These days, it honestly feels like no one knows what the hell is going on anymore... These days, it honestly feels like no one knows what the hell is going on anymore...
                                                                                                     [Wealth Daily] Jason Stutman / Jan 29, 2024 Are You in or Out? These days, it honestly feels like no one knows what the hell is going on anymore. At least thatâs what Iâm seeing in my own personal bubble as of late. Maybe youâre feeling it too⦠The big tech algos that feed me an endless stream of ârelevant newsâ each day have at least one thing straight: I follow the stock market. Thatâs easy enough. But my feed could best be described as a schizophrenic who just got their first blogging gig straight out of undergrad â ill-informed and all over the place. One article proclaims the stock market is set to explode in 2024 as the U.S. skirts a recession⦠The next warns that the floor is about to collapse, advising me to clutch my purse. Of course, itâs great to hear different perspectives, but at this point itâs starting to feel a bit meaningless and shallow. Every day I see the same story play out. One guy says one thing. Another says the opposite⦠They both get quoted by the same publication and my monkey brain feeds the machine with some clicks. At the end of the day, these articles are designed to do just that: get clicks, and thatâs pretty much it. CNBC doesnât give a ratâs ass if whoever theyâre quoting gets it right or not; they just want your attention so they can get the ad money and fill their pockets. If weâre to consume this information obediently and without much introspection, itâs ultimately all â just noise⦠at best. At worst, itâs a distraction that paralyzes us â and, from an investorâs perspective, prevents us from making money. Some would say that this is what they really want: to confuse you. And maybe thatâs true. But Iâm more of a Hanlonâs razor kind of guy; that is, never prescribe to malice what can otherwise be explained by stupidity (or perhaps in this case, greed). So what can we all take from the directionless hodgepodge of financial forecasts weâre seeing right now? Well, perhaps the idea that if anything is certain at this pivotal moment of history, itâs that people are uncertain. I know, that probably sounds like something you would read on a lazily written fortune cookie, and it's a pretty useless sentiment on its face, but I assure you there is a benefit to recognizing that no one really knows what the hell is going on⦠that there is no real consensus anymore. [Are You Losing Hundreds of THOUSANDS to the 4-Digit Code Scam?]( If youâre over 65 or have a retirement savings account... You need to stop and listen to this URGENT warning. Because weâve just uncovered an ingenious retirement âscamâ that is skimming $145.2 million from America retirement accounts every single day. And if you donât put a stop to it now, you could end up losing $340,000 or more over your lifetime. [To see if your account has been targeted and learn the five steps you need to follow to fix it, just go here now.]( Amid Chaos, Opportunity Beckons Whenever I tell people I predict stock movements for a living, the follow up, nine times out of 10, is, âDid you study that in college?â to which I often reply, âYes, I studied psychology.â Most people are perplexed by this response because they think the stock market is all about numbers. It is, of course, to a degree, but at the end of the day you can rarely find alpha in numbers alone. Hedge funds spend billions on quantitative analysis each year to try to do just that. But if the market were dictated by some grand, objective math equation determining âtrue value,â then there would be no need or reason for human participation. Weâd know exactly what everything was worth and there would be zero inefficiency to take advantage of. Any good speculator understands, though, it is primarily the human factor that allows us to find alpha in the market. Emotions and naivete are our best friends⦠as long as they are being exercised not by us but by everyone else. No one is entirely immune to either of these pitfalls, of course, but those of us who dare to believe we are capable of being more informed and in control of our emotions than the overwhelming majority, well, we thrive in the face of uncertainty rather than cower from it. In short, you can get some conviction or get the hell out until the dust settles. I, for one, choose the former. Here are a few specific ways Iâm taking advantage of this emotional arbitrage right now... Earlier this week I bought a considerably large stake in Alibaba (NYSE: BABA), which has had its share price decimated over the last couple of years. This has some to do with broader economic concerns about the Chinese economy, but also with the rise of competing companies like Temu. These considerations are not to be ignored, of course, but they seem completely overblown given the current pricing for what is effectively Chinaâs Amazon. AI Fuels Secret $50 Billion Opportunity Using artificial intelligence, a small company just made the most significant breakthrough in medical history. Weâre talking about a revolutionary approach to inventing new medicine thatâs up to 10 times faster than traditional drug discovery... Cuts development costs by as much as 80%... And is igniting what Morgan Stanley predicts to be a "$50 billion opportunity" for investors. [Check out all the explosive details here.]( For perspective, you can pick up shares of Alibaba right now for cheaper than you could have when it first IPOâd in 2014. The company is also now valued at less than Temu, despite producing 5x the revenue. On a price-to-earnings basis, this is literally the cheapest that $BABA has EVER been, with shares trading at a 30.25% discount to its historical valuation and roughly a 90% discount to earnings valuations seen as early as last year. This kind of price movement can only be the result of stupidity, fear, or both: [Alibaba chart] Keep in mind that Alibaba is still the worldâs largest online and mobile commerce company by gross merchandise volume. The company also just instituted a dividend yield of 1.3%, something that Amazon has still yet to grant its shareholders. BABA is also buying back shares like crazy, with $33 billion in cash on hand. This is NOT a company that you worry about going under; it is an e-commerce bellwether that, opposite to its American counterpart, is trading at a mouthwatering discount. On the more speculative side, Iâm also nibbling at EMCORE Corporation (NASDAQ: EMKR), which recently acquired KVHâs IMU (inertial measurement unit) segment. In short, this is a consolidated play on autonomous military technology, given that IMUs are a key component required for orienting and positioning missiles, drones, etc. Of course, no one wants war or relishes it (with the exception of a few sadistic psychopaths), but itâs undeniable that conflicts are rising around the world, and one of the only ways to hedge against that chaos is to invest in the companies supplying ammunition to the âgood guys.â Another military supplier Iâm big on right now can be found [here.]( These guys are building the next generation of combat aircraft that will support the F-35, and eventually fifth-gen fighters, as loyal wingmen. [Itâs a big swing for the next Lockheed Martin, and if it hits, itâs going out of the park.]( These are just a few of my recent convictions. Over the next few weeks, maybe Iâll share some more. In the meantime, let me know some of yours. Turning progress to profits,   [JS Sig] Jason Stutman [[follow basic]Check us out on YouTube!]( [Feedback? get in touch](mailto:/newsletter@wealthdaily.com?subject=Wealth%20Daily%20feedback) [Read this email online]( [Manage Newsletters]( [Share on Twitter]( You signed up for our newsletter with the email {EMAIL}.
You can manage your subscription and get our privacy policy [here](. This email is from Angel Publishing, 3 East Read Street, Baltimore, MD 21202
© Wealth Daily.