a CAGR of +43%.

Subscribe now

Our chat line is open to all readers. It is now FREE to join in daily discussions about markets, investing and trading. Use this link to chime in on the conversation: Beachman’s Chat Line

For Beachman’s other portfolio, check out Beachman’s Salty Trades, with 5 multi-bagger picks cooking, using bottoms up research and technical signal based trade ideation and execution…where we recently logged our 22nd multi-bagger stock and trade gains of up to +69%.

P.S. Stock Analysis (SA), my favorite financial research service, is offering a special discount exclusively for us. SA provides comprehensive, timely market data via a well-designed, easy-to-use experience and at a very attractive price point. Use the link StockAnalysis and the promo code “BEACHMAN” for an extra 10% discount.

Table of contents

• Five strongest secular tailwinds in the US economy

• How will the macro landscape evolve?

• Beachman’s plan

• Re-organizing my portfolio

Five strongest secular tailwinds in the US economy

We go back to first principles to verify the strongest secular economic themes that will propel certain sectors higher over the next 12-18 months. A lot has changed since I last double checked this and it is important to invest in those leading themes. This helps me ensure that my SWAT portfolio is swimming in the same direction supported by those tailwinds.

Here are the top 5 strongest trends in the US economy:

#1 — The US power grid crisis (AI power needs)

After decades of essentially flat demand, US electricity consumption started accelerating hard in 2025, catching most utility planners off guard. As per Deloitte, peak demand is now projected to grow roughly +26% by 2035. Data center demand alone could hit 176 GW by 2035 — a fivefold jump from where we were in 2024.

The thing most investors still under-appreciate: power availability is the primary constraint on data center development. Grid interconnections are taking up to four years in some regions. And the pace of connecting new energy sources has consistently lagged behind the pace of new demand.

This is a multi-decade capital investment cycle. Every layer of the power stack benefits — transmission equipment, transformer manufacturers, natural gas turbines, backup power, grid software. Those with ready solutions are sold out for years and raising ASPs. However, if AI capex spend slows materially — either because ROI disappoints enterprise customers or because compute efficiency gains reduce power per model dramatically — the demand curve gets revised down hard.

#2 — US defense & munitions restocking

US discretionary defense spending is expected to rise more than 17% in fiscal year 2026 to $1.05T. The FY2027 budget request is $1.5T total, representing a 28% increase in discretionary spending and a 44% increase for the Department of Defense.

There is new funding specifically for munitions — PATRIOT missiles, THAAD interceptors, drones, and solid rocket motors. There are deep production bottlenecks today because the US burned through years of inventory in months supporting Ukraine and now Iran operations. The Pentagon estimates it would take 3-4 years to restock munitions inventories.

Multi-year contracts are being negotiated and signed for solid rocket motors, propellants, guidance chips, advanced composites. However, the biggest risk is budget approvals and bureaucratic reviews.

#3 — Agentic AI & enterprise AI

I’m deliberately separating this from the AI power theme (#1 above) because they are each at two different stages of their cycle. Here there is more uncertainty but also more potential upside. Here’s why…

Gartner predicts up to 40% of enterprise applications will include integrated AI agents by the end of 2026, up from less than 5% in 2025. Deloitte projects the agentic AI market growing at a 53% CAGR, from $8.5B in 2026 to $45B by 2030.

Enterprise software companies are moving from seat-based pricing to outcome-based and usage-based pricing. For the best-positioned platforms, this is an ASP expansion opportunity within a pricing model change as measured by RPO growth, dollar based net retention.

Companies with deeply embedded workflow software — where an agent doesn’t replace the software but extends it — capture the most durable pricing power. e.g. workflow, ERP, CRM, security. The switching cost is already high. Add an agentic layer on top and the switching cost about doubles. However, foundation AI models could compress margins at the application layer. If any developer can wire an agent into any workflow for near-zero cost, the platforms lose the pricing advantage they’re counting on. The companies most at risk are “AI-washed” traditional SaaS that bolt on an LLM call and market it as transformation. The stocks that win are the ones with proprietary data and workflow lock-in that the agent actually needs to function.

#4 — US energy export boom

The US is now the world’s largest oil, natural gas and LNG producer and exporter. And the ME war has caused immense damage to energy infrastructure in that region which is estimated to take up to 5 years to fully get back online. This has further increased demand for US energy especially natural gas and LNG.

