The AI Debate You'll Want to Hear

Almost the same story, different day... Debunking an old Wall Street adage... What to make of the artificial-intelligence buzz... What we said three years ago... People care more now... Bubble or not?... The AI debate you'll want to hear... [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [Stansberry Digest] Almost the same story, different day... Debunking an old Wall Street adage... What to make of the artificial-intelligence buzz... What we said three years ago... People care more now... Bubble or not?... [The AI debate you'll want to hear](... --------------------------------------------------------------- We could almost do a copy-and-paste job from yesterday... Almost. The major U.S. indexes were again up across the board – with the U.S. benchmark S&P 500 Index almost 1% higher – at least in part because the producer price index ("PPI") report for June was published this morning. This set of economic data reflects wholesale prices paid by businesses... whether they're rising or falling, and by how much. It's thought of as a leading indicator of inflation trends, since the prices producers pay can take time to be passed through to consumers. Yesterday, the consumer price index ("CPI") for June came in slightly below Wall Street expectations, putting enough investors into a celebratory mood. Today appeared to be the same deal with the PPI, which registered growth of 0.1% in June... half of what economists were thinking. So prices are rising more slowly than expected, both those paid by people and by businesses that make and sell things. (They're always rising somewhat thanks to a fiat-currency system, but the pace is what investors are interested in today.) Put that together, and you get what we saw in the markets the past two days: Nearly everything – stocks, bonds, gold, bitcoin – has been up, except the U.S. dollar. It feels like the opposite of 2021 and early 2022... That's when CPI and PPI numbers kept climbing by more than Wall Street was expecting. That caused investors to determine that the Federal Reserve would eventually raise interest rates and slow the pace of higher prices, which it did. If the official inflation numbers keep falling by more than expected now, it could mark a growing belief that rate hikes are near their end. Whether that is actually the case is another discussion. Today, I (Corey McLaughlin) am telling you what we see. We're always going to take "official" government data with a heaping dose of skepticism. And we'll also again note that the Fed purports to look at another inflation metric – core personal consumption expenditures, which is at 4.6% annual growth at last check... showing stickier inflation than PPI and CPI may indicate. Nevertheless, enough people with enough money in the markets care about the data published this week. Party on. One thing is for sure... The "sell in May and go away" crowd is missing out... I bring this up mostly to make a point that certain popular Wall Street adages can often be absurd and not worth listening to. Think for yourself instead. There's truth to some sayings, such as "don't fight the Fed." But blindly following antiquated phrases turns out to be precisely the wrong decision. Take "sell in May and go away." This has roots in the idea that pre-Internet Wall Streeters might have been inclined to sell positions at the start of the summer, so they wouldn't have to worry about ruinous losses striking while they're away from their desks on vacation. If that's conventional wisdom, it was no good this year. The S&P 500 is up about 8% since May 1, and the tech-heavy Nasdaq Composite Index is around 15% higher. You can trade from virtually anywhere there's an Internet connection now. And more common than selling for the summer is using artificial-intelligence ("AI") programs to make trades. Whether a human trader is around or not, these AI traders know how to respond to price movements, a report like the CPI or PPI, or even the words of an important speech. Speaking of that... We've mentioned the recent buzz about AI a few times this year... We've warned against getting swept up in any euphoria around it, but we've also noted that the technology will likely transform the way many businesses operate, how people work, and what skills are valued in the years ahead. This isn't a new discussion... The potential of AI has been talked about for years. But the development of tools like a new version of ChatGPT earlier this year reignited the story for a lot of people and created more bullishness around AI. I first wrote about GPT-3 technology back [in a September 2020 Digest]( titled "A Robot Wrote This"... Developed by San Francisco-based company OpenAI, GPT-3 has been "trained" on billions of bytes of data... including e-books, news articles, and Wikipedia. As directed, it takes a prompt... and attempts to complete it. We then shared a story of a college computer-science student who directed the technology to write a series of essays with some degree of success. (Fortunately, they