The bottom line is Jerome Powell has screwed up. 

No, that’s not from President Trump. That comes from legendary investor Louis Navellier.

In yesterday’s Special ÃÛÌÒ´«Ã½ Podcast in Growth Investor, Louis weighed in on President Trump’s attacks on Federal Reserve Chairman Jerome Powell:

The latest criticism is, President Trump wants to get rid of Jerome Powell. Ok, well, unfortunately, I have to agree with him because Powell is fighting a mythical inflation that hasn’t occurred yet.

We’re not going to have more tariffs other than the Chinese tariffs because everybody is caving. Everybody is meeting with the administration; everybody is dropping their barriers. So, we are going to have freer trade when it is all said and done…

In the meantime, you’ve got two months in a row of declining consumer prices. So, you have deflation. You have wholesale prices collapsing 0.4%, you have crude oil prices near the lowest level in four years.

And they are worried about inflation?

So, there is something wrong with Chairman Powell.

I suspect the “something wrong” is Powell being haunted by his characterization of inflation as “transitory” back in 2021. That inaccurate call opened the door to the worst inflation in four decades as well as merciless attacks on his judgement.

My hunch is that Powell is gun-shy about cutting rates today despite the cool inflation data Louis flagged because he doesn’t want to risk going into the history books as Arthur Burns 2.0. For readers less familiar, Burns was the Federal Reserve Chairman whose loose policies opened the door to the inflationary 1970s.

What if deals don’t materialize?

I’m all for the trade deals that Louis referenced. But it’s been nearly three weeks since “Liberation Day” and no deals have been announced.

Here’s how our hypergrowth expert Luke Lango characterized it in yesterday’s Daily Notes from his service Innovation Investor:

Almost two weeks have passed since “The Pause” — the day Trump announced a 90-day tariff pause to make room for “quick” trade deals.

There was optimism back then. Real optimism. We were told talks were going well. Deals were imminent. And yet… not a single trade deal has been signed. Not one. Nada. Zip. We got absolutely no news over the weekend!

We still have country-specific tariffs on dozens and dozens and dozens of nations floating around out there. And zero trade deals to permanently eliminate any of those tariffs. 

Despite positive headlines, no actual deals have been announced.

One example is this morning’s news that India’s prime minister, Narendra Modi, and U.S. Vice President JD Vance have made “significant” progress in trade talks. We’re thrilled to hear it, but at this point, we’re ready for news that a deal is official.

In the meantime, Trump’s blanket 10% tariff on nearly all the U.S.’s trading partners is in effect. The longer it remains, the greater the risk of reinflation, despite the recent cool, backward-looking inflation data.

For perspective, though 10% tariffs are infinitely better than the nosebleed levies that Trump originally proposed for each trading partner, that’s not the relevant comparison. The analysis we should consider compares “10% blanket tariffs to the tariff rate before the trade war.”

And what is that?

According to Visual Capitalist, in 2024, the U.S. average effective tariff rate on imports was 2.5%. So, this new normal of 10% – while in effect – has the potential to be inflationary.

At the beginning of the month, Citi modeled a base case of 10% tariffs, which it predicted could push the economy into stagflation in roughly six months.

From its note to clients:

Looking out, large tariffs would move us closer to the stagflationary risks we have downplayed this past year.

To help us, let’s look at day-to-day U.S. consumer purchases.

After all, if inflation is our concern, then such “everyday purchases” are the best window into where prices are today, and where they’re going tomorrow. For that analysis, there’s one place to turn – Amazon.

As you can see below with data from Statista, 71% of all items sold on Amazon are made in China.

Even if China is the only country facing higher tariff rates, prices for many of the “everyday goods” purchased via Amazon are going to get caught up in the tariff war – assuming these manufacturers raise their prices to offset the tariffs…

Will that happen?

Two weeks ago, Ross Sorkin of CNBC interviewed Amazon CEO Andy Jassy. From that CNBC interview:

SORKIN: Who is going to eat the cost, though, because I think that’s one of the big questions. How much can get passed on to the customer? How strong do you think the American consumer is right now and how much of it gets eaten by Amazon? How much gets eaten effectively by potentially a third-party seller?

JASSY: I think we’ll have to see how it all plays out. But if you made me guess, you know, I’m guessing that that sellers will pass that cost on… Depending on which country you’re in you don’t have 50% extra margin that you can play with.

So, I think they’ll try and pass the cost on.

Now, as we’re going to press, there’s good news on this front.

Earlier today, Treasury Secretary Scott Bessent told investors that he anticipates “there will be a de-escalation” in the trade war with China in the “very near future.”

Here’s CNBC:

“The next steps with China are, no one thinks the current status quo is sustainable” with tariff rates at their current levels, Bessent said at a private investor summit in Washington, D.C., hosted by JPMorgan Chase…

Bessent said he believes that the prospect of de-escalation between the economic superpowers “should give the world, the markets, a sigh of relief,” according to the person in the room.

We’ll bring you more on this as new details emerge.

So far, prices on Amazon are stable.

According to CamelCamelCamel, a company that provides pricing history for Amazon products, prices have been mostly flat for items ranging from iPads to toothpaste.

Here’s Wired explaining:

At least for now, ecommerce pricing experts say there are three leading reasons why Amazon sellers are keeping their prices steady: Many still have existing inventory in the US, are fearful about violating Amazon’s pricing rules, and remain inclined to wait out the mercurial president.

Regular readers of Louis know what’s behind the first point since he’s highlighted it repeatedly in recent weeks: foreign countries dumped their products into the U.S. ahead of Trump’s “Liberation Day.” So, they’re still sitting on a glut of inventory.

As to the second point, Amazon has “fair pricing” rules that penalize merchants that abruptly raise prices.

Finally, many companies share the same “hope it all goes away” mentality as do many investors – which is a real possibility. With Trump, a change of mind resulting in a single post on social media could end this instantly.

On April 1, in the lead up to President Trump’s “Liberation Day” tariffs, Israel eliminated all tariffs on U.S. imports. We’re talking 0% levies on U.S. imports across the board.

However, on Liberation Day, the U.S. hit Israel with a 17% tariff, which was based on our trade deficit.

On April 7, after flying to Washington to meet with President Trump, Israeli Prime Minister Benjamin Netanyahu announced that Israel would eliminate its trade deficit with the U.S.

From Netanyahu:

We will eliminate the trade deficit with the United States.

We intend to do it very quickly. We think it’s the right thing to do. And we’re going to also eliminate trade barriers.

It’s now more than two weeks later, and as far as I’m aware after searching, the U.S. still imposes the 10% blanket tariff on Israel.

Why?

Israel has removed all tariffs. And Netanyahu has publicly committed to eliminating the trade imbalance that appears to be at the heart of Trump’s trade grievances.

Netanyahu went so far to say:

Israel can serve as a model for many countries who ought to do the same.

I’m a free-trade champion, and free trade has to be fair trade.

With Israel giving Trump everything he’s asked for, minus the implementation, what is Trump waiting for?

If the answer is “implementation,” how does that work for every one of our trading partners?

Remember, a significant reason why we have trade deficits is because many of our trading partners are smaller, with lower GDPs and reduced per capita incomes. These smaller nations don’t have the economic resources to instantly “buy more U.S. goods” to balance the deficit.

So, if “canceling the trade deficit” must be accomplished, then “shipping fewer goods into the U.S.” would be the faster, more realistic way to achieve the goal. But that would risk pushing those nations toward different trading partners…

Such as China.

In our April 8 Digest, we looked at the case for Trump’s main goal with tariffs being the engineering of a flight into bonds, pushing yields lower. The purpose would be to reduce the refinancing burden on $9.2 trillion in federal debt maturing this year.

And in our April 16 Digest, we analyzed the idea that Trump’s real goal is the reshoring of domestic manufacturing as a matter of national security. As we profiled in that Digest, we’re woefully vulnerable to global manufacturers – especially China.

But stepping back, whatever the motivation, questions remain as we look forward to how this resolves…

Though Netanyahu says, “Israel can serve as a model for many countries who ought to [balance their trade deficits],” is the U.S. serving as a model for what our trading partners can expect when they give us 99.999% of our ask?

Bottom line: We’re crossing fingers that Louis is right about trade deals getting done. And it does appear that progress is being made. But at this point, we’d like to see some headlines.

We’ll keep you updated.

Have a good evening,

Jeff Remsburg

The post When Will We See Trade Deals? appeared first on InvestorPlace.

While tariffs have been plaguing the markets lately, there was a new culprit yesterday. Namely, the battle between the White House and the Federal Reserve is heating up.

In contrast to Federal Reserve Chair Jerome Powell’s cautious approach, President Trump took to Truth Social yesterday morning to warn that the economy would slow if key interest rates aren’t cut now.

Specifically, Trump said, “There can be a SLOWING of the economy unless Mr. Too Late [Jerome Powell], a major loser, lowers interest rates, NOW.”

I should mention that this isn’t the first time Trump has criticized the Fed Chair. And I’ll have more thoughts on their feud later this week in ÃÛÌÒ´«Ã½ 360.

But for now, I want to stress that we can’t let this noise distract us. Instead, our focus should be on the first-quarter earnings season.

Last week, the Big Banks kicked things off with the majority exceeding analysts’ estimates. Bank of America Corp. (BAC), JPMorgan Chase & Co. (JPM), Morgan Stanley (MS) and Goldman Sachs Group Inc. (GS) all posted positive earnings surprises. In turn, all four initially climbed higher this week.

Now, it may be early to state that “earnings are working,” but the initial rallies following these earnings beats are a positive. Of the S&P 500 companies that have reported so far, 71% have exceeded analysts’ earnings estimates, posting an average earnings surprise of 6.1%. FactSet now anticipates that the S&P 500 will achieve at least 7.2% average earnings growth for the first quarter.

FactSet also points out that the final earnings growth rate at the end of an earnings season has exceeded the estimated growth rate at the start of the season in 37 of the past 40 quarters. And S&P 500 companies have topped analysts’ earnings estimates by an average of 6.9% in the past decade.

This Week’s Ratings Changes

The bottom line is that wave after wave of positive earnings surprises are in the offing!

Now, this week there are a handful of companies slated to report. But the two I will be watching in particular are Tesla Inc. (TSLA) and Alphabet Inc. (GOOG).

Remember, the Magnificent Seven stocks (of which TSLA and GOOG are members) have been slammed recently due to the tariffs. So, it will be interesting to see what they have to say on the subject. Wall Street will also be paying close attention to their forward-looking guidance.

The bottom line is that even though there is still a lot of volatility in the stock market, earnings season tends to add strength and boost stocks higher. So, let’s just allow earnings to take over and do their thing.

With that in mind, I took a fresh look at the latest institutional buying pressure and each company’s financial health and decided to revise my Stock Grader (subscription required) recommendations for 102 big blue chips. Of these 102 stocks…

• Nine stocks were upgraded from a Buy (B-rating) to a Strong Buy (A-rating).
• Fifteen stocks were upgraded from a Hold (C-rating) to a Buy (B-rating).
• Fourteen stocks were upgraded from a Sell (D-rating) to a Hold.
• Four stocks were upgraded from a Strong Sell (F-rating) to a Sell.
• Sixteen stocks were downgraded from a Strong Buy to a Buy.
• Twenty-seven stocks were downgraded from a Buy to a Hold.
• Fourteen stocks were downgraded from a Hold to a Sell.
• And three stocks were downgraded from a Sell to a Strong Sell.

I’ve listed the first 10 stocks rated as Buys below, but you can find a more comprehensive list – including all 102 stocks’ Fundamental and Quantitative Grades – here. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and adjust accordingly.

Earnings Aren’t the Only ÃÛÌÒ´«Ã½ Mover

Now, earnings season isn’t the only event hitting the markets that we should be keeping an eye on right now…

The fact is, thanks to the AI Revolution, a massive wave is on the horizon – and many don’t even see it coming…

It’s so serious that I call it a financial tsunami.

That’s because I’m predicting there will be a stock market crash –  but not the kind most people expect.

You see, as far as AI has come, most regular Americans have no idea what’s on the horizon.

We’re talking about an unprecedented rate of change and disruption.

It will dramatically affect your money, the value of your home, your investments, and your ability to retire.

It will be devastating for most Americans. But it will also make a small group rich beyond their wildest dreams. 

The thing about a tsunami is, there’s nothing you can do to stop it. It can’t be stopped, no matter how hard you try.