Today, Qatar represents roughly 20% of global LNG supply and the US is the only country with the flexible export infrastructure to meaningfully fill it near-term. European LNG imports increased 30% in 2025 and are expected to grow higher in 2026 as the EU is planning to fully phase out Russian gas by Fall 2027.

The domestic demand angle is equally important. More than $35B is expected to be spent through 2027 on US natural gas pipeline and infrastructure alone, representing roughly 7,500 miles of new pipeline capacity…most of this based on new electric grid and AI data center needs.

#5 — Aging demographics / healthcare & med-tech

This is the slowest moving of the five but the most durable. By early 2026, Americans aged 65 and older account for about 19% of the total population, up sharply from 12% in 2004. All baby boomers will be older than 65 by 2030 — roughly one in five US residents. Americans age 55 and older account for 57% of total healthcare spending. Healthcare inflation is running at 4% as of early 2026. Medicare spending is projected to grow 10% annually until 2030. Federal healthcare expenditures could climb from $2.4T in 2024 to $4.3T by 2033.

As the 80+ population grows, demand will shift from episodic hospital care to chronic condition management and home monitoring. i.e. wearables, remote diagnostics, home infusion — recurring revenue models with a captive and growing patient base. As AI diagnostic layers get embedded into these devices, the ASP per patient goes up and the switching cost increases.

While there are several US sectors performing well today, these are the 5 strongest themes with the most upside over the next 12-18 months. These are what I want to consider for my SWAT portfolio.

How will the macro landscape evolve?

In early May, I shared my forecast for Q2 and Q3. Here is a handy link to that post.

Many of the items in my bear case are playing out as expected…higher inflation, higher LT rates, possible Fed rate hikes (no more cuts) and increasing talk about stagflation setting in. Historically, periods of lower consumer sentiment and rising inflation expectations have coincided with higher bond yields, increased equity market volatility, and pressure on valuation multiples…aka stocks prices drop.

Even though the ME war is settling down, supply chains and related bottle necks will take months to clear up. Damage to energy infrastructure in the ME will take years to repair and fully bring online.

Market consensus is growing that the Fed is 1-2 rate hikes behind the curve. I am never one to double guess the FOMC, however given the frothiness in the markets for the past 15 months, I am inclined to agree. There is just too much liquidity chasing too few stocks.

On the bull side, with the mid-term elections coming up in Nov, the US admin will turn on the fiscal liquidity and stimulus pump. The 2025 OBBB funding is already hitting the economy in terms of lower tax deductions, larger tax refunds, small business stimuli etc. The Trump admin has some more tricks up their sleeves to keep juicing the markets and there is no sense in fighting this trend while it lasts.

The Feds will hold rates steady with perhaps 1 token rate hike this year. US Ttreasury will do yield control. Fed driven QE will restart. They will keep LT rates low in the 4%. traders will borrow at 4% and then they will invest that capital in anything that generates more than 4% i.e. stocks, options, momemtum, leveraged ETFs.

Here is what I expect for the rest of Q2 and Q3:

• Markets will slowly bleed sideways with small spurts higher and larger dips lower.

• Volume will stay anemic, especially as we get into the peak Summer months.

• CTAs and options trading will control market movements…not fundamentals.

• We will get a meaningful pullback. The SP500 will drop back lower into the 6800-6500 range. The Nasdaq will drop even lower as a % when all that FOMO froth gets burned away.

• Oil and commodities will drop in price yet remain expensive.

• Inflation will be persistently higher.

• The Trump admin’s attempts to control the narrative and manipulate markets will become less and less effective.

• Earnings forecasts, especially for consumer sectors, will be revised lower.

• AI capex spend fears will rise as the token costs increase; enterprises will focus on AI spend optimization and AI providers will drop prices.

Looking further out into Q4 and 2027…things are a lot more dependent on how the US mid term elections play out. The US economy is heavily dependent on the continuation of AI capex spend in the billions and trillions. Any hiccup in AI will cause a stronger market correction given all the other macro red and yellow flags.

If there is a deeper market correction, the US admin will use that “crisis” to justify the setup of a new sovereign fund to invest in US stocks. They will lean into more QE and new stimulus, irrespective of which political party controls Congress next year. We will cross that bridge when we get there.

