➡ A Chinese AI startup, Deep Seek, has disrupted the stock market by creating an AI model that outperforms others at a fraction of the cost. This has led to a significant drop in tech stocks, as investors question the value of their investments in big tech companies. The traditional investment strategy of passive index investing is now risky, as it heavily relies on these tech stocks. The rapid advancement of AI technology is also challenging traditional methods of valuing companies, making the market unpredictable.
➡ A company called Deep Seek developed an AI model in two months with $6 million, challenging the billions spent by US companies on AI. This caused a significant drop in Nvidia’s value and raised questions about the worth of such investments. Despite this, the S&P 500 forward PE ratio remains high, indicating a disconnect between high valuations and dropping profits. However, this situation presents a massive opportunity for investors who understand the shift in the market, particularly in areas like Bitcoin, AI, and commodities and energy.
➡ Watch this video and share your thoughts in the comments. If you like it, give a thumbs up. Wishing you success!

Most portfolios will get wrecked by 2026 and almost no one’s warning you. And no, it’s not because of tariffs or inflation or interest rates, not even because the Fed. It started with a single announcement out of China and it quietly broke the stock market’s valuation models and nearly everyone missed it. Not knowing this, we’ll wreck your portfolio by 2026, guaranteed. But if you do get it right, you’ll be positioned ahead of one of the biggest wealth waves of our lifetime, while most investors bleed out, clinging to outdated models and broken strategies.

I’m an investor and venture capitalist who’s helped scale multiple tech companies with big exits. I’m a partner leading tech focused VC fund and I advise some of the top names in Bitcoin. Now I’ve seen these cycles before and what’s coming next will blindside most people, but not you, not if you pay attention. So let’s go. All right, let’s start with the moment everything changed because most people missed it. Now it wasn’t inflation. It wasn’t the tariff announcement. Like I said, it wasn’t the Fed. It wasn’t any of that. It wasn’t the rate hikes.

It was a little known AI startup in China and it was a single announcement that sent us tech stocks into a massive nosedive. Now you’re probably thinking, wait, like what? Well, let me show you on January 20th, a Chinese company called deep seek released their R1 model. Now it’s an AI reasoning model that basically outperformed open AI’s latest and a whole bunch of like third party tests, but here’s the kicker. They built it in two months and they built it for under $6 million. And that’s what changed everything because all these us tech giants, the Googles, the Microsoft meta, they’ve been throwing billions into the AI arms race.

Nvidia has been the golden goose in that entire ecosystem, making chips and infrastructure, but the whole AI bull market was built around that narrative. But you see, when deep seek dropped their model, investors started asking a good question, which is wait, we overpaying for the wrong things. Now the markets didn’t really take that well. They don’t like uncertainty. And just a few days later, on January 27th, Nvidia dropped 18% in a single day. Now, that’s not normal. That’s historic. It was one of the largest single day market cap losses in US history, about $593 billion wiped out in a single day on one day.

Then of course, the dominoes started to fall. The NASDAQ dropped 3% on the back of it. The so called magnificent seven the mag seven Apple, Amazon, alphabet, Tesla, Microsoft, meta, Nvidia, they started selling off hard. All the big names holding up the whole index, they all started falling, cracking. But why? All because deep seek proved something that no one wanted to admit. The AI game isn’t just about who spends the most. It’s about who adapts fastest. Even Scott percent, the US Treasury Secretary came out and set it straight up on Tucker’s show recently.

Let’s play a clip of that. This market declines started with the Chinese AI announcement of deep seek. So the so called mag seven the tech stocks have been doing very well for about 18 months led the market. And I think that there’s kind of a real dose of reality. All right, now, I want to pause on that for a second because that line right there. That’s your red flag. He’s saying this isn’t about politics. It’s not about economic policy. It’s not about trade wars. He said this is about structure, how the market is built, and what’s underneath it and starting to break.