All you can do is prepare for what’s coming.

That’s why I created a special presentation – because it’s absolutely critical to make investments in yourself, in your business, and in your portfolio to ensure that you survive and thrive the coming wave of change. 

Click here to watch my urgent warning now. 

Sincerely,

Louis Navellier

Editor, ÃÛÌÒ´«Ã½ 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

EMCOR Group, Inc. (EME)

The post Quant Ratings Updated on 102 Stocks appeared first on InvestorPlace.

Yes, you read that right. The president has set his sights on the head of our nation’s central bank. Now the biggest threat to the market is an old-fashioned political boxing match – social-media-style. 

Welcome to Round One of the Trump vs. Powell saga. So far, the crowd isn’t loving it. 

After Trump called Powell a “major loser” on social media yesterday (more on that later), both the S&P 500 and Nasdaq dropped more than 3% in a risk-off panic. 

This isn’t your standard economic hiccup. This is an institutional nervous breakdown – because at its core, what’s shaking the market is a simple, uncomfortable question:

Can the Fed still be trusted to stay independent?

Trump vs. Powell: How the Federal Reserve Clash Escalated

The long and short of this latest drama is that Trump wants Powell to cut interest rates… badly. 

With trade negotiations dragging and consumer prices sticky, Trump is eager to stimulate the economy ahead of 2026. Lower rates, more growth, happier voters.

But Powell isn’t biting – yet. In public remarks last week, he said the Fed is in no rush to cut rates. Why? Because of reinflation risks from Trump’s own tariffs. A trade war, after all, tends to raise prices, not lower them. Cutting rates into rising prices is a dangerous game, and the Fed knows that.

Trump’s response? A full-throttle public takedown of Powell. On social media, he’s labeled Powell “too late,” “a major loser,” and “a disaster.” Over the weekend, White House economic advisor Kevin Hassett even said Trump is looking into whether he can fire Powell outright.

As a result, the market mayhem continues.

Why Federal Reserve Independence Matters More Than Ever

The Federal Reserve is designed to be independent for a reason. It’s the foundation of U.S. economic credibility. 

We don’t want politicians printing money whenever it helps them win an election. We want the Fed to make rational, apolitical decisions about interest rates and money supply.

That’s why this feud is so upsetting to Wall Street. If Trump actually removes Powell or forces him to cut rates for political gain, it would shatter a sacred norm – and inject instability into the system. If markets can’t trust the Fed, then who can they trust?

This isn’t some theoretical fear. In fact, we’ve seen this play out before… And it didn’t end well.

Nixon vs. the Fed: A Warning Sign for Today’s ÃÛÌÒ´«Ã½

The only modern precedent here is Richard Nixon’s pressure campaign on then-Fed Chair Arthur Burns in the early 1970s.

Back then, the economy was shaky, and inflation was already high. But eyeing reelection in 1972, Nixon didn’t care. He wanted the economy juiced – and fast – so he bullied Burns into cutting interest rates. Eventually, Burns gave in.

To hide the inflation that would inevitably result from those cuts, Nixon imposed price controls – locking in wages, rents, and consumer prices across the board. It worked temporarily. Inflation dipped, the economy boomed, and Nixon won reelection in a landslide.

But it was a con.

Underneath the surface, inflation was building; suppressed, but not solved. And when the Fed stopped cutting and Nixon ended the price controls, it all blew sky-high.

What followed was a decade-long economic disaster: runaway inflation, stagnant growth, surging unemployment, and collapsing stock prices. The 1970s were a painful decade, and it all started with a president strong-arming the Fed into rate cuts at the wrong time.

That’s the specter haunting investors today.

Could Trump repeat Nixon’s mistake?

Only if words turn into actions.

If Trump actually fires Powell – or installs a loyalist to cut rates rapidly and preemptively – we could absolutely end up reliving a version of the 1970s. We’d get short-term sugar highs, followed by long-term stagflation hangovers… a quick burst of growth followed by years of pain.

That’s why markets are panicking. The risk is real.

But we don’t think it’s going to happen like that.

Trump’s Pressure on Powell: Real Threat or Political Theater?

We don’t think Trump is trying to destroy the Fed’s independence. Instead, we see him trying to guarantee that Powell sticks to a path the Fed was already on: cutting rates by this summer.

Wall Street is still pricing in four rate cuts in 2025, with the first expected by June. That expectation has remained unchanged even before Trump began his barrage. 

The Fed knows that higher tariffs are slowing demand, that core inflation is easing, and that financial conditions are tightening.

In other words, the data was already pointing to rate cuts.

Trump’s tantrums, while loud and theatrical, aren’t changing the game. They’re just turning up the volume on what the Fed was going to do anyway. This is not Nixon 2.0. It’s just classic Trump – tweet now, take credit later.

How the Federal Reserve Drama Could Create Buying Opportunities

If Trump doesn’t fire Powell and the Fed does cut rates this summer – both of which we believe are highly likely – then today’s market panic is tomorrow’s buying opportunity.

This selloff, driven by fear of interference that probably won’t come to be, could give way to a massive rally once the Fed starts easing.

Lower rates mean higher valuations, more liquidity – and that growth stocks, especially high-beta tech names, can fly once again.

All that’s needed is confirmation that the rate-cut cycle is starting and that the Fed remains independent. When that happens, this wounded market could roar back to life.

In other words, now is not the time to panic.

Yes, there are real risks. If Trump goes full Nixon and tries to commandeer the Fed, markets could unravel. But there’s strong reason to believe this is mostly theater – a pressure tactic, not a power grab.

We expect that cooler heads will prevail. Powell will stay. The Fed will cut. And the market will recover.

So, be patient. Stay sharp. Look for buying opportunities amid the chaos. As the old Buffett line goes: Be greedy when others are fearful.

There’s certainly ample fear right now – which means opportunity abounds.

And AI 2.0 stocks may be the best bet. 

We’re talking AI that can respond to real-world environments; embodied intelligence that can see, hear, walk, talk, lift, carry, organize, fix, learn…

Indeed, there’s a reason why every tech titan is suddenly obsessed with humanoid robots.

That’s where we believe the next trillion-dollar investment opportunities will be found. And we’ve found a compelling way to play that next phase of the AI Boom.

Uncover the details on our favorite AI 2.0 pick.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Questions or comments about this issue? Drop us a line at langofeedback@investorplace.com.

The post Trump Takes Aim at Powell: What It Means for the Federal Reserve and Investors appeared first on InvestorPlace.

Meanwhile, gold futures have broken $3,400, setting a new all-time high.

Behind this “risk off” market action is President Donald Trump and his latest attack on Federal Reserve Chairman Jerome Powell.

As we noted in last Thursday’s Digest, Trump wants lower interest rates…yesterday.

Last week, Trump referred to Powell as “‘Too Late’ Jerome Powell of the Fed,” writing that “Powell’s termination cannot come fast enough!”

The attacks continued this morning with Trump calling the Fed Chair a “major loser” while again demanding lower interest rates.

But it isn’t the insults roiling the investment markets today. Rather, it is Trump’s recent saber rattling about firing Powell.

Wall Street wants stability. Trump firing the sitting Fed chair for not doing his bidding – despite the risk of reinflation – would rattle the market. As much as stocks have fallen in recent weeks, a “Powell firing” is not priced in.

Here’s Bloomberg:

The sell-America trade gathered momentum on Monday on concern President Donald Trump will act upon his threat of firing Federal Reserve Chairman Jerome Powell and implement policies that lead to a recession.

The dollar, US stock futures and Treasuries slid, pushing the yield on 30-year bonds higher by as much as 10 basis points in thinner-than-normal, post-holiday trading.

Investors are grappling with the risk of Powell’s dismissal, which the White House said last week it was assessing, and the implications of his policies on the world’s largest economy.

So, how will all this play out?

Today, let’s evaluate two different market forecasts. One bullish, one bearish.

After all, the more angles you have, the better prepared you’ll be.

I reached out to master trader Jeff Clark, editor of Jeff Clark Trader, to ask if the surging market had changed his bearish forecast.

Prior to that historic rally, Jeff had told his subscribers:

Ultimately, I think where we’re headed, if this is truly a bear market as I think it is, is the same level as late-2023 when we were somewhere around the 4,150 level or 4,100 level (for the S&P).

The real opportunity to buy I think is probably going to wind up sometime in October, November.

We can trade between now and then, but…like oftentimes happens, you get that final washout in October or November, and that’ll give us a really good opportunity to jump in and put some capital to work at super depressed prices.

Jeff told me the tariff-pause rally has not changed his opinion.

He was sticking by his forecast for a relief rally that, ultimately, would fizzle and turn into a new leg lower.

Since then, the S&P jumped to roughly 5,453 but then ran out of steam. It fell back to 5,275, successfully holding that support level twice. But as you can see below, as I write Monday, we’ve fallen through that level to 5,138.

So, where do we go from here?

Medium-term, Jeff believes we’re headed lower. But in the short-term, the level to watch is 5,200.

Rather, he expected the relief rally that began two Wednesdays ago would have more room to run.

That still may be the case. But before we get to what’s changed, let’s map out that original scenario.

Let’s go to Jeff’s Morning Update from last Thursday:

Stocks are likely headed higher in the short term.

Conditions are oversold enough to justify a rally towards the upper end of our 5,400-5,500 target zone.

In fact, I can make a case for higher levels if the rally happens fast enough. But I don’t think we have any chance of getting above the 50- and 200-day moving averages near 5,750.

The closer the S&P gets to 5,750 the better the odds for adding short exposure.

Ultimately, the index will need to retest the 4,835 low, and more likely, break below that level.

For the next few days, I am leaning bullish. But, with one eye glued to the exit sign.

To better contextualize Jeff’s predictions, a rally to 5,750 would mean we’re in for another 12% climb based on where the S&P trades as I write Monday.

Assuming that happens, the subsequent fall to 4,835 (and potentially, beyond) would mean a 16% drop.

But Jeff’s update this morning puts the key level of 5,200 into the spotlight. Where we close today has the potential to change Jeff’s short-term outlook:

As long as 5,200 holds, on a closing basis, I favor an upside move over the next few days.

If the S&P closes below 5,200, then the odds favor a retest of at least the 5,000 level, and possibly an immediate retest of the recent low at 4,835.

I am leaning mildly bullish for the week. That will change if the S&P closes below 5,200.

For now, though, sentiment is so poor, and the daily technical indicators are starting to turn bullish. So, I tend to think we’re due for a quick pop higher before we get a retest of the recent lows.

So, all eyes on whether the S&P closes above or below 5,200 today.

Regardless of which way the S&P moves in the short term, let’s revisit Jeff’s overall forecast.

As noted earlier, 4,150 or 4,100 is Jeff’s predicted bear-market low. That would mean a 29% fall from where he thinks a relief rally could top out (5,750).

Here’s Jeff:

If you’re holding stocks long all the way through that, that could spell a little bit of trouble.

But if you take advantage of opportunities where you get deeply oversold conditions, where you can get into a good bounce – play that bounce.

But be quick to take your profits off the table and then allow the market to come back down again and give you another opportunity…

Bottom line is, I think there’s going to be an awful lot of opportunity to trade.

To dive into exactly how Jeff plans on trading a bear market, you can revisit our April 11, 2025, Digest here.

Ready for the S&P to be 15% higher and looking bullish by late summer?

According to Luke, that’s possible, but it all hinges on two big developments:

• Rate cuts from the Federal Reserve
• Trade war de-escalation

Luke believes each is coming.

Beginning with the Fed and rate cuts, Luke’s analysis from late last week starts with Federal Reserve Chairman Jerome Powell and his ostensible nonchalance about today’s deteriorating economic conditions.

As we profiled in the Digest, this drew the wrath of President Trump (which is continuing this morning). The day after Powell’s speech, Trump took to Truth Social, writing “Powell’s termination cannot come fast enough!”

Here’s Luke’s take on Powell and this slow play:

Don’t panic just yet. More importantly, don’t listen to the words; watch the feet.

Powell may have said “no cuts for now,” but the evolving reality on the ground says something very different…

In fact, we believe the Fed is on the brink of launching a full-blown rescue mission for the U.S. economy – and it could send stocks soaring.

To make the case for this rescue, Luke points toward Bloomberg’s U.S. Financial Conditions Index – a catch-all measure of credit spreads, equity levels, and money supply.

