Your portfolio needs stocks under $10 (here's why)

Your portfolio is probably top-heavy.

Apple, Microsoft, Amazon – the usual suspects. Safe? Sure. Exciting returns? Not anymore.

The problem: When every portfolio owns the same megacaps, where's your edge? How do you outperform when you're buying what everyone else already owns?

You need asymmetric bets. Stocks where $1,000 can become $2,000 without requiring miracles. That means looking below $10, where the math actually works in your favor.

But here's the catch – most sub-$10 stocks ARE garbage. Picking randomly is financial suicide.

That's why we screened for three specific criteria:

1. Analyst "Buy" ratings (not from blogs, from institutions)

2. Recent earnings beats and raised guidance

3. Real revenue growth, not just promises

The result? Three companies that check every box:

• A fintech processor showing 17% revenue growth and expanding margins

• A biotech with product sales growing 92% year-over-year

• A regional tech leader generating $873 million quarterly revenue

These aren't lottery tickets. They're calculated bets on undervalued growth. The kind that can double while your blue chips gain 8%.

👉️ Click here to get your free copy of this report

Diversify down, not just across. Your returns will thank you.

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☕️ GM Munchers! I get nervous asking my wife if she's cool with me going golfing AND watching hockey afterwards. Meanwhile, Trump is asking China to play nice and make a trillion-dollar deal. Let's hope he holds his ground unlike me. Last weekend I agreed to look at tile samples in exchange for one period of hockey. It was not a good deal.

On today’s menu:

• 📈 All Time Highs. A New Fed Chair. Terrible Inflation.

• 🇺🇲 🇨🇳 Trump and Xi Are Meeting Today.

• 🍎 Apple Hits $300 For The 1st Time

• 🤑 The First $5.5 Trillion Company in History

• 🥈 Why Silver Is Breaking Out & Gold Isn’t

Yesterday’s numbers:

BREAKING NEWS

📈 All Time Highs. A New Fed Chair. The Ugliest Inflation Number In Years. Buckle Up.

Yesterday was one of the most eventful days in the market this year and almost none of it pointed in the same direction. The market hit an all-time high. Inflation came in ugly (again) and the Senate confirmed a new Fed Chair. All in one day.

Let's break it down:

• 📈 The S&P 500 posted its highest close in history, now up 18% from its March 30th low. That’s $10.4 trillion in market cap added back in just six weeks. The rally has been one of the fastest recoveries ever recorded.

• 🏦 The Senate confirmed Kevin Warsh as the new Federal Reserve Chair in a 54-45 vote, the most partisan confirmation in Fed history. Warsh is seen as more aligned with Trump and more open to rate cuts, but the irony is brutal. He just got the job and may have to raise rates instead.

• 🔥 PPI, which measures what businesses pay before passing costs to consumers, surged 6% annually and jumped 1.4% in a single month. That is the biggest monthly jump since March 2022. Economists are now expecting CPI to break above 4% in next month's report. That would be the highest reading in three years.

When you combine all of these factors, the market’s reaction yesterday is genuinely strange. Celebrating all-time highs while wholesale inflation is running at 6% annually? And a new Fed Chair inheriting a situation where rate cuts look increasingly impossible? Markets went from pricing in three rate cuts this year to now debating whether a rate hike is coming. That is a complete reversal of the narrative in six weeks without the market reacting. At all.

Trump said inflation is "just short-term" and will drop to 1.5% once the Iran war ends. Economists disagree. Even if a deal gets signed tomorrow, it takes months for oil prices to normalize and filter through to consumer prices.

The Munch Take: The stock market and inflation are both at all-time highs. That’s not something you say very often. Regardless of what’s going on, the market keeps shrugging and keeps going green. Either the rally knows something the inflation numbers don’t or the inflation numbers are about to remind the rally who is actually in charge. We’ll find out soon enough.

🇺🇸🇨🇳 Trump and Xi Are Meeting Today. Here Is What's Actually at Stake.

Today’s schedule reads like a season finale. State banquet. Bilateral meeting. Friendship photo. Trillion-dollar deals on the table. This is not a routine diplomatic visit.

Trump landed in Beijing yesterday for his first visit to China since 2017. Last time, Xi rolled out the Forbidden City dinner and Trump left with $253 billion in trade deals. China is in a much stronger position today. The trade war did not slow their export growth and Xi knows it.

Here are the three things that matter most for markets:

• 💰 Trade. China needs to recommit to buying US agricultural products and stop using Boeing as a political chess piece. American farmers and $BA shareholders are watching every word.

