There's a Massive Stock Market Opportunity Right Now, and It Isn't AI: Here Are 3 Great Ways to Play It
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What's remarkable is Most of the trillion-dollar investment opportunity headlines have to do with artificial intelligence, autonomous vehicles, Internet of Things, or other trends. And there's certainly a good reason...
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July 28, 2025
06:48 AM
The Motley Fool
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What's remarkable is Most of the trillion-dollar investment opportunity headlines have to do with artificial intelligence, autonomous vehicles, Internet of Things, or other trends
And there's certainly a good reason they're getting so much attention
Additionally, However, there could be an even larger market opportunity hiding in plain sight
Additionally, Owners in the United States are sitting on an all-time high $35 trillion in equity right now, and most aren't willing to tap into it while interest rates remain stubbornly high
Additionally, In recent quarters, Depot's (HD 0 (an important development), considering recent developments
Moreover, 60%) management has specifically cited owners holding off on big jects as a drag on sales, and these are often financed through equity, just to name one example
On the other hand, While there's no way to know for sure when the Federal Reserve might finally start lowering interest rates once again, most experts agree that the most ly direction for interest rates over the next few years will be lower, in this volatile climate
And this could lead to a multitrillion-dollar surge in owners' tapping into their equity
Image source: Getty Images
What stocks could be the biggest winners
Nevertheless, If Americans start borrowing against the value of their s again, there are several types of stocks that could win, given the current landscape
However, Here are two of equity winners and some of the top players in each space
Banks and loan originators The most obvious beneficiary of a surge in owners' tapping into their equity is the financial services companies who originate equity loans and equity lines of credit, or HELOCs
Additionally, On the other hand, Bank of America (BAC 0 (something worth watching)
Moreover, 20%) is one of the largest HELOCs lenders and could be a particularly big winner as rates fall and this type of financing surges in ity, in light of current trends
Conversely, Plus, residential mortgage loans make up $118 billion on Bank of America's loan book, and this could surge if we see a refinancing boom
Rocket Companies (RKT 0
Additionally, 71%) is another one to watch, as it offers HELOCs but standard refinancing loans (which can also be used to pull cash out of your equity) have historically been its bread-and-butter, especially when rates were low (this bears monitoring)
Additionally, It offers a seamless, online experience that resonates with today's borrowers and has made Rocket the leading mortgage originator
However, Imvement retailers I already mentioned Depot, and just as the massive imvement retailer is seeing customers delaying big jects right now (quite telling)
Of course, many people pay for renovations and other major jects -- such as installing a swimming pool -- with cash, but HELOCs are a solid alternative for those who aren't cash-rich
Moreover, So, as interest rates fall, we could see the pent-up demand for major jects coming back into the market
Depot and fellow imvement retail giant Lowe's (LOW 0 (quite telling)
Meanwhile, 55%) could both see sales, especially to contractors, spike higher during a refinancing boom
It isn't just the retailers that can benefit
Companies Trex (TREX 0. 92%) that duce building materials could be big winners, in today's financial world
Trex is the leader in composite decking materials and sells its ducts through third-party retailers
But there was a influx of demand during the low-interest era, and we could certainly see that once again
The bottom line A falling-rate environment could create a massive opportunity for companies that are involved with equity loans and lines of credit, cash-out refinancing loans, and even the retailers who are most ly to benefit from a surge in equity activity (which is quite significant).
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