Today, it’s showing that outside of 2020’s COVID crash, financial conditions are tighter than they’ve been at any time in the past decade.

At the same time…

• Consumer confidence is near a 50-year low
• Retail sales are slowing
• Business investment has stalled
• The housing market is frozen solid
• And yet bond yields have been spiking

Here’s Luke:

This is not a good cocktail.

It practically screams for Fed action. And we believe Powell is quietly preparing for that – regardless of what he’s saying in public…

So, when does the cavalry arrive?

We think it’s coming in June.

That’s when the data will likely have piled up just enough to give Powell and his colleagues the political and academic cover to start cutting.

That doesn’t mean we need to wait until June for optimism to begin. Luke expects strong forward guidance to come out of the Fed’s May meeting (about two weeks away). If so, that’s going to begin to move stocks higher.

The other half is improvement on the global trade war.

And here, Luke is optimistic, reporting that the conflict is dissipating:

Since the U.S. launched its “Liberation Day” tariffs in early April, we’ve actually seen tariff rates fall, not rise.

The average U.S. tariff rate spiked from 2.5% to 27% on April 2. But with the 90-day pause and electronics exemptions, that number has already fallen to about 23%.

If rumored auto parts exemptions come to fruition, we’ll drop to ~20%. And if steel/aluminum or China deals are locked in, we’ll slide closer to 10%.

That’s a pretty sharp reversal.

Luke is clear that the rhetoric from Washington remains aggressive. But as with the Fed, actions speak louder than words. And today, the actions suggest de-escalation.

Putting it altogether, we’re still in for volatility over the coming days. But the Federal Reserve’s next FOMC meeting concludes in just two weeks on Wednesday, May 7. If Luke is right above dovish signaling from Powell, Wall Street will begin repositioning immediately.

Then, if we get positive headlines on trade deals and the lowering of tariffs, that’ll continue to fuel a rally.

Next up, throw in a potential rate cut in June, and Luke believes…

The stock market could rip higher.

We wouldn’t be surprised to see the S&P 500 up 10% to 15% from current levels by late summer.

So, while others panic, we’re getting ready to pounce.

First, you don’t try.

InvestorPlace and our corporate partner TradeSmith are independent publishers, and we believe it’s a strength to bring you the unfiltered market perspectives of our veteran analysts.

As American entrepreneur and author Jim Rohn once said:

Always be willing to look at both sides of the argument.

Understanding the other side is the best way to strengthen your own.

But I’ll note that during volatile markets, your odds of making profitable market decisions increase if you limit how far ahead that you’re looking.

And that brings us to TradeSmith’s breakthrough AI algorithm – calledAn-E.

As we detailed in the Digest last week, “An-E” (short for Analytical Engine), forecasts the share price of thousands of stocks, funds, and ETFs one month into the future along with the conviction level of that prediction. It’s equally applicable in both bull and bear markets.

Built in-house using machine learning models trained on over 1.3 quadrillion data points and 50,000+ backtests, this quantitative trading platform can help you better time and target your trade entries/exits within a 30-day price projection.

If you missed last week’s presentation from Keith Kaplan, TradeSmith’s CEO, you can catch a free replay here.

Whether you lean more bearish like Jeff, or more bullish like Luke, An-E can help you focus on what the data suggests is on the way – which can make all the difference in your shorter-term market positioning.

Have a good evening,

Jeff Remsburg

The post Trump’s Fed Battle: Will Stocks Crash or Rally? appeared first on InvestorPlace.

Now, the European Central Bank (ECB) cut key interest rates for the seventh time recently, and there is mounting pressure on the Fed to follow suit and cut as well. I’ve been on the record saying that as global interest rates collapse, the Fed will cut rates as well.

Although Wall Street is distracted by the tariff and politics noise, we need to stay focused on what’s most important right now: the first-quarter earnings season. There are a few big earnings announcements this week, and I go over my thoughts on them in today’s ÃÛÌÒ´«Ã½ Buzz video. I also answer questions ranging from economic data and Fed policy to the global tech landscape.

Click the image below to watch now!

Don’t forget to subscribe to my YouTube channel here! My new book, The Sacred Truths of Investing, is out now, and you can buy it here.

The Incoming Financial Wave You Should Prepare For

If the recent market volatility has you feeling uneasy, you’re not alone. But as a savvy investor, uncertainty can bring opportunity if you know where to look.

Right now, there is a huge financial tidal wave set to hit our shores, the biggest that I’ve ever seen. And it has nothing to do with tariffs.

It could very well change our normal way of life: our money, the value of our homes, the ability to retire, etc.

Now I don’t mean to scare you, but it’s my goal to make sure that you are prepared for what’s to come so you can withstand it.

That’s why I created this presentation. I’ll explain everything you need to know and the best way to overcome this huge wave. You don’t want to miss it.

Click here to learn more.

Sincerely,

Louis Navellier

Editor, ÃÛÌÒ´«Ã½ 360

P.S. With all this market noise, wouldn’t you like to have the same edge as Wall Street’s most powerful investors? What if you could use the power of AI to forecast where stocks will go in the next 21 trading days? Our corporate partner, TradeSmith, has figured it out and is backed by over 50,000 backtests and a confidence gauge so you can feel good about its predictions!

This presentation will be taken down on Wednesday night, so you don’t have much time left to watch it. Click here to learn how AI forecasting can give you a powerful advantage.

The post Recession Fears and Earnings Hype – What Wall Street’s Watching appeared first on InvestorPlace.

Today, the White House hosted its annual Easter Egg Roll, the first one of President Donald Trump’s second administration. Four thousand people gathered on the South Lawn for nearly as many eggs…. but not the plastic, candy-filled kind.

Instead, around 30,000 real eggs decorated the South Lawn, despite the high cost of the food item.

In March, the price of a dozen eggs reached a record-high of $6.23. And according to the latest consumer price index (CPI) on April 10, the price of eggs is up 5.9% from a month ago and 60.4% from this time last year.

Despite this data, Trump posted on social media this morning that food costs – including that of eggs – are “trending so nicely downward.” He made the same claim last week, too, posting that “groceries (even eggs!) are down.”

The truth is that grocery prices have continued to rise under Trump, and will likely continue to rise due to the president’s sweeping tariffs.

This reminds me of what then-Secretary of Defense Donald Rumsfeld infamously remarked during the Iraq War in 2004: “You go to war with the army you have, not the army you might want or wish to have at a later time.”

Likewise, we investors must engage with economic and stock market conditions as they actually are, not as we, or Trump, might wish them to be (the price of eggs included).

Today, for example, we might wish that the three major U.S. stock market indexes didn’t open in the red. But that’s not the stock market we have.

On the economic front, we might wish that we had never even heard of the word “tariff,” or that a trade war was not still underway. We might also wish that inflation expectations were tumbling and that consumer sentiment was not.

But that’s not the economy we have.

Therefore, as often happens, we investors must take the good with the bad, while trying to identify the stocks that offer the best risk-reward potential.

Often, those kinds of stocks live in the stock market’s shadows, where they attract little attention. You’ll never find a high-flier or stock market “darling” in those shadows, but you might find the next high-flier sitting there.

Companies in the shadows tend to carry below-average valuations, even when they possess above-average growth prospects. Discounted prices provide excellent entry points, all else being equal. Additionally, a low valuation can provide at least some protection against the kind of stock market trauma we’ve been enduring recently.

In fact, I shared a lowly valued, “unpopular” tech stock here with you last week. It’s a name that I’ve recommend in my Fry’s Investment Report service… and one that I’m not abandoning just yet.

In case you missed it, you can read that Smart Money below, and check out what else we covered here this past week…

Smart Money Roundup

Nvidia Moves to Manufacture in the U.S. – This Overlooked Company Is Already Doing It

Despite Nvidia Corp.’s (NVDA) AI market dominance, its sky-high valuation calls for caution. Investors may be excited about the company’s $500 billion U.S. manufacturing announcement, but in Wednesday’s issue, I explain how its “American-made” plans aren’t quite what the headlines suggest. Keep reading to discover a U.S. tech company that deserves your attention instead.

What Kind of Easter Egg Hunt Are You In?

In Part 1 of Senior ÃÛÌÒ´«Ã½ Analyst Brian Hunt’s essay, he shares Netflix Inc.’s (NFLX) journey from Blockbuster’s $50 million rejection to becoming a $129 billion streaming powerhouse. This fits with Hunt’s Easter egg hunt analogy for stock picking: A $5,000 Netflix investment in 2002 would’ve yielded $2.87 million by choosing the right hunting ground.

What the Easter Egg Hunt and the Stock ÃÛÌÒ´«Ã½ Have in Common

In Part 2 of Brian Hunt’s Easter egg hunt series, he poses the question: Would you prefer hunting Easter eggs in a park with 1,000 people or just 10 others? This applies to the stock market as well. In this issue, Hunt suggests that investors find greater success in less crowded, overlooked areas in the market.

Looking Ahead

This week, I’ll continue to dive deeper into big-picture trends that continue to shape my investment outlook… especially amid the recent market volatility and uncertainty.

Of course, AI continues to be a megatrend that I’ll be closely following.

It is one of the biggest investment stories of the moment, perhaps even of our lifetimes. That’s why I was intrigued when I learned that our corporate partners over at TradeSmith have released an AI algorithm that can forecast prices one month into the future.

Imagine having access to the same kind of AI-powered predictive capabilities previously available only to elite Wall Street firms. I can’t think of a more valuable tool to have in a chaotic market like this…

That’s why TradeSmith CEO Keith Kaplan hosted The AI Predictive Power Event last week – so that regular investors can profit during the chaos… instead of fearing it.

Click here to watch the replay now.

Regards,

Eric Fry

The post Investing in the ÃÛÌÒ´«Ã½s We Have… Not the Ones We Want appeared first on InvestorPlace.

This Week’s Ratings Changes:

Upgraded: Buy to Strong Buy

Downgraded: Strong Buy to Buy

Upgraded: Hold to Buy

Downgraded: Buy to Hold

Upgraded: Sell to Hold

Downgraded: Hold to Sell

Upgraded: Strong Sell to Sell

Downgraded: Sell to Strong Sell

To stay on top of my latest stock ratings, plug your holdings into Stock Grader, my proprietary stock screening tool. But, you must be a subscriber to one of my premium services. Or, if you are a member of one of my premium services, you can go here to get started.

Sincerely,

Louis Navellier

Editor, ÃÛÌÒ´«Ã½ 360

The post Weekly Stock Grader Analysis: Upgrades & Downgrades on Top Blue-Chip Stocks appeared first on InvestorPlace.

Last week, I revealed five stocks from Luke’s quantitative model. These high-quality firms were all counter-cyclical, so they typically hold their value during falling markets. 

Since then, these companies have performed well. The five stocks have traded flat on average, despite crushing selloffs elsewhere. Shares of Nvidia Corp. (NVDA) plummeted 10% on Wednesday alone. 

But what about investors seeking a bit more cyclical risk? 

There are some difficulties with this approach. Decades of research show that stocks generally keep moving in a single direction, so rising stocks keep going up, and falling ones keep going down. 

Some call contrarian investing like catching a falling knife; in my experience, it’s more like catching a falling piano. 

Emotions also get in the way. It takes nerves of steel to buy stocks when they’ve fallen by 20% or more… and it’s tempting to cut losses whenever shares drop even further. 

That’s why “buy the dip” strategies are hard to get right. My worst-performing “buy the dip” stocks from last fall, Oscar Health Inc. (OSCR), saw shares plummet 20% in the month after my recommendation. I’m not exactly proud of that. 

Still, getting things right can yield phenomenal results. My same group of “buy the dip” recommendations included enough gems like these to flip overall performance solidly positive. 

• Informatica Inc. (INFA): +5% 
• Seagate Technology Holdings plc (STX): +10% 
• Meta Platforms Inc. (META): +20% 

Now, our corporate partner TradeSmith believes they’ve found a way to help longer-term investors find attractive entry points into great long-term stocks. They’ve taken some of Wall Street’s brightest and built an AI system using over 1.3 quadrillion data points. 

The result is An-E (short for Analytical Engine), the top AI-powered algorithm from TradeSmith. The system is based on a short, 30-day holding period that reacts almost instantaneously to the news. That allows investors to compound gains over time. 

At Wednesday’s AI Predictive Power Event, TradeSmith CEO Keith Kaplan demonstrated how to get your own forecasts and use An-E’s confidence gauge to stack the odds in your favor. He even shared a few of An-E’s latest predictions. (You can watch a replay of the event here.) 

