A.I. and the "Hibernating Scoreboard"

You can't make this stuff up. [Logo]( Weekly Market Update Today is September 8, 2023 Dear Reader, Hello again and Happy Friday! I don’t have to tell you that Artificial Intelligence (A.I.) was THE story for much of 2023. A.I. sent stocks like Nvidia (up +262% between December and August) and C3.ai (up +381 between December and June) soaring. Bill Spencer True Market Insiders But like any tech or trend that morphs into a mania… A.I. was bound to be taken down a peg. Now, I’m long-term bullish on A.I. and on technology in general. And it’s a no-brainer that in the coming years A.I will play a game-changing role in most industries. That aside, I don’t buy into some of [the futuristic visions that cluster around this innovation](. A.I. will “surpass human intelligence?” That’s doubtful, or at least too vague. (The calculator on your phone has already done that, at least when it comes to arithmetic.) A.I. foreshadows the “dawn of conscious machines?” I don’t think so. A.I. will control the world? Lead us to immortality? Render us extinct? Yeah… No. On the lighter side, consider a story that went viral last week. In a nutshell, the Columbus Dispatch had been using A.I. to generate stories about local sports. Head scratching and hilarity ensued.     According to (a presumably human reporter) at The Washington Post… The [A.I.] writer dubbed a football game between central Ohio’s Westerville North and Westerville Central a “close encounter of the athletic kind.” Another story about a game between the Wyoming Cowboys and Ross Rams described a scoreboard that “was in hibernation in the fourth quarter.” When Ayersville High School staged a late comeback in another game, a write-up of their win read: “The Pilots avoided the brakes and shifted into victory gear.” The Dispatch has since stopped letting the algorithm write its content. And I’m not here to dance on A.I.’s grave. I only want to remind us all to not get carried out to sea on a wave of hype – any hype about anything. To be fair, every innovation has its growing pains. I remember when the music on your average compact disc sounded like a bottle of bees. And remember when early adopters of GPS were driving their cars into cornfields because the automated voice told them to keep straight? A.I. will be fine… And as investors, we’ll be fine if we focus on what matters with this or any other industry – the price action of the stocks involved. Right now there’s no such thing as the “A.I. sector.” But there is a Software sector (where you’ll find C3.ai) and a Semiconductors sector (where you’ll find Nvidia). Those two groups have been flourishing in part because of A.I. When those sectors are strong, we can expect stocks that live in those sectors to do better than stocks in weaker sectors. And we can expect that to be true no matter what the headlines say, whether those headlines are written by a guy named Al or by a machine running an algorithm. Thanks for reading this close encounter of the investing kind. Have a great weekend! Bill Spencer Editor-in-Chief, True Market Insiders P.S.: Here’s something important that many people miss. If "market timing" is WHEN you invest... And "allocation" is WHAT you invest in… Risk management comes down to HOW you invest. I bring that up because Chris Rowe uses (and teaches) a particular trading technique that has risk management built into it. Your trades come "pre-hedged" (if that’s a word). Also, because the trades are longer-term in nature… [this style of trading]( is perfect for new bull markets, which is what we’re in right now. [Here's a talk Chris prepared]( that tells you about this style of pre-hedged trading, and also gives you the names of some promising stocks.   [This Profit Play Is Music to Our Ears]( [Why We’re Not Headed Towards a Recession]( [Here’s My “Go To” Strategy For This Kind of Market]( [YouTube]( [Facebook]( [Twitter]( [Instagram]( [LinkedIn]( DISCLAIMER ©2023 by True Market Insiders, LLC, Protected by copyright laws of the United States and international treaties. This Newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of: True Market Insiders, 7901 4th St. N STE 6113 St. Petersburg, FL 33702. The information contained herein has been prepared without regard to any particular investor's investment objectives, financial situation, and needs. 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