Most investors are playing checkers. They follow the same playbook everyone else follows, read the same headlines, chase the same trends, and wonder why their returns look exactly like everyone else’s.
Meanwhile, a small group of sophisticated investors is playing chess. They’re making moves right now that won’t show up in mainstream advice for another 12-18 months. They’re positioning for 2026 while everyone else is still figuring out 2025.
Today, you’re getting the playbook.
This is The Edge. Advanced strategies for people who are done being average.
The 2026 Positioning Framework
Here’s what most people miss: the best investment opportunities aren’t found in the present. They’re found in the gap between what’s happening now and what the market hasn’t priced in yet.
Right now, in December 2025, there are three major shifts happening that most retail investors are completely ignoring. But institutional money? They’re already moving.
Shift #1: The AI Infrastructure Build-Out
Everyone’s talking about AI software. ChatGPT, Claude, Gemini. That’s the sexy stuff. But the real money is being made one layer down: the infrastructure that makes AI possible.
We’re talking about:
Data centers (the physical buildings housing AI compute)
Power generation (AI needs massive amounts of electricity)
Cooling systems (keeping those servers from melting)
Networking equipment (moving data at scale)
The play: Position in companies building the picks and shovels, not the miners. Think Equinix (data centers), Vertiv (cooling), Arista Networks (networking).
But here’s the advanced move: Don’t buy these directly. Use AI to identify the second-order beneficiaries. The companies supplying the companies building the infrastructure.
Prompt for ChatGPT:
“Identify publicly traded companies that supply critical components to data center operators. Focus on companies with: 1) Revenue growth above 15% annually, 2) Operating margins above 20%, 3) Market cap between $5B-$50B (sweet spot for growth), 4) Less than 30% institutional ownership (room for discovery).”
Shift #2: The Reshoring Wave
For 30 years, the trend was offshoring. Move manufacturing to China, cut costs, boost margins. That era is over.
Between geopolitical tensions, supply chain fragility, and automation making domestic production viable again, we’re seeing a massive reshoring wave. Companies are bringing manufacturing back to North America.
The obvious play: Industrial REITs, manufacturing stocks, logistics companies.
The sophisticated play: Identify the specific geographies benefiting most. Not all of America. Specific regions with the right combination of:
Available industrial land
Skilled labor force
Tax incentives
Proximity to major markets
Use Perplexity Pro to research: “Which U.S. metro areas are seeing the highest growth in manufacturing job postings and industrial construction permits in 2025?”
Then invest in:
Industrial REITs with heavy exposure to those markets
Regional banks serving those areas (they’ll finance the growth)
Residential REITs in those cities (workers need housing)
Shift #3: The Longevity Economy
Here’s a stat that should wake you up: By 2030, all Baby Boomers will be 65 or older. That’s 73 million people entering their highest-spending healthcare years.
But this isn’t your grandfather’s retirement. This generation has money, they’re living longer, and they’re not interested in sitting in a nursing home watching Wheel of Fortune.
The opportunity:
Active adult communities (luxury senior housing)
Home healthcare services
Medical devices for aging in place
Longevity biotech (companies working on extending healthspan)
The advanced play: Use AI to identify companies at the intersection of multiple trends. For example, companies building AI-powered home health monitoring systems. They benefit from aging demographics AND the AI boom.
The Contrarian Portfolio Strategy
Here’s where we separate the amateurs from the pros. Everything I just described? That’s the setup. Now here’s how you actually position for it.
The 70/20/10 Advanced Allocation
Forget the traditional 60/40 stocks/bonds split. That’s for people who want average returns. Here’s the sophisticated approach:
70% Core Positions (The Foundation)
Index funds for broad market exposure
Dividend aristocrats for income
Investment-grade bonds for stability
This is your boring money. It compounds quietly while you sleep. No drama, no excitement, just steady growth.
20% Thematic Positions (The Growth Engine)
This is where you position for the three shifts I outlined above:
7% AI infrastructure plays
7% Reshoring beneficiaries
6% Longevity economy
These are higher conviction, higher risk, higher potential return positions. You’re betting on specific trends playing out over 3-5 years.
10% Asymmetric Bets (The Moonshots)
This is your “lose 100% or make 10x” money. Small positions in:
Early-stage companies (via platforms like Republic or StartEngine)
Emerging market opportunities
Contrarian plays everyone else is avoiding
The key: Size these positions so that if they go to zero, it doesn’t hurt. But if one hits, it moves the needle on your entire portfolio.
The AI-Powered Rebalancing Protocol
Here’s where most people screw up: They build a great portfolio, then never touch it. Or worse, they tinker with it constantly based on emotions.