In the meantime, I’ve been given permission to share five picks from An-E as well. These are fundamentally sound stocks I’ve been watching for a long while now… and An-E is giving the green light to buy. Let’s jump in. 

Three Tech Stocks to Buy 

It’s been a surprisingly rough year for high-quality tech stocks. Many firms have sold off in lockstep with the “Magnificent Seven” companies, despite lacking the sky-high valuations of their larger counterparts. Others are simply falling because of investor fear.  

That’s creating a rich vein of companies to buy the dip… provided you can get the timing right. 

Timing is often challenging for fundamentals-focused investors. I can draw up discounted cash flow (DCF) statements, showing how companies are undervalued relative to their immense future profits. But I can’t tell you whether investor sentiment will flip positive on these firms in the next month. 

Here’s where TradeSmith’s An-E system comes in. By examining short-term moves and knowing where the “smart money” is putting their chips, the AI system can determine the right moments to jump back in. 

Salesforce Inc. (CRM). This blue-chip software firm has lost 20% of its value this year. Shares of Salesforce now trade at 22X forward earnings; each time it’s done that in the past five years, shares have jumped an average of 33% over the following three months. 

The San Francisco-based firm is a wide-moat firm with both blue-chip and growth-like aspects. It’s Sales Cloud and Service Cloud are the gold standard in selling and servicing, and their mission-critical nature makes companies less likely to switch away. Customer retention rates are a strong 92%, and net margins typically sit in the mid-20% range. 

In addition, Salesforce has been quickly expanding in Data Cloud and AI revenues, which grew 120% in its most recent quarter to $900 million in annual recurring revenue. Management is forecasting a 9% overall sales growth rate in calendar 2025 as a result. 

Akamai Technologies Inc. (AKAM). This is a legacy content distribution network (CDN) firm that’s found a new life as a cybersecurity company. Shares currently trade at a stunningly low 12X forward earnings, despite analysts projecting 25% growth in earnings before interest, taxes, depreciation and amortization (EBITDA). 

Much of its growth in cybersecurity is thanks to Akamai’s legacy CDN business, which handles roughly a quarter of the world’s internet traffic. This allows Akamai to “see” an enormous portion of the internet and stop cyberattacks before many even start. Security services now generate half of the company’s revenues. 

The other growth comes from acquisitions in the cloud computing space. These efforts accelerated in 2022 with the purchase of Linode, a developer-friendly cloud infrastructure business. Cloud computing now generates around 20% of revenues. 

Perhaps most interestingly, Akamai now trades so cheaply that it’s become a compelling takeover target. Its $13 billion enterprise value would be easily absorbed by larger firms, and its CDN know-how will allow potential buyers like Fortinet Inc. (FTNT) and CrowdStrike Holdings Inc. (CRWD) to better compete against Amazon.com Inc. (AMZN). 

Advanced Micro Devices Inc. (AMD). Finally, An-E suggests it’s time to jump into AMD, the keenest rival to Nvidia. 

AMD is one of the best-managed companies in the world. Its CEO, Lisa Su, executed such a notable turnaround that landed her the winner of 2024’s CEO of the Year Award. AMD Zen architecture performs well against Intel Corp.’s (INTC) versions, and its consumer-facing graphics processing units (GPUs) now rival Nvidia’s in speed. AMD has also succeeded in creating a crossover between GPUs and central processing units (CPUs) thanks to its 2022 acquisition of Xilinx.  

The trade war between the U.S. and China has recently depressed AMD underlying value. The company expects to take a $800 million loss on export restrictions on MI308 AI chips, and AI-related revenues from China will likely head to zero in the near term. That cuts the company’s fair value closer to $125 per share. 

However, the 42% selloff over the past 12 months is far too steep. AMD now trades at a wide discount to its fair value, and An-E is flagging it as a good buy. 

Revisiting Two Old Picks 

Last year, I named 10 stocks to my top “Buy” list for 2025. Many have done well, including defensive plays like Dollar General Corp. (DG), up 20%, and Realty Income Corp. (O), up 9%. I called these firms “Dividend Kings” for their strong cash flows and consistent payouts. 

But two of my top picks have been blindsided by the new administration. 

• Moderna Inc. (MRNA). The cancer vaccine developer has seen shares plummet 40% on fears that Health and Human Services leader Robert Kennedy Jr. would dismantle America’s vaccine programs. 
• Celanese Corp. (CE). A 25% tariff on U.S. auto imports has triggered fears of a national slowdown in auto sales, impacting firms like Celanese that make the chemicals needed for production. Shares of CE are down 42% 

Both firms were cheap… and now they’re even cheaper. Moderna has an enterprise value of just $3.1 billion – a third of what most late-stage blockbuster drugs are acquired for. It’s still on track to release findings of a promising cancer vaccine later this year. 

Meanwhile, Celanese trades at 0.8X book value, its lowest point on record. That’s despite the chemical company having some of the best economics in its class because of its access to cheap natural gas. Even this strength has become no match for the recent selloff. 

Fortunately, the pair now have at least 100% upside in the medium term, and 200% in the longer run. Though I admittedly mistimed my initial purchase, An-E is now seeing a far better entry point in today’s price action. 

Timing the ÃÛÌÒ´«Ã½ with AI 

The wonderful thing about investing with An-E is that you can easily go back in time and see how the hundreds of predictions have fared. 

And An-E has proved its worth. 

Over the past month, the system has provided recommendations including: 

• Duolingo Inc. (DUOL): +10% 
• Walgreens Boots Alliance Inc. (WBA): +9% 
• Aaon Inc. (AAON): +8% 

I’m not cherry-picking numbers either. The system typically has a 60% to 70% “hit rate” on its target predictions. 

On Wednesday, TradeSmith held an emergency briefing called The AI Predictive Power Event, where they covered exactly how this tech works. 

And for a limited time, they’re offering a chance to rewatch the event. Whether you’re playing offense by targeting winners or defense by avoiding losers, An-E gives you the clarity you need when it matters most.

Click here to sign up to watch a limited-time replay of The AI Predictive Power Event now and learn how to make every trade a “high conviction trade.”

Until next week,  

Tom Yeung  

ÃÛÌÒ´«Ã½ Analyst, InvestorPlace  

Thomas Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.

The post 5 Stocks to Buy the Dip, According to AI  appeared first on InvestorPlace.

Now, in part two today, Hunt compares a quiet, small egg hunt to one with hundreds of people. If you had your pick, I’d be willing to bet you would go for the smaller egg hunt, where you are more likely to be successful.

As Brian explains, this same dynamic is at work in the stock market every day… I’ll let Brian take it from here…

Picture this…

It’s Easter and you’re ready for the neighborhood Easter egg hunt.

Over 100 eggs have been hidden in a small local park. Each egg has a treat inside it. You’re told that one special egg even has a cash prize in it.

If you’re in this hunt, which of the two following scenarios would you rather be in?

If you’re like most reasonable people, you picked B.

You’d rather have this:

Than this:

You’d rather have just 10 people in competition with you… instead of 1,000 other people picking over the park like a swarm of locusts.

What does this have to do with investing?

Well, this same dynamic is at work in the stock market every day.

The financial markets are where millions of people go to pick through opportunities in stocks, commodities, currencies, options, bonds, and real estate.

In this big market, everyone is looking to buy assets for less than what they are worth and looking to sell assets for more than what they are worth.

Essentially, everyone is trying to outsmart everyone else.

Everyone is looking for eggs.

The financial markets price most assets correctly most of the time.

However, it’s not a perfect system. Windows of opportunity – where you can buy assets for less than what they are worth or sell assets for more than what they are worth – appear from time to time.

In the investing world, these windows are called “market inefficiencies.”

These are the opportunities that can make us big money.

However, the more people that are studying, monitoring, and picking over a market and its opportunities, the more competition you have in that market… and the less likely you’ll be able to find market inefficiencies.

The more people picking over a market, the smaller its pricing inefficiencies will be and the shorter its windows of opportunities will be open.

In the financial markets, the biggest competitors are “institutional investors.”

Institutional investors are the elephants of the financial markets. This group includes mutual funds, pension funds, large hedge funds, and insurance funds. It also includes sovereign wealth funds, which manage the savings of entire nations.

A single large institutional investor can manage over $10 billion in assets.

So, even a wealthy individual with $5 million in assets is a mouse compared to this elephant (in this case, the elephant is 2,000 times larger).

Some institutional investors manage much more than $10 billion.

The sovereign wealth fund of Norway – which has been fattened by oil revenue for years – was worth more than $1 trillion in 2017.

This is 100 times bigger than the large institution with $10 billion to invest.

The large institutional investors of the world have ridiculously giant amounts of money to invest in stocks, bonds, and other assets.

These large institutional investors typically employ armies of analysts who spend hundreds of thousands of hours every year scouring the world for opportunities.

These analysts perform a lot of old fashioned “financial detective” work by visiting public companies and interviewing industry experts.

They also use the world’s most advanced computer algorithms and “Big Data” analytical programs to comb through market data.

The programs run 24 hours a day, seven days a week… sifting all of the world’s financial data a thousand different ways at warp speed… hunting for pricing inefficiencies, small and large.

Picture those Easter egg hunts again… and realize that the stock market is a brutally competitive Easter egg hunt.

That’s the bad news.

The good news is the financial market is a big, diverse place.

And there are Easter egg hunts the big guys can’t participate in.

The Problem of Size

In the investment world, professional investors obsess over “liquidity.”

When it comes to buying and selling investments, liquidity is a measure of how easy or difficult it is to transact in a security.

For example, take Amazon stock. Because Amazon is one of the world’s largest companies (worth over $983 billion in 2022), and since many people like to buy and sell its stock, we can say Amazon stock is “very liquid” or “has huge liquidity.”

There is a large market for Amazon stock where buyers and sellers execute many sales each day. In 2022, it was common to see over 70 million shares of Amazon change hands in a day.

On the other side of the spectrum, take an unknown small-cap firm with a market cap of just $50 million (less than one-tenth of one percent of Amazon).

Because this company is tiny by stock market standards, and since most people have never heard of it, the company’s stock will not have much liquidity.

Remember, market cap is simply the number of outstanding shares times the share price. That means with small-cap stocks, there simply aren’t all that many shares out in the market (compared to, say, Amazon, which we just talked about). This makes it harder for someone to buy up a huge amount of those shares – there may not be all that many sellers.

Now here’s where it gets interesting…

Let’s say you manage a $10 billion stock portfolio.

For a stock position to make a meaningful positive impact on your fund’s results, you need it to represent at least 3% of your fund’s assets.

Most good managers would rather put 4% to 8% of their fund into a stock idea they believe is truly great.

If you’re looking to put 3% of $10 billion to work in a great idea, that means you are looking to place $300 million.

That is six times more money than a $50 million small-cap.

Even if you wanted to put just 1% of your fund into a stock, that is $100 million.

You get the idea.

Big money managers can’t join in the small-cap stock Easter egg hunt.

They also can’t “play” in other small markets with limited liquidity, like many options markets, smaller investment funds (like closed end funds and ETFs), individual bonds, small-cap foreign stocks, and penny stocks.

When you “play” in small markets with modest liquidity, you don’t take on the world’s richest, most powerful institutions armed with armies of topflight analysts and the world’s best computers.

Instead of competing against thousands of other Easter egg hunters, you compete against modest amounts of them.

Think of it like you would buying a house. You want to be a buyer in an area with just a few other buyers… instead of being a buyer in a town where lines form down the block after homes go on sale. When you’re a buyer, you don’t want loads of competition.

I can’t resist rolling out one more analogy to get you on board:

Think of it like fishing. You don’t want to fish in the same spot as 1,000 other anglers. You’d rather have a quiet stream and its fish all to yourself.

Successful investing and trading is all about tilting the odds in your favor.

The more you can get this advantage, the more successful you will be.

Hunting in smaller, less liquid markets – like the small-cap market – is one of the best ways to do that.

Regards,

Brian Hunt

InvestorPlace Senior ÃÛÌÒ´«Ã½ Analyst

P.S. Eric Fry, here.

As you may know, I’ve been following the AI megatrend for a long time now.

That’s why I was intrigued when I learned that our corporate partners at TradeSmith released an AI algorithm that can forecast prices one month into the future.

