What's Next for AI

A meeting of the (human) minds... Getting our heads around AI... Today's market action... When a pullback might end... Eric Wade's 'AI Internet' crypto pick... The 'reboot' is near... [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [Stansberry Digest] A meeting of the (human) minds... Getting our heads around AI... Today's market action... When a pullback might end... Eric Wade's 'AI Internet' crypto pick... The 'reboot' is near... --------------------------------------------------------------- It's the 'boom and take off stage'... That was the opening salvo from Crypto Capital editor Eric Wade this morning during a panel discussion about the potential of artificial intelligence ("AI")... Attendees were sitting, as I (Corey McLaughlin) am now, in a large conference room on Maryland's Eastern Shore for Stansberry Research's quarterly "offsite" meeting. Dozens of our editors, analysts, and other staffers gathered for the day to pitch investment ideas and discuss some of the biggest stories in the economy (and the world in general). Today, AI is undoubtedly one of these. If you follow the markets at all, excitement over AI has been buzzing for more than a year... ever since ChatGPT took off and chipmaker Nvidia (NVDA) blew past earnings estimates thanks to demand for its AI-related products. If you're like me, the prospect of AI being an increasing part of our lives is one part overwhelming, another part concerning, and another large part uncertain. What will a world with AI "all over" look like? What will it do? And what will it not? Getting our heads around AI... This morning, a few of our editors and business associates had a terrific discussion addressing these questions... The answers touched on topics ranging from which jobs and industries might be on the chopping block... to the little-understood idea about the amount of energy that will be needed to run AI globally... to the threats to people and governments from it... and whether this all mirrors the dot-com bubble at the start of this century... I wish everyone could have heard the talk, and I will try to share more from it in the weeks and months ahead. I'll start with just one big point about AI right now – and, to close today's edition, share a heads-up about a brand-new AI-related investment. They both come from Eric, who started our meeting this morning by describing at which point of the AI "boom" we might be. In short, it's still early, but "the real use cases are further along than most people think." As Eric continued... In my mind, it's going to get a little bit more tangible and addressable beyond just "AI is the investment." We're going to start sorting out and shaking out the companies that don't use AI, or consumer products that wouldn't have existed without it... He likened it to the development of the Internet decades ago... The Internet was out there for 30 years before consumers knew what to do with it. There were a lot of fiefdoms... and at some point, the people who run the Internet thought, "What if we were all programming this the same way and could agree on some standards?" And boom, it took off after that. We're at that stage with AI, the "boom and take off" stage, and that's exciting. Several editors also spoke about why they believe in the productivity gains that AI technology will deliver to the economy... and how this will support higher profit margins and stock prices on balance. And one final takeaway from it all: Some companies will win bigger from AI than others – and some of these businesses might not even exist yet. But there will also be AI "bubble" losers that could go down much like the infamous example of Cisco Systems (CSCO) from the dot-com bust. Before we get into more about AI, though, let's talk about today's market action... Volatility picked up in the market on Friday on reports of an imminent Iranian attack against Israel – which was orchestrated Saturday night – and the major U.S. stock indexes saw losses accelerate yesterday. The S&P 500 Index finished down 1.2% yesterday, closing below its 50-day moving average (50-DMA) for the first time since November. It continued trading below this short-term technical average today and finished slightly lower... I've written multiple times this year that the markets have been defined in early 2024 by a steady "churn" higher. The major U.S. indexes sold off for at least two consecutive days more than 10 times, but rebounded in each instance... Until now. So far. How will this chart – and the market – resolve? Because the Dow Jones Industrial Average, tech-heavy Nasdaq Composite Index, and small-cap Russell 2000 Index look similar lately. Each has broken below its 50-DMA recently, starting with the Dow on April 9. We can't know for sure what will come next, but this is clearly an inflection point to watch. Either the trend of the first three months of 2024 and a steady uptrend since last November will