WEEKLY ROUNDUP How to Go From Market Dip to Massive AI Gains VIEW IN BROWSER Hello, Reader. August is typically a volatile month for the market. Many investors take vacations, which leads to lower trading volumes. And with fewer buyers and sellers, seemingly small bits of news or events can cause hefty market swings. This morning, for instance, stocks pulled back as investors cautiously await Nvidia Corp.’s (NVDA) earnings report later this week. As a major AI “Builder,” any disappointment could have a significant ripple effect. And before Friday’s rate-cut hints from Fed Chair Jerome Powell, markets pulled back almost all last week, over a cluster of catalysts including hot inflation prints and consumer-spending worries. But as I’ve said before and will continue to say, there is opportunity in volatility. My InvestorPlace colleague Luke Lango agrees… Last week’s set up was ripe for a dip: stocks “priced for perfection,” crowded positioning, and Powell anxiety. The fundamentals haven’t changed. The economy looks solid, inflation is easing, and rate cuts remain on the horizon. And the driver since late 2022 hasn’t changed either: artificial intelligence. AI demand is accelerating, spending is exploding, and profits tied to AI are swelling. Right now, we’re in between catalysts. So, what do we do in the meantime? Back to Luke… Look for pullback entries in your favorite AI names — smart for long-term gains. But AI is also creating the biggest, fastest moves I’ve seen. I call them “AI Income Events” — powerful price surges when a company meaningfully integrates AI. With these moves, you can pursue income far faster than simple buy-and-hold. Luke and I share the same sentiment: Volatility isn’t a threat. In fact, with the right system, it’s your edge. That’s why Luke and his team built Nexus, a proprietary behavioral-analytics system that flags real-time breakouts across sectors. On Wall Street, AI Income Events show up as sudden bursts of hypergrowth, or what Luke calls Phase 2. Phase 1 is build-and-experiment with AI. Phase 2 is then when AI drives results — and where the biggest gains tend to happen. AI is in Phase 2 now, but this window won’t stay wide open forever. The easy triple-digit runs will get rarer within a year, Luke says. So, he has a challenge for you that I would like to share today. I’ll dive into the details below – but first, let’s take a look back at what we covered here at Smart Money last week… |
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