Here’s another piece of it. Like if I were to analyze in my old hat, my old hat, what’s happening with the market, I’d say it’s more a mag seven problem and not a mag problem. Right. So it’s it’s a deeper. So actually, markets are you’re saying in this specific case, with tech stocks are taking like a real measure of the value of companies relative to foreign companies. Well, it’s sad. But if we look with the equal weighted SMP, even after today’s move, down 4% of the year, you know, in a long term chart, you wouldn’t even notice that.

So what he said, right, if you look at the equal weighted SMP 500, it’s not down that bad. The regular SMP that may stay up longer, but only because those big seven tech names were holding up. But once they started slipping, the whole index started falling. It’s like the foundation cracked, and no one had a backup plan. So yeah, it wasn’t a speech. It wasn’t a tweet. It wasn’t tariffs. It wasn’t a Fed meeting. It was one AI announcement out of China, and it pulled the thread that’s now unraveling the entire passive investing strategy that everyone thought was safe.

And that’s just the beginning. Let me show you why this is way bigger than one drop and why index investing might be the most dangerous thing you can do right now, especially considering that over a long period of time, it was considered the safest way to grow wealth. They said, you know, just buy the SMP 500. Just hold it. That’s what people were told, right? Set it, forget it. Retire rich one day, hopefully, right? Well, here’s the truth. That strategy, it worked in the past. But now it’s setting people up to get completely blindsided.

Let me explain why. Right now, over 30% of the SMP 500 is just seven companies. Again, I named them Apple, Amazon, Tesla, Microsoft, Meta, Google, Nvidia, that’s it. So if you think you’re diversified, because you just own the whole index, you’re not, you’re just overweight in a few tech companies. Now, that’s whether you know it or not. And those companies, they’re the same ones that started falling after the deep seek announcement. So the whole index is tied to a handful of names. And if those names drop, everything goes down with them.

And here’s a stat that most people haven’t even thought of or seen the equal weighted SMP 500, where every company is treated the same is down about only 8% this year. But the regular SMP 500, the one that looked fine on the surface, because the seven mag seven were holding up. Well, again, that thing has completely cratered down. But here’s why you see people were trusting the passive investments, the index funds to protect them. But those funds can’t see what’s coming, right? They just keep buying whatever’s already in the basket.

There’s no thinking. There’s no adapting. It’s passive. So there’s no risk management. It’s all just math. It’s a momentum. And the crazy part is that when those top stocks go up, passive funds, they buy even more of them. And when they start to fall, the funds don’t react. So you’re basically just riding a roller coaster with no brakes, no hands on the wheel. And I guess that’s fine on the way up. But when the drop hits, when the market pivots, you’re locked in. And don’t expect your financial advisor to tell you this either, because most of them are still pushing the same old 6040 portfolio allocations, you know, some stocks and bonds, some index funds.

But why? Well, because it’s easy, because it’s what everyone else does. And because they get paid, whether you win or lose. Now, look, I’m not saying that you should become a day trader actually, actually, I’m strongly against that. Investors make money by getting into strong long term trends early, not by trading around it. But if you’re sitting in index funds right now, thinking that you’re playing it safe, you’re not, you’re actually fully exposed to the most fragile part of the entire market. And the worst part, you won’t know until it’s too late.

But then you might ask, so if passive investing is no longer safe, and traditional diversification is basically a myth, then what the heck am I supposed to do? Well, this is where we go next. Let me show you how AI is breaking the system and why the old models don’t work anymore. And even more, why the old model is even more dangerous than most people realize. And the reason why is because it’s not just the index that’s broken, it’s the entire system, the entire system we use to value companies is also broken.

And the reason why is technology, technology is changing so fast, we have AI moving so fast, it’s making traditional valuation models almost useless. The tools that Wall Street uses to price companies like PE ratios and DCFs and EBITDA, multiples, all that, it all assumes some version of linear growth, like steady revenues, growing margins, predictable performance. But that’s not what AI does. AI isn’t linear, it’s exponential. It doesn’t just make things better, it makes them cheaper, faster, and more scalable. And it makes them do that in ways that the old models can’t predict, like, like, think about it.

