Bad Timing

Children are innocent, yeah
Teenagers f*cked up in the head
Adults are even more f*cked up
And elderlies are like children

Will there be another race to
Come along and take over for us?
Maybe Martians could do
Better than we've done
We'll make great pets

—Pets by Porno for Pyros (1993)

I would not describe myself as an 'AI Doomer', but I share the concerns of many that the unchecked race for AI dominance risks societal upheaval. I believe that in the right hands, AI can help solve many of our most pressing issues: energy, climate, inequality, drug discovery and more. However, the AI era could not have arrived at a worse time. Over the past few decades, power has shifted dramatically from labor (humans) to capital (money). Our longstanding institutions that help run democracies and maintain the rule of law are being undermined by deep-pocketed corporate interests. America, once the beacon of democracy and freedom, is now more aligned with dictators than with our allies. Our democracy, and the democracies of the West, are wobbling, and I fear they may be no match for the money and power behind AI. AI may not kill all of us as feared, but I do wonder about the ramifications of hundreds of millions of humanoid robots with built-in superintelligence. Perhaps robots, not Martians, will turn us into house pets.

“Thank you for being such a pro-business, pro-innovation President. It’s a very refreshing change. We’re very excited to see what you’re doing to make our companies and our entire country so successful.” —Sam Altman, CEO of OpenAI, at the White House (9/4/2025)

Do you really believe Sam Altman gives a $hit about us? He’s singularly focused on growth at all costs to ensure a successful IPO in the very near future. OpenAI’s models have gone rogue and been implicated in several serious hacking incidents. In June, an OpenAI agent worked its way around the security blocks on Australia’s Medicare statistics portal and reached both public and non-public files. OpenAI didn’t tell the Australian government until September, nearly three months later. Prime Minister Anthony Albanese publicly blasted the company for the delay.

"…robots will do everything better than us…AI is a fundamental existential risk for human civilization, and I don't think people fully appreciate that...I think by the time we are reactive in AI regulation, it's too late…" —Elon Musk (7/15/2017)

The recklessness of the global AI industrial complex will likely continue to benefit our cybersecurity holdings. CrowdStrike and Palo Alto Networks are up 85% and 94%, respectively, this year. As AI models grow more powerful (see: recursive self-improvement), security breaches will likely become more common. Companies, cities, countries and even households will be forced to spend more on cybersecurity to protect their networks. We intend to expand our exposure to cybersecurity.

Thank You, Dolly

Dolly Parton has died at the age of 80, leaving a legacy of music, philanthropy and science. She helped to fund Moderna’s early-stage vaccine research and filmed herself being vaccinated to help dispel hesitancy. And her Imagination Library program sends more than three million books per month to children around the world. —Nature (8/26/2026)

Dolly’s role in that vaccine started with a car accident. In 2013, Dolly and her longtime friend Judy Ogle were in an SUV that was struck by a car that failed to yield at a Nashville intersection. They were taken to Vanderbilt Medical Center and treated for minor injuries, and Dolly struck up a friendship with the physician who treated her, Dr. Naji Abumrad. Seven years later, she posted:

“My longtime friend Dr Naji Abumrad, who’s been involved in research at Vanderbilt for many years, informed me that they were making some exciting advancements towards that research of the coronavirus for a cure. I am making a donation of $1 million to Vanderbilt towards that research and to encourage people that can afford it to make donations.” —Dolly Parton (Instagram, 4/1/2020)

As it happened, Vanderbilt was working with Moderna on what would become its Covid vaccine. That vaccine and Pfizer-BioNTech’s saved millions of lives.

Now that same mRNA platform is taking on cancer. On August 19, Moderna and Merck announced that their individualized cancer vaccine worked. The late-stage trial of intismeran autogene met its primary endpoint in melanoma. Intismeran is an mRNA therapy built individually for each patient, targeting up to 34 protein markers unique to that person’s tumor, and in the trial it was paired with Merck’s Keytruda after surgery. Patients on the combination went longer without their cancer coming back. An earlier mid-stage study had cut the risk of recurrence or death roughly in half over five years. Moderna shares jumped roughly 150% on the news, adding about $45 billion in market value in a single day. Merck, Moderna’s partner in the study, rose more than 10%. In this interview, Moderna co-founder and CEO Noubar Afeyan says AI is ‘integral’ to their development process. Moderna shares are up more than 600% this year. That’s AI in the right hands, and it’s wonderful when capitalism works for both shareholders and humanity.

Don’t Hate on Bonds

The bull market just turned four years old. Bull markets don’t last forever. At some point stocks become extremely overvalued, and the party usually ends because of high interest rates, a Federal Reserve fighting inflation, a recession or some other external shock. The collapse in share prices usually coincides with a rally in bonds.

We are thematic investors. We seek out megatrends, or themes, that we believe will build wealth over time regardless of the economy or geopolitics. Our main themes, ‘Global Aging’ and ‘The Digital Revolution,’ are the most visible in our portfolios. However, with the unexpected and significant rise in interest rates (due to inflation and the senseless war in Iran), bond yields have become quite compelling. We are selling bonds to harvest losses, which offsets realized capital gains and reduces taxes, and we are reinvesting the proceeds at today’s higher rates. Historically, whenever an asset class becomes this hated, there’s an eventual rebound. Nobody wants bonds today, and I understand why. But as contrarians, we find them attractive at today’s rates.

In addition to cybersecurity, biotechnology and bonds, we like sectors that aren’t tied to AI. We have been diversifying into trash collection, pharma, insurance and senior housing. We suspect these industries may hold up better than most when the AI bubble bursts. We certainly can’t time it perfectly, and I don’t believe it’s imminent. But eventually, all bubbles pop.

AI may have arrived at a bad time for democracy. It doesn’t have to be bad timing for your portfolio. Let’s get together and plan accordingly.

Thank you!

-randy

The opinions expressed in this communication are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security. It is only intended to provide education about the financial industry. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. Any past performance discussed during this communication is no guarantee of future results. Any indices referenced for comparison are unmanaged and cannot be invested into directly. As always please remember investing involves risk and possible loss of principal capital; please seek advice from a licensed professional.

Advisory services are only offered to clients or prospective clients where Hamilton Wealth, LLC and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Hamilton Wealth, LLC unless a client service agreement is in place.

Brooks Nelson