Jaspreet Singh's 2026 Investment Thesis: Which Assets Could Capitalize on Shifting U.S. Policy

Investment analyst Jaspreet Singh recently outlined a strategic portfolio framework centered on how evolving federal spending priorities under the new administration could reshape market opportunities through 2026 and beyond. With approximately $7 trillion in budgetary reallocation compared to prior fiscal trajectories, Singh identified several asset categories positioned to benefit from these policy shifts.

The AI Infrastructure Play: Why Semiconductors and Data Centers Lead

Singh characterized artificial intelligence infrastructure as the cornerstone of his thesis, particularly given Washington’s recently published strategic roadmap emphasizing unlimited capital deployment to maintain technological superiority. This focus breaks down into three interconnected pillars: semiconductor manufacturing, data center expansion, and supporting infrastructure networks.

For semiconductor exposure, Singh recommended the iShares Semiconductor ETF (SOXX), which provides diversified access to the chip manufacturing ecosystem. On the data infrastructure side, the Global X’s Data Center and Digital Infrastructure ETF (DTCR) captures the buildout required to support AI workloads. The First Trust Cloud Computing ETF (SKYY) offers another angle on the computational backbone.

Broader AI application plays include the Global X’s Robotics and Artificial Intelligence ETF (BOTZ) and Roundhill’s Generative AI and Technology ETF (CHAT), which track companies developing AI solutions across industries.

Critical Materials as Strategic Assets

The rare earths and advanced materials sector represents another compelling opportunity, particularly as China continues restricting exports of these essential minerals to U.S. manufacturers. Singh singled out two ETF vehicles capturing this trend: the VanEck Rare Earth and Strategic Metal ETF (REMX) and the iShares MSCI Global Metals & Mining Producers ETF (PICK).

For investors with higher risk tolerance, Singh identified specific companies receiving government backing: Lynas Rare Earths Limited (LYSDY) and MP Materials Corp. (MP). These represent more concentrated bets on strategic minerals supply chain resilience.

Industrial, Defense, and Energy: The Stability Trifecta

Beyond the growth-oriented sectors, Singh’s framework includes three traditionally defensive categories supporting domestic capacity expansion:

Industrial and Aerospace: The SPDR’s Industrial Select Sector SPDR FUND (XLI) provides access to industrial manufacturers and aerospace contractors, reflecting anticipated defense spending acceleration.

Infrastructure Development: The Global X U.S. Infrastructure Development ETF (PAVE) targets engineering firms, heavy equipment manufacturers, and raw materials suppliers benefiting from infrastructure investment cycles.

Energy Markets: The Vanguard Energy ETF (VDE) offers broad exposure to traditional energy production, representing a more conservative play in this sector compared to speculative alternatives.

The Bigger Picture

Singh’s asset allocation framework reflects a thesis centered on how trillion-dollar policy realignments create measurable winners across hardware, materials, and industrial production. The distinction between speculative opportunities (individual rare earth plays) and broad-based ETF exposure allows investors to calibrate their risk profiles accordingly. Whether these sectors continue appreciating through 2026 will depend on execution speed of announced spending priorities and global competitive dynamics.