Good morning.
NVIDIA just reminded the world that the AI infrastructure build-out is far from over, but the "real economy" is telling a different story. We are witnessing a classic K-Shaped Economy: luxury backlogs are hitting record highs while middle-class families are "trading down" to Walmart just to keep their budgets intact.
Today, we’re breaking down why the "flight to value" is making Walmart a dominant force and how the OBBBA tax overhaul is acting as the ultimate accelerant for this divide.
But first, a company attempting to address the titanium crisis we’re trending towards:
This is not financial advice. Always do your own research. Past performance doesn’t guarantee future results.
In partnership with Saga Metals Corp
The West Is Heading for a Titanium Crisis
A titanium squeeze is coming. And 75% of global supply is controlled by China.
One company just found a Titanium intrusion as big as China's largest mine, and it trades at 1/10th the valuation of its peers.
Their Radar Project has emerged as a potential Western rival to China's largest titanium mine.
15 out 15 holes drilled on the property to-date report exceptional and consistent titanium grades.
Recent geophysical surveys produced magnetic readings so intense they literally maxed out the equipment.
Early data suggests a massive system, potentially even larger than China's flagship Panzhihua district.
With global demand surging and Western supply vulnerable, this company’s opportunity is early-stage, strategically critical, and appearing before a major supply shock.
📰 Daily Edge: The K-Shaped Economy
The "K-shaped economy" describes a divergence where the top leg of the economy grows while the bottom leg struggles. In 2026, the data is pretty striking:
The top leg: Luxury demand is still strong. Ferrari (RACE) recently reported a record backlog extending into 2027. For the ultra-wealthy, interest rates are secondary to asset appreciation.
The bottom leg: Middle and lower-income consumers are facing a "Low Hire, Low Fire" labor market and a 12.7% credit card delinquency rate.
The unlucky middle: Retailers in the "middle" (those too expensive for the struggling but not prestigious enough for the wealthy) are seeing foot traffic drop.
Don’t forget the OBBBA: The One Big Beautiful Bill Act (OBBBA), the sweeping 2025/2026 tax overhaul, has largely favored asset owners and corporate entities. While intended to stimulate investment, it seems to have effectively bolstered the "wealth effect" for the top 20% of households, acting as a tailwind for the upper leg of the K.
📈 The Stock of the Day: Walmart (WMT)
Walmart is the ultimate beneficiary of this environment because it captures the flight to value. When high-income households feel the pinch of a 15% global tariff, they don't stop shopping… they just move to the grocery aisle that offers the best margins.
Wealthier market share: Walmart recently confirmed that the majority of its recent market share gains are coming from households making over $100,000 a year.
Tariff moat: With China tariffs sitting at 35% to 50% (read more below) and a 15% global levy looming, Walmart’s massive scale is its greatest weapon. Their ability to negotiate with global suppliers and absorb costs that would crush smaller retailers makes them a defensive powerhouse.
The income angle: Walmart isn't a high-yield dividend play (currently yielding ~0.78%), but it is a legendary Dividend King.
53 Years: They have increased their dividend every single year for over half a century. A stock has to increase its dividend for 50 consecutive years to be considered a Dividend King, and Walmart is one of the 54 members of stock royalty.
Our thought is that you probably aren't buying WMT for the immediate check; you're buying it because it is the only retailer capable of eating the "middle market" during a structural shift while paying out a dividend.
But to each his own, and always DYOR!
📰 Market Headlines
Markets bounce back: Major tech indices climbed on Wednesday as investors piled into tech ahead of the NVIDIA report.
NVIDIA crushes estimates: NVDA reported $1.62 EPS on $68.13B revenue, with Data Center revenue hitting a record $62.3B.
Tech power pledges: President Trump is summoning Big Tech CEOs on March 4th to sign pledges to fund their own AI power plants.
Tariff methods shift: The US aims to maintain 30-50% China tariffs using alternative methods after the Supreme Court struck down broad IEEPA authority.
Housing stocks slump: Homebuilders shed over 5% after Lowe's warned of low housing turnover and a "dynamic tariff environment."
Stablecoin surge: Circle stock jumped 35% as USDC circulation hit $75.3 billion under favorable new legislative frameworks.
🤖 AI/Future/Tech News]
Tech power pledges: Major tech giants will reportedly sign pledges on March 4th to build their own AI data center power plants.
OpenAI investment: Thrive Capital recently invested $1 billion in OpenAI at a $285 billion valuation, separate from their primary funding rounds.
Teen AI support: Data shows 12% of U.S. teens use AI for emotional support, sparking concern over the lack of crisis protocols.
🤫 Insider Trading
🚚 Market Movers
Waymo expansion: Waymo is mapping Chicago and Charlotte, targeting 1 million rides per week by year-end.
Southern Co. loan: The Energy Dept. closed a record $26.5B loan for gas and nuclear infrastructure projects.
Salesforce buyback: Despite beating estimates, shares fell 5% on guidance, prompted by a $50B buyback announcement.
🎙 Make Your Voice Heard
Is the "K-Shaped" economy a permanent shift or a temporary cycle?
🎤️ What you said last time
🧠 The Missing (Market) Links
Gas tip: Sunday is the cheapest day to fill up; midweek prices average 4-9 cents higher per gallon.
Silver streak: Silver soared past $90 as the dollar retreated on global tariff uncertainty.
Productivity drain: Untreated sleep apnea may be costing the US economy $180 billion annually in lost labor.
Childhood obesity: Record 21.1% rates are alarming professionals, even as adult rates level off due to GLP-1 adoption.
Potato boom: Searches for Starbucks Potato Chive Bake recipes are up 1,100%, sparking a cross-merchandising surge.
📜 Quote of the Day
Someone’s sitting in the shade today because someone planted a tree a long time ago.
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Cheers,
Brandon & Blake of Invested Inc
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