Now, given this macro horoscope, here is my overall Beachman portfolio plan…

Beachman’s plan

My overall plan…

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Themes → Picks → Risks → Hedges → Speculation

In preparation for this year, we started our portfolio pivot in Sept 2025 as we laid out our 8-step SWAT Sleep-Well-And-Tight investing process. We have been successfully employing this approach (i.e. prep 12-18 months in advance) for several years now with market-leading returns which are posted here.

It was important to plan for both right tail opportunities and left tail risks. Therefore, we discussed the positive secular, macro, fiscal and monetary catalysts that could propel markets higher and the major risks that could negatively impact markets in 2026.

Given the broader macro landscape, we then listed the strongest investing themes and sectors that we liked for 2026. Subsequently, we started allocating our cash towards those opportunities. Of course, AI was on that shortlist, however we identified specific AI sub-sectors that would dominate this year along with a few other themes that almost no one was talking about…while they chased the latest fin-twit fad. e.g. We bought stocks like ALAB and BE in the $30s and $40s and MRVL in the $70s and rode them higher for some lip-smacking multi-bagger gains.

We also mapped out what is likely to happen in each of the next 4-5 quarters starting in Q4 2025. We published how we planned to position our portfolio to maximize our returns in each of these 3-month time periods.

As part of this rolling quarterly exercise, about a month ago, I laid out my Beachman plan for Q2 and Q3. We have been actively working on those to-dos. Nothing has changed in our market forecast and action plan - we are heads down in our analysis…finding new stocks we want to own and putting in place our hedging strategy.

Every earnings cycle, we get new business performance information on stocks that we own. It allows us to also find new companies that meet our high bar for fundamental strength, growth potential and attractive valuation. We are almost done with the Q1 earnings cycle and we recently added 3 new stocks to our portfolio…one of them we will discuss below. Additionally, I have a short list of 11 other stocks that I am actively researching for possible adds to the S.W.A.T. portfolio.

Welcome to Beachman AI’s Investing Whispers, where we invest in market-leading stocks and ETFs with Beachman’s proven long-term record and a lower risk approach. Over the past 6 years, our structured investing has delivered an average annual return of +141% at a CAGR of +43%.

Subscribe now

We are opening up our chat line to all readers. It is now FREE to join in daily discussions about markets, investing and trading. Use this link to chime in on the conversation: Beachman’s Chat Line

For Beachman’s other portfolio, check out Beachman’s Salty Trades, with 5 multi-bagger picks cooking, using bottoms up research and technical signal based trade ideation and execution…where we recently logged our 22nd multi-bagger stock and trade gains of up to +69%.

P.S. Stock Analysis (SA), my favorite financial research service, is offering a special discount exclusively for us. SA provides comprehensive, timely market data via a well-designed, easy-to-use experience and at a very attractive price point. Use the link StockAnalysis and the promo code “BEACHMAN” for an extra 10% discount.

Table of contents

• How I am setting up my portfolio for the summer - Part 1

• New position - An FCF monster with multiple AI tailwinds

• Conclusion

How I am setting up my portfolio for the summer - Part 1

Recent market turmoil has further underscored the need to consider hedges in our portfolio. Hedging is protection against being wrong at the wrong time. Right now, heading into summer 2026, the market feels tight. Valuations aren’t cheap and most macro data coming in is “fine,” which sounds good until you realize it just keeps the Fed stuck. No clean GDP growth pivot, no clear economic slowdown…just enough uncertainty to keep things jumpy and unsure. In that kind of setup, your portfolio is basically long everything going right: liquidity stays decent, multiples hold, nothing breaks. That’s a fragile state to maintain without portfolio protection.

Summer doesn’t help. Trading volume drops off, desks thin out, and price moves get weird. You’ll see stocks swing on nothing…or on something small that gets treated like a big deal. Correlations creep higher too. Stuff that’s supposed to diversify your investments just doesn’t. It all leans the same way when pressure hits. That’s where hedging actually earns its keep. Not because you nailed the direction, but because it keeps a bad tape from turning into a forced sell. You stay in control instead of reacting to it.

There’s also a crowding issue that’s hard to ignore. A lot of capital is sitting in the same trades…high growth, AI names, neoclouds, semis. It has worked for about 8-9 weeks, so nobody wants to move. In fact, with three large IPOs due to hit the market in weeks, folks are doubling down…even taking out loans to BTFD! But when positioning gets so one-sided like that, exits aren’t orderly. If something shifts or breaks in a sudden unforeseen direction…rates, earnings, whatever…it unwinds fast. A hedge lets you sit through that chaos without flinching. You don’t have to dump your best names just because the market gets messy.

