Come join me for lunch at the Mad Hedge Fund Trader’s Global Strategy Update, which I will be conducting in Boca Raton, Florida on Friday, May 19, 2023. An excellent meal will be followed by a wide-ranging discussion and an extended question-and-answer period.
I’ll be giving you my up-to-date view on stocks, bonds, currencies, commodities, precious metals, and real estate. And to keep you in suspense, I’ll be throwing a few surprises out there too. Tickets are available for $295.
I’ll be arriving on time and leaving late in case anyone wants to have a one-on-one discussion, or just sit around and chew the fat about the financial markets.
The lunch will be held at an exclusive private resort on the beach in Boca Raton. The precise location will be emailed with your purchase confirmation.
I look forward to meeting you, and thank you for supporting my research.
To purchase tickets for this luncheon, please click here or click on the Buy Now! above.
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There isn’t a company in the world that isn’t playing around with AI right now.
Think of the Internet, Microsoft Office, and Netscape Navigator all coming out on the same day. That is what is happening right now with AI.
The gold rush has started.
So, I instructed my programming staff to do the same.
And we found what everyone else is finding. Some of the results are ridiculous, some are hilarious, while others are kind of interesting. That last part is key.
That’s why the net net of all of this is that the value of almost every company that uses AI has tripled overnight. It will take a long time for the stock market to catch up with this reality, maybe a decade.
This explains why the earliest and largest AI users have seen their shares move up in practically a straight line since January 1.
Alphabet (GOOGL) has been using AI for 30 years, and Tesla (TSLA) and Facebook (META) for 20.
Mad Hedge has been using it for ten years, and we used it to double our average annualized performance from 26% to 49%, as you may have noticed.
A friend of mine now uses AI to answer all his email. As a result, his correspondents told him he has recently been a rude bastard. AI answered the emails correctly, but not quite the same as you or I would.
My staff found an ap called Midjourney which can be downloaded inside the Discord Chat app. You can take a picture of anyone, add one word, and the ap will modify the picture to reflect the input of the new word. To have some fun, we started with the basic John Thomas portrait, which you have seen a thousand times.
If you added the word “WWII Pilot” what you get is kind of interesting.
Try instead adding the word “Conquistador” and what you get is ridiculous.
Try adding “Flintstones” and the result is hilarious.
As you can see, it is still early days in the AI game. But it is what will take the Dow average from $36,000 to $240,000 over the next decade.
I can tell you that the financial newsletter business has been one of the earliest adopters of AI. After all, they use tools, data, and aps to convince people they are stock market experts when they really know nothing about it.
Many of the people I have spoken to who are early users of AI say its initial output is only just a starting point which can be eventually edited and refined into something usable. As a writer for 60 years who has spent countless hours staring at a blank page, I can tell you that alone is incredibly valuable. And that may be AI’s greatest contribution, to get us off our duff’s and eliminate writer’s block.
No doubt there is an AI stock bubble in progress. But Bitcoin has to soar from ten cents to $76,000 before it really got deep into bubble territory. You could get the same result with AI.
Come to think of it AI is really like the first humans who discovered fire.
You heard it here first.
https://www.madhedgefundtrader.com/wp-content/uploads/2023/05/john-flintstones2.png672664Mad Hedge Fund Traderhttps://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.pngMad Hedge Fund Trader2023-05-18 09:02:542023-05-18 14:15:57Playing Around with AI
“You be better off picking people randomly out of the phone book to run the country than relying on the faculty of Harvard,” said Tesla founder Elon Musk.
https://www.madhedgefundtrader.com/wp-content/uploads/2023/05/elon-musk-harvard.png306446Mad Hedge Fund Traderhttps://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.pngMad Hedge Fund Trader2023-05-18 09:00:042023-05-18 14:14:49May 18, 2023 - Quote of the Day
One day the media and so-called experts in the know tell us are going to get a soft landing.
The next day they tell us that we are going to get a hard landing.
One day they tell us that inflation data is getting better.
The next day they tell us that inflation data is getting worse.
And they also tell us that the jobs numbers are too strong. The Fed needs more people unemployed.
I get it.
They want to slow things down and bring inflation down, but at what cost?
And what happens when they pause on the rate hikes or even cut, and inflation rears its head again – it’s a possibility.
It’s enough to make your head spin.
The market is almost bipolar or even passive-aggressive.
Inflation is getting better, but prices are still high and could remain so.
David Neuhauser, chief investment officer at Livermore Partners said that while the gradual decline in the inflation rate over the past year is a positive sign for the economy, he expects prices to remain stubbornly high for an extended period. He expects a hard landing.
John, on the other hand, believes that the inflation rate will come down and prices will slowly normalise, but it may be a bumpy journey to get there. He is leaning more towards the soft-landing scenario.