continue (soon)... or more downside could be ahead. Should the S&P 500 continue falling to its longer-term 200-day moving average, the damage would be another 8% drop. The bull and bear cases... Our friend and Ten Stock Trader editor Greg Diamond is watching the markets closely right now (and always). He was tracking a reversal in yesterday's action, from a higher open to stocks selling off, and he sent his subscribers [an alert to book a 10% gain]( on a bearish position on the financial sector. Today, Greg outlined to subscribers the bull and bear cases moving ahead. He used the Dow as an example. He noted that indicators like the relative strength index ("RSI") are currently in "oversold" territory "near the same levels we saw back in late 2023 that marked significant lows," and then shared possible scenarios for what might come next. Existing Ten Stock Trader subscribers and Stansberry Alliance members can [find all the details about his bull and bear cases here]( but I can tell you he's eyeing up early May as a time when we'll know an answer. As he wrote... With earnings, inflation data, and the Federal Reserve meeting on May 1, we have to see how the market discounts these catalysts versus what's happening in the Middle East. Today, Greg also analyzed the recent path of [Treasury rates and oil prices]( which rose on the fears about what might happen during and after Iran's telegraphed attack on Israel and whether it would further hamper global oil supplies. One way to spot when this pullback might end... Today, DailyWealth Trader editor Chris Igou shared an indicator [with his subscribers]( that has proved accurate at predicting the last few significant market "corrections." And it's compelling enough, and Chris explained it so well, that I want to share it here. It's called the bullish percent index ("BPI"). As Chris explained... It shows us the percentage of stocks in an index that are in a bullish pattern. You want to pay attention when the BPI shows a "very bullish" or "very bearish" reading. In those cases, reversals often follow. When the indicator is low – say below 30 – we know the trend is bearish. That typically happens when the Dow is in a sharp downturn. It tells us that almost every stock is falling lower. The opposite reading – a BPI above 70 – tells us that this index has been rallying higher and the majority of the stocks in the index are up. If even a handful of those that were in uptrends start to fall, it can create downward pressure. As such, this is a useful indicator for spotting potential tops and gauging whether a pullback might be close to ending. Here's what he sees now... The Dow had been in "overbought" territory for all 2024 until this last bout of volatility. As Chris showed... And as he explained... The first case to highlight was in August 2022. The Dow was overbought and started to turn lower. It fell nearly 16% by the end of September. Then, the Dow went on to rally through November. The index ended up back in overbought territory. This time, it didn't fall as hard. But it fell for longer, dropping 8% from the end of November 2022 into mid-March of 2023. The latest case was in August 2023... The broad index was ripping higher and in overbought territory by August 1. Then it fell 6.6% over three months. Each of these drawdowns differed in depth and how long they lasted. But one signal stands out... and that's when the Dow falls from overbought territory into "oversold" territory based on BPI. The Dow hit a peak roughly two weeks ago, as Chris noted and we mentioned earlier, and this indicator suggests to him that "we're in the early innings of a pullback." In short, Chris doesn't suggest "buying the dip just yet" but instead recommends allowing this indicator to swing to the other extreme. That, he says, is when the worst of a pullback should be behind the market. Now, about that AI idea... Just this evening, Eric also sent a brand-new recommendation to his Crypto Capital subscribers – and as with his remarks to fellow editors today, it directly involves the powerful trend of AI... In his latest monthly issue, Eric recommended a startup seeking to create what he describes as an "AI Internet" that brings together AI innovators, data providers, businesses, and infrastructure providers. He believes this project could become a leader in the massive AI space. And an early investment in a little-known cryptocurrency "token" tied to it could lead to 7X gains in the near term... with 100X gains possible over the long term. The 'reboot' is days away... As Eric is also explaining right now, bitcoin, the world's most popular cryptocurrency, is just days away from a "reboot" – a once-every-four-year event that has regularly served as a catalyst for new highs for bitcoin and many smaller "altcoins." Eric expects similar new highs to come, and he predicts that this time will be the "last and biggest true mania" in cryptos. That means you'll want to get