The Latest Tech Boom Could Soon Be Facing a Bust

[Inside Wall Street with Nomi Prins]( The Latest Tech Boom Could Soon Be Facing a Bust By Clint Brewer, Analyst, Rogue Economics The Nasdaq’s best first half in 40 years can be boiled down to two words: artificial intelligence (AI). AI-linked tech stocks have helped power the Nasdaq to a 32% gain over the first six months of 2023. This is the index’s best performance since 1983. And if it wasn’t for booming share prices in AI stocks, markets have pretty much gone nowhere this year. That’s because AI-related stocks are accounting for nearly all the S&P 500’s gain this year. Exclude them, and the index is only up slightly. But the boom times could be over for AI stocks. That’s because stock price gains are pushing valuations into the stratosphere. Just take Nvidia (NVDA), for example. The company’s semiconductors are in high demand for the kind of computing power needed to train and evolve AI algorithms. And while Nvidia is sure to reap the benefits of AI-driven demand, the stock has tripled this year. It brought the company’s price-to-earnings (P/E) ratio to 232. To put that figure into perspective, the S&P 500’s P/E is 22. Now, the risk is that those share prices will collapse under the weight of their own lofty valuations. There’s plenty of precedent that the run-up won’t last, while one indicator warns it could be time to get out of the tech sector… Recommended Link [Reverse ‘money machines’ popping up across America]( Machines like the ones in this picture are popping up all across America. [image]( If you’ve been to a concert venue, stadium, or airport, you’ve almost certainly walked by one without knowing. The experts are calling it a ‘Reverse ATM’. They’ve been installed at places like Citizen’s Bank Ballpark in Philadelphia… They’ve even been used at the Super Bowl. Why are these machines suddenly appearing out of nowhere? And what does it mean for your money? We’ve recently arranged an interview with former Goldman Sachs managing director, Dr. Nomi Prins, to get her take. There’s nobody in America who’s more aware of the inner workings of the banking system. In the interview, [Dr. Prins explained these strange ‘reverse ATMs.’]( And she said she expects them to play a key role this Summer as our nation’s financial system is overhauled for the first time since 1971. According to her research, many Americans will be blindsided by what’s to come. BUT, folks who understand the ‘Reverse ATM’ phenomenon before it becomes obvious to the average American could actually profit in the weeks ahead. To help folks prepare, she’s recorded a briefing that explains exactly what she sees coming, how it will play out, and how much time you have to prepare. [Click here now to see Dr. Prins’ free presentation.]( -- Hype, Boom, and Bust Hyped technologies come and go… bringing along a boom-and-bust cycle in share prices. The most famous precedent took place during the late 1990s. The advent of the internet age drove a frenzy in stock prices. Between 1999 and early 2000, the Nasdaq rocketed 130% higher on the back of failed internet stocks like Pets.com. But those gains quickly vanished. From the 2000 peak through October 2002, the Nasdaq collapsed by 78%. It took nearly 15 years for the index to fully recover. There’s an even more recent example. Just three years ago, a speculative frenzy overcame tech companies promising to revolutionize everything from television to payments and medicine. The Ark Innovation ETF (ARKK) became the poster child for the move. Its share price jumped 351% in less than a year, but then it proceeded to collapse by 81%. Even this year’s 63% rally has barely dented the decline. And now, warning signs are piling up that the latest tech boom could soon be facing a bust. Recommended Link [“Amazon Loophole” Allows Anyone to Collect Payouts]( [image]( Amazon. It’s one of the most profitable companies on Earth. Yet, according to Brad Thomas, a multi-millionaire, best-selling author, and former economic advisor to President Trump... What few people realize is, thanks to a little-known IRS loophole – billions of dollars get paid out each year... Required by law! With the next payout scheduled to go out on September 10th! Brad has been featured on Bloomberg, Fox & Friends, Barron’s, CNN, Kiplinger, NPR, MSNBC, and Forbes... But he’s never revealed this secret anywhere... Until now... [Watch the Video Now (Brad Reveals Amazon “Payout” Loophole)]( -- Crowded and Expensive Tech stocks won’t fall just because valuations are high. After all, excessive valuations are a symptom of a bubble, not the cause. The cause is panicked buying from investors who fear missing out. As long as there is a dry powder for additional purchases, prices can still push higher. But investors are piling into technology stocks at a rate we haven’t seen in nearly four years. That’s based on money flows into the popular Nasdaq 100 ETF (QQQ). In a recent two-week stretch, just $4.8 billion flew into QQQ. That shows investors are chasing the latest tech