Where to make money in stocks ?

This non-AI bear market has been brutal. Interesting to me that Hynix / Samsung are now trading like a casino despite channel checks looking OK i.e. 2027 should still be a good year for semi/AI capX. Latest bit of "bullish" AI update is ASML's lithography outlook in 2027 (and maybe 2028).

Where else would I look to deploy capital ?

1. I still think some junior miners in Australia are very interesting. Downside is probably not zero. Upside is multi-bagger X. More importantly, in some cases, the multi-bagger upside scenario only require companies to do what they say + commodity prices stay at current level.

2. China... I wrote about China in recent weeks.... Why would I nominate China as a prospective place to look ? The analogy is a bit like a junior miner.. If everywhere I look/drill and find a cluster of interesting ideas, the area warrants more work. In particular, I would focus on Chinese stocks listed in HK. Even domestic money has left HK following the latest crack down on cross border trading. It is a case of not many people are left in the pool but Tencent is still the same Tencent 3 months ago (I think the AI angle is getting better for Tencent in the meantime). Netease is still going to introduce Ananta in 2027. Also macro is starting to weaken a touch (see latest retail sales).... Maybe at some point, govt needs to do something.

3. Brazil.... I would look at Brazil. It is intriguing to me that Rmb and the Real both strengthened against USD. Kevin Warsh, despite his "tough talk", can't hold a torch next to the BCB (Central Bank of Brazil). Brazil rate is over 14% vs. inflation of 4-5%. Real interest rate should decline over time once the world stabilizes. Another driver is election... BUT looks like Lula is still well ahead in the poll, so base case is status quo. Again, I am struck by the valuations available.

4. For the brave, I would tiptoe and buy say Hynix/Samsung during the current dump... BUT look to trim if they bounce back to the high. On balance, think AI spend will be OK in 2027. Potential upside is would Hynix and Samsung buy back stocks aggressively ? Or would the govt let them ?

In summary, a lot of money has been made in AI. The lack of interests in everything else is creating a nice backdrop for long term money to position accordingly.

Note: Not advice. DYOR. Personal opinions only.