And the biggest benefit is how it changes your behavior. When you know you’ve got downside protection, you think clearer. You’re not watching every tick wondering if this is the one that breaks you. You can actually look for new opportunities when things get dislocated, which is usually when they show up. Without a hedge, you’re managing stress. With one, you’re making decisions. That’s a big difference, especially in a market that’s not giving out easy returns.

This helps you sleep well at night…this is the S.W.A.T. way…

Today is Part 1 of several posts in which I will share how I am deciding what to hedge and how to do it.

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I looked for good training on how to use AI and did …

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Currently, Oracle maintains dominant market leadership in several sectors, notably being named a leader in the 2026 Gartner Magic Quadrant for Supply Chain Planning, Warehouse Management (for the 11th consecutive year), Transportation Management, and Source-to-Pay Suites. They are deeply entrenched in enterprise workloads with a large customer base and sticky high switching costs.

The company’s recent AI ambitions are defined by a massive pivot toward high-performance compute capacity, evidenced by a $300B, five-year cloud contract with OpenAI (OAI) signed in late 2025. Under this partnership, OAI has moved away from exclusive reliance on Microsoft Azure to utilize OCI’s scalable infrastructure for training and inference of its next-generation models. To fund this historic buildout, Oracle plans to raise up to $50B in 2026 through debt and equity, targeting a total revenue goal of $90B by fiscal year 2027. Oracle is also a core partner in Project Stargate, a massive $500B private-sector initiative involving OpenAI and SoftBank to develop a network of AI-dedicated data centers across the United States. A flagship component of this project is the Abilene, Texas campus, which is expected to reach nearly 1.2 gigawatts of power by mid-2026. Oracle is overseeing the development of this site, where it will ultimately deploy over 450,000 NVIDIA GB200 GPUs to support extremely large-scale AI model training.

Markets initially rejoiced on all these AI related developments and shot the stock up to new highs in Aug 2025. But then upon further reflection decided that they did not like the high capex investment needed and became skeptical about OAI’s ability to grow their revenues and turn a profit.

And so ORCL’s stock suffered…dropping lower for several months and clocking all time lows around $134. However, the stock has been behaving well recently. In fact, since double-bottoming in Feb and Apr this year, the stock has risen about +64%.

So, is it a good time to buy stock now?

Welcome to Beachman AI’s Investing Whispers, where we invest in market-leading stocks and ETFs with Beachman’s proven long-term record and a lower risk approach. Over the past 6 years, our structured investing has delivered an average annual return of +141% at a CAGR of +43%.

Subscribe now

We are opening up our chat line to all readers. It is now FREE to join in daily discussions about markets, investing and trading. Use this link to chime in on the conversation: Beachman’s Chat Line

For Beachman’s other portfolio, check out Beachman’s Salty Trades, with 5 multi-bagger picks cooking, using bottoms up research and technical signal based trade ideation and execution…where we recently logged trade gains of up to +69%.

P.S. Stock Analysis (SA), my favorite financial research service, is offering a special discount exclusively for us. SA provides comprehensive, timely market data via a well-designed, easy-to-use experience and at a very attractive price point. Use the link StockAnalysis and the promo code “BEACHMAN” for an extra 10% discount.

Here is the ORCL stock chart…

As you can see, in spite of a massive move higher from the lows, the stock has a long way to go higher and it could face strong resistance as it climbs.

It has broken above all the key moving averages including the critical 200DMA. If it can successfully retest the 200DMA at around $207 then it could get much higher all the way back to the mid-$300s.

But let’s make note of some underlying technical weak signals - daily trading volume is still dropping even as the stock is now overbought. As the stock increases in price, “trapped” buyers from last year will look to sell and get out if their conviction is weak. Fundamentally, ORCL’s balance sheet is lopsided with about $114B in net debt (total cash - total debt) along with deeply negative cash flows (due to high AI capex spend).

On the other hand, if you look at forward growth forecasts, they are very impressive…Their Q1 earnings report coming out in mid-June is estimated at +23% yoy revenue growth and +68% yoy earnings growth. Growth rates for sales and margins are expected to keep trending higher for at least the next 8-10 quarters!