Imagine having access to the same kind of AI-powered predictive capabilities previously available only to elite Wall Street firms. I can’t think of a more valuable tool to have in a chaotic market like this…

That’s why TradeSmith CEO Keith Kaplan hosted The AI Predictive Power Event earlier this week – so that regular investors can profit during the chaos… instead of fearing it.

If you didn’t get a chance to attend, click here to start watching the replay now.

The post What the Easter Egg Hunt and the Stock ÃÛÌÒ´«Ã½ Have in Common appeared first on InvestorPlace.

Today, in Part II, Brian reveals the real reason the world’s wealthiest investors can’t touch these hidden gems – and how that gives you an almost unfair advantage.

You’ll discover why institutional giants are forced to ignore the very places where the biggest growth lives, and how their absence opens a far less crowded, far more lucrative Easter egg hunt for savvy individual investors.

If you want the edge in today’s hyper-competitive market, this is a must-read.

I’ll let Brian take it from here in Part II of “What Kind of Easter Egg Hunt Are You In?

Have a wonderful Easter Weekend,

Jeff Remsburg

The Problem of Size

In the investment world, professional investors obsess over “liquidity.”

When it comes to buying and selling investments, liquidity is a measure of how easy or difficult it is to transact in a security.

For example, take Amazon stock. Because Amazon is one of the world’s largest companies (worth over $983 billion in 2022), and since many people like to buy and sell its stock, we can say Amazon stock is “very liquid” or “has huge liquidity.”

There is a large market for Amazon stock where buyers and sellers execute many sales each day. In 2022, it was common to see over 70 million shares of Amazon change hands in a day.

On the other side of the spectrum, take an unknown small-cap firm with a market cap of just $50 million (less than one-tenth of one percent of Amazon).

Because this company is tiny by stock market standards, and since most people have never heard of it, the company’s stock will not have much liquidity.

Remember, market cap is simply the number of outstanding shares times the share price. That means with small-cap stocks, there simply aren’t all that many shares out in the market (compared to, say, Amazon, which we just talked about). This makes it harder for someone to buy up a huge amount of those shares – there may not be all that many sellers.

Now here’s where it gets interesting…

Let’s say you manage a $10 billion stock portfolio.

For a stock position to make a meaningful positive impact on your fund’s results, you need it to represent at least 3% of your fund’s assets.

Most good managers would rather put 4% to 8% of their fund into a stock idea they believe is truly great.

If you’re looking to put 3% of $10 billion to work in a great idea, that means you are looking to place $300 million.

That is six times more money than a $50 million small-cap.

Even if you wanted to put just 1% of your fund into a stock, that is $100 million.

You get the idea.

Big money managers can’t join in the small-cap stock Easter egg hunt.

They also can’t “play” in other small markets with limited liquidity, like many options markets, smaller investment funds (like closed end funds and ETFs), individual bonds, small-cap foreign stocks, and penny stocks.

When you “play” in small markets with modest liquidity, you don’t take on the world’s richest, most powerful institutions armed with armies of topflight analysts and the world’s best computers.

Instead of competing against thousands of other Easter egg hunters, you compete against modest amounts of them.

Think of it like you would buying a house. You want to be a buyer in an area with just a few other buyers… instead of being a buyer in a town where lines form down the block after homes go on sale. When you’re a buyer, you don’t want loads of competition.

I can’t resist rolling out one more analogy to get you on board:

Think of it like fishing. You don’t want to fish in the same spot as 1,000 other anglers. You’d rather have a quiet stream and its fish all to yourself.

Successful investing and trading is all about tilting the odds in your favor.

The more you can get this advantage, the more successful you will be.

Hunting in smaller, less liquid markets – like the small-cap market – is one of the best ways to do that.

Regards,

Brian Hunt
Senior Analyst, InvestorPlace

P.S. – Here’s how to find the best small-caps poised for one-month gains

As you may know, we’ve been following the AI megatrend for a long time now.

That’s why I was intrigued when I learned that our corporate partners at TradeSmith released an AI algorithm that can forecast prices one month into the future.

Imagine having access to the same kind of AI-powered predictive capabilities previously available only to elite Wall Street firms. I can’t think of a more valuable tool to have in a chaotic market like this…

That’s why TradeSmith CEO Keith Kaplan hosted The AI Predictive Power Event earlier this week – so that regular investors can profit during the chaos… instead of fearing it.

If you didn’t get a chance to attend, click here to start watching the replay now.

The post “What Kind of Easter Egg Hunt Are You In?” Part II appeared first on InvestorPlace.

Now, in part two today, Hunt compares a quiet, small egg hunt to one with hundreds of people. If you had your pick, I’d be willing to bet you would go for the smaller egg hunt, where you are more likely to be successful.

As Brian explains, this same dynamic is at work in the stock market every day… I’ll let Brian take it from here…

****

Picture this…

It’s Easter and you’re ready for the neighborhood Easter egg hunt.

Over 100 eggs have been hidden in a small local park. Each egg has a treat inside it. You’re told that one special egg even has a cash prize in it.

If you’re in this hunt, which of the two following scenarios would you rather be in?

If you’re like most reasonable people, you picked B.

You’d rather have this:

Than this:

You’d rather have just 10 people in competition with you… instead of 1,000 other people picking over the park like a swarm of locusts.

What does this have to do with investing?

Well, this same dynamic is at work in the stock market every day.

The financial markets are where millions of people go to pick through opportunities in stocks, commodities, currencies, options, bonds, and real estate.

In this big market, everyone is looking to buy assets for less than what they are worth and looking to sell assets for more than what they are worth.

Essentially, everyone is trying to outsmart everyone else.

Everyone is looking for eggs.

The financial markets price most assets correctly most of the time.

However, it’s not a perfect system. Windows of opportunity – where you can buy assets for less than what they are worth or sell assets for more than what they are worth – appear from time to time.

In the investing world, these windows are called “market inefficiencies.”

These are the opportunities that can make us big money.

However, the more people that are studying, monitoring, and picking over a market and its opportunities, the more competition you have in that market… and the less likely you’ll be able to find market inefficiencies.

The more people picking over a market, the smaller its pricing inefficiencies will be and the shorter its windows of opportunities will be open.

In the financial markets, the biggest competitors are “institutional investors.”

Institutional investors are the elephants of the financial markets. This group includes mutual funds, pension funds, large hedge funds, and insurance funds. It also includes sovereign wealth funds, which manage the savings of entire nations.

A single large institutional investor can manage over $10 billion in assets.

So, even a wealthy individual with $5 million in assets is a mouse compared to this elephant (in this case, the elephant is 2,000 times larger).

Some institutional investors manage much more than $10 billion.

The sovereign wealth fund of Norway – which has been fattened by oil revenue for years – was worth more than $1 trillion in 2017.

This is 100 times bigger than the large institution with $10 billion to invest.

The large institutional investors of the world have ridiculously giant amounts of money to invest in stocks, bonds, and other assets.

These large institutional investors typically employ armies of analysts who spend hundreds of thousands of hours every year scouring the world for opportunities.

These analysts perform a lot of old fashioned “financial detective” work by visiting public companies and interviewing industry experts.

They also use the world’s most advanced computer algorithms and “Big Data” analytical programs to comb through market data.

The programs run 24 hours a day, seven days a week… sifting all of the world’s financial data a thousand different ways at warp speed… hunting for pricing inefficiencies, small and large.

Picture those Easter egg hunts again… and realize that the stock market is a brutally competitive Easter egg hunt.

That’s the bad news.

The good news is the financial market is a big, diverse place.

And there are Easter egg hunts the big guys can’t participate in.

The Problem of Size

In the investment world, professional investors obsess over “liquidity.”

When it comes to buying and selling investments, liquidity is a measure of how easy or difficult it is to transact in a security.

For example, take Amazon stock. Because Amazon is one of the world’s largest companies (worth over $983 billion in 2022), and since many people like to buy and sell its stock, we can say Amazon stock is “very liquid” or “has huge liquidity.”

There is a large market for Amazon stock where buyers and sellers execute many sales each day. In 2022, it was common to see over 70 million shares of Amazon change hands in a day.

On the other side of the spectrum, take an unknown small-cap firm with a market cap of just $50 million (less than one-tenth of one percent of Amazon).

Because this company is tiny by stock market standards, and since most people have never heard of it, the company’s stock will not have much liquidity.

Remember, market cap is simply the number of outstanding shares times the share price. That means with small-cap stocks, there simply aren’t all that many shares out in the market (compared to, say, Amazon, which we just talked about). This makes it harder for someone to buy up a huge amount of those shares – there may not be all that many sellers.

Now here’s where it gets interesting…

Let’s say you manage a $10 billion stock portfolio.

For a stock position to make a meaningful positive impact on your fund’s results, you need it to represent at least 3% of your fund’s assets.

Most good managers would rather put 4% to 8% of their fund into a stock idea they believe is truly great.

If you’re looking to put 3% of $10 billion to work in a great idea, that means you are looking to place $300 million.

That is six times more money than a $50 million small-cap.

Even if you wanted to put just 1% of your fund into a stock, that is $100 million.

You get the idea.

Big money managers can’t join in the small-cap stock Easter egg hunt.

They also can’t “play” in other small markets with limited liquidity, like many options markets, smaller investment funds (like closed end funds and ETFs), individual bonds, small-cap foreign stocks, and penny stocks.

When you “play” in small markets with modest liquidity, you don’t take on the world’s richest, most powerful institutions armed with armies of topflight analysts and the world’s best computers.

Instead of competing against thousands of other Easter egg hunters, you compete against modest amounts of them.

Think of it like you would buying a house. You want to be a buyer in an area with just a few other buyers… instead of being a buyer in a town where lines form down the block after homes go on sale. When you’re a buyer, you don’t want loads of competition.

I can’t resist rolling out one more analogy to get you on board:

Think of it like fishing. You don’t want to fish in the same spot as 1,000 other anglers. You’d rather have a quiet stream and its fish all to yourself.

Successful investing and trading is all about tilting the odds in your favor.

The more you can get this advantage, the more successful you will be.

Hunting in smaller, less liquid markets – like the small-cap market – is one of the best ways to do that.

Regards,

Brian Hunt

InvestorPlace Senior ÃÛÌÒ´«Ã½ Analyst

P.S. It’s Louis again.

For years, investors have been trying to forecast future stock prices. And our corporate partners at TradeSmith seem to have finally cracked the case.

Using advanced AI and machine learning, they created a tool that is already revolutionizing the financial industry… and helping many Americans survive and thrive.

Click here for more details.

The post The Story of the Easter Egg Hunt appeared first on InvestorPlace.

Imagine turning $5,000 into $2.87 million – and that’s not a typo…

The early days of Netflix offer a gripping glimpse into what happens when the world laughs off a visionary idea. But this isn’t just a tale of Blockbuster’s blunder, it’s a launchpad into a hidden truth about markets that few investors truly understand.

In the essay below by Brian, we dive into why the biggest fortunes aren’t made with the largest stocks – and how to find the kind of opportunities everyone else is too proud, slow, or uninformed to notice.

Ready to rethink where you’re hunting for the big winners?

Here’s Brian with Part I of “What Kind of Easter Egg Hunt Are You In?”

Have a good evening,

Jeff Remsburg

In the spring of 2000, a man named Reed Hastings traveled to Dallas with a big business idea.

Hastings approached the management of movie rental giant Blockbuster with a proposal. He wanted Blockbuster to buy his small business for $50 million.

At the time, Hastings’ company – called Netflix – had a promising business model. It allowed people to rent movies through the mail. Netflix was also small and struggling to turn a profit.

Hastings believed a Blockbuster purchase of Netflix would be a win-win deal for both parties. Blockbuster’s managers did not. They didn’t think Netflix’s business model made sense for them. A Netflix executive later said that Blockbuster essentially laughed Hastings out of the room.

You probably know the rest of the story.

Netflix secured investment from other sources and built a hugely popular mail-order DVD rental business.

Around 2007, it made a brilliant move and began transitioning into America’s No. 1 movie and television streaming service. This innovation crushed traditional brick-and-mortar rental companies like Blockbuster.

In 2002, Netflix had less than 3 million subscribers. By 2022, it had reached 222 million subscribers and climbed to a market valuation of $129 billion.

Blockbuster’s market valuation in 2018?

Zip.

It went bankrupt a long time ago… and its “pass” on Netflix is widely regarded as one of the worst decisions in modern corporate history.

