Hello, Reader.
August is typically a volatile month for the market.
Many investors take vacations, which leads to lower trading volumes. And with fewer buyers and sellers, seemingly small bits of news or events can cause hefty market swings.
This morning, for instance, stocks pulled back as investors cautiously await Nvidia Corp.’s (NVDA) earnings report later this week. As a major AI “Builder,” any disappointment could have a significant ripple effect.
And before Friday’s rate-cut hints from Fed Chair Jerome Powell, markets pulled back almost all last week, over a cluster of catalysts including hot inflation prints and consumer-spending worries.
But as I’ve said before and will continue to say, there is opportunity in volatility.
My InvestorPlace colleague Luke Lango agrees…
Last week’s set up was ripe for a dip: stocks “priced for perfection,” crowded positioning, and Powell anxiety.
The fundamentals haven’t changed. The economy looks solid, inflation is easing, and rate cuts remain on the horizon.
And the driver since late 2022 hasn’t changed either: artificial intelligence.
AI demand is accelerating, spending is exploding, and profits tied to AI are swelling.
Right now, we’re in between catalysts.
So, what do we do in the meantime?
Back to Luke…
Look for pullback entries in your favorite AI names — smart for long-term gains.
But AI is also creating the biggest, fastest moves I’ve seen. I call them “AI Income Events” — powerful price surges when a company meaningfully integrates AI.
With these moves, you can pursue income far faster than simple buy-and-hold.
Luke and I share the same sentiment: Volatility isn’t a threat. In fact, with the right system, it’s your edge.
That’s why Luke and his team built Nexus, a proprietary behavioral-analytics system that flags real-time breakouts across sectors.
On Wall Street, AI Income Events show up as sudden bursts of hypergrowth, or what Luke calls Phase 2.
Phase 1 is build-and-experiment with AI. Phase 2 is then when AI drives results — and where the biggest gains tend to happen.
AI is in Phase 2 now, but this window won’t stay wide open forever. The easy triple-digit runs will get rarer within a year, Luke says.
So, he has a challenge for you that I would like to share today.
I’ll dive into the details below – but first, let’s take a look back at what we covered here at Smart Money last week…
Smart Money Roundup
2 “AI Filtered” Plays Every Investor Needs Now
August 20, 2025
As an investor, it’s critical to double-check that nothing is obstructing our analytical abilities – especially now in the era of “everything AI.” To ensure you don’t get burned running toward the hottest, hyped-up AI plays, I’ve identified four AI investment categories, each of which offers different levels of risk and reward. Read Wednesday’s issue now for details on two of those categories – and a company for each.
One Adopts AI, One Survives It – 2 AI Plays to Buy Now
August 21, 2025
We must view every new investment opportunity through the lens of AI. One way to do that is by focusing only on companies that apply AI in cost-effective and/or market-leading ways. In Thursday’s issue, I explain how Meta fails in that regard – and share the other two distinct AI investment categories… along with a company that I recommend for each.
Drug Pricing in the Trump Era: Where to Invest Now
August 23, 2025
This year, pharma stocks are behaving as if President Donald Trump’s threats to cut drug prices hold no power. Shares of healthcare firms have barely budged under his administration. However, we believe that certain healthcare companies will do a lot better than flat under the Trump administration. Let’s take a closer look at how drug prices are set, the power the president has to influence them – then, I’ll point you toward the right healthcare stocks to invest in.
Who’s the Next Apple? 3 Breakout Stocks That Point the Way
AI is transforming industries at a breakneck pace. It’s a force that’s fundamentally changing how fast companies can grow, scale, and generate profits – producing an unusual class of stock breakouts. Luke Lango calls these “AI Income Events” – moments when hype flips into adoption-driven growth. So, now that we’re in the AI innovation cycle, Luke will share three significant “AI Income Events” that rewarded investors with huge gains… and show you how his team is spotting the next round.
Join the Challenge
Without further ado, here is Luke’s challenge…
Can you generate $30,000 in the next six months by targeting AI Income Events?
In just half a year, he wants you to see how AI Income Events can transform your portfolio. Using his Nexus system, you’ll get alerts on exactly which stocks are entering Phase 2 and when to act.
Pullbacks like the one we saw last week aren’t threats… they’re invitations. They shake out the weak hands and prepare the ground for the next big move.
The only question: Will you be ready?
He just put together a special free broadcast going into far more detail on Nexus – and on how this strategy beats dividends, bonds, options, or any other “traditional” income strategy by 40X.
You can click here to join Luke in his AI Income Challenge.
And I’ll be back here later this week with more on Nvidia’s earnings.
Regards,
Eric Fry
