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| UnsubscribeGood evening,Each Monday around noon we send one concise stock trade idea by SMS to a small group of MarketBeat subscribers. We think you belong in that group — but you aren’t on the alert list yet.Last week’s alert was very popular. It’s free, it arrives immediately by text, and we only send one alert per week. Don’t miss Monday’s opportunity.Add your name to the distribution list here.You’ll thank me Tuesday morning.Matthew Paulson MarketBeatADD YOUR NAME TO THE LISTToday’s Featured ContentThe Top 3 Investment Themes That Will Dominate 2026Author: Jeffrey Neal Johnson. First Published: 12/10/2025. At a GlanceThe shift from software to physical infrastructure is driving massive demand for data center real estate and hardware manufacturers.Rising power demand from technology sectors is creating a long-term growth cycle for regulated utility companies and nuclear energy providers.Healthcare stocks offer a compelling combination of deep value and innovation-driven growth as investors seek opportunities outside of technology.The stock market has enjoyed a remarkable run over the past 12 months. Driven by a successful soft landing engineered by the Federal Reserve and the early excitement around generative artificial intelligence (AI), 2025 rewarded risk-taking. Major indices climbed to record valuations, and investors who chased momentum were largely vindicated. As the calendar turns to 2026, however, the economic terrain is shifting — the era of easy money fueled by pure speculation appears to be winding down.High valuations now demand high performance. For stock prices to justify current levels, companies must demonstrate tangible earnings and execution. The market is moving from a phase of wondrous possibility to one of expected results and production. This environment favors companies that build the physical economy, provide essential power, and offer value at reasonable prices.Best $19 you’ll spend this year. (Ad)A former hedge fund manager known for cutting through market noise is briefly opening access to his flagship trading strategy. In a short demo, he explains how his “One Ticker” approach works — and how readers can access the full service for a year at a steep discount.Watch the brief demo hereThe outlook for 2026 is about reallocating capital. Market attention should shift toward Return on Investment (ROI) and real cash flows. Three themes are emerging as the pillars of this new fiscal year, offering a mix of growth potential and defensive stability.Industrial AI: From Chatbots to ConcreteFor the past two years, the AI narrative centered on software, chatbots and large language models (LLMs). In 2026, the emphasis is likely to move toward the industrial sector’s implementation of these technologies. Industrial applications will drive high-performance computing (HPC) demand well beyond 2025’s record levels. Meanwhile, the broader tech sector is advancing toward Agentic AI — specialized systems that run complex enterprise workflows. LLMs, physical-sector deployments and agentic systems all require massive physical facilities to operate: data centers or AI factories.Technology giants — the hyperscalers — are projected to spend nearly $500 billion on capital expenditures in 2026 alone to build the physical backbone of an AI-powered internet. That cash outflow for tech firms becomes revenue for the companies that own the land, the servers and the cooling systems.Investors seeking exposure to this trend may look beyond software developers to the infrastructure providers. The Global X Data Center REITs & Digital Infrastructure ETF (NASDAQ: VPN) is a primary vehicle for this theme. It invests in the landlords of the digital economy, such as Equinix (NASDAQ: EQIX) and Digital Realty (NYSE: DLR). As Real Estate Investment Trusts (REITs), these companies are required to distribute the majority of their taxable income to shareholders, producing steady income alongside capital appreciation.The fund also holds hardware names like NVIDIA (NASDAQ: NVDA) and firms that provide cooling technologies — essential to prevent massive server farms from overheating. Global data center revenue is forecast to exceed $600 billion by 2029. No matter which AI software wins consumer adoption, competitors will need to rent data center space and buy hardware, creating a pick-and-shovel opportunity with multi-year revenue visibility.Energy Pragmatism: The Grid as a Growth StockExpanded digital infrastructure brings a second critical constraint: electricity. AI workloads consume far more energy than standard computing tasks. As data centers proliferate, they place unprecedented demand on an already strained power grid. Estimates suggest data center power demand could grow 14%–17% annually through the end of the decade.That demand shock is forcing a pragmatic shift in the energy sector. While renewables like wind and solar are important, technology firms require baseload power — electricity available 24/7 regardless of weather. A data center cannot shut down when the wind stops blowing. This reality is sparking a renaissance for regulated utilities, especially those with exposure to nuclear energy and natural gas.The Utilities Select Sector SPDR Fund (NYSEARCA: XLU) provides exposure to this dynamic. Historically seen as slow-growth, income-oriented investments, utilities are becoming growth hybrids. Companies in the sector, such as nuclear operator Constellation Energy (NASDAQ: CEG)and renewables leader NextEra Energy (NYSE: NEE), are signing long-term, premium-rate power contracts with tech firms.Macro conditions support the sector. With the Federal Reserve expected to keep rates in a neutral 3.00%–3.25% range, capital costs are manageable for companies with real cash flow, while speculative businesses without profits remain exposed. XLU offers a yield of approximately 2.69%, providing steady income that can help buffer market volatility. In 2026, the once-boring business of selling electricity is turning into one of Wall Street’s most compelling growth stories.The Healthcare Renaissance: Growth on SaleTechnology and infrastructure may supply the offense in a portfolio, but investors also need defense. With tech valuations still elevated, many are seeking a margin of safety in the healthcare sector. After trailing the S&P 500 for much of the last two years, healthcare stocks now trade at a historical discount.The sector currently trades at roughly a 20% discount to the broader market, presenting a potential mean-reversion opportunity where healthcare catches up to the market. The Health Care Select Sector SPDR Fund (NYSEARCA: XLV) offers a diversified way to participate.Healthcare offers an effective barbell strategy in mid-cycle conditions. One side includes defensive, cash-generating companies and service providers like UnitedHealth (NYSE: UNH), since people need medical care regardless of GDP growth. The other side holds high-growth pharmaceutical innovators such as Eli Lilly (NYSE: LLY), which are benefiting from strong demand for GLP-1 weight-loss drugs.Additionally, 2026 looks set to be active for mergers and acquisitions. Large drugmakers facing patent cliffs are cash-rich and likely to buy smaller biotech firms to refresh pipelines. That mix of defense, innovation and M&A creates a classic Growth at a Reasonable Price (GARP) profile.The 2026 Playbook: Strategy Over SpeculationAll three themes sit on the same macro foundation: a Fed that has moved from restrictive to neutral. With interest rates likely to settle near 3%, capital is affordable for firms with real cash flows but remains punitive for speculative businesses that lack profits.That environment rewards discipline. The easy gains of the early bull market are behind us. In 2026, the market will favor infrastructure builders, providers of essential power and undervalued healthcare innovators. By diversifying across these themes, investors can capture the next industrial evolution’s growth while maintaining a safety net against valuation risk. The coming year will favor investors who demand tangible assets and real returns, not gamblers. Thank you for subscribing to MarketBeat! MarketBeat empowers everyday investors to make better investment decisions by offering up-to-the-minute financial information and objective market analysis. This email is a paid advertisement provided by MarketBeat Alerts, a third-party advertiser of MarketBeat. Why was I sent this email?. If you have questions about your newsletter, please contact our U.S. based support team at contact@marketbeat.com. If you would like to unsubscribe or change which emails you receive, you can manage your mailing preferences or unsubscribe from these emails. © 2006-2025 MarketBeat Media, LLC. 345 N Reid Place, Sixth Floor, Sioux Falls, S.D. 57103. 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