To give you an idea of how an investor would have done with an early Netflix stake, consider that Netflix stock fell to a split-adjusted low of $0.35 per share in 2002.

Assume you did not buy the bottom, but instead invested $5,000 at $0.50 per share, picking up 10,000 shares of Netflix.

In 2022, that $5,000 investment would have been worth $2.87 million… a 574-fold return.

Netflix’s story is one of my favorite examples of one of the most powerful concepts in the world of finance and investing.

The concept?

If you want to make giant returns in stocks, you must be in the right Easter egg hunt.

Below, I explain why…

How to Find Stocks That Can Return 100-Fold Hide

On Wall Street, companies are often grouped and labeled according to their size.

Investors typically place a company in one of three size categories: large-caps, mid-caps, and small-caps.

“Cap” is short for “market capitalization.” This is the term used to describe the value of a public company. To figure out a company’s market cap, all you have to do is multiply the total number of shares the company has in the market times the market price of a single share.

The group names are common sense. Large-caps are large. Small-caps are small. Mid-caps are in between.

For example, the popular software company Microsoft is a large-cap. In November 2022, its market cap was around $1.79 trillion.

Or, take iPhone maker Apple. It’s also a large-cap. In November 2022, its market cap was around $2.4 trillion .

Mid-caps are smaller than large-caps. Typically, investors consider companies with market caps in between $2 billion and $10 billion to be mid-caps.

The difference between a large-cap and a mid-cap can be huge. A mid-cap company worth $5 billion is less than 0.2% of the size of giant Microsoft.

Finally, we have small-caps.

These are companies with market caps under $2 billion.

While the difference between a mid-cap and a large-cap can be huge, the difference between a small-cap and a large-cap can be incredible.

For example, take a small-cap with a market value of $500 million.

This is just 10% of a mid-cap with a market value of $5 billon… which means it is less than one tenth of one percent the size of a large-cap like Microsoft.

Large-caps can be good investments. They are typically stable, established, profitable companies. They often pay dividends. Large-caps can be great investments for conservative investors.

But if you’re interested in making 10, 20, or even 50 times your money (or 574 times your money like with Netflix) in a single investment, you’d be smart to look at small-cap stocks.

Small-cap companies have much greater potential to produce giant returns for their shareholders in a short time than any other kind of company.

The reason is simple…

It’s much, much easier for a young, $500 million small-cap to grow 10-fold than it is for a mature $500-billion giant to grow 10-fold.

That’s just basic math.

If your daughter sold 10 boxes of Girl Scout Cookies around the neighborhood on her own, you could probably help grow her results 10-times (selling 100 boxes) by driving her around, putting a little pressure on your friends, neighbors, and coworkers to buy some boxes.

But what if your daughter was a natural saleswoman and had sold 100 boxes on her own?

To enjoy 10-times growth under that scenario, she’d have to sell 1,000 boxes. Not so easy anymore. That’s the mathematical challenge behind enjoying giant growth when a company is already doing giant sales.

Or, think about these situations…

• When a small $300 million market-cap beverage company creates a hit product that generates an additional $1 billion in sales, it’s a huge deal that can make the company’s stock rise by hundreds or thousands of percent.

However, if beverage giant Coca-Cola creates a way to generate an additional $1 billion in sales, it barely registers on its massive income statement.

• When a small $200 million restaurant company with 40 locations expands to 200 more locations, its market value can soar. But if mega-chain Starbucks adds 200 new locations to its already massive 14,000+ locations, it’s a blip on the company’s balance sheet.
• When a small $600 million software company creates an amazing new way to collect, manage, and analyze healthcare data, financial data, or marketing data, it can increase revenue by over $1 billion… and its stock can soar 10-fold.

However, if giant Microsoft adds $1 billion to its $100 billion+ annual revenue, it’s a drop in the bucket that won’t even make the news.

Now, all this DOES NOT mean a large company is automatically a bad investment. It just means that it’s not an ideal investment for someone looking to make big returns in a relatively short period of time.

Remember, a $500 million small-cap is just one-tenth of one percent of a $500 billion large-cap.

That’s why a search for stocks with huge growth potential should start in the small-cap stock world.

This is where companies with the potential to grow 10, 20, 50… even 574 times larger live and hide out.

But it gets even better for small-cap investors.

There’s another tremendous benefit they enjoy that large-cap investors do not.

I believe this benefit is best explained with the story of an Easter egg hunt.

The Story of the Easter Egg Hunt

Picture this…

It’s Easter and you’re ready for the neighborhood Easter egg hunt.

Over 100 eggs have been hidden in a small local park. Each egg has a treat inside it. You’re told that one special egg even has a cash prize in it.

If you’re in this hunt, which of the two following scenarios would you rather be in?

If you’re like most reasonable people, you picked B.

You’d rather have this:

Than this:

You’d rather have just 10 people in competition with you… instead of 1,000 other people picking over the park like a swarm of locusts.

What does this have to do with investing?

Well, this same dynamic is at work in the stock market every day.

The financial markets are where millions of people go to pick through opportunities in stocks, commodities, currencies, options, bonds, and real estate.

In this big market, everyone is looking to buy assets for less than what they are worth and looking to sell assets for more than what they are worth.

Essentially, everyone is trying to outsmart everyone else.

Everyone is looking for eggs.

The financial markets price most assets correctly most of the time.

However, it’s not a perfect system. Windows of opportunity – where you can buy assets for less than what they are worth or sell assets for more than what they are worth – appear from time to time.

In the investing world, these windows are called “market inefficiencies.”

These are the opportunities that can make us big money.

However, the more people that are studying, monitoring, and picking over a market and its opportunities, the more competition you have in that market… and the less likely you’ll be able to find market inefficiencies.

The more people picking over a market, the smaller its pricing inefficiencies will be and the shorter its windows of opportunities will be open.

In the financial markets, the biggest competitors are “institutional investors.”

Institutional investors are the elephants of the financial markets. This group includes mutual funds, pension funds, large hedge funds, and insurance funds. It also includes sovereign wealth funds, which manage the savings of entire nations.

A single large institutional investor can manage over $10 billion in assets.

So, even a wealthy individual with $5 million in assets is a mouse compared to this elephant (in this case, the elephant is 2,000 times larger).

Some institutional investors manage much more than $10 billion.

The sovereign wealth fund of Norway – which has been fattened by oil revenue for years – was worth more than $1 trillion in 2017.

This is 100 times bigger than the large institution with $10 billion to invest.

The large institutional investors of the world have ridiculously giant amounts of money to invest in stocks, bonds, and other assets.

These large institutional investors typically employ armies of analysts who spend hundreds of thousands of hours every year scouring the world for opportunities.

These analysts perform a lot of old fashioned “financial detective” work by visiting public companies and interviewing industry experts.

They also use the world’s most advanced computer algorithms and “Big Data” analytical programs to comb through market data.

The programs run 24 hours a day, seven days a week… sifting all of the world’s financial data a thousand different ways at warp speed… hunting for pricing inefficiencies, small and large.

Picture those Easter egg hunts again… and realize that the stock market is a brutally competitive Easter egg hunt.

That’s the bad news.

The good news is the financial market is a big, diverse place.

And there are Easter egg hunts the big guys can’t participate in.

We’ll leave it here today, and pick back up tomorrow.

Regards,

Brian Hunt
Senior Analyst, InvestorPlace

P.S. – Want help in this “Easter Egg Hunt”?

Perhaps artificial intelligence can help.

For years, Wall Street has experimented with using AI to help target the most lucrative investments on the market. But in the past few years, they’ve gone “all in.” Now, they’re spending hundreds of millions to develop this technology. 

For everyday investors far from Wall Street, that’s where TradeSmith’s breakthrough AI algorithm – called An-E – comes in. It can forecast the share price on thousands of stocks, funds, and ETFs one month into the future.  

On Wednesday, TradeSmith CEO Keith Kaplan covered the full details behind this remarkable new system and demonstrated how you can apply it to your investment strategy.

If you missed it, you can catch a free replay of Keith’s AI Predictive Power Event right here.

The post “What Kind of Easter Egg Hunt Are You In?” Part I appeared first on InvestorPlace.

Drawing on the upcoming Easter holiday, Hunt will explain how picking stocks can be like an Easter egg hunt… and how if you want to make big returns, you need to make sure you are in the right one. I’ll let Brian explain it from here.

***

In the spring of 2000, a man named Reed Hastings traveled to Dallas with a big business idea.

Hastings approached the management of movie rental giant Blockbuster with a proposal. He wanted Blockbuster to buy his small business for $50 million.

At the time, Hastings’ company – called Netflix – had a promising business model. It allowed people to rent movies through the mail. Netflix was also small and struggling to turn a profit.

Hastings believed a Blockbuster purchase of Netflix would be a win-win deal for both parties. Blockbuster’s managers did not. They didn’t think Netflix’s business model made sense for them. A Netflix executive later said that Blockbuster essentially laughed Hastings out of the room.

You probably know the rest of the story.

Netflix secured investment from other sources and built a hugely popular mail-order DVD rental business.

Around 2007, it made a brilliant move and began transitioning into America’s No. 1 movie and television streaming service. This innovation crushed traditional brick-and-mortar rental companies like Blockbuster.

In 2002, Netflix had less than 3 million subscribers. By 2022, it had reached 222 million subscribers and climbed to a market valuation of $129 billion.

Blockbuster’s market valuation in 2018?

Zip.

It went bankrupt a long time ago… and its “pass” on Netflix is widely regarded as one of the worst decisions in modern corporate history.

To give you an idea of how an investor would have done with an early Netflix stake, consider that Netflix stock fell to a split-adjusted low of $0.35 per share in 2002.

Assume you did not buy the bottom, but instead invested $5,000 at $0.50 per share, picking up 10,000 shares of Netflix.

In 2022, that $5,000 investment would have been worth $2.87 million… a 574-fold return.

Netflix’s story is one of my favorite examples of one of the most powerful concepts in the world of finance and investing.

The concept?

If you want to make giant returns in stocks, you must be in the right Easter egg hunt.

Below, I explain why…

How to Find Stocks That Can Return 100-Fold Hide

On Wall Street, companies are often grouped and labeled according to their size.

Investors typically place a company in one of three size categories: large-caps, mid-caps, and small-caps.

“Cap” is short for “market capitalization.” This is the term used to describe the value of a public company. To figure out a company’s market cap, all you have to do is multiply the total number of shares the company has in the market times the market price of a single share.

The group names are common sense. Large-caps are large. Small-caps are small. Mid-caps are in between.

For example, the popular software company Microsoft is a large-cap. In November 2022, its market cap was around $1.79 trillion.

Or, take iPhone maker Apple. It’s also a large-cap. In November 2022, its market cap was around $2.4 trillion .

Mid-caps are smaller than large-caps. Typically, investors consider companies with market caps in between $2 billion and $10 billion to be mid-caps.

The difference between a large-cap and a mid-cap can be huge. A mid-cap company worth $5 billion is less than 0.2% of the size of giant Microsoft.

Finally, we have small-caps.

These are companies with market caps under $2 billion.

While the difference between a mid-cap and a large-cap can be huge, the difference between a small-cap and a large-cap can be incredible.

For example, take a small-cap with a market value of $500 million.

This is just 10% of a mid-cap with a market value of $5 billon… which means it is less than one tenth of one percent the size of a large-cap like Microsoft.

Large-caps can be good investments. They are typically stable, established, profitable companies. They often pay dividends. Large-caps can be great investments for conservative investors.

But if you’re interested in making 10, 20, or even 50 times your money (or 574 times your money like with Netflix) in a single investment, you’d be smart to look at small-cap stocks.

Small-cap companies have much greater potential to produce giant returns for their shareholders in a short time than any other kind of company.

The reason is simple…

It’s much, much easier for a young, $500 million small-cap to grow 10-fold than it is for a mature $500-billion giant to grow 10-fold.

That’s just basic math.

If your daughter sold 10 boxes of Girl Scout Cookies around the neighborhood on her own, you could probably help grow her results 10-times (selling 100 boxes) by driving her around, putting a little pressure on your friends, neighbors, and coworkers to buy some boxes.

But what if your daughter was a natural saleswoman and had sold 100 boxes on her own?

To enjoy 10-times growth under that scenario, she’d have to sell 1,000 boxes. Not so easy anymore. That’s the mathematical challenge behind enjoying giant growth when a company is already doing giant sales.

