Ian devotes his full attention to the new US AI Wealth Summit today, then takes some much-needed time off to welcome his new baby!
(Welcome to the Baby King team! You can sign our card for him here if you like!)
This week, I am happy to take the lead because I have an amazing new investment opportunity for you. It’s an emerging technology market with enormous profit potential.
And all thanks to the continuous advances in artificial intelligence.
We are monitoring this mega trend very closely: automated machine learning.
Ultra-large-cap tech companies like Microsoft, Google, and Amazon Web Services are already partnering with (or owning) these AI companies.
This technology is proving effective in reducing operating costs, increasing productivity and giving businesses a competitive edge over their peers.
I even recommend a exchange-traded fund (ETF) you can invest in Today in this space.
So are you ready? Find out more about this mega trend in today’s video…
Hot topics in today’s video:
- The survey says: A big thank you to everyone who voted last week “AI Ian” survey In The edge of the banyan. Find out which AI-generated Ian won! (0:25)
- Mega trend: Machine learning is an amazing facet of AI technology. And it helps companies streamline costs while improving production. (1:00)
- Investment Opportunity: This ETF tracks the BlueStar Quantum Computing and Machine Learning Index. Companies in this sector have products or services that develop quantum computing and machine learning technology. (5:00)
- Selection of actions: There’s one technology that’s fueling America’s AI revolution: microchips. And right now, we’re at war over these chips. Ian details the full story and investment opportunity here.
Till next time,
Director of Investment Research, Strategic Fortunes
Warren Buffett likes to keep things simple.
Despite being one of the richest people in human history, he is a man who drives a car he bought in 2014 and has lived in the same house in Omaha for decades .
It also keeps its market valuation models simple.
The “Buffett Indicator” is a quick and dirty snapshot of stock market valuations that compares the value of the stock market to the size of the economy (GDP).
The ratio rose steadily throughout the “easy money” period from 2009 to 2019. Then it exploded higher in 2020 and 2021, during the Fed-fueled pandemic market frenzy.
The indicator fell again during last year’s bear market, but remains extremely expensive.
Just for fun, GuruFocus quants adjusted Buffett’s indicator. They compared the total value of the stock market to the combination of GDP and the size of the Fed’s balance sheet. The idea is to capture the outsized influence that Fed tinkering has had in recent years.
Interestingly, after factoring in the Fed’s gargantuan balance sheet, this modified Buffett indicator looks a bit better. But it is still trading at levels seen after the tech bubble burst in the 1990s.
What does this mean for us?
Valuation metrics like these won’t tell you what the market is doing today or tomorrow.
They are not designed for market timing.
But they will be give a good idea of what to expect over the next few years. According to GuruFocus estimates, the market values expected returns at around 2.4% per year over the next decadeand that includes dividends.
Estimates are estimates. Take them with a grain of salt. But I think it’s fair to assume that general market returns will be muted over the next few years.
But that doesn’t mean we can’t make money in this market yet…if we look in the right places.
We cannot buy an index fund and expect to generate strong returns in the years to come. But we can focus on the trends that are literally ready to change the world.
Eighty-five percent of the world’s advanced microchips are in our smartphones, smart cars, computers, medical devices, and even our power grid. These are all American inventions… while China struggles to compete.
Ian’s latest report breaks down the modern “cold war” between China and the United States, with the microchip industry at the center of it all. Go here to start watching his free webinar.
Cheers,Charles SizemoreChief Editor, The edge of the banyan