• 💻 Tech. The US currently bans $NVDA and $AMD from selling their most advanced chips to China. If those restrictions ease, both stocks rip immediately. China also controls rare earth minerals that the entire US tech industry depends on. That card is still on the table.

• 🏝️ Taiwan. Trump put US arms sales to Taiwan on the agenda. China wants the US to back away from its support of the island. An $11 billion arms package promised in December has not been delivered yet. Beijing has noticed.

Looming over all of it is Iran. China is Iran's biggest oil customer. The US wants the Strait reopened. Beijing has more leverage over Tehran than anyone else in that room. But using it will cost something and nobody knows what Trump is willing to give up to get it.

Trump did not fly over alone. Elon Musk wants approval to sell $TSLA Full Self Driving in China. Jensen Huang wants chip restrictions lifted. Tim Cook wants supply chain stability. Every CEO on that plane has billions of dollars riding on what gets said in the next 48 hours.

The Munch Take: This is the most consequential meeting for markets in years. A good outcome on trade, chips, and Iran in the same 48-hour window could add trillions in global market value overnight. A bad outcome could give back everything the rally built since March. The next two days deserve your full attention.

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MARKET OVERVIEW

🍿 Tasty Movers & Shakers

🍎 $AAPL rose 1.38% and broke above $300 per share for the first time in history. The stock is on a stunning run. Still waiting on a cool new product though.

🐉 $BABA Alibaba surged 8.26% after AI-driven cloud revenue jumped 38%, offsetting weaker overall profitability. The AI infrastructure boom is not just a US story and Alibaba is proving it quarter by quarter.

🌐 $WIX cratered 27.1% after missing on both earnings and revenue. Wix helps people build websites. AI can now build you a better one in four minutes for free. This is not a temporary headwind. It’s an existential one.

👡 $BIRK Birkenstock dropped 12.86% after missing earnings and revenue estimates, with Middle East tensions weighing on regional sales. Brutal timing. Birks with socks season is literally upon us, and the stock picks this moment to fall apart.

⚡️ $WOLF Wolfspeed ripped 16.53% after Citrini Research put out a buy recommendation highlighting the chipmaker's growth potential. One well-timed research note and the stock goes vertical.

STOCK OF THE DAY

🤑 Nvidia Just Became the First $5.5 Trillion Company in History

We are one of the few newsletters that doesn’t get overly excited about Nvidia. Something about it. But this story is too big to ignore. $NVDA just became the first company in history to hit a $5.5 trillion market cap. It is now worth more than the entire economy of every country on earth except the US and China. Does that make sense? We are going to say no.

The stock is up over 84% in the past 12 months and has gained more than 14 times its value since the end of 2022. Jensen Huang flying to Beijing with Trump did not hurt either.

📈 The Bull Case:

• Nvidia is expected to report $78 billion in revenue next week, representing 77% year over year growth. Jensen Huang has already said the company will generate "at least" $1 trillion from Blackwell and Vera Rubin chip sales by end of 2027.

• BofA just raised its AI data center market outlook to $1.7 trillion by 2030. Nvidia controls 80% of that market. The math is enormous.

• Nvidia trades at 46 times forward earnings. For a company growing revenue at 77%, that number has been justified so far. But it leaves zero room for error. One disappointing quarter and the math gets very uncomfortable very fast.

📉 The Bear Case:

• Nvidia quietly cut its next-generation Vera Rubin GPU production target by 25% due to memory supply delays. The next big revenue catalyst just got pushed into 2027.

• The top five tech stocks now account for over a quarter of the entire S&P 500 by weight. If Nvidia stumbles, the whole market feels it.

• Google, Amazon, and Microsoft are all building their own custom AI chips to reduce Nvidia dependency. That threat is real and growing every quarter.

The Munch Take: People who bought Nvidia two years ago are sitting on life-changing gains and that is genuinely fantastic. Nobody is taking that away from them. But walking in today and buying the first $5.5 trillion company in history, right before a massive earnings print, with wholesale inflation running hot and the Fed potentially hiking rates? That is not investing. That is hoping. If you missed this one, we think there are far better opportunities with more upside and less downside risk right now. Do not go chasing a stock because the number keeps going up. That is the oldest mistake in the book.

TRADING SUCCESS

🤑 Thursday Motivation

🚀 Pre-Market Fuel

1. 😏 FREE: Simple options trading for beginners (via Simple Options)

2. 📉 Will Bitcoin crash to $60K this year?

3. 🥈 Why silver is breaking out and gold isn’t.

4. ‼️ Today is a huge day for crypto.

🍪 Munchy Memes

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