In summary…

The Bull case

• OCI growth remains strong

• AI demand tailwinds are real and likely durable

• Operating leverage potential if scale is achieved

• Forward growth expectations are elevated

The Bear case

• Heavy capex cycle weighing on near-term cash flow

• Balance sheet leverage is meaningful relative to peers

• Execution risk in competing with larger hyperscalers

• Stock may face overhead resistance from prior buyers

Considering all the information we currently have…as we wait for their upcoming earnings report…

Yes…this might be a good time to buy Oracle .

We think that current prices are likely a low risk level to start a position.

We have two preferred BUY points at $207 and $175.

The AI race is still in the first innings and the slow tortoise might just prove to be faster than all the flashy rabbits up ahead.

For instructions on how read our charts:

Disclosure: We may have a long term investing position or a short term trading position in the stock discussed above.

For example, we bought stocks like ALAB and BE in the $30s and $40s…earlier than when investors caught onto their stories. Over several months, we rode these stocks higher before selling them for multi-bagger gains.

Today, we are announcing a new stock position that has the potential to ride the upcoming consumer AI wave with Apple rumored to launch the new Siri v2.0 at their June 2026 WWDC event.

AI companies have, thus far, focused on enterprise adoption…no brainer because that is where the volumes are higher and the margins are thicker. However, the consumer AI angle is a multi-trillion dollar TAM that intersects e-commerce, social media, career management, personal finances and health. The consumer AI game is not even in the first inning…they are all on the field warming up and sizing the competition.

Welcome to Beachman AI’s Investing Whispers, where we use everyday AI tools to invest in market-leading stocks and ETFs with a proven record, while taking a long-term horizon and a lower risk approach. Over the past 6 years, our structured investing has delivered an average annual return of +141% at a CAGR of +43%.

We are opening up our chat line to all readers. It is now FREE to join thousands of us in daily discussions about markets, investing and trading. Use this link to chime in on the conversation: Beachman’s Chat Line

NOTE: Only monthly subscriptions are now being offered for this substack.

For Beachman’s other portfolio, check out Beachman’s Salty Trades, with 4 multi-bagger picks cooking, using bottoms up research and technical signal based trade ideation and execution…where we recently logged trade gains of up to +55%.

P.S. Stock Analysis (SA), my favorite financial research service, is offering a special discount exclusively for us. SA provides comprehensive, timely market data via a well-designed, easy-to-use experience and at a very attractive price point. Use the link StockAnalysis and the promo code “BEACHMAN” for an extra 10% discount.

Table of contents

• New position - A picks and shovels consumer AI company

• Conclusion

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Now the question is…

• Whether the market weakness that we saw in March was some sort of pull forward of this seasonal Summer decline?

And something else to consider…

• Will fiscal stimulus from the OBBB (One Big Beautiful Bill of 2025) hit the US economy right when we need it the most to keep the 2026 earnings train chugging along?

While you are at it, why not ponder one more item…we have been discussing it for weeks now on this substack…

• Even if the ME war ends tomorrow, how long will it take for energy and commodity supply chains to normalize and will we see higher inflation for months post-actual-war-end?

Our diversified and bar-bell hedged portfolio has kept us on the right side of 2026 market trouble. We have been taking advantage of right-tail opportunities and are protected from left-tail risks.

This is the S.W.A.T. way.

On the beach here, we track secular, macro, fiscal, and monetary trends and catalysts. Based on these signals, we mapped out what we believed is likely to happen in each of the next 4 to 5 quarters, starting in Q4 2025. So far, we got most of it right and some of it wrong. And that’s okay. We do not profess to be fortune tellers. No one is right all the time. We strive to be like water and adjust to market conditions and macro developments as they come at us.

We continue to update our forward-looking market roadmap and today we will discuss our outlook for the rest of Q2 and early Q3.

We keep saying that this market is not to be trifled with…this is not the year to F.A.F.O. In Q2, our focus is to make the final turn as we pivot our SWAT portfolio for the rest of 2026.

Welcome to Beachman’s Investing Brief, where we invest in market-leading stocks and ETFs with a proven record, while taking a long-term horizon and a lower risk approach. Over the past 6 years, our structured investing has delivered an average annual return of +141% at a CAGR of +43%.

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NOTE: We are winding down both this SWAT substack and our trading SALTY substack in early 2027. Therefore, existing annual subscriptions will not be renewed.

