Letâs take a look through Early Stage Investor⦠[TradeSmith Daily]( Research Review: Early Stage Investor
By Michael Salvatore, Editor, TradeSmith Daily Last year, virtually any company involved in developing or using A.I. attracted tidal waves of capital. Problem was, many investors were caught up in fears about inflation, interest rates, and a recession that never came. They sat on the sidelines, paralyzed by fear, until well after the big money was made. But Luke Lango, editor of Early Stage Investor at our corporate partner InvestorPlace, canât count himself among them. To date, Luke has secured several major wins for his subscribers by opportunistically betting on the right A.I. stocks at the right time. More than that, heâs a voracious researcher and prolific writer who continually keeps his subscribers up to date on whatâs happening in the world of A.I., early-stage technology, and markets broadly. And his take is that [thereâs plenty more A.I. gains to come — if you know where to look](. I mention this because for the next week or so, InvestorPlace is running a presentation for Early Stage Investor centered around what Luke calls the A.I. Endgame. This âendgameâ refers to the advent of Artificial General Intelligence, a breakthrough in A.I. technology that would bring humanlike capabilities to A.I. If you havenât already, I suggest [checking out this presentation for yourself](. But today, Iâm going to share a look at whatâs on the other side of that presentation: an Early Stage Investor subscription. Early Stage Investor is a beast of an investment resource. If I were to cover every aspect of what you get in just one week as an Early Stage Investor subscriber, this issue would be about three times as long as the longest piece Iâve ever sent you. So today, Iâll share some highlights… And Iâll also share a look at the serviceâs overall track record. Itâs my hope that doing reviews like this will help highlight some of the best subscriptions in the business… and let you know exactly what to expect if you decide to join. RECOMMENDED LINK [Elon Muskâs âA.I. 2.0â Could Leave 800 Million Unemployed.](
Maybe youâve seen Goldman Sachsâs forecast that the $15.7 trillion A.I. revolution will impact 300 million jobs. But Elon Muskâs âA.I. 2.0â is already forcing organizations to ramp up those estimates. Now McKinsey analysts say it could leave 800 million unemployed, as Wired.com says 70% of occupations could be replaced. Where could you and your family stand in all this?
[Get details here]( Early Stage Investor in Review
Letâs start on one of the most value-packed elements of Early Stage Investor, the Daily Notes. This regular, in-depth research report goes over the broad market conditions, a few technical and fundamental highlights, portfolio updates, and more. For example, hereâs Luke leading off in Wednesdayâs Daily Notes about the inflation-related selloff the day before: With respect to todayâs inflation report, it really wasnât that bad at all. In fact, it was pretty good. Inflation dropped from 3.4% in December to 3.1% in January. So what if it dropped less than expected? Itâs still dropping and is darn close to 2%. And, as weâve noted before, the inflation fight excluding housing costs is over. Excluding shelter, inflation rose just 1.5% in January. Inflation ex housing has been running below 2% for several months now. Outside of housing, inflation is dead. Sure, shelter inflation is still running at 6%. But thatâs falling, too, and leading indicators suggest it will keep falling towards 3% or lower over the next 12 months. Big picture: The general trend for the U.S. economy remains disinflation. This inflation report does not change that. Which only further means that todayâs stock market sell-off is simply a golden buying opportunity in smaller tech stocks ahead of the [A.I. Endgame](. And in a Daily Note from Thursday, these two bullets stuck out to me as a valuable and balanced piece of analysis on underlying market technicals and valuations:
- Technicals: bullish. Technical trends in the stock market are bullish. The stock market has bounced back very nicely from its post-CPI sell-off on Tuesday, and technical trends look very bullish. We think this is a market that is technically ripe to keep rallying.