positioned for it now. And there's no better person to follow than Eric. As we explained last week, Eric has racked up so many big winners that we've needed to create a crypto-only Hall of Fame at the bottom our daily Digest e-mail. And he has recommended more 1,000% winners than any other Stansberry Research analyst – solely by using cryptocurrencies. He has long recommended "blue chip" cryptos like bitcoin and Ethereum (racking up big gains in doing so), but he also publishes deep research on little-known coins that can deliver mind-blowing gains... as he did today in his new Crypto Capital issue. If you don't already subscribe to Crypto Capital or have access as a Stansberry Alliance member, [click here to watch this free presentation from Eric](. He'll explain why he expects a broad "Melt Up" in cryptos this year, share the details about the imminent "reboot" that will be the catalyst... and tell you how you can get access to all of his research in Crypto Capital, including today's brand-new "AI" recommendation. (And if you already receive Crypto Capital, you can check out Eric's new recommendation [right here]( On this week's Stansberry Investor Hour, Dan Ferris and I are joined by Gary Mishuris, a 20-year market veteran who serves as chief investment officer and managing partner of Silver Ring Value Partners. Among other things, Gary shared wisdom about investor psychology... "Investing at its heart is two things: It's processing information, and it is self-control – so acting on information," he said. That includes accepting short-term pain to follow your long-term strategy... [Click here to watch the interview with Gary now](... and to hear our full audio version of the Stansberry Investor Hour (where Dan and I discuss last week's "hot" CPI numbers, gold, and more), visit [InvestorHour.com]( or find the show wherever you listen to your podcasts. --------------------------------------------------------------- Recommended Links: [100X Potential Recommendation Goes Live at 5 p.m. Eastern Time Today]( The man who has booked more 1,000% gains than anyone else at our firm just met with a former Nvidia engineer. He pointed him to a tiny investment that could make you 100 times your money if you get in now. It's "like buying Nvidia for pennies," he says. [He's posting the ticker today at 5 p.m. Eastern time](. --------------------------------------------------------------- ['This Is How I'd Invest $1 Million Today']( Legendary investor Whitney Tilson just posted a new portfolio of stock picks. He isn't buying the Magnificent Seven... or putting an equal amount of cash into each. Instead, he's using the Monte Carlo method to see which of 4,817 stocks could double your money. [Click here for the full details](. --------------------------------------------------------------- New 52-week highs (as of 4/15/24): SPDR Gold Shares (GLD), Sprott Physical Gold Trust (PHYS), Sprott Physical Silver Trust (PSLV), iShares Silver Trust (SLV), ProShares Ultra Gold (UGL), and United States Commodity Index Fund (USCI). In today's mailbag, feedback on Stansberry Credit Opportunities editor [Mike DiBiase's essay yesterday]( making the case for no "soft landing" ahead... and more feedback about the Baltimore bridge collapse... Do you have a comment or question? As always, e-mail us at feedback@stansberryresearch.com. "I just read your very convincing column outlining the data which points in the direction of a 2008 recession repeat. Then I read the [Wall Street Journal] front-page column 'Economic Forecasters See Good Times Ahead,' which was immediately followed by the sound of my head exploding. "The Journal surveyed 69 economists, but I believe I know which information I trust. Thanks for all the great advice." – Subscriber Kathy D. "Good evening! I was thinking the same thing [Karen T.] wrote [in yesterday's mail] about the veracity of the bridge passing ALL inspections recently. I'm a retired nurse, not a structural engineer but even I could see on the video as the ship had cruised into the cement pillar or pile on the left, it seemed almost immediately the entire bridge (including the right cement pillar) had collapsed onto itself. I commented to a few friends as to why a protective barrier or support system was not built around the two cement pillars (I only saw two) that collapsed?" – Subscriber Jan H. "As a structural engineer with 45 years of experience, the Francis Scott Key Bridge collapse did not occur because it was substandard or had been environmentally damaged, but because the support pier was destroyed, triggering a progressive collapse of the remaining parts of the bridge, which were co-dependent on the structural integrity of the other parts of the bridge. If the bridge had been struck at midspan between the supports, it would have had the same effect as hitting the pier, and caused a complete collapse as well." – Subscriber Jim T. "The Francis Scott Key bridge was an accident