The 5 Forces of Abundance for the Perfect Storm in Public Stocks

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That is the name I will use to describe the framework I have for what is happening right now. There are five key forces to the Perfect Storm of Abundance: intelligence, earnings, dollars, risk-taking, and time. First, the Abundance of Intelligence was ushered in by AI model labs exposing their disruptive technology to the world via chat interfaces. Everyone knows how to ask questions in a chat interface and everyone wants access to the smartest technology available. You can see the breathtaking adoption of AI through this chart of token consumption surfaced by Jim Bianco . Jim writes “token usage (blue bars) is exploding higher. It started in January when Agentic AI went mainstream with Claude Cowork and Moltbook (OpenClaw). AI users are creating agents and code, leading to exponential growth in AI usage. It’s just starting.” A big part of this demand increase is from AI agents, rather than exclusively from humans. It seems like there is unlimited demand for AI, hence the Abundance of Intelligence label. The frantic adoption of AI leads us to the Abundance of Earnings. Companies continue to report higher and higher numbers. This is true for the actual numbers in the last few earnings seasons, but the increases hold for 2026 estimated earnings as well. Creative Planning’s Charlie Bilello shows a projected 24% increase in EPS from last year to the end of this year. That is a bonkers growth rate for companies that are already worth hundreds of billions, if not trillions, of dollars. My friend Jordi Visser told me over the weekend to pay attention to Eli Lilly, who has reported a 55% year-over-year growth to their revenue. 55% annual growth for a trillion dollar company? Incredible. It is this type of revenue and earnings growth that continues to drive the stock market higher. In addition to the improved financial performance, stock prices are appreciating because there is an Abundance of Dollars in the market now. You have to remember that approximately 40% of all dollars in circulation were created in the last 6 years. If you have more dollars chasing the same number of good companies, you naturally get higher valuations and stock prices. Abundance of Dollars helps the investor class, which it punishes the savers with elevated levels of inflation. But higher inflation is not the only side-effect of undisciplined fiscal and monetary policy in the United States. The second-order effect is that many people feel like they can’t get ahead, so they begin gambling more than normal with their money. This is an Abundance of Risk-Taking. We see this clearly in the popularity of zero day options or levered ETFs. For example , “retail investors are now spending a record 4.9 TIMES more money on semiconductor options contracts than the average seen since 2020, according to Citadel data. This is also exceeding the 2024 record by ~25%, when the AI chip frenzy first drove a surge in retail semiconductor options activity.” The combination of earnings driving stock performance and debasement of the dollar has created an insane environment for going max risk-on. Just don’t hold your breath that this situation will be over any time soon either. Opening Bell’s Phil Rosen writes “this bull market has lasted 1,326 days, which is more than 600 days shorter than the historical average since 1949. The bears waiting on the sidelines for a crash are fighting history.” I call this the Abundance of Time. The market can stay irrational longer than you can stay solvent, so investors are reminded that being “early” can sometimes be the same thing as being wrong. It is these five forces (abundance of intelligence, earnings, dollars, risk-taking, and time) that convince me the stock market is justified in going higher. The forces also convince me that this bull market is only warming up and we haven’t seen the top of the market yet. Time will tell if I am right or not. Hope you have a great start to your week. I will talk to everyone next time. - Anthony J. Pompliano Founder & CEO, ProCap Financial (Nasdaq: BRR) How To Grow Your Money In AI Revolution Jordi Visser is a veteran macro investor with 30+ years of experience and the author of the VisserLabs Substack. In this conversation , we discuss why the stock market keeps hitting all-time highs despite bad news, why AI and biotech are more underappreciated than most people realize, how Eli Lilly's AI partnerships could transform longevity and chronic disease, and where Jordi thinks you need to position your portfolio to actually compound in an exponential world. 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