Get “Ready for the Biggest Economic Boom of Our Lifetime” research report for free

The companion research report to Felix Prehn’s video, prepared by Goat Academy Research. Enter your email address and the report opens immediately.

A 15-page companion briefing to the video of the same title. Democrats took the House and the Senate on 3 November, and the next day the Dow rose 3%, its best day of the year, after months of warnings that this result would crash stocks. The report sets out the record: a Republican president has lost Congress to the Democrats 7 times since 1954, and a year later the S&P 500 was higher all 7 times, on average 15.5% (Prehn Institute calculation from daily closes, 1 month +1.9%, 3 months +10.0%, 6 months +17.4%), alongside JPMorgan's finding that the index has been up a year after every midterm since 1950. It then shows the honest exceptions (1974 down 12% a month on, 1986 only 1.1% after the 1987 crash) and why Wall Street likes a Washington that cannot agree. The heart of the report is that the market does not go up as one: on 4 November consumer discretionary beat the S&P 500 by 2.57% while energy fell 6.29% against it, XLE dropped 4.74% as Brent fell 8.7% on hopes of a way out of the Iran war, and the chip funds broke the 200-day line (SOXX 5.8% below, SMH 3.3%, Nvidia 2.2%). It explains the data centre split behind that, with Texas holding 27% of planned American capacity and a new governor who campaigned on a moratorium: the owners of existing data centres (Microsoft, Amazon, Alphabet, Meta) rose, the chip suppliers fell and the heavily borrowed neoclouds (CoreWeave, Nebius, IREN) fell 7% to 11%. It covers why gold hit a one-year low in a war (margin calls after tech losses, which Commerzbank called excessive and unwarranted) and why forced selling runs out, and lines up 50 years of $10,000 held in inflation, cash and the S&P 500 (6x, 8x and 277x). It closes with 4 things that could spoil it (the 11 December funding deadline, a 10 December rate rise, the AI trade rolling over, oil spiking if the talks stall), a 5-point checklist for your own holdings, a data room with the method and raw numbers, and a pointer to one free live training. It is an educational explanation of a mechanism, not a recommendation to buy or sell anything.

Goat Academy is an online financial education institution founded by economist and former investment banker Felix Prehn.