fad hand over fist. But that kind of buying spree can’t be sustained forever. Even the smart money is growing wary. Bank of America’s Fund Manager Survey shows professional fund managers view big tech as the most crowded trade by a long shot. And according to JPMorgan, the tech sector is the most overvalued sector relative to its 20-year average based on its P/E ratio. For example, its current P/E is 27.6 when compared to its 20-year average of 17.9. That’s why you should think twice before chasing extended and overbought AI-linked stocks that have already seen big run-ups… NVDA is one of them. Nosebleed valuations and a crowded trade present ripe conditions for a sell-off, especially once there’s no one left to buy. Recommended Link [He Declined to Go on CNBC – Now He’s Finally Revealing His “Millionaire Secret”]( [image]( During the 2008 financial crisis, millionaire trader Jeff Clark stunned the world when he managed to double his readers’ money 26 TIMES… CNBC caught wind of this and asked Jeff to come on live TV to explain his secret. Jeff politely said no. And now, years later, Jeff is back to finally bring this secret into the light. …Revealing how anyone can collect returns of huge gains in just 8 days… in bullish AND bearish markets! And why you need to IGNORE 99.9% of the market, instead focusing on only ONE stock. [(ticker revealed here)]( Jeff says: “I am tired of watching as investors lose their shirts buying risky assets… even my OWN SON lost -60% in crypto & tech stocks… now I’m going to give him a [“Financial Intervention”]( to help him win his account back in 2023!” [Click Here to Watch Jeff Demonstrate This ONE Stock Secret.]( -- In fact, the world’s most powerful investors are piling out of the tech sector right now. That’s because a rare, generation-defining event is about to hit the stock markets on September 20. It will send America’s most loved stocks, including tech stocks, plummeting down. At the same time, it will push one corner of the market to all-time highs. And investors who position themselves early can reap seven-figure profits. That’s why Inside Wall Street’s editor Nomi Prins is going live this Thursday, August 3 at 10 a.m. ET to reveal how you can prepare for what’s coming. She’ll also give away the name and ticker of the top way to play this rare market event, all for free. Sign up for the event by [clicking here](. Regards, Clint Brewer Analyst, Rogue Economics P.S. The last time Nomi used a market event like this to make a trade recommendation, she scored whopping returns of 1,313% and 2,174%. Now, history is repeating itself. As we approach September 20, the financial elite, including billionaires like Elon Musk and Warren Buffet, are all pouring their money into one, little-known investment vehicle… It’s already outperforming the S&P 500 by 4x… tech stocks by 5x… and Bitcoin by 3x. To get in with the ultra-wealthy, make sure you attend Nomi’s presentation on Thursday. [Click here]( if you haven’t registered for it yet. --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Inside Wall Street Feedback). MAILBAG Two readers share their thoughts on a potential Fed-mandated central bank digital currency (CBDC). Catherine feels that a black market will rise if physical cash is replaced by digital currency… Just my two-cents worth on the upcoming CBDC – do the powers that be really fail to understand that they are incentivizing the creation of the world’s largest black market? It doesn’t really matter what it is; some other token of exchange, preferably physical, is going to appear and invisibly operate under the radar of electronic money. If we’re especially lucky, it will overwhelm digital money as the exchange of choice. – Catherine M. On the other hand, Richard believes that a CBDC could reduce the amount of illegal spending that goes on with physical cash… People are afraid of losing the ability to spend money anonymously. They are buying drugs or other illegal items. They are supporting their mistress or worse… The truth is we live in a very dishonest society. The common man is doing dishonest things every day. With digital currency, they can’t hide. Digital currency will be a GODsend. It will improve society. We need to welcome digital currency. – Richard M. Do you agree with Catherine that a CBDC would lead to the creation of a new black market and token of exchange? Or is Richard right in thinking that a digital currency will improve society? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Inside Wall Street Feedback). IN CASE YOU MISSED IT… [ATTENTION: Digital Dollar Could Send this $0.25 Play Skyrocketing]( In just a few days, the U.S. government could announce [this mandatory recall on the U.S. dollar…]( And replace it with a new digital dollar. And that could send [this $0.25 alternative investment skyrocketing.]( This is the same type of investment that’s already attracting the attention of legendary investors and billionaires like Elon Musk, Mark Cuban, and George Soros. 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