☕️ AI: Something happened at the G7 that’s being overlooked

Howdy! 👋 

There’s not a lot happening today that we haven’t already talked about – Warsh, Iran, retail data… etc – so rather than rehash all that and bore you to tears, I’ll keep it brief. 

Here’s my playbook. 

1 – All three indices are in the green (again) 

The naysayers who have correctly predicted 10 of the last 2 actual pullbacks have gone silent but have no fear, they’ll surface again with their unique brand of schlock. Eventually they’ll get one right and claim vindication, but that’s a story for another time. 

Meanwhile, there’s still a phenomenal amount of money on the hunt which means there’s still plenty of profit potential up for grabs. 

I’ve told you point blank – and repeatedly – that you need to be “in” to win if that’s what you actually want to do… meaning win. 

Keith’s Investing Tip: Companies and investors who hesitate become footnotes but the ones who lead become empires and legends. 😀 

2 – AI: Something happened at the G7 that’s been overlooked 

CEOs from some of the most powerful AI companies on earth sat down with the leaders of the world's seven wealthiest nations including Sam Altman of OpenAI, Dario Amodei of Anthropic and Demis Hassabis of Google DeepMind. (Read) 

China wasn't in the room — but they weren't quiet either. 

Beijing used the same moment to pitch open-source AI as a "public good" for the developing world while Washington was busy debating who gets access to U.S. tech… if at all. 

MyPOV? 

The G7 is debating who gets a seat while Beijing is busy building the table. 

Let me explain. 

The US runs on an if/then consequences model — as in act badly, face consequences. It's transactional, visible, and relatively short cycle. Rooted in Judeo-Christian ethics and French Revolutionary ideals, the whole system assumes the other guy plays by the same rules. 

Beijing operates on strategic patience rooted in Confucian and Taoist thought stretching back thousands of years. You don't win the game by clobbering the other guy, you reshape the board. You don't ask for what you want. Instead, you create conditions where the other side hands ‘em to you. 

For example, Sri Lanka wanted a port. China offered financing but Sri Lanka couldn't repay. So – ta da – in 2017, China walked away with a 99-year lease on Hambantota — a deep-water facility astride some of the most critical shipping lanes in the Indian Ocean.  

Beijing called it infrastructure development, but the fine print shows it’s something else entirely. And the West… missed it. 

Now comes AI. 

China can't legally access the most powerful U.S. chips — so instead of competing head-on as the West expects, Beijing is open-sourcing frontier models and seeding ‘em across the developing world. Examples include DeepSeek, Kimi, and others… all “free” to universities, governments, startups.  

No strings attached, says Beijing. 

Riiiiiiight. 

I was born in the middle of the night, just not last night. 

"Open AI for all" isn't generosity or even open but merely another way to ensure that all roads lead to China. One that fits with their world vision and their culture. 

I submit it's smart to have one foot in both camps as an investor. 

And I’ll be here with a few ideas if you need me. 

Meanwhile… 

3 – The Tesla drive that changed everything for me 

Make no bones about it, I am a card-carrying Teslarotti – meaning I own Tesla stock, Tesla cars and even a Tesla t-shirt or two. Even so, I have had my doubts about the technology and how good it really is. 

No longer. 

I sat down yesterday with my good friend and colleague Scott "the Cow Guy" Shellady. He’s a super sharp former floor trader – so named the Cow Guy for the colorful old-school pit jackets he wears – and it’s always an honor to be on his show. 

Scott wanted my take on Tesla and SpaceX but also specifically to know more about my firsthand experience with Tesla’s Full Self Driving (FSD) technology. 

Let’s just say what happened erased any remaining doubts I had because it saved our lives. (Watch) 

There are two investing implications. 

First, and critically for investors, insurance companies are about to get a complete comeuppance. Tread lightly, especially if you’re relying on ‘em for dividends.  

Second, Tesla is years ahead of anything else on the planet both literally and figuratively. 

To be fair, some folks tell me they’re “sick” of hearing about Tesla and SpaceX. I get it – and respect that opinion without reservation - but that does not change what I am about to say next. 

Tesla created more wealth, faster, from IPO, than any company in recorded history.  

SpaceX could do even better. 

Bottom Line 

Live for the sun coming up tomorrow, not the one that set yesterday. And, of course, invest accordingly. 

Now and as always, let's MAKE it a great day. 

You got this — I promise! 

Keith 😀