The situation at the chip designer and fab I want to talk about today is not as bad as it seems. In fact, its situation is eerily similar to that of AMD in 2007-’08... and that could spell good news for the company. Here’s the story... 

Autumn got started on Sunday, which means that “spooky season” is right around the corner… and what better way to kick off the season than with news from Neuralink, Elon Musk’s neurotechnology company that is creating otherworldly AI devices.

Although the latest from the Federal Reserve is very bullish news for all sorts of investments, maybe you don’t trust them to cut another 0.25% at their November meeting. And another at its December meeting. Maybe you smell further dissent fomenting… or have a bad feeling about November’s election reigniting inflation. If that’s the case, you need an exit strategy.

You might presume that you don’t have advantages over Warren Buffett when it comes to investing. But I’ll let you in on a secret… you do.

On Wednesday, the U.S. Federal Reserve cut interest rates for the first time since COVID-19 emerged four years ago. Now, history shows that when the Fed cuts interest rates with stocks near all-time highs, stocks almost always soar over the following year.

In the past four years alone, stocks suffered two bear market declines of 20% or more just two years apart (2020 and 2022). And two years of big gains to new all-time highs (2021 and 2023-’24… so far). But fasten your seat belts because there may be no end in sight to the chaos.

By studying the trading patterns of dozens of successful wealthy investors and combining it with a proprietary quantitative formula, Eric’s special guest at the upcoming Great 2024 Sell-Off event leads a team that has created a way for investors to outperform markets in good times and bad.

Today, I’m going to talk about why investors need to revise the way they invest... and why they need to put the power of technology on their side.

As the pace of technological progress accelerates exponentially, so does the pace of creative destruction. This dynamic helps explain why members of the major stock market indices tend to get the boot more quickly than they used to.

Just like a rollercoaster, inflation can be dizzying and unpredictable. And the best way to pinpoint what is driving inflation higher or lower is by tracking two key reports: the Consumer Price Index (CPI) and the Producer Price Index (PPI).

While there is no perfect investment method, there is a way to allocate your assets intelligently. This will then help you set yourself up for the best chance at success. There are multiple facets to this strategy, but the one I want to focus on today is stocks to buy and hold forever.

Last Friday, the 10-Year Treasury yield rose above the 2-Year yield for the first time in over two years. This “dis-inversion” (or reversion) of the spread is an extremely bullish sign because it undoes the yield inversion we’ve seen since June 2022 – a typical warning of an upcoming recession. Friday’s “dis-inversion” means the recession alarm has now been lifted.

This very specific, very powerful, and very rare economic dynamic has occurred just three times in the past 30 years. Every time it has, it strengthened the economy and sent stocks soaring higher – even if they were dropping beforehand.

When the Federal Open Market Committee meets September 17, it will likely announce the first interest rate reduction since July 2019. At the same time, the Fed will almost certainly signal its intention to cut rates several more times over the coming months. That activity would be great news for the stock market, if the Rate Cycle Indicator holds true to form.

With the launch of ChatGPT, OpenAI kickstarted an AI frenzy that has since reshaped the global economy, the stock market, even parts of our daily lives. Now it appears that the firm is gearing up to do it all over again with a brand-new iteration. 

September’s a wash, right? Time to sell and come back in October? Nope. It’s time to buck the consensus and buy stocks in September. A unique event set to take place could make this month the best time of the year for investors.

The September Fed meeting will likely mark the first interest rate cut in this economic cycle. And investors will be closely watching its size – a single 25 basis point cut versus a “jumbo” 50 basis point one or more – and use it to forecast the trajectory of future cuts. It’s hard to overstate the impact this tiny difference will have.

Unless you’ve been hiding under a rock for the last two years, or been tending sheep in the Alps, you would know that Nvidia Corp. (NVDA) has become much more than just a “chip company.” But Nvidia’s influence extends far beyond the chip sector, and even beyond the broad technology sector...

Due to rising interest rates, consumer stocks have lagged behind AI. But this is expected to change as the Fed signals potential rate cuts.