The crowd is wrong about these 7 stocks (here's proof)

The market loves a simple story. Company misses expectations? Sell. Sector out of favor? Dump everything.

This lazy thinking is exactly why seven blue-chip stocks are trading at prices that will look absurd in hindsight.

The crowd sees problems. We see mispricing.

Take these examples from our new report:

• Everyone's worried about post-pandemic normalization for this healthcare giant – meanwhile it's quietly raised guidance twice this year

• The market hates consumer staples, missing that one company's break-up will create $10B+ in shareholder value

• Investors fled cyclical materials, ignoring one firm's massive inventory reduction and cash generation

• Streaming losses? Old news – one entertainment titan just posted $346M in streaming profits

• "Auto chips are dead money" – except for the company with 57% automotive revenue exposure

• Export restrictions are "devastating" – yet one equipment maker still posted record revenue

• "AI is overhyped" – tell that to the software company with $5B in AI-driven annual recurring revenue

The crowd follows headlines. Smart money follows fundamentals.

Right now, the gap between perception and reality on these seven stocks is as wide as it gets. When sentiment shifts – and it always does – the snapback will be violent.

Position yourself before the crowd figures it out.

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BREAKING NEWS

😟 Americans Are Miserable. Stocks Don't Care.

Here is the most confusing chart in finance right now. The stock market is at all-time highs. And Americans have never felt worse about the economy. Ever. Not in 2008. Not during COVID. Not during the 1980s recession. Never.

The University of Michigan Consumer Sentiment Index just hit 48.2 in May, the lowest reading in the survey's nearly 80-year history. That is 13% below the 2008 financial crisis low. Regular people are not feeling this rally.

Why? Two things:

1. Gas is now $4.54 a gallon nationally, up nearly 40 cents in a single month. One third of Americans surveyed mentioned gas prices as their biggest worry.

2. Another third mentioned tariffs. Year-ahead inflation expectations sit at 4.5%, more than double the Fed's 2% target. People do not believe prices are coming down anytime soon.

So what does this mean for stocks? Two things to understand:

1. First, the top 10% of households own roughly 87% of all individually held stocks. The S&P 500 hitting all-time highs is great news if you have a brokerage account. For everyone else, it is background noise behind a $4.54 gallon of gas.

2. Second, miserable consumers stop spending. And consumer spending is about 70% of the entire US economy. When people feel this bad for this long, it eventually shows up in corporate earnings. Retail, restaurants, travel, and discretionary spending all take a hit. The stock market can ignore bad sentiment for a while. It cannot ignore bad revenue forever.

The Munch Take: The market is celebrating at all-time highs while the average American is getting squeezed at the pump and the grocery store. Both things are true at the same time. This is not sustainable. Either oil comes down, the Iran deal gets signed, and sentiment recovers, or consumer spending rolls over and drags earnings with it. The market is betting on the first outcome. Let’s hope it’s right.

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STOCK OF THE DAY

🩳 Michael Burry Is Betting $1 Billion That AI Stocks Will Crash

Michael Burry is the guy from The Big Short. He predicted the 2008 housing crash when nobody believed him, made a fortune, and got a Hollywood movie made about it. Now he is back with another giant bet against the market.

Here is what he is doing in plain English:

• Shorting a stock means you are betting it will go down. If it falls, you make money. If it rises, you lose money.

• Burry currently holds $912 million in bets against $PLTR and $187 million in bets against $NVDA. That is over $1 billion saying the two biggest AI darlings are going to crash.

His $PLTR bet is actually working. Palantir is down 35% from its November 2025 peak and Burry now thinks it falls another 40% to 60% from here. His $NVDA bet is underwater. Nvidia has recovered strongly in 2026 and that position is losing money.

Now here is the important part nobody mentions. Burry's track record since 2008 is not good. He has called multiple market crashes that never happened, missed major rallies, and spent years being wrong in expensive ways. He is not the Oracle of Doom. He is a smart guy who got one enormous call right and has been dining out on it ever since.

The Munch Take: Burry's AI bubble thesis is not crazy. Valuations on $PLTR are genuinely hard to justify and AI spending is running far ahead of proven returns. But betting against $NVDA while every data center on earth is ordering their chips is a bold choice. One right call in 2008 does not make every subsequent call correct. My wife has never seen The Big Short and has no opinion on Michael Burry whatsoever. Her portfolio has outperformed his since 2009. She does not even know that.

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