Money & Megatrends

November 14, 2025

By Brian Hunt

In today’s issue, we outline our plan for trading Bitcoin, a boring way to generate steady income thanks to AI, and check-in on one of the highest-reward, highest-risk ways to invest in stocks.

Watch This Number: Our New Bitcoin Trading Plan

Will Bitcoin move higher now that the government shutdown is over?

It’s one of the biggest questions in the entire market right now.

Here is our plan for trading it.

From October 1, 2024, through October 1, 2025, the world’s premier cryptocurrency climbed 87% in value. Since then, Bitcoin has dropped from its high of $126,270 to the $107,000-$96,000 range.

Some crypto experts attribute Bitcoin’s recent weakness to the government shutdown. When the federal government is doing less, it is spending less. This means less financial liquidity sloshing around in the economy… and less liquidity to drive Bitcoin higher.

If the Bitcoin bulls are right, we will soon be presented with an interesting trading opportunity.

If the bulls are right, the government will resume doing a lot and spending a lot… which is good for Bitcoin and will drive it above its recent trading range. The top of this range – the $106,500 level – has recently acted as a “lid” on price.

A breakout above $106,500 would signal to the market that the Bitcoin bulls are in control, the government restart is bullish, and we should expect higher prices ahead. That development would draw in buyers… which would likely send Bitcoin much higher… even past the all-time high of $126,270.

If you want to try and pick the bottom right here, you’ll get no disapproving looks from me. That may work well. But I prefer waiting until a break above $107,000 before going long. I want some momentum on my side. Your move, bitcoin

After soaring, Bitcoin suffers a big decline

A Boring Way to Generate Steady Investment Income From the AI Boom

Would you believe there’s a boring way to generate steady investment income from the AI boom?

It might sound preposterous. Many AI-related stocks are high-risk, high-reward plays with a side of volatility. But boring and steady income is exactly what natural gas pipelines are offering right now.

Regular readers know power consumption is one of the AI megatrends’ largest and most profitable facets. Given AI’s enormous promise, the world’s largest and wealthiest companies are embarking on the biggest capex spending cycle in history. Giants such as Google, Meta, Microsoft, and OpenAI are spending hundreds of billions of dollars on data centers, AI chips, and other infrastructure components.

All that AI infrastructure is poised to consume vast amounts of electricity. We quote the International Energy Agency:

… electricity demand from data centres worldwide is set to more than double by 2030 to around 945 terawatt-hours (TWh), slightly more than the entire electricity consumption of Japan today. AI will be the most significant driver of this increase, with electricity demand from AI-optimised data centres projected to more than quadruple by 2030.

As I’ve pointed out, AI’s growing power demands are a bullish driver for natural gas. Natural gas is the preferred clean-burning fuel for power plants that support AI data centers.

The natural gas producer trade I’ve highlighted over the past month is off to a good start. But all the natural gas in the world isn’t worth much if you can’t transport it to customers.

This is where America’s vast natural gas transportation, processing, and storage industry comes in. An extensive network of pipes crisscrosses America to allow energy companies to transport natural gas from the wellhead to the power plant. If an AI-driven boom in natural gas consumption is starting, then by default, we’re going to see a boom in natural gas transportation.

This is all great news for companies in the Alerian MLP ETF (AMLP). It’s the world’s largest pipeline operator-focused ETF. It holds the “who’s who” of American energy pipeline operators. The fund’s current yield is over 8%.

The typical pipeline operator is not your typical “high-risk, high-reward,” AI play. It’s not going to soar 500% in one year like some AI plays can. Instead, it’s a boring and predictable business that generates regular cash flows and shareholder distributions. And it’s getting an AI boost that will last for years.

The uptrend in pipes will continue

Cathie Wood and the “Speculative Tech Bets” Trade Takes a Beating

Over the past 17 days, shares of online brokerage Robinhood (HOOD) have fallen 17%, shares of quantum computing company IonQ (IONQ) are down 28%, shares of crypto platform Coinbase (COIN) are down 21%, and shares of space industry leader Rocket Lab (RKLB) are down 31%.

These four stocks are members of a group I call “speculative tech bets.” These stocks have tremendous potential upside and compelling stories. They tend to operate in high-growth industries such as space, quantum computing, cryptocurrency, AI, batteries, and video games.

Like cattle, speculative tech bet stocks tend to move together in herds. Sometimes, the market loves speculative tech bets and the herd charges higher. During these runs, individual members can climb 100% or more in months. Sometimes, the market hates speculative tech bets, and they generate losses like the ones above.

The financial press is attributing the recent drop in speculative tech bet stocks to worries that the Fed won’t cut rates as fast as was expected last month. Maybe that’s the real reason, maybe not.

I care a lot less about the reason why prices are moving than I do about the price movements themselves. I often say it’s good to know the fundamentals, but they are of secondary importance to price action. You can believe a market will move up or down all you want, but if the trend moves against you, then your idea is a money loser.

We can track the price action of the “speculative tech bets” group with shares of the ARK Innovation ETF (ARKK). This fund is managed by the risk-loving technology investor Cathie Wood. Her firm’s business model is based on swinging for the fences with speculative tech bets. ARKK has major holdings in Coinbase and Robinhood.

As you can see from the chart below, ARKK enjoyed a massive run from the April tariff tantrum lows. After reaching a top in October, the fund has plunged 17% and recently hit its lowest point in over a month.

I’m confident the “speculative tech bets” trade will regain the market’s favor and generate returns. But for now, this trade is off limits for me. If ARKK can stop falling and move into a sideways consolidation near its current price of $78, it will show us that the beatings are over, and morale can improve. I’ll let you know when/if this happens and when the “speculative tech bets” trade is back in favor.

Speculative tech bets take a beating

Market Notes

SPDR S&P Biotech ETF (XBI) reached a new 1-year high today. This is very impressive strength in the face of broad market weakness.
Pharmaceutical giants Johnson & Johnson (JNJ) and Eli Lilly (LLY) reached new all-time highs today. The Boomer health care trend continues to reward investors.
Bitcoin’s recent price weakness has sent shares of popular Bitcoin-related bet MicroStrategy (MSTR) to new 52-week lows.
Shares of Trump Media & Technology Group (DJT) — which owns the Truth Social platform — reached a new 1-year low today. Shares are down 66% this year.