waiting to happen. It had no protective riprap [stones] surrounding the pier such that any vessel would have run aground before it impacted the pier." – Subscriber Ron A. All the best, Corey McLaughlin Cambridge, Maryland April 16, 2024 --------------------------------------------------------------- Stansberry Research Top 10 Open Recommendations Top 10 highest-returning open stock positions across all Stansberry Research portfolios Investment Buy Date Return Publication Analyst MSFT Microsoft 11/11/10 1,359.6% Retirement Millionaire Doc MSFT Microsoft 02/10/12 1,313.8% Stansberry's Investment Advisory Porter ADP Automatic Data Processing 10/09/08 886.5% Extreme Value Ferris WRB W.R. Berkley 03/16/12 748.3% Stansberry's Investment Advisory Porter BRK.B Berkshire Hathaway 04/01/09 609.7% Retirement Millionaire Doc HSY Hershey 12/07/07 448.0% Stansberry's Investment Advisory Porter AFG American Financial 10/12/12 442.5% Stansberry's Investment Advisory Porter TT Trane Technologies 04/12/18 371.7% Retirement Millionaire Doc NVO Novo Nordisk 12/05/19 348.7% Stansberry's Investment Advisory Gula TTD The Trade Desk 10/17/19 333.1% Stansberry Innovations Report Engel Please note: Securities appearing in the Top 10 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the model portfolio of any Stansberry Research publication. The buy date reflects when the editor recommended the investment in the listed publication, and the return shows its performance since that date. To learn if a security is still a recommended buy today, you must be a subscriber to that publication and refer to the most recent portfolio. --------------------------------------------------------------- Top 10 Totals 5 Stansberry's Investment Advisory Porter/Gula 3 Retirement Millionaire Doc 1 Extreme Value Ferris 1 Stansberry Innovations Report Engel --------------------------------------------------------------- Top 5 Crypto Capital Open Recommendations Top 5 highest-returning open positions in the Crypto Capital model portfolio Investment Buy Date Return Publication Analyst wstETH Wrapped Staked Ethereum 12/07/18 2,291.8% Crypto Capital Wade BTC/USD Bitcoin 11/27/18 1,587.3% Crypto Capital Wade ONE/USD Harmony 12/16/19 1,165.5% Crypto Capital Wade MATIC/USD Polygon 02/25/21 812.6% Crypto Capital Wade CVC/USD Civic 01/21/20 385.0% Crypto Capital Wade Please note: Securities appearing in the Top 5 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the Crypto Capital model portfolio. The buy date reflects when the recommendation was made, and the return shows its performance since that date. To learn if it's still a recommended buy today, you must be a subscriber and refer to the most recent portfolio. --------------------------------------------------------------- Stansberry Research Hall of Fame Top 10 all-time, highest-returning closed positions across all Stansberry portfolios Investment Symbol Duration Gain Publication Analyst Nvidia^* NVDA 5.96 years 1,466% Venture Tech. Lashmet Microsoft^ MSFT 12.74 years 1,185% Retirement Millionaire Doc Inovio Pharma.^ INO 1.01 years 1,139% Venture Tech. Lashmet Seabridge Gold^ SA 4.20 years 995% Sjug Conf. Sjuggerud Nvidia^* NVDA 4.12 years 777% Venture Tech. Lashmet Intellia Therapeutics NTLA 1.95 years 775% Amer. Moonshots Root Rite Aid 8.5% bond 4.97 years 773% True Income Williams PNC Warrants PNC-WS 6.16 years 706% True Wealth Systems Sjuggerud Maxar Technologies^ MAXR 1.90 years 691% Venture Tech. Lashmet Silvergate Capital SI 1.95 years 681% Amer. Moonshots Root ^ These gains occurred with a partial position in the respective stocks. * The two partial positions in Nvidia were part of a single recommendation. Editor Dave Lashmet closed the first leg of the position in November 2016 for a gain of about 108%. Then, he closed the second leg in July 2020 for a 777% return. And finally, in May 2022, he booked a 1,466% return on the final leg. Subscribers who followed his advice on Nvidia could've recorded a total weighted average gain of more than 600%. --------------------------------------------------------------- Stansberry Research Crypto Hall of Fame Top 5 highest-returning closed positions in the Crypto Capital model portfolio Investment Symbol Duration Gain Publication Analyst Band Protocol BAND/USD 0.31 years 1,169% Crypto Capital Wade Terra LUNA/USD 0.41 years 1,166% Crypto Capital Wade Polymesh POLYX/USD 3.84 years 1,157% Crypto Capital Wade Frontier FRONT/USD 0.09 years 979% Crypto Capital Wade Binance Coin BNB/USD 1.78 years 963% Crypto Capital Wade You have received this e-mail as part of your subscription to Stansberry Digest. If you no longer want to receive e-mails from Stansberry Digest [click here](. Published by Stansberry Research. You’re receiving this e-mail at {EMAIL}. Stansberry Research welcomes comments or suggestions at feedback@stansberryresearch.com. This address is for feedback only. 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