Good morning, investors. This week is set to go down as one of the busiest of 2026.

If we put geopolitics aside for a moment, it’s hard to come up with a convincing reason for stocks to stop going up. The earnings story alone seems like it will be enough to prop up stock prices for the foreseeable future.

Microsoft, Alphabet, Meta, Amazon and Apple report earnings this week.

And for the first time since the AI boom kicked off, the math has turned against them.

With Nvidia stripped out, FactSet estimates see the Magnificent 7 growing earnings 6.4% this quarter, less than the 10.1% for the S&P 500's other 493 companies.

That breaks the narrative of the last two years when a handful of mega-cap stocks held a clear earnings advantage over the rest of the market.

Magnificent 7 investors will have to come to terms with these stocks no longer being the engine of the S&P 500.

While forecasts for Big Tech earnings still outpace the other 493, the pace of year-over-year growth now favors the latter.

Over the last 12 months the market-cap weighted index beat its equal-weighted counterpart by nearly 10%.

In the last six months, that gap evaporated and the two benchmarks both returned 5.5%.

And so far in 2026, the equal-weight index is ahead by nearly 1%, indicating that the market has indeed become less top heavy.

The tech rally in April has tempered that rest-of-market momentum and pushed the Magnificent 7 back toward record highs, though the backdrop continues to favor the index, rather than the individual hyperscalers.

The S&P 500's blended net profit margin is 13.4%, according to FactSet, marking the highest number since 2009 and with estimates climbing to 14.6% by year-end.

If the five Magnificent 7 stocks beat, the index could climb another leg higher.

If they miss, the rest of the market is profitable enough to absorb the disappointment.

That means, for the first time in years, a disappointing outing from the Magnificent 7 may not mean a decline for the entire market.

Quantify Funds is building actively managed funds that seek to pay weekly dividends from the performance of bitcoin, gold, and US stocks. 

$1 of ISBG gives $2 of total exposure to bitcoin & gold. 

Governments print. We stack bitcoin & gold.

🛢 Iran gave the US a new proposal to reopen the Strait of Hormuz. With diplomacy in a stalemate, Iranian leadership is divided about what nuclear concessions should be on the table. Next steps remain in limbo. (Axios)

🚀 Five of the Magnificent 7 report earnings this week. Microsoft, Alphabet, Meta, and Amazon report Wednesday and Apple lands Thursday, with combined 2026 AI capex projected at $649 billion against $411 billion last year. (Bloomberg)

🏦 Verizon raised its 2026 adjusted earnings outlook. The carrier posted its first positive first-quarter phone net adds since 2013, and shares ticked higher on the news. (WSJ)

🏙 We’re bringing investors together in in New York. Our friends at Finimize are hosting a stellar line up with Anthropic, Robinhood, NYSE, SoFi, VanEck, as well as our very own Anthony Pompliano. Grab a ticket and join us at 6pm on May 19th.

I sat down with Steve Sosnick, chief strategist for Interactive Brokers, to discuss the earnings outlook, why he’s more cautious on stocks than his peers on Wall Street, rising recession odds, and whether the software sell-off is overdone.

Tune in on Spotify, Apple Podcasts, or YouTube.

🗓 April 28, 2003: Apple launched the iTunes Music Store with 200,000 songs at 99 cents each. The store reset the music industry's economics and helped kick off a massive run in Apple stock the next decade.

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Partner disclosures:

ISBG uses Bitcoin, Gold, and Stock options and do not invest directly in bitcoin, gold, or stocks. The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. These risks include (i) the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations; (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Derivative prices are highly volatile and may fluctuate substantially during a short period of time. The use of leverage by the Fund, such as borrowing money to purchase securities or the use of options, will cause the Fund to incur additional expenses and magnify the Fund’s gains or losses.

The Fund is not suitable for all investors. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily leveraged (2X) investment results, understand the risks associated with the use of leverage, and are willing to monitor their portfolios frequently. The Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. For periods longer than a single day, the Fund will lose money if the Target Portfolio’s performance is flat, and it is possible that the Fund will lose money even if the Target Portfolio’s market value increases over a period longer than a single day. An investor could lose the full principal value of his/her investment within a single day.

There is no guarantee the Quantify Funds ETFs will make weekly distributions and the amounts may fluctuate from week to week. Distributions may be comprised of option premiums, dividends, capital gains, and interest payments. To view both current and historical monthly estimates of ETF distribution composition, investors may view the 19a-1 notices available on each corresponding Fund's webpage. Distributions classified as return of capital will reduce an investor’s cost basis in Fund shares owned, which may result in higher taxes paid in the future when the Fund shares are sold, even if the shares are sold at a loss compared to the original investment. 

Investing involves risk. Principal loss is possible. Distributed by Foreside Fund Services, LLC.

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses.

This and other information is in the fund page within the website (www.quantifyfunds.com). Please read the prospectus carefully before investing.