How Not to Invest With AI

In today's Masters Series, adapted from the July 17 issue of the Chaikin PowerFeed daily e-letter, Marc explains why AI has exploded in popularity... highlights an important factor in AI investing... and details how you can uncover viable investment opportunities amid today's AI craze... [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [Stansberry Master Series] Editor's note: [Ignoring the negative signs is an easy way to get burned](... With the development of tools like ChatGPT quickly growing popular, many people are bullish around artificial intelligence ("AI") right now. But according to Marc Chaikin – founder of our corporate affiliate Chaikin Analytics – this excitement is masking a dark spot in the AI trend... That's why Marc believes it's critical for folks to prevent themselves from rushing into AI investments in order to avoid huge losses as this trend unfolds. In today's Masters Series, adapted from the July 17 issue of the Chaikin PowerFeed daily e-letter, Marc explains why AI has exploded in popularity... highlights an important factor in AI investing... and details how you can uncover viable investment opportunities amid today's AI craze... --------------------------------------------------------------- How Not to Invest With AI By Marc Chaikin, founder, Chaikin Analytics I'm guessing many of you are still excited about the AI craze... I am, too. I can't help it. I've spent decades in finance, specifically focused on using computers to generate the highest returns possible. So, when a new computer tool promises to revolutionize the way we work... I take it seriously. And I'm having fun with it, too. Many of my colleagues have received an e-mail from me that included some content written with artificial intelligence ("AI"). I just love how incredibly natural AI writing sounds these days. It's truly an incredible leap. But that doesn't mean everything AI-related is golden. Today, we're going to explore a dark spot in AI. And we'll use the Power Gauge to help us with it. You see, the Power Gauge has identified a way not to invest with AI. And I think you should hear about what it has uncovered. After all, the fund literally has "AI" in its name. Now, astute readers will have noticed... today, we're talking about investing with AI rather than in AI. That's an important distinction. --------------------------------------------------------------- Recommended Link: [JUST IN: Why You Now Have 30 Days to Move Your Money]( Yes, we're back in a bull market... But two Wall Street titans warn that a transformative event is already in motion... and it could absolutely shake up your retirement plans in the coming weeks. Together, they have more than 90 years of investing experience and now say what you do in the coming days could determine your wealth for the next decade. [Here's what you need to know](. --------------------------------------------------------------- Sure, there are lots of great, and not-so-great, ways to play the AI trend. But some investment tools available to investors also claim to use AI in their processes. The one we're looking at today is the AI Powered Equity Fund (AIEQ). At first glance, that name looks great. Bigwigs on Wall Street put together an exchange-traded fund that's specifically powered by AI. But looking at the performance... we can quickly see something is wrong. Over the past year, the S&P 500 Index has made an incredible turnaround. And so has the Nasdaq Composite Index. They're up more than 17% and 23%, respectively. But AIEQ is struggling. It's simply not participating in the rally. It's not just a bad year for the fund either. Zooming out even more, we find that over the past five years, the fund has barely returned 12%. The S&P 500 clobbered it over that time frame with nearly 60% returns. The Power Gauge sees this, too. And today, the fund earns a "neutral" rating... Looking at the upper right-hand corner of the graphic, you'll see the Power Bar for the fund. That represents the Power Gauge rating for each of the individually rated stocks that the fund holds. Today, the majority of the stocks in the fund earn a neutral or worse rating from the Power Gauge. And I'm able to see that the fund ranks No. 129 of 166 funds in the "All Cap Blend" fund category. Put simply, this fund may have AI in its name, but the Power Gauge and fund's performance make it clear... This is not how you want to invest with AI. Now, that doesn't mean I'm not excited about AI. I'm particularly bullish about how investors can leverage these new tools in their own portfolios. And to give you a clue about where this is going, just remember... The AI craze is real. But that doesn't mean every part of it is perfect. 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 recently joined Retirement Millionaire editor Dr. David Eifrig to release a special presentation on the topic... They delved into whether AI is just another stock market bubble – or something that will really change the world and economy for good. Plus, they discussed how you can use AI to transform your wealth. [Click here to watch the full replay](... --------------------------------------------------------------- Recommended Link: [The Signs Are Clear... This Type of Crash Has Begun]( While the stock market hums along, a much bigger (and more important) market is flashing a huge warning – one that will definitely affect stocks... housing... and the entire economy. Ignoring this signal would be a big mistake. But billionaires (and some of the world's best analysts) LOVE this kind of turmoil because it's a chance to buy world-class investments for pennies on the dollar. The same setup led to 772% gains in 2009. [Get the full story here](. --------------------------------------------------------------- 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. For questions about your account or to speak with customer service, call 888-261-2693 (U.S.) or 443-839-0986 (international) Monday-Friday, 9 a.m.-5 p.m. Eastern time. Or e-mail info@stansberryresearch.com. 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