IMPORTANT WARNING TO ALL INVESTORS

Tom Nash•Feb 5, 2026

Summary

Tom provides a comprehensive overview of the recent 48-hour market 'carnage,' specifically targeting the software, tech, and AI sectors. He identifies three main catalysts for the decline: a new AI scare triggered by Anthropic’s latest tools, a snowball effect of profit-taking by investors who have seen gains over the last three years, and macro uncertainty regarding US dollar policy and potential tariffs. Tom emphasizes that markets hate uncertainty, but warns that trying to time the bottom is a 'crapshoot' and advises against it.

To manage this volatility, Tom introduces a fundamental framework: check if the price drop is linked to a change in the company's core business. If the fundamentals remain solid, the price drop should be viewed as a sale, triggering a 'buy' action. He discusses his 'DCA Double Down' system, where he recommends a regular Dollar Cost Averaging (DCA) strategy when stocks are near highs, but doubling the investment amount (DCAx2) when a stock falls 20% or more below its yearly high. Tom stresses that missing just the 10 best days in a 20-year period can slash portfolio returns by 50%, highlighting the danger of sitting on the sidelines in cash.

Palantir (PLTR): Tom points out that while the stock has dropped significantly in recent days, this volatility is normal for the company, which has seen 20% drops ten times in five years. He reminds viewers that despite an 83% drop in 2022, the stock has returned 2,200% since its 2023 lows. He views the current price action as an opportunity for long-term investors who can weather the emotional storm.

NVIDIA (NVDA): Tom describes NVIDIA as one of the best stocks in the market, noting its 1,200% growth over the past five years. He uses its historical price swings—such as drops from $140 to $94—to illustrate that extreme volatility is the price of admission for massive long-term gains. He encourages investors to stay focused on the 1,200% trajectory rather than the messy short-term journey.

S&P 500 (SPY/VOO): Tom highlights the S&P 500 as the benchmark for long-term success, noting an 80% return over the last five years despite various market scares like COVID-19 and the 2022 bear market. He mentions that the index typically drops 5% three times a year and 10% at least once a year, which is 'par for the course.' He advises investors to maintain their positions to benefit from compounding interest and historical 10% average annual returns.

Mentioned Stocks

NVDA

Sentiment: BUYAction: RECOMMENDED

Reasoning: Tom labels NVIDIA a 'terrific stock' and highlights its 1,200% five-year return. He argues that short-term price drops, like the move from $140 back to $94, are necessary parts of the journey toward massive long-term outperformance.

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PLTR

Sentiment: BUYAction: RECOMMENDED

Reasoning: Tom views Palantir as a solid business despite its high volatility. He notes it has returned 2,200% since 2023 even after multiple 20% drawdowns. He advises using the recent 25% price drop to buy more if the fundamental thesis remains unchanged.

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SPY

Sentiment: BUYAction: RECOMMENDED

Reasoning: Tom views the S&P 500 as a reliable long-term investment that provides 10% average annual returns. He advises staying invested to avoid missing the best 10 market days and to benefit from an 80% return over a five-year horizon despite periodic 5-10% corrections.

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