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Table of contents

• Market signals

• Beachman’s portfolio allocation

• Q2 (and early Q3) forecast

• Beachman’s plan

• Conclusion

For Beachman’s other portfolio, check out Beachman’s Salty Trades, with 4 multi-bagger picks cooking, using bottoms up research and technical signal based trade ideation and execution…where we recently logged trade gains of up to +122%.

P.S. Stock Analysis (SA), my favorite financial research service, is offering a special discount exclusively for us. SA provides comprehensive, timely market data via a well-designed, easy-to-use experience and at a very attractive price point. Use the link StockAnalysis and the promo code “BEACHMAN” for an extra 10% lifetime discount.

Market signals

The market has been on a tear as is evident from the SP500 chart below. The index has blown past all upside resistance and all previous resistance levels can now act as downside support if markets drop.

Here is a recent quote from fintwit that sums up the state of the market:

When vols, memory pricing, and call chasing all go vertical together, you’re no longer trading fundamentals. You’re trading upside panic.

As we inspect the chart further, we should note that:

1. Daily trading volume has continued to drop lower.

2. Markets are in an overbought state even as momentum has started to wane.

3. We are not seeing many more new 52-week highs nor are more stocks higher than their 50DMA.

4. Large hedges remain in place as traders are positioning for left tail risk with one eye on the exit door.

If you look back at this time in 2025…similar market technicals existed. This was followed by stocks rising…and they did not stop going higher until Nov 2025.

But at that time we were headed towards a rate cutting cycle and oil prices were marking new lows.

If the SP500 loses 7,200, then it has to hold support at 7,100 and then 7,000. Below those lines and we are likely to quickly revisit the mid-6,000s.

Beachman’s portfolio allocation

Throughout this year’s volatility, our barbell hedges worked perfectly. When markets swooned lower in Q1, we stayed relatively flat in our YTD performance. Then as markets recovered in April, our portfolio climbed to new highs and is consistently tracking ahead of the indexes.

As I take stock of how I want to position for Summer 2026, I go back to the basics of my investing process:

Themes

This year I am overweight in artificial intelligence. The AI infrastructure capex cycle is still strong with more than $750B +70% yoy planned for building new and upgrading existing data centers. Now it is driving about 75% of the US GDP growth. Businesses, large, medium and small, are actively looking for ways to cut costs and increase margins by adopting AI within their operations. Enterprise agentic AI is starting to feel the need for better AI agent management, governance and cyber-resilience. Consumer AI is slated to take shape in late 2026 and ramp up in 2027. Bottomline, we have exposure to AI clouds, data centers, GPUs, networking, ASICs, agentic AI, AI-driven ad-tech, enterprise and consumer LLMs, agent security and data resilience.

This is how we are positioned across the AI themes and in the following stocks…

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Markets seem to have moved on from the ME war…they are considering it yesterday’s issue. We kinda agree with them.

Yes, we still need to get a firm peace deal. However, the ceasefire seems to be holding…so far…and this improves the chances of both sides coming to some sort of agreement, even if it is temporary. If military action ramps up again, it is likely to be short-lived because neither party can afford to prolong these battles for too long. The economic, political and human stakes are too high for everyone involved…in spite of the online bravado.

Remember, here we are investors. We keep our politics out of our investing process. We try to see the facts and signals as they present themselves. Along those lines, even if the ME war is toned down, the macro impacts of these events will likely be longer lasting…in the US, in the ME region and globally. The forward looking economic landscape is what we are focused on as we invest today.

We started off 2026 invested in stocks and etfs like AAPL, ALAB, BE, GLD, GOOG, IBIT, MRVL and NVDA. Over the past three and a half months, we tweaked our portfolio to take advantage of our winners and to initiate a few new positions that we believe will be future beneficiaries of AI, cybersecurity and e-commerce. This week we added one such new stock to our SWAT portfolio.

We still have a 50%+ allocation to AI. There is a built-in cash buffer, a commodities hedge, a couple of international etfs and a reasonable allocation to crypto. We have also put some money to work in healthcare.

This diversified portfolio has kept us on the right side of 2026 market trouble. We planned for both right-tail opportunities and left-tail risks. The market’s move higher over the past eleven days is exactly the type of right-tail opportunity that we wanted to position for. The prior move down was the left-tail risk that we were ready for. Our portfolio’s barbell hedge in action.

This is the S.W.A.T. way.