Or, think about these situations…

• When a small $300 million market-cap beverage company creates a hit product that generates an additional $1 billion in sales, it’s a huge deal that can make the company’s stock rise by hundreds or thousands of percent.

However, if beverage giant Coca-Cola creates a way to generate an additional $1 billion in sales, it barely registers on its massive income statement.

• When a small $200 million restaurant company with 40 locations expands to 200 more locations, its market value can soar. But if mega-chain Starbucks adds 200 new locations to its already massive 14,000+ locations, it’s a blip on the company’s balance sheet.
• When a small $600 million software company creates an amazing new way to collect, manage, and analyze healthcare data, financial data, or marketing data, it can increase revenue by over $1 billion… and its stock can soar 10-fold.

However, if giant Microsoft adds $1 billion to its $100 billion+ annual revenue, it’s a drop in the bucket that won’t even make the news.

Now, all this DOES NOT mean a large company is automatically a bad investment. It just means that it’s not an ideal investment for someone looking to make big returns in a relatively short period of time.

Remember, a $500 million small-cap is just one-tenth of one percent of a $500 billion large-cap.

That’s why a search for stocks with huge growth potential should start in the small-cap stock world.

This is where companies with the potential to grow 10, 20, 50… even 574 times larger live and hide out.

But it gets even better for small-cap investors.

There’s another tremendous benefit they enjoy that large-cap investors do not.

I believe this benefit is best explained with the story of an Easter egg hunt, which I will explain in the second part of this series. Stay tuned for that in tomorrow’s ÃÛÌÒ´«Ã½ 360.

Regards,

Brian Hunt

InvestorPlace Senior ÃÛÌÒ´«Ã½ Analyst

P.S. Louis here again.

As you may know, I’m a “numbers guy”. I’m more interested in probabilities rather than speculation.

That’s why I was intrigued when I learned that our corporate partners at TradeSmith released an AI algorithm that can forecast prices one month into the future.

Imagine having access to the same kind of AI-powered predictive capabilities previously available only to elite Wall Street firms. I can’t think of a more valuable tool to have in a chaotic market like this…

That’s why TradeSmith CEO Keith Kaplan hosted The AI Predictive Power Event earlier this week – so that regular investors can profit during the chaos… instead of fearing it.

If you didn’t get a chance to attend, click here to start watching the replay now.

The post What Kind of Easter Egg Hunt Are You In? appeared first on InvestorPlace.

Stocks are ricocheting back and forth like they’re trapped in a pinball machine. The Nasdaq swings 4% up one day, 5% down the next. It’s enough to make investors melt down.

But here’s the thing nobody seems to be talking about: The stock market isn’t the real risk right now. The bond market is.

And if we don’t get some relief there soon, we’re staring down the barrel of a potentially apocalyptic economic scenario…

For example, the 10-year U.S. Treasury yield is often called “the most important number in finance.” It’s not just a benchmark rate for Wall Street traders. It’s the foundation of nearly every major financing rate in America.

Mortgages, auto loans, student and personal loans, and credit cards are all tied to it.

Indeed, the entire U.S. consumer credit system leans on that number.

So, when the 10-year moves, everything does.

And over the first few weeks of April, the 10-year took off, spiking from 3.8% to 4.6% in just a few days – one of the most violent upward moves in modern market history.

That may sound abstract. But here’s what it really means:

• Mortgage rates will surge above 8%.
• Auto financing rates will punch past 9%.
• Personal loan interest rates will spike into the double digits.
• Credit card APRs will flirt with 30%.

All this in the middle of a slowing economy…

Why Surging Bond Yields Are a Huge Problem for the Economy

In every major recession, bond yields fall. That’s the natural cycle. 

When things get bad, investors flock to safety. They buy U.S. Treasuries, which pushes yields down. Lower yields mean lower financing rates, which support consumer borrowing and help resuscitate demand.

For instance, during the 2008 financial crisis, the 10-year collapsed from 4.2% to 2%. And during 2020’s COVID Crash, it nosedived from 2% to 0.5%.

In both cases, the plunge in yields unlocked the economy’s natural shock absorbers – cheap mortgages, affordable car loans, and low-interest personal debt.

But this time, those shock absorbers are failing.

As we outlined in yesterday’s issue:

• Consumer confidence is near a 50-year low. According to the University of Michigan’s latest survey, consumer sentiment plunged 11% this month to 50.8 – a 12-year low and the second-lowest level on record since 1952.
• Retail sales are slowing, especially on a core basis. Though sales surged 1.4% in March, this uptick is likely temporary as consumers attempt to ‘frontload’ tariffs. In February, retail sales rose 0.2%, much lower than the 0.7% increase economists projected.
• Business investment has stalled, down $130 billion from Q3 to Q4 of 2024. 
• The housing market is frozen solid. Data from the National Association of Realtors shows that existing home sales fell 1.2% year-over-year.

And now bond yields are spiking.

That’s not how this is supposed to go.

The Dangerous Divergence Between the Economy and the Bond ÃÛÌÒ´«Ã½

We’re watching the economy fall off a cliff – and borrowing costs are going up.

That’s a deadly combo.

As we mentioned, the housing market is already frozen. Affordability is stretched to historic levels. If mortgage rates rise from 7.5% to 9%, that market could break completely. And when housing goes, the economy tends to go with it. See: 2008.

Similarly, the auto market is already in a funk. And credit card debt is already at all-time highs. Higher rates will crush household finances, cut spending, and choke growth.

If bond yields keep spiking while the economy keeps slowing, we’re not talking about a mild recession.

We’re talking about a potentially historic economic meltdown.

So, why are bond yields spiking when they’re supposed to be falling?

There are two main reasons. And neither is natural.

1. Tariff-Driven Inflation Fears

Investors are terrified that the new tariff regime will reignite inflation.

If tariffs spike the cost of goods, inflation rises. And if inflation rises, investors demand higher yields on long-term debt to compensate. Nobody wants to hold a 10-year bond yielding 4% if inflation is running at 5%. That’s a guaranteed loss.

So, bondholders are panicking. And yields are surging.

2. Foreign Selling Pressure

The U.S. isn’t the only one upset about this trade war.

China and Japan – two of the largest foreign holders of U.S. Treasuries – may be quietly dumping U.S. debt in retaliation. After all, why hold the IOUs of a country you’re currently in an economic battle with?

This foreign selling creates additional pressure, pushing bond prices lower and yields higher.

Bond ÃÛÌÒ´«Ã½ Relief Could Be Coming: Here’s Why

Now, here’s the good news: This pain is not driven by a permanent fixture. It’s the result of an acute political problem.

And political problems can be solved.

If trade tensions ease, inflation expectations will normalize, and foreign holders will stop selling Treasuries… and then, guess what?

Bond yields will fall.

And if bond yields fall, financing rates drop. The consumer endures. The housing market breathes. The economy stabilizes, and stocks recover: crisis averted. Therefore, we’re not panicking. 

We understand the bond market risk. It’s huge – but it is also fixable.

That’s why we’ve been telling our subscribers to nibble on this stock market dip… because we believe resolution is coming.

We’ve already seen progress:

• A 90-day pause on new tariffs
• Electronics exemptions on Chinese exports
• Talk of an auto tariff exemption
• Softening Washington rhetoric

The signals are subtle, but they’re starting to stack up. 

The White House knows what’s at stake. It may posture for headlines, but we think it’s also preparing for resolution.

Bond ÃÛÌÒ´«Ã½ Turmoil: What It Means for Stocks, Housing, and the Economy

We are on the edge of something dangerous.

The bond market is ringing alarm bells. If yields don’t come back down soon, this trade war could destroy the foundation of the U.S. economy, starting with the housing market and then spreading like wildfire.

But we don’t think it will come to that.

The pressure is too intense. The pain is too real. 

As such, we believe a trade war resolution is coming. 

And when it does, the bond market will cool. Yields will fall. Financing rates will normalize. The recession risk will recede. And stocks will rebound.

If you’re looking to prepare for that market surge, consider buying AI 2.0 stocks on this recent dip.

We’re talking AI that can respond to real-world environments; embodied intelligence that can see, hear, walk, talk, lift, carry, organize, fix, learn…

After all, there’s a reason why every tech titan is suddenly obsessed with humanoid robots.

That’s where we believe the next trillion-dollar investment opportunities will be found. And we’ve found a compelling way to play that next phase of the AI Boom.

Uncover the details on our favorite AI 2.0 pick.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Questions or comments about this issue? Drop us a line at langofeedback@investorplace.com.

The post Forget Stocks: Why the Bond ÃÛÌÒ´«Ã½ Is the Real Threat to the Economy appeared first on InvestorPlace.

Editor’s Note: Our InvestorPlace offices are closed tomorrow for Good Friday.

If you need assistance from our Customer Service team, they’ll be happy to assist you when we re-open Monday.

Have a wonderful Easter Weekend!

Earlier today, President Trump took to Truth Social, posting:

The ECB is expected to cut interest rates for the 7th time, and yet, ‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!’

Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS.

Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now.

Powell’s termination cannot come fast enough!

As we’ve detailed here in the Digest, Trump really wants lower interest rates.

Perhaps it’s due to the trillions of dollars’ worth of government debt that are rolling over in the next 18 months… maybe he wants to provide a tailwind to the economy… perhaps he wants to give the wobbly stock market a boost…

The problem is that even if Powell gives Trump the lower rates he wants, that doesn’t mean Trump’s desired outcomes will come to pass.

You see, the Federal Reserve only controls the federal funds rate – a short-term lending rate. The “Big Dog” that impacts mortgage rates, the economy, the stock market, and so on, is the 10-year Treasury yield. But for that, the market is the master puppeteer.

And according to legendary investor Louis Navellier, there’s one group within the market that’s in control today…

To make sure we’re all on the same page, Louis’ favorite economist Ed Yardeni popularized the term “Bond Vigilantes” in the 1980s.

It refers to bond investors who sell off Treasurys in response to what they perceive as irresponsible fiscal or monetary policies, like excessive government spending or inflationary policies. By dumping bonds, they drive up yields, effectively punishing governments with higher borrowing costs.

These investors act like “vigilantes” in the market, enforcing financial discipline when policymakers stray.

Now, April has brought an historic move in the 10-year Treasury yield from these Bond Vigilantes.

Last week, they stampeded out of the 10-year Treasury, causing its yield to soar from less than 4.00% to about 4.50% – the largest weekly gain in over a decade. You can see the bounce in the chart below.

Here’s Louis from yesterday’s Special ÃÛÌÒ´«Ã½ Podcast in Growth Investor:

Last week’s events were stunning.

The main takeaway is the Bond Vigilantes are in charge – these big institutional Treasury investors.

The U.S. dollar is now down almost 10% for the year, and Treasury yields rose because apparently the Bond Vigilantes decided to sell some of our Treasuries…

That means President Trump isn’t in charge; the Bond Vigilantes are…

When the Bond Vigilantes started to avoid our Treasuries, President Trump had no choice but to respond and put a 90-day suspension on reciprocal tariffs.

The better question is “what aren’t they worried about?”

There’s the U.S. budget deficit that grew to $1.83 trillion last year. That’s equivalent to 6.4% of U.S. economic output, marking the highest reading other than the COVID-19 pandemic.

So far in fiscal year 2025 (covering the first half of the fiscal year), the deficit has climbed to more than $1.3 trillion. This is the second-highest six-month deficit on record (second only to Covid).

Then there’s the overall national debt, which is ballooning – and accelerating. It’s now nearly $37 trillion, growing at more than $1 trillion about every 100 days.

The current debt-to-GDP ratio clocks in at 123%. Long term, this is unsustainable. It will result in either an economic or currency collapse.

Next up is the size of our government’s interest payments that are based on the size of our debt and today’s elevated interest rates.

Here’s the non-partisan thinktank Peter G. Peterson Foundation:

The Congressional Budget Office (CBO) projects that interest payments will total $952 billion in fiscal year 2025 and rise rapidly throughout the next decade…

Relative to the size of the economy, interest costs in 2026 would exceed the post-World War II high of 3.2 percent…

The federal government already spends more on interest than on budget areas such as:

• Defense
• Medicaid
• Federal spending on children
• Income security programs, which include programs targeted to lower-income Americans such as the Supplemental Nutrition Assistance Program; earned income, child, and other tax credits
• Veterans’ benefits

In fact, interest payments will exceed the amount that the federal government spends on Medicare (net of offsetting receipts) this year, leaving Social Security the only program larger than net interest.

