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If you're looking for a masterclass in how quickly Wall Street can flip the script, look no further than the wild ride of 2025. Just six months ago, you would have found a market in total meltdown. As President Trump rolled out his "Liberation Day" tariffs—a bold economic gamble not seen in a century—you likely heard experts calling it "economic suicide" and bracing for a "Black Monday" style collapse. Fast forward to today, and that panic feels like a distant memory. Instead, you're looking at a Nasdaq Composite that has skyrocketed 50% in under a year. The conversation has done a total 180: you aren't hearing about crashes anymore; you're hearing about a massive AI bubble. Here is how you can use the 1999 internet boom as a map to navigate this high-stakes environment. The Paul Tudor Jones "1999 Bombshell" If you caught billionaire trading legend Paul Tudor Jones on CNBC's Squawk Box recently, you heard a startling comparison. He dropped a bombshell, stating that the current market "feels exactly like 1999" and advising you to "position yourself like it's October 1999." Why does this matter to your portfolio? If Jones is right, you might still have "plenty of meat left on the bone." Between 1999 and 2000, the Nasdaq actually doubled. Jones believes the current market could be even more powerful than that legendary run. Is History Repeating Itself? You can't ignore Jones's track record with market precedents. He famously predicted the 1987 crash by overlaying it with the 1929 chart, netting a 125% return for his firm. When you overlay the charts for 1999 and 2025, you'll see price action that looks eerily similar. Keep in mind that this current bull market—born the moment the tariff panic faded—is only a few months old. Since the average bull market lasts about four years, you might just be in the early innings. Interest Rate "Rocket Fuel" It's not just AI hype filling your sails; the Federal Reserve is actively pushing the market higher. You watched Chair Jerome Powell cut interest rates even as the S&P 500 hit new highs. According to JPMorgan research, this is a massive green flag for you:
Watching the AI Winners Proliferate Initially, you likely saw AI gains concentrated in hardware such as AMD and in infrastructure such as CoreWeave. Now, you're seeing those "AI wins" spread into your software favorites. Take Figma (FIG) and Shopify (SHOP), which both surged after teaming up with OpenAI. You can now envision a future where Figma users design using ChatGPT conversations and Shopify merchants sell products directly through an LLM. You are witnessing the birth of "conversational commerce" in real-time. Continue . . . | ||||||||||
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| Animal Spirits vs. True Euphoria When you see stocks jump 50% in a year, it's easy to assume the market has lost its mind. However, look closer at the data, and you'll find that "euphoria" hasn't actually set in yet:
As you watch stocks climb higher, that "fear of missing out" (FOMO) will eventually force that sidelined cash back into the market, acting as even more fuel for the fire. Valuations: High, but Flexible Are you worried about high valuations? It's true the S&P's P/E ratio of 23x is high, but it's nowhere near the 40x peak you would have seen in 2000. You have to remember that Wall Street is often happy to pay a premium for the kind of world-changing innovation we're seeing in AI. The Bottom Line You are living through an unusually powerful bull market. While the run from the "Liberation Day" lows has been breathtaking, the data suggests you could see the Nasdaq double from here. To help you capitalize on that kind of historic upside, our experts have carefully selected four stocks with outstanding gain potential as this next leg of the bull market starts to gain momentum in Q1 2026. And today, you are invited to download the private Ultimate Four Special Report that names these stocks and highlights why now is the perfect time to add them to your portfolio. The total cost is only $1, and there's no obligation to spend a cent more. While future success isn't guaranteed, recent Ultimate Four recommendations gained as much as +33.1%, +35.0%, +44.4%, and +49.0% in a single quarter.¹ Don't wait — the deadline to download the Ultimate Four report for just $1 is midnight Sunday, January 11. See Zacks Ultimate Four Stocks Now » All the Best,
Andrew is Zacks' technology stock strategist. His passion is making money on stocks and providing education with valuable insights from both a fundamental and technical perspective. He invites you to download Zacks Ultimate Four Special Report today. | ||||||||||
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| ¹ The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position. Access grants you a comprehensive list of all open and closed trades. This free resource is being sent by Zacks.com. We look for investment resources and inform you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms of Service". https://www.zacks.com/terms_of_service Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or U.S. investment adviser or investment bank. The Zacks #1 Rank Performance covers the period beginning on January 1, 1988 through December 1, 2025. The performance is the equal weighted performance of a hypothetical portfolio consisting of stocks with a Zacks Rank of #1 that was rebalanced monthly from January 1988 through December 2013 and weekly from 12/31/13 through Monday's open on December 1, 2025. For each stock with a Zacks Rank #1 at the beginning of the month, the total return during the month was calculated as the % change in the price of the stock from the closing price of the prior month to the closing price of the current month plus any dividends received during the month. The monthly individual stock returns were then averaged to determine the portfolio return for the month. For each stock with a Zacks Rank #1 at the beginning of the week, the total return during the week was calculated as the % change in the price of the stock from the opening price for the week to the opening price of the next week plus any dividends received during the week. The weekly individual stock returns were then averaged to determine the portfolio return for the week. If no month-end price or week end open price was available for a stock, it was not included in the portfolio return for the month or the week. The monthly and weekly returns were compounded to arrive at the annual returns. The annualized return is the annual return that, had it been achieved in each year or portion of a year, would have compounded to create the total return over the full time period. These returns are based on the list of Zacks Rank #1 Stocks that was available to clients of Zacks as of the beginning of the month, when returns were calculated monthly, or as of the beginning of the week when returns were calculated weekly. These returns are higher than the returns an investor could achieve investing real money in a portfolio of Zacks Rank #1 stocks because the returns of the hypothetical Zacks Rank #1 portfolio exclude a number of costs, including commissions incurred for trading, the average bid ask spread, the price impact of the trading and, prior to 2013, in those months when the end of the month fell on Friday, Saturday or Sunday, the overnight return from the month end close to the open on the next trading day. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance_disclosure for information about the performance numbers displayed above. Zacks Emails Zacks Investment Research |
Saturday, January 10, 2026
Why History Says We Could See the Nasdaq Double
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