- Valuation: bearish. The valuation outlook for stocks remains bearish. Treasury yields stabilized today, but stocks moved higher on the back of multiple expansion, so the Equity Risk Premium stayed below zero. So long as earnings yields are below Treasury yields, the valuation outlook on stocks will remain bearish. What follows is a quick-hit update on a number of portfolio positions, which I wonât share here out of respect for current subscribers. But as a subscriber, you can expect three to five bullets on stocks Luke recommends — things like major news developments, analyst coverage, or price action. Letâs keep rolling right into the longform research reports, a place that seriously impressed me. Since the second half of December, Early Stage Investor has published six individual research reports. These cover everything from Lukeâs top investment themes for 2024, to a massive and in-depth overview of where A.I. technology is at now and where itâs headed, to several reports with recommendations for individual companies Luke recommends to take advantage of the trend. On that latter count, one report recommends three stocks participating in the A.I. health care trend we [featured last weekend]( five A.I. stocks Luke believes are set to 10x over the long haul… seven A.I. stock âmoonshotsâ with, as Luke puts it, 100x potential… and for the options traders with a stomach for a little more risk, three long-dated call options trades on the A.I. theme. So all told, when you sign up today, youâre getting 18 thoroughly researched recommendations on investments in the A.I. space. Thatâs enough to build a robust and multifaceted portfolio on this theme — almost like an A.I. ETF. I have to call out one thing I especially admire about the options report. Luke does not mince words about the risk associated with options, which have the potential to produce substantial gains, while also presenting the substantial risks of losing most or all of your investment: For investors who are willing to put some additional risk on the table — and who truly believe in the A.I. Endgame thesis — now is finally a good time to consider options. In particular, long-term equity anticipation securities, or âLEAPS.â As noted above, we have very high conviction in the broadening out of the A.I. Revolution. And so, we want to add some leverage via long-call exposure to the portfolio to potentially benefit from this pivotal moment. To be clear: We canât tell you if you are in a position to trade options. That is a decision that must be made by you and your broker based on several factors. We recommend you contact your broker if you have questions about the risks and characteristics of stock options, as these can be somewhat complicated products. We will say, however, that options are not for your lunch money. They are risky and should be treated as such. I appreciate Lukeâs candor here. Options, while a fantastic trading tool in the right hands, are not for everyone. And they require a bit of know-how to get going. Knowing to communicate that ahead of the three recommendations instills a great sense of trust that Luke respects each readerâs individual risk tolerance. RECOMMENDED LINK [This $13 AI Stock Could Explode in 2024](
Elon Musk is planning a massive artificial intelligence UPGRADE. He could âflip the switchâ in a matter of months... sending the AI markets soaring higher. It wonât matter if you have $500... or $5 million to invest. Discover the #1 AI stock by [clicking this link](. Finally, letâs talk about the track record. Going back to 2018, Early Stage Investor has had 177 trades enter its model portfolio. Of those positions that were closed, wins and losses, the average return is more than 45%. Counting just the winning positions, the gain is 141%. The average hold time is 696 days, or just under two years. Thatâs not to say there are no losses. Losses in early stage tech are to be expected. But overall, Lukeâs portfolio has made much more money than itâs ever lost. And when youâre investing in the space he does, thatâs commendable. Itâs a volatile place where things can, and do, turn on a dime. Only you can decide ultimately if a newsletter like Early Stage Investor is right for you. But from everything Iâve seen, itâs one of the best long-term-focused speculative strategies Iâve ever seen. What sets it apart is how Luke so consistently speaks to his subscribers through the Daily Notes, regular video updates, and deliberate position management. The overall quality and depth of the research is high, too, giving you plenty to âgeek outâ on should you want to. I invite you to [check out Lukeâs recent presentation on the A.I. Endgame and Early Stage Investor]( and draw your own conclusions from it. And I hope youâve found this look into the newsletter itself useful. To your health and wealth, [Michael Salvatore]Michael Salvatore
Editor, TradeSmith Daily Get Instant Access
Click to read these free reports and automatically sign up for research throughout the week. [25 Doomed Blue Chip Stocks]( [3 Stocks to Build Your Wealth in 2024]( [5 Unapologetically Profitable Stocks for 2024]( [Download now on the Apple Store](
[Get It On Google Play]( [Customer Support: 866.385.2076](tel:+866-385-2076) | support@tradesmith.com
[Request Customer Service](mailto:support@tradesmith.com) ©TradeSmith, LLC. All Rights Reserved. You may not reproduce, modify, copy, sell, publish, distribute, display or otherwise use any portion of the content without the prior written consent of TradeSmith. TradeSmith is not registered as an investment adviser and operates under the publishersâ exemption of the Investment Advisers Act of 1940. The investments and strategies discussed in TradeSmithâs content do not constitute personalized investment advice. Any trading or investment decisions you take are in reliance on your own analysis and judgment and not in reliance on TradeSmith. There are risks inherent in investing and past investment performance is not indicative of future results. TradeSmith P.O. Box 340087 Tampa, FL 33694 [Terms of Use]( [Privacy Policy]( To unsubscribe or change your email preferences, please [click here](. [tradesmith logo]