How to Protect Yourself From the 'AI Hype'

In today's Masters Series, adapted from the May 2 and June 9 Chaikin PowerFeed daily e-letters, Marc details how AI developments are generating buzz in the markets... compares this buzz with the hype during the dot-com bubble... and reveals how you can prevent the excitement around AI from clouding your judgment... [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [Stansberry Master Series] Editor's note: Don't let the hype lead you astray... With artificial intelligence ("AI") rapidly growing right now, many market experts are exploring the technology sector to identify how to take advantage of AI while it's still in its early stages. But according to Marc Chaikin – founder of our corporate affiliate Chaikin Analytics – history shows AI isn't guaranteed to have a positive impact in the markets... That's why Marc believes it's critical for investors to avoid rushing into investment decisions right now in order to avoid devastating losses. In today's Masters Series, adapted from the May 2 and June 9 Chaikin PowerFeed daily e-letters, Marc details how AI developments are generating buzz in the markets... compares this buzz with the hype during the dot-com bubble... and reveals how you can prevent the excitement around AI from clouding your judgment... --------------------------------------------------------------- How to Protect Yourself From the 'AI Hype' By Marc Chaikin, founder, Chaikin Analytics I've spent my career on the leading edge of technology... Wall Street demanded it, after all. You see, great technical systems often require great technology. And that's especially true if you plan to sell that analysis to Wall Street's titans like I did over the years. Still, technology moves very quickly these days... We're awash in talk of AI. And tech giant Apple (AAPL) just released plans for a $3,499 "augmented reality" headset that looks like it's from a science-fiction movie. Now, we hadn't yet landed on the moon when I started my career in finance... Longtime readers know I've joked about that point in Chaikin PowerFeed before. But it speaks to how far we've come with technology over the past five-plus decades. AI is everywhere these days. I just searched "AI 7/13/23" in the Google search engine. And I got 207 million results. Changing the search to "AI 7/13/22" cut the results down to about 8 million. And switching it to "AI 7/13/19" produced only 2.7 million results. In other words, we're hearing about AI more now than ever before... --------------------------------------------------------------- Recommended Link: # [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](. --------------------------------------------------------------- Just check out the recent conference-call discussions from tech giants Microsoft (MSFT), Alphabet (GOOGL), Nvidia (NVDA) – and of course, Meta Platforms (META). I counted the number of times someone said "AI" on Meta Platforms' quarterly conference calls in the first quarter of 2022 and the first quarter of this year. Here's what I found... In other words... Meta Platforms' mentions of "AI" grew 188% over the previous year. People love to say "AI" these days. It reminds me of how cool it was to say "dot com" at the start of the 21st century. Heck, many non-tech companies even added it to their names. Of course, the dot-com hype ultimately devastated many investors. The Invesco QQQ Trust (QQQ) crashed more than 80% in the two-plus years after its March 2000 high. Now, we need to protect ourselves against an AI-driven encore. My point is simple... Don't let any hype steer your investment decisions. Watch closely and follow the evidence. The Power Gauge can help us do that... You see, the Power Gauge analyzes exchange-traded funds ("ETFs"). And to complete that analysis, the system dives into each of the individual stocks within the ETFs. But something bigger is going on in the broad market, too. This trend jumped out at me in the Power Gauge... Today, I want to draw your attention to two specific ETFs... - The SPDR Portfolio S&P 500 Value Fund (SPYV) - The SPDR Portfolio S&P 500 Growth Fund (SPYG) As their names imply, these two ETFs focus on different types of stocks. SPYV tracks value stocks. And SPYG is a key gauge for growth stocks. Folks, what I saw in the Power Gauge is simple but important... The market is tilting back toward growth. You can see clearly that growth stocks are outperforming value stocks once again. In fact, SPYG has roughly doubled the performance of SPYV since the start of this year... So where does that leave us with Apple? I don't know how the company's $3,499 headset will do in the market. The launch price seems steep. And it's still hard to say how many folks will embrace augmented reality. But Apple is a proven tech innovator. So when it brings something so attention-grabbing to the market, it's wise to pay attention. In the end, we can trust the Power Gauge as our guide... Our system sees opportunity ahead for Apple. It holds a "bullish" rating on the company right now. And the stock is outperforming the broad market – by a lot... Apple is up more than 40% this year. And the S&P 500 Index is only up around 18%. So as you can see, we don't need to know all the ins and outs of Apple's latest gadget. With the Power Gauge's help, we can simply focus on what this means for us as investors... More broadly, the tech sector is soaring once again. And the excitement around AI is adding fuel to the fire... The tech-heavy Nasdaq Composite Index is up more than 30% so far this year. And the Power Gauge remains "bullish" on the space. Look, I know the AI hype will keep growing. But let's watch it closely in the Power Gauge... If companies like Meta Platforms and Apple start flipping to "bearish," we'll know it's time to get out. It won't matter how many more times people say "AI" in upcoming conference calls. Follow the evidence, not the hype. The market is shifting back toward a growth mentality. Growth stocks are outperforming. And investors' appetite for risk and innovation is back on the upswing. As the market is looking for new growth opportunities, we don't want to sit on the sidelines... Good investing, Marc Chaikin --------------------------------------------------------------- Editor's note: AI has the potential to shape the investment landscape for years to come. And it just shattered one of the most important barriers in technological history... That's why Marc is teaming up with Retirement Millionaire editor Dr. David "Doc" Eifrig for an online presentation on Wednesday, July 19 to reveal how this momentous breakthrough could help you transform your wealth. [Click here to get the full details](... --------------------------------------------------------------- Recommended Link: # [The U.S. Dollar's Biggest Innovation Since 1971 Begins This Month]( The U.S. dollar is "going crypto" beginning this month. If you get positioned now, you could make 3,050%. At the very least, you should move some cash into Harmony (ONE) immediately. [Click here to learn more](. --------------------------------------------------------------- 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. 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