The sophisticated approach: Systematic rebalancing based on data, not feelings.
Quarterly Review Protocol
Every quarter, run this AI-powered analysis:
1. Performance Attribution
Upload your portfolio to ChatGPT and ask: “Which positions contributed most to returns this quarter? Which detracted? What were the primary drivers?”
2. Thesis Validation
For each thematic position, use Perplexity to research: “Has the underlying thesis strengthened or weakened? What new data points support or contradict the original investment case?”
3. Correlation Analysis
Use Claude to analyze: “Are my positions becoming more correlated? Am I accidentally concentrated in similar risk factors?”
4. Rebalancing Triggers
Set automatic rules:
If any position grows beyond 15% of portfolio, trim to 12%
If any thematic allocation drifts more than 3% from target, rebalance
If a position drops 30% from purchase price, reassess thesis (don’t automatically sell, but force yourself to re-justify)
The Tax-Loss Harvesting Automation
Here’s a strategy that can add 1-2% to your annual returns, yet most people never implement it: systematic tax-loss harvesting.
The concept: When positions drop, sell them to realize losses for tax purposes, then immediately buy similar (but not identical) securities to maintain market exposure.
The AI advantage: Use ChatGPT to identify tax-loss harvesting pairs.
Prompt: “I own [TICKER]. It’s down 15%. Suggest 3 similar securities I could swap into that maintain similar exposure but avoid wash sale rules. Consider: sector, market cap, factor exposure, and correlation.”
Set up monthly scans (use Make.com to automate):
Pull portfolio data from your brokerage API
Identify positions down more than 10%
Generate swap candidates via AI
Send yourself a notification with actionable recommendations
The Options Income Layer (Advanced)
If you’re comfortable with options, here’s a strategy that can generate an extra 3-5% annual yield on your core positions: systematic covered call writing.
The setup:
Identify your core positions you’re willing to hold long-term
Sell out-of-the-money call options 30-45 days out
Target strikes 5-10% above current price
Collect premium, rinse, repeat
The AI optimization: Use ChatGPT to analyze optimal strike selection.
Prompt: “I own 100 shares of [TICKER] at $X. Current price is $Y. Analyze the options chain for 30-45 day calls. Recommend optimal strike that balances: 1) Premium income, 2) Probability of assignment, 3) Upside capture if stock rallies. Show expected return scenarios.”
Warning: This caps your upside. Only do this on positions where you’re comfortable with moderate gains in exchange for consistent income.
The 2026 Watchlist
Here are specific areas I’m watching closely heading into 2026. These aren’t recommendations (do your own research), but they’re on my radar:
AI Infrastructure:
Equinix (EQIX): Data center REIT, 5% yield, benefiting from AI compute demand
Vertiv (VRT): Cooling and power management for data centers
Arista Networks (ANET): Networking equipment for AI clusters
Reshoring:
Prologis (PLD): Industrial REIT with U.S. manufacturing exposure
Caterpillar (CAT): Construction equipment for industrial build-out
Regional banks in manufacturing hubs (research specific metros)
Longevity Economy:
Welltower (WELL): Senior housing REIT, 3.5% yield
Intuitive Surgical (ISRG): Robotic surgery systems
Dexcom (DXCM): Continuous glucose monitoring (aging population needs)
The Execution Checklist
Don’t just read this and do nothing. Here’s your action plan for the next 30 days:
Week 1: Analysis
Run AI analysis on current portfolio (performance, correlation, thesis validation)
Identify positions that no longer fit your strategy
Research the three major shifts (AI infrastructure, reshoring, longevity)
Week 2: Planning
Build your 70/20/10 target allocation
Create watchlist of specific securities for each thematic bucket
Set up AI-powered monitoring (Make.com workflows, Notion dashboards)
Week 3: Execution
Begin rebalancing toward target allocation (don’t rush, spread over 2-3 months)
Implement tax-loss harvesting where applicable
Set up quarterly review calendar
Week 4: Automation
Automate dividend reinvestment
Set up rebalancing triggers
Configure AI monitoring and alerts
The Bottom Line
The difference between average investors and exceptional ones isn’t intelligence. It’s positioning.
Average investors react to what’s happening now. Exceptional investors position for what’s coming next.
You now have the framework. You know the shifts. You have the tools. All that’s left is execution.
2026 is going to separate the people who talk about wealth from the people who build it. Which side are you on?
Next week: We’re diving into the psychology of wealth. Why smart people make dumb money decisions, and how to rewire your brain for financial success.
Stay sharp.
Wealth is a system, not a guess.