required editing like the human version, so we weren't worried about it putting us out of a job.) And in 2020, we also noted the growth opportunities for AI... We shared the story about a "robot writing an article" not to scare anyone, but to simply point out that "AI has arrived," saying... You can be optimistic or pessimistic about these technologies changing the way a lot of people do business and perceive the overall job market... But no matter your stance, it wouldn't be wise to ignore these trends completely. Some of the biggest companies in the world – and highest-returning stocks – are investing heavily in this space... And our editors have been tracking the developments for years. In that September 2020 essay, we mentioned Stansberry Venture Technology editor Dave Lashmet calling AI "artificial brains"... and how he'd first recommended owning shares of Nvidia (NVDA) – now an AI poster child – back in May 2016, when it traded for roughly $45 per share. That recommendation – since closed with a weighted gain of more than 600% – now appears in our Stansberry Research Hall of Fame. Back when Dave initially recommended Nvidia, the chipmaker was known mainly for making graphics cards for video-game systems. But by 2020, it was already making technology with "lots of deep learning capabilities too," Dave told us. As we wrote that year... A lot of folks don't realize that "deep learning" technology, a kind of machine learning, goes hand-in-hand with microchips... For instance, Nvidia's RTX 3080 chip uses algorithms to predict where light rays should be on a gamer's screen... and it does it at twice the speed of the chips used in Sony's new PlayStation 5 and Microsoft's Xbox Series X gaming consoles. As Dave told us of this new Nvidia chip, "It's both a video game story and an AI story." This new chip allows 4K gaming at very fast refresh rates – 90 times per second, which is faster than the human eye can see. And the very same idea of "deep learning" has a wide variety of applications, which makes its potential market massive. Dave says these technologies could be used for content creation, as the "robot article" shows, as well as for something yet unimagined or totally unrelated – like driverless cars... We also talked about how a longtime favorite company of our Dr. David "Doc" Eifrig – Microsoft (MSFT) – had just lost out on securing the underlying code to social media platform TikTok... but may have made out better with a recent exclusive license deal with OpenAI for GPT. That said, the primary feedback I received three years ago about AI was along the lines of "move on to something else." My, has that tone changed now. Everyone wants to talk about GPT and AI now. And so we are again, too... The AI debate you'll want to hear now... We've received countless questions about the AI craze. And next Wednesday, July 19, we've put together a special event to give you our full and unbiased answers. In this free event, Doc is going to sit down with 50-year Wall Street veteran Marc Chaikin, the founder of our corporate affiliate Chaikin Analytics, to debate the latest buzz around AI and what to make of it. Is this just the latest tech bubble? Or will AI really change the world and the economy for decades to come? And, importantly, what does AI mean for you and your money? Doc and Marc plan to cover all of these topics in what we expect to be an enlightening discussion. As Doc says... Marc and I have very different investing philosophies. But I asked Marc to join me because he's spent decades on the leading edge of applying new technological breakthroughs to the field of finance. Not to mention, Marc has a higher-level understanding of systems and neural networks than anyone else we know of. As Doc's alluding to, Marc has created several different technologies and indicators that are used by some of Wall Street's biggest firms today. He also happened to use them to predict the COVID-19 crash... the market bottom in March 2020... and a "bullish personality shift" in stocks late last year. In other words, expect to get some useful market analysis with the AI talk as well. As Doc says, if you've given any thought to investing in the AI sector, or simply wish to become better informed on this subject so you can educate your friends or loved ones on what's really happening, tune in to this event on Wednesday, July 19. It's 100% free to tune in, and we urge you to. This is the first time Doc and Marc will share a stage, and they are two of the brightest investing minds we know. We just ask that you sign up in advance so you don't miss anything. [You can do that here right now](. McCall: Taking Your Stock-Pick Requests On his latest Making Money podcast, Matt McCall shares an analysis of listeners' eight most-requested stocks. Some could be big winners, he says, but others he's not as upbeat about... [Click here]( to watch this video right now. For more free video content, [subscribe to our Stansberry Research YouTube channel](... and don't forget to follow us on [Facebook]( [Instagram]( [LinkedIn]( and [Twitter](. --------------------------------------------------------------- Recommended Links: [Must-See: The AI Story No One's Telling in 2023]( On Wednesday, July 19, Wall Street legends Dr. David Eifrig and Marc Chaikin will share the most critical story for you and your money today: How artificial intelligence ("AI") will reshape the investing landscape for everyday Americans in 2023. For the first time ever, they're joining forces to cut through the hype and help you find the real opportunities to position yourself to grow your wealth. [Click here to get access](. --------------------------------------------------------------- [Here's What You Missed This Week]( It was a stunning discovery: One subscriber has cost Stansberry Research more than $10 MILLION over the past four years – money he legally "redirected" from our potential coffers... right to yours. When we found out, we invited him to our Baltimore office to explain. Find out what happened... and how it affects YOU now in a big way, [right here](. --------------------------------------------------------------- New 52-week highs (as of 7/12/23): Adobe (ADBE), Ansys (ANSS), A.O. Smith (AOS), Berkshire Hathaway (BRK-B), Salesforce (CRM), Commvault Systems (CVLT), D.R. Horton (DHI), DraftKings (DKNG), EHang (EH), iShares MSCI Emerging Markets ex China Fund (EMXC), Floor & Decor (FND), Fortive (FTV), Gambling.com (GAMB), Global X MSCI Greece Fund (GREK), Intercontinental Exchange (ICE), iShares Convertible Bond Fund (ICVT), Iron Mountain (IRM), iShares U.S. Home Construction Fund (ITB), JPMorgan Chase (JPM), Lennar (LEN), Meta Platforms (META), MYR Group (MYRG), New York Community Bancorp (NYCB), O'Reilly Automotive (ORLY), Invesco S&P 500 BuyWrite Fund (PBP), PulteGroup (PHM), ProShares Ultra QQQ (QLD), Rollins (ROL), S&P Global (SPGI), Spotify Technology (SPOT), SPDR Portfolio S&P 500 Value Fund (SPYV), ProShares Ultra S&P 500 Fund (SSO), TE Connectivity (TEL), Trane Technologies (TT), The Trade Desk (TTD), Visa (V), VMware (VMW), Vanguard 500 Index Fund (VOO), and West Pharmaceutical Services (WST). In today's mailbag, feedback on a note in [yesterday's Digest]( about the U.S. government spending 10 cents to make every new nickel, and apparently losing $51 million a year because of it (and the 2.7 cents cost per penny made, too)... Do you have a comment or question? As always, e-mail us at [feedback@stansberryresearch.com](mailto:feedback@stansberryresearch.om). "In Canada, we got rid of the penny coin a few years ago. All pennies were collected and melted down as a useful alloy. Transactions were rounded down or up to the nearest nickel. The public got it right away and it created no disruption whatsoever. Why can Congress not enact that in the U.S. also?" – Subscriber Gerd S. All the best, Corey McLaughlin Baltimore, Maryland July 13, 2023 --------------------------------------------------------------- Stansberry Research Top 10 Open Recommendations Top 10 highest-returning open positions across all Stansberry Research portfolios Stock Buy Date Return Publication Analyst MSFT Microsoft 11/11/10 1,226.1% Retirement Millionaire Doc MSFT Microsoft 02/10/12 1,058.3% Stansberry's Investment Advisory Porter ADP Automatic Data 10/09/08 810.7% Extreme Value Ferris wstETH Wrapped Staked Ethereum 02/21/20 634.1% Stansberry Innovations Report Wade HSY Hershey 12/07/07 577.4% Stansberry's Investment Advisory Porter WRB W.R. Berkley 03/16/12 525.0% Stansberry's Investment Advisory Porter BRK.B Berkshire Hathaway 04/01/09 512.3% Retirement Millionaire Doc AFG American Financial 10/12/12 401.6% Stansberry's Investment Advisory Porter TTD The Trade Desk 10/17/19 341.9% Stansberry Innovations Report Engel ALS-T Altius Minerals 02/16/09 318.6% Extreme Value Ferris 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 4 Stansberry's Investment Advisory Porter 2 Extreme Value Ferris 2 Retirement Millionaire Doc 2 Stansberry Innovations Report Engel/Wade --------------------------------------------------------------- Top 5 Crypto Capital Open Recommendations Top 5 highest-returning open positions in the Crypto Capital model portfolio Stock Buy Date Return Publication Analyst wstETH Wrapped Staked Ethereum 12/07/18 1,500.1% Crypto Capital Wade ONE-USD Harmony 12/16/19 1,070.1% Crypto Capital Wade POLY/USD Polymath 05/19/20 1,033.5% Crypto Capital Wade MATIC/USD Polygon 02/25/21 816.1% Crypto Capital Wade BTC/USD Bitcoin 11/27/18 709.9% 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 Band Protocol crypto 0.32 years 1,169% Crypto Capital Wade Terra crypto 0.41 years 1,164% Crypto Capital Wade Inovio Pharma.^ INO 1.01 years 1,139% Venture Tech. Lashmet Seabridge Gold^ SA 4.20 years 995% Sjug Conf. Sjuggerud Frontier crypto 0.08 years 978% Crypto Capital Wade Binance Coin crypto 1.78 years 963% Crypto Capital Wade 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 ^ 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%. 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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