Then we have President Trump’s tax plan.

To set the stage for why Bond Vigilantes have a problem with this, remember that governments only have two main means of funding their spending: taxes and debt (via issuing Treasurys).

If President Trump’s tax plans make it through Congress, tax revenues will fall.

The Committee for a Responsible Federal Budget estimates that the tax cuts would add $7.75 trillion to the U.S. national debt over the next decade.

This would mean the government would have to rely more on debt issuance to meet all its spending obligations.

And this leaves debt (Treasurys) in the spotlight…which brings us full circle to the bond vigilantes who are punishing perceived economic bad behavior by driving Treasury yields higher.

To be clear, monthly Treasury data comes with a lag. So, we don’t know exactly who sold bonds last week. But there are suspicions – and culprits aren’t limited to U.S. sellers.

The two biggest foreign holders of U.S. debt are China and Japan.

China clearly has a motivation for dumping our debt, and some analysts believe they’re holding the smoking gun.

Here’s CNBC:

“I think China is actually weaponizing the Treasury holding already,” said Chen Zhao, chief global strategist at Alpine Macro.

“They sell U.S. Treasurys and convert the proceeds into Euros or German bunds. That’s actually very consistent with what happened over the last couple of weeks,” he added. 

Germany’s bunds had bucked a wider sell-off in long-dated Treasurys last week, with its 10-year yields sliding.

Now, there’s pushback against this theory.

After all, if China sells U.S. bonds, it means capital flows back to China in the yuan, therein strengthening the yuan. This isn’t what China wants – Beijing is trying to offset the impact of Trump’s tariffs.

As for Japan, last week, Japanese Finance Minister Katsunobu Kato said Japan won’t use its accumulation of Treasurys as a bargaining chip against Trump:

We manage our U.S. Treasury holdings from the standpoint of preparing for in case we need to conduct exchange-rate intervention in the future.

But apparently, Japanese insurer Nippon Life owns a tremendous amount of Treasurys, and they could be behind the recent selling.

Here’s CNBC:

“It’s all very well for the Japanese government to say, we’re not going to sell U.S. Treasurys, but it’s not the Japanese government that owns them. It’s Nippon Life,” [BCA Research’s Garry Evans] added. 

If these insurers are worried about U.S. policy flip-flopping and want to reduce exposure, there’s “not a lot the government can do.”

Clearly, “bond vigilantes” don’t exist only in the U.S.

Now, regardless of who is behind the selloff, the bottom line remains: big players have been bailing on the 10-year.

Imagine your brother-in-law comes to you, lamenting that things are a little tight; he needs to borrow some cash.

You give him a loan, only to watch him go spend extravagantly, far beyond his income. It’s not long before he’s back at your door, requesting more money. You agree…he spends recklessly once again.

Now, say this pattern repeats another half a dozen times.

Eventually, what are you going to do?

Either 1) ask for a higher return on your loans, or 2) just stop lending.

While the Bond Vigilantes have been engaged in something like the “higher return” strategy, billionaire hedge fund founder Ray Dalio is worried about the second possibility – people not wanting to lend our government money anymore.

From Fortune:

[Speaking at CONVERGE LIVE in Singapore, Dalio said that] at some point, the U.S. will have to “sell a quantity of debt that the world is not going to want to buy.”

This is an “imminent” scenario of “paramount importance,” Dalio said.

Fortune went on to quote Wharton Business School finance professor Joao Gomes:

The most important thing about debt for people to keep in mind is you need somebody to buy it.

We used to be able to count on China, Japanese investors, the Fed to [buy the debt]. All those players are slowly going away and are actually now selling.

If at some moment these folks that have so far been happy to buy government debt from major economies decide, “You know what, I’m not too sure if this is a good investment anymore. I’m going to ask for a higher interest rate to be persuaded to hold this,” then we could have a real accident on our hands.

Dalio went on to predict that when the world runs low on buyers for U.S. Treasurys, we’ll see “shocking developments in terms of how [debt] is going to be dealt with.”

What would that mean?

Dalio points toward restructurings of debt, pressure from Washington on countries to buy the debt, and even monetization of debt.

Though Dalio didn’t explicitly say this, a study of global economic history shows that monetization of debt risks hyperinflation.

First, despite Dalio’s reference to an “imminent” crisis, it’s unlikely that some sort of economic A-bomb is right around the corner.

While we respect Dalio’s analysis, he’s been preaching similar doom-and-gloom for years at this point. Eventually, he’ll be right, but if there’s one thing our government excels at, it’s sticking fingers in dikes and kicking cans down roads.

Second, focus on what you can control rather than fearing what’s beyond your control.

While understanding and recognizing these big-picture macro movements can help inform your market choices, they shouldn’t paralyze them.

Circling back to Louis, you’re better served focusing on what he calls the “iron law” of the stock market:

Stock price trends can diverge from earnings trends for a while, but over the long term, if a company grows and grows the amount of cash it takes in, its share price is sure to head higher.

This is why Louis remains bullish during this earnings season that just began. When you limit your buying to fundamentally superior stocks that have earnings power, earnings season usually brings welcomed gains.

For the latest fundamentally superior stocks that Louis likes, click here to learn about joining him at Growth Investor.

Last night, Keith Kaplan, the CEO of our corporate partner TradeSmith, went live at this AI Predictive Power Event.

It was a fantastic evening with thousands of attendees learning about TradeSmith’s AI-powered algorithm “An-E” (short for Analytical Engine).

This AI-fueled technology forecasts the share price of thousands of stocks, funds, and ETFs one month into the future along with the conviction level of that prediction. It’s equally powerful in both bull and bear markets.

To watch a free replay of the event, including examples of back-tests, just click here. Keith even gives away five of An-E’s most bearish forecasts. These are stocks that the AI platform projects will drop hard in the coming weeks.

Last September, the Fed began cutting rates (as Trump wants).

Did it result in the 10-year Treasury yield falling?

Nope. As you can see below, the two yields diverged, and the 10-year surged…

Bottom line: Trump can focus on Powell all he wants, but Louis is right…

The Bond Vigilantes are running the show.

Have a good evening,

Jeff Remsburg

The post When Our $37 Trillion Time Bomb Will Explode appeared first on InvestorPlace.

My home in Florida sits just a stone’s throw away from Mar-a-Lago – also known as the Winter White House.

Though I’m not a member, I’ve been fortunate enough to visit many times. Each time, President Trump has been a gracious host to my family, and we’ve created some wonderful memories.

And let me tell you, Mar-a-Lago can be quite the scene. One time, I watched South Carolina Senator Lindsey Graham deeply involved in a conversation on the phone just a few feet away from me. Moments later, he was whisked away for dinner with the President himself.

That’s the kind of place Mar-a-Lago is. Big decisions happen. Deals get done.

So, it didn’t surprise me one bit when NVIDIA Corporation (NVDA) CEO Jensen Huang attended a high-powered fundraising dinner there on Friday, April 11. Nor did it surprise me when, suddenly, big news about NVIDIA started to break in the days after.

In today’s ÃÛÌÒ´«Ã½ 360, I’m going to cover the latest tariff news that’s impacting NVIDIA and why it caused a sharp drop in the stock. However, I believe this is an extreme overreaction, and I’ll explain why. Plus, I’ll discuss an even bigger piece of news that’s getting completely ignored. As you’ll find out, it’s part of a much bigger story involving the White House’s plans for reshaping the U.S. economy and taking the lead in the AI Revolution. And I’ve found the perfect way to profit…

President Trump Bans NVIDIA Chips in China

Yesterday, the Trump administration announced surprise export restrictions targeting NVIDIA’s semiconductor business. Specifically, these new rules ban NVIDIA’s sales of its H20 AI chips to China. NVIDIA disclosed in a regulatory filing that complying with these rules would cost the company an immediate $5.5 billion charge. Analysts have projected that the potential lost revenue could reach $10 billion over the coming quarters, mostly due to existing inventories of these specialized chips now becoming unsellable.

Investors didn’t take kindly to the news. NVIDIA shares dropped nearly 10% on Wednesday, and are now down roughly 25% so far this year.

However, this is a gross overreaction, folks. I want to point out that NVIDIA generated nearly $135 billion in revenue last year alone – $61 billion of that in just the past quarter. The China business? It’s a drop in the bucket.

Now, some analysts are wondering if banning these specific chips might inadvertently benefit Chinese competitors, like Huawei, rather than strategically hindering China’s AI ambitions. It’s a valid question, but that’s not the bigger story here.

NVIDIA Is Playing Trump’s Game

The bigger news broke just one day earlier: NVIDIA announced a massive $500 billion initiative to bolster U.S. AI infrastructure and manufacturing capabilities. This includes plans to build two enormous supercomputer factories in Texas – the company’s first-ever supercomputer plants located entirely in the U.S. These new facilities will occupy over 1 million square feet of manufacturing space and are expected to start mass production within the next 12 to 15 months.

Additionally, NVIDIA will produce and test its cutting-edge Blackwell AI chips domestically at Taiwan Semiconductor Manufacturing Company’s (TSM) new plants in Arizona. Jensen Huang highlighted that moving production to the U.S. would help strengthen NVIDIA’s supply chain, boost resiliency and better position the company to meet the exploding global demand for AI-powered computing.

I don’t think it’s any coincidence that this announcement was made after Huang had dinner with the President. It’s the kind of move that fits perfectly with President Trump’s broader economic agenda.

The Bottom Line

I know the tariffs have caused a lot of pain in the market. I expect to see some more good news on tariffs soon. Just yesterday, Treasury Secretary Scott Bessent said he was optimistic about achieving clarity on tariffs and trade deals within the next 90 days. He said that outside of China, the White House was in “rapid motion” in setting up negotiations with 14 other major U.S. trading partners.

Remember, I have gone on record saying that the ultimate goal of Trump’s trade policies is to use tariffs and economic incentives to 1) bring other countries to the negotiating table for a better deal and 2) bring manufacturing jobs and advanced technology back to American shores.

If Trump and his team can pull this off, then the U.S. will be primed for significant long-term growth. Not only that, but it will be in the sole position to win the AI race against China.

Huang’s recent Mar-a-Lago meeting tells me that NVIDIA is on board. They’re ready to play ball.

So, don’t be rattled by short-term setbacks. Sure, losing sales in China hurts today, but NVIDIA’s vision is much bigger and longer term. Yours should be, too.

NVIDIA is positioning itself at the center of America’s AI-driven future. And the stock’s recent near-term weakness may be exactly the type of opportunity savvy investors dream about – a chance to buy into a monopolistic company at a temporary discount.

It’s why I think the stock is a screaming buy right now.

How to Profit From the Trump/AI Convergence

Now, it’s clear that President Trump and his team are rewriting the rulebook. And I want you to be prepared for when the full vision of Trump’s economic policies begins to take shape.

For example, one of the clearest beneficiaries of President Trump’s aggressive policies will be the explosive AI Super Boom.

When Trump’s policies converge with the AI Revolution, I predict that it will be one of the most powerful opportunities of our lifetime.

But, as we’ve witnessed from the past month, in order to profit, we’ll need to move fast. So, that’s why I’m inviting readers to “test drive” a powerful strategy I’ve used to quickly extract gains like…

• 90.25% from Celestica, Inc. (CLS)
• 95.13% from Builders FirstSource, Inc. (BLDR)
• 114.49% from Targa Resources Corp. (TRGP)
• 187.28% from YPF Sociedad Anonomia (YPF)
• 604% from Vista Oil & Gas (VIST)

This strategy is designed to repeatedly generate thousands of dollars in short-term cash payouts – all from regular stocks, no complicated trades required. And in the fast-changing market we are experiencing right now, it could prove crucial to your portfolio right now.

In fact, my system has flagged a handful of stocks with superior fundamentals and persistent institutional buying pressure that are primed to thrive in this new Trump/AI Convergence.

Click here to learn more now.

Sincerely,

Louis Navellier

Editor, ÃÛÌÒ´«Ã½ 360

P.S. Last night, TradeSmith CEO Keith Kaplan unveiled a breakthrough AI market algorithm that can forecast stock prices 21 days into the future. And in today’s uncertain market, this is a great tool for you to have in your back pocket. In fact, this level of predictive power is crucial for navigating any choppy market. Click here to watch a replay of yesterday’s special presentation now.

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Celestica, Inc. (CLS), NVIDIA Corporation (NVDA) and Targa Resources