Neuhauser is arguing that inflation will remain a problem for some time to come and the markets won’t like that script.
If the markets don’t get a cut in rates, Neuhauser believes the S&P 500 could decline by more than 20%.
The debt ceiling crisis could get to the post first and bring the market down in the summer.
John has told us all to buy gold and silver stocks during the summer period. Specifically, GOLD, WPM, SLV, etc. Also, he has told clients to buy 90-day T-bills and the TLT – calls, call spread, and/or LEAPS.
Maybe you could also think about a couple of these stocks recommended by Neuhauser. Do your research first.
The first is Ferrari, a high-margin automaker with a significant market presence among ultra-high net worth individuals.
As inflation rises, companies serving the wealthy have outperformed as their customers are not as sensitive to price rises.
The trend is also evident in the automotive sector. For instance, Ferrari, which makes about 14,000 cars annually, is currently valued at 53 billion euros ($58 billion), compared to mass-market car maker Stellantis, which produces 6 million vehicles every year and is valued at around 48 billion.
Ferrari also reported a 24% jump in net profit and an increase in its waiting list earlier this month. Its financial results contrast with the wider automotive sector, which is struggling due to supply chain problems and rising costs.
Next is Jadestone Energy. It’s a London-listed oil and gas producer where the dynamics are taking hold and the cashflow is high going forward into next year.
Then we have Amaroq Minerals. Again, do your research. This is an Icelandic company engaged in gold and mineral exploration. It is set for strong cash flows and is about to construct its first mine. The company already owns high-grade gold and copper assets in southern Greenland. As gold prices rise, companies mining the metal benefit from bigger profit margins.
Livermore, the hedge fund founded by Neuhauser in 2009, owns shares in Amaroq, along with billionaire investor Louis Bacon.
Happy mid-week.
Be happy, healthy, and wealthy.
Cheers,
Jacque
"Too many people spend money they earned …to buy things they don’t want…to impress people that they don’t like. … The money you make is a symbol of the value you create." - Idowu Koyenikan
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Nvidia (NVDA) is expensive, but it’s expensive for a reason.
Readers need to participate in this epic move going on in Nvidia’s stock.
Anything resembling a dip will be bought because the demand for Nvidia’s products vastly outweighs the supply.
There are signs that Nvidia could deliver better-than-expected results thanks to the importance of the company's artificial intelligence (AI) chips, which carry a massive price tag.
Investors have been buying up the stock by the truckload on the hype around AI applications and how they are going to create terrific demand for Nvidia's chips.
They should deliver us a great forecast moving forward as AI is the hottest trend in town.
At the same time, investors shouldn't forget that a third of Nvidia's revenue comes from PC-centric businesses -- gaming and professional visualization. With PC sales declining at an alarming pace and a recovery still some time away, there is a chance of Nvidia's results and guidance not being up to analysts' expectations.
Nvidia gets nearly 60% of its revenue from selling chips deployed in data centers. The sizable influence of the data center business on Nvidia's top line could help it overcome the PC market's weakness, especially considering that companies involved in the development of AI applications made a beeline for its chips.
Nvidia's H100 graphics processing unit (GPU), which is used for training large language models and powers generative AI applications such as chatbots, sells for as much as $40,000. This robust pricing power is the reason AI is expected to substantially boost Nvidia's growth in the coming years, potentially adding billions of dollars to the company's revenue.
The good part is that investors may witness the impact of AI-related demand on Nvidia's business very soon. DigiTimes reports that the semiconductor bellwether reportedly placed more orders for data center chips at foundry partner Taiwan Semiconductor Manufacturing.
A closer look at how AI-related spending is booming gives us more reasons to believe that demand for Nvidia's expensive AI chips could be high.
Meanwhile, the AI chip market alone is expected to grow to a whopping $227 billion a year by 2032 from just $17 billion last year, according to Precedence Research. Nvidia is the leading player in this market, with an estimated share of 95% of the market for GPUs used for machine learning applications. It’s almost guaranteed to see AI turning out to be a long-term catalyst for the stock.
The company's solid pricing power in AI chips and robust demand for those chips could help Nvidia deliver such impressive growth.
If there is some macro event that jolts the market, that would be a perfect entry point into Nvidia shares.
The violent upswings in Nvidia make it difficult to find entry points; therefore, cherish those down days because they are so seldom.
The strong momentum in AI manifests itself directly in this one chip stock Nvidia.
Don’t miss the roller coaster ride to profits.
https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png00Mad Hedge Fund Traderhttps://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.pngMad Hedge Fund Trader2023-05-17 15:02:502023-05-30 15:13:53The Best Tech Stock for Spectacular Growth
“Our favorite holding period is forever.” – Said American Investor Warren Buffet
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When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.Read more
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When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.Read more
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