Along the way, we’ve been tracking several secular, macro, fiscal, and monetary trends and catalysts. Based on these signals, we mapped out what we believe is likely to happen in each of the next 4 to 5 quarters, starting in Q4 2025. So far, we got most of it right and some of it wrong. And that’s okay. We do not profess to be fortune tellers. No one is right all the time. We strive to be like water and adjust to market conditions and macro developments as they come at us.

We continue to update our forward-looking market roadmap…our next refreshed Q2-Q3 outlook will be published in a few days.

Bottomline, we said that this market is not to be trifled with…this is not the year to F.A.F.O. In Q2, our focus is to make the final turn as we pivot our SWAT portfolio for the rest of 2026.

Welcome to Beachman’s Investing Brief, where we invest in market-leading stocks and ETFs with a proven record, while taking a long-term horizon and a lower risk approach. Over the past 6 years, our structured investing has delivered an average annual return of +141% at a CAGR of +43%.

Subscribe now

NOTE: We are winding down both this SWAT substack and our trading SALTY substack in early 2027. Therefore, we are phasing out existing annual subscriptions…they will not be renewed.

Table of contents

• Market signals

• New position alert: Our neocloud stock pick

• Beachman’s portfolio plan

• Conclusion

For Beachman’s other portfolio, check out Beachman’s Salty Trades, with 3 multi-bagger picks cooking, using bottoms up research and technical signal based trade ideation and execution…where we recently logged trade gains of up to +122%.

P.S. Stock Analysis (SA), my favorite financial research service, is offering a special discount exclusively for us. SA provides comprehensive, timely market data via a well-designed, easy-to-use experience and at a very attractive price point. Use the link StockAnalysis and the promo code “BEACHMAN” for an extra 10% lifetime discount.

Market signals

Take a look at the SP500 chart below. As we mentioned, the index gained 11% over the past 11 days. It topped in February 2026, then started a major downtrend and has since recovered all those losses. The SP500 is now testing upside resistance at 7,000.

As we dig a little deeper, we should note that the MAs are healthily trending higher... shorter term MAs crossing above longer term MAs is bullish.

More stocks have regained their 50DMA, although we aren’t seeing many new 52-week highs. Momentum has somewhat picked up, although daily trading volume is tracking lower than average volumes. Additionally, we noticed that traders and institutions are still putting on more protective hedges.

So in essence, we are trending higher on fumes. Bears are confused yet confident about their thesis. Bulls are confused yet convinced that earnings reports are going to beat expectations. This is what makes a market! Two sides of the same transaction…each with differing views on what is right and what is wrong. Love it!

The Q1 earnings season has just kicked off. We will receive updated performance information for the companies that we are tracking. Most businesses are currently in their quiet period. They cannot comment on forward guidance until they publish their Q1 earnings report. This vacuum of company-led information tends to get filled by rumors, fintwit “alerts”, and geopolitical tweets. Wall Street also does their part to feed the frenzy by issuing bullish or bearish reports on stocks that they either want to sell high or buy low. We have seen this movie play out over and over again prior to every earnings season. As individual investors it is easy for us to get caught up in these crosswinds.

A few weeks ago, AI semiconductor stocks were hated…now they are not. Then quantum computing stocks were on a tear…but then hated for months and now everyone loves them again. SaaS was going to get disrupted by AI…everyone was selling their cloud names. Now SaaS is back with a bang. Hot…then cold…then hot again.

Here on the beach, we certainly track key business developments. However, we update our investing thesis and Beachman scores for stocks based on quarterly earnings reports…if the thesis is confirmed by the company’s current performance and forward prospects, then we stay the course. If and when the thesis is broken, we exit.

🚨New position alert🚨: Our neo-cloud stock pick

A neo-cloud is a specialized cloud provider built specifically to power AI and high performance computing (HPC) workloads. Unlike hyperscalers like AWS or Azure that offer a broad range of general purpose services, neoclouds focus almost exclusively on GPU-as-a-Service (GPUaaS). They are the first versions of NVDA’s AI factory concept…a paradigm shift that redefines data centers from general purpose storage warehouses into specialized “manufacturing” facilities for intelligence. Jensen Huang describes this as a model in which data is the raw material, GPUs are the machinery, and tokens (units of AI-generated content) are the finished products.

If one wants to invest in AI, one has to consider owning a neo-cloud stock. But there are so many of them and it is difficult to decide which one to buy.

We took our time to choose and buy our preferred neo-cloud stock. We finally did it this week.

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