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Let’s dive into this week’s analysis!
A quick breakdown — in case you don’t have the time.
⭐ We just experienced a historic market turnaround.
⭐ This is how Wall Street values stocks (and how you can too).
⭐ There are now more ETFs than single stocks on the stock market.
⭐ Stablecoins are becoming a real payments network.
⭐ Anthropic’s revenue run-rate expectations surged toward $50B.
Market Overview
As of Market Open 5/28/26
ETF Winners & Losers
Chart of the Week
We just experienced a historic market turnaround.
At the end of March, the S&P 500 was down more than -7% for the year — one of the worst starts to a calendar year in modern market history. Tariff fears were escalating, recession odds were climbing, and the mood on Wall Street was about as dark as I've seen it since 2022.
Fast forward eight weeks and the index has completely flipped the script.
After one of the strongest short-term rallies ever recorded, the S&P 500 is now up more than +10% year-to-date — more than double the historical average return for this point in the year.
This rally hasn't been driven by speculation. Earnings growth has accounted for the majority of the market's gains so far in 2026. That's a much healthier setup than what we saw in early 2024 when it was all multiple expansion and hope. Real profits are backing this move.
And history is on our side. Years with sharp early recoveries — where markets go from deeply negative to positive within a single quarter — tend to keep trending higher as long as earnings momentum holds. Think 2019 and 2023. Both years started ugly, both years ripped higher once the data stabilized, and both years finished strong.
The question for the rest of 2026 is simple: can corporate earnings keep delivering?
So far, the answer is yes. Q1 earnings season came in better than expected across most sectors, forward guidance has stabilized, and the consumer — while stretched — is still spending.
Today's Rich Habits newsletter is brought to you by Public, the investing platform that recently launched Generated Assets. Now, you can turn any idea into an investable index with AI.
Seriously. You can type in anything, from “AI-powered supply-chain companies with positive free cash flow” to “defense tech companies growing revenue over 25% year-over-year.” Generated Assets then builds a one-of-a-kind index you can backtest, refine, and add directly to your portfolio.
In Case You Missed It…
In this week's Monday episode of the Rich Habits Podcast (linked here) — Austin and Robert broke down the exact framework Wall Street uses to determine whether a stock is cheap or expensive, and showed you how to use it yourself without a Bloomberg terminal or a finance degree.
Here’s what they covered…
Stock Price Is Not a Price Tag — A $200 stock is not more "expensive" than a $5 stock. Stock price is a unit price — it tells you the cost of one slice, not whether the company is cheap or overvalued. Market capitalization (share price × shares outstanding) is the real price tag.
The Three Ratios That Actually Matter — Wall Street relies on three core valuation metrics: P/E (price-to-earnings) for profitable companies, P/S (price-to-sales) for growth companies that aren't yet profitable, and EV/EBITDA for comparing the true operating value of businesses apples-to-apples.
Context Is Everything — A P/E of 30 means nothing in isolation. Nvidia trades at a P/E of ~55 — which sounds insane until you realize it traded above 100 two years ago, meaning it's actually gotten cheaper as earnings grew faster than the stock price. Always compare a stock's current multiples against its own 5-year history and against its sector peers.
How Price Targets Are Actually Built — When Goldman says "$250 price target," it's not a guess. It's estimated future earnings × a fair valuation multiple. One analyst estimates $10 EPS at 25x = $250 target. Another says $8 EPS at 20x = $160. Same company, different assumptions about the future. The consensus target you see on Wall Street Favorites is just the average of 20-30 analysts who each built their own model.
The Upside Gap Is Your Edge — When a stock trades at $150 and the consensus target is $200, that 33% gap tells you the weight of professional opinion is on one side. It's not a guarantee — analysts get it wrong all the time — but when 25 out of 30 full-time analysts think a stock is worth significantly more than today's price, that's a meaningful signal.
The bottom line: stop picking stocks based on share price. Start thinking in ratios, context, and the gap between where a stock trades and where the Street thinks it's headed. And if you want all of this applied to every stock in the S&P 500 and Nasdaq-100 — valuation scores, analyst targets, upside rankings — check out wallstreetfavorites.com.
Here’s a link to the Q&A episode that was posted on Thursday.
You can submit questions for these episodes by asking them inside of the Rich Habits Network, replying to this email, or sending us a DM on Instagram.
The Rich Habits Podcast is available on Spotify, Apple, iHeart, YouTube, and wherever else you get your content!
Austin’s Callout
There are now more ETFs than single stocks on the stock market.
There are now nearly 4,900 U.S.-listed ETFs. That's an all-time high, up roughly +95% since 2020. Over that same period, the number of publicly traded U.S. companies has actually fallen by about -20%. There are now roughly 1,000 more ETFs than individual stocks in America. That gap has never existed before.
At the same time, ETF assets under management just hit a record $14.9 trillion in April. Over the last four years alone, U.S. ETF assets have increased roughly 140% and now account for nearly 70% of the global ETF market. The growth is insane.
So why does this matter for you?
More capital is now flowing through passive and rules-based vehicles than through traditional stock picking and active management. That fundamentally changes how prices move.
When billions of dollars flow into an S&P 500 ETF, every stock in that index gets bought regardless of whether the individual company deserves it. When money flows out, every stock gets sold. Liquidity, sector flows, and index positioning are increasingly driving price action — and individual company fundamentals can sometimes take a backseat in the short term.
For investors, the move is clear: use ETFs for your core allocation — broad market exposure, income strategies like SPYI and QQQI, sector bets — but use individual stock research to find the names where the passive flows haven't caught up to the underlying value yet.
Robert’s Callout
Stablecoins are becoming a real payments network.
Cumulative crypto card payment volume just hit a record $7.8 billion, with monthly spending volumes up roughly 230% since May 2025. That's people using stablecoins to pay for groceries, gas, and online purchases through crypto-linked debit cards. No bank off-ramp needed. No conversion hassle.
A major driver has been the launch of Jupiter Global, which has seen spending volumes surge more than 600% over just the last two months. And Visa is now capturing roughly 90% of on-chain card transactions through partnerships with crypto-native companies.
Payments have always been crypto's biggest long-term question mark. For years, the knock on crypto was simple: "You can't actually use it for anything." Bitcoin is too volatile for everyday purchases. Ethereum gas fees are too high. The UX is terrible. All fair criticisms.
Stablecoins solve most of those problems. They're pegged to the dollar so there's no volatility risk. Transaction costs are minimal. And with card integrations from Visa and others, the user experience is now basically identical to swiping a regular debit card.
This doesn't mean crypto is replacing the dollar tomorrow — but it does mean digital payment rails built on blockchain infrastructure are becoming a legitimate parallel system. And for anyone who's been following the regulatory trajectory — with stablecoin legislation moving through Congress right now — the timing isn't a coincidence. The infrastructure is being built in real time.
The Rich Habits Radar
👉 Snowflake product revenue climbed +34% YoY, beat earnings.
👉 “Situational Awareness” fund disclosed a 5.6% stake in Nebius.
👉 Micron surged after UBS raised its price target to $1,625.
👉 Robinhood launched AI agents for trading and credit card spending.
👉 The U.S. & Iran reportedly moved closer to a peace framework.
👉 Anthropic’s revenue run-rate expectations surged toward $50B.
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