You’ve got companies now with, say, 20 employees doing what used to take 200. Because all of a sudden, AI automations do so much of that work. How do you price that? How do you model productivity when it’s doubling every six months? Well, you can’t. Wall Street hasn’t been able to figure it out yet. And that’s why markets feel so jittery. And then of course, you get deep seek, they spent again, $6 million to build the model that beat or matched open AI, and they did it in just two months. Meanwhile, US companies have spent hundreds of billions on AI infrastructure and compute.

So when deep seek dropped, there are one investors went, wait a minute, is this spending worth it? That’s why Nvidia lost almost 600 billion in a single day, the biggest single day loss in US stock market history. And it wasn’t just a bad day. It was the moment that people realize that we don’t know what happens in that kind of environment. We know for sure, money gets scared, we know that narratives start to break, the index breaks, and you’re still relying on the old models. And so basically, you’re flying blind. Now, here’s another stat that tells the whole story.

Even after all this, the S&P 500 forward PE ratio is still over 20. Now historically, that’s really high for a time when earnings are dropping. JP Morgan had cut their S&P 500 earnings forecast 7.4% down to 250 per share this year. That’s a massive disconnect. valuations are staying high while profits are coming down, and that’s just not sustainable. So let’s map all this out. We got a market that’s being held up by a few names. Those names are tied to an AI boom that just got undercut by cheaper, faster competitors, the tools we’ve used to value companies, they don’t work when growth is exponential and unpredictable.

And most investors are still in passive strategies that are built on those outdated assumptions. So that’s the setup. That’s why portfolios are getting completely wrecked. But here’s the thing. While most people are panicking, while most people are confused, this is actually the biggest opportunity that we’ve seen in decades, if you know how to position for it. Let me show you what I’m doing and where I believe the next wave of wealth is going to be built. Now while most people are stuck trying to make sense of this new world, there’s a much smaller group of investors who see it for what it really is.

That’s a massive opportunity. But it’s not for the whole market. It’s not for every stock. It’s in for companies that are in very specific areas, the ones that actually benefit from the shift that’s happening right now. And it happens around a 50 year cycle, that’s repeated six times over the last 300 years. And this explosion of technology that forms a cluster to build this new world, I call it the quantum wave. And it’s made up of three core based technologies. The first one is Bitcoin. Bitcoin is the monetary layer, the asset that’s outside of the system, that’s accruing wealth store and value.

Then we have the AI and the deep tech layer. This is with the exponential growth engine that’s happening. Then we have the commodities and energy layer. And this is the stuff that we build the real world foundation with it. That’s it. These are the assets. These are the assets I believe that we’re going to ride the next five to 10 years. And it’s going to completely transform the globe while the rest of the market fights to survive, while the rest of the market fights to try to figure out what the new valuation models will be.

Now let me break down each one of these for you real quick. So first of all, of course, we talked about Bitcoin, that the sovereign base layer, I call it sovereign because it’s outside the system. And it’s not just some crypto asset anymore. We’re very clear, it’s Bitcoin, not crypto, not the 11 million cryptos. And it’s being adopted already, you know, on a global level, we’ve seen it with obviously investors up to institutions, and now of course, the United States government, and it’s permissionless, like I said, it’s outside the system.

And in a world that’s full of debasement and censorship and capital controls, Bitcoin is a lifeboat. Governments, they’re holding it. Institutions are buying it, individuals, they’re realizing they don’t need to play by Wall Street’s rules anymore. I call it the cheat code. And if you’re not holding Bitcoin, you’re already behind. Now the second layer, as I said, is AI and deep technology. This is the exponential opportunity. Now we’re not just talking about AI stocks, right? This is about identifying specific companies that are building out the infrastructure, the models, and tools that’s actually going to capture the value of AI, open source players, high efficiency builders, not just the biggest brands, but the ones that adapt the fastest.

This is where asymmetric upside lives. All right, you don’t need 50 positions. You need five, you need five that are right. This is more of a sniper approach than a spray and pray. But it’s not again by the sector, it’s find the signal. And third, we have the commodities in the energy layer, the physical layer. And finally, we have to ground all of this in the real world. All these data centers that are running AI, well, they need power. They need a lot of it. AI is massively energy intensive. So the more AI grows, the more valuable things like nuclear and oil and gas and copper and lithium and uranium become while everyone’s chasing the shiny tech narrative.

This is the part of the portfolio that gives you stability, leverage and resilience, especially if inflation rears its head again, which it’s most likely going to. So that’s the framework. The quantum wave cycle is what I’m positioned in. Now, this isn’t everything, but it’s the right things. We’re not just trying to beat the S&P 500 by a couple of points, we’re trying to front run a massive rotation of capital out of legacy assets, who have their valuation models all wrong, and into what’s next. And because this 50 year cycles happened six times over the last 300 years, there’s a very easy to follow, repeatable framework and blueprint that we can follow.

Now, each stage has a different investing strategy. And right now, we’re going into phase two. So we have to shift again. Now, if you want to learn more about this, the blueprint to follow what I’m buying, I’m going to have a live workshop next week. It’s free, come hang out, we’re going to run through a whole bunch of charts. So I can explain this whole thing to you. And then at the end, we get to hang out, I’m going to answer all your questions. So you know how to apply this to your own investments right away.

So you don’t lose out big in 2026. If you want to come again, it’s live, it’s free, there’s a link to join in the description down below. Come join me. But for now, the key is this passive, it’s not going to save you our lifestyle meant to be passive, right? You need a strategy, you need a strategy that’s actually aligned with the world that we’re moving into, not the one that we’re leaving behind. Alright, so let’s just zoom out a little bit. You now see how deep sea cracked the AI story wide open.

You’ve seen why passive investing, it’s not safe anymore. You’ve seen how the old valuation models are breaking down. And I’ve shown you the exact framework I’m using to position for what’s coming next. So the question now is simple. What are you going to do with it? Because here’s the thing, this isn’t going to be obvious until it’s over. The people were going to come out of this next cycle way ahead. Well, they’ll look like they just got lucky. But luck is what it looks like when you prepare, and you have the right timing.

And right now the timing is perfect. We’re not at the peak. We’re not even at the frenzy yet. We’re at the early recognition stage where most people are still asleep. They’re still trusting outdated advice. They’re this is our time I like to say that the future is not evenly distributed. You don’t need to time the top or the bottom. You just need to recognize the direction things are moving and get positioned early. That’s how real wealth is built. Not by watching CNBC or chasing TikTok stocks, but by understanding what’s changing under the surface and then just getting out and ahead of it.

The old system, it’s not going to come back. No one’s coming to save your portfolio but you but if you get this right, you could turn this shift into the most important financial decision you’ve ever made. And I hope you do because this is only just getting started. Now if you want help with that and you want to learn this exact blueprint to follow what I’m buying, come join me live next week. It’s free. Come hang out. I got a whole bunch of charts that I’m going to run through so I can show you this exact blueprint what we’re doing.

I’m going to hang out answer all your questions live so you can figure out exactly how to apply this to your own investments. Again, like I said, it’s all free. It’s all live. There’s a link to join me in the description down below. And if you want to know more specifics about this cycle and how it’s the investing black hole, you might want to watch this video right here. Otherwise, let me know what you think. Drop me a comment down below. Give me a thumbs up if you like it. Otherwise, that’s what I got to your success.

I’m out. [tr:trw].

See more of Mark Moss on their Public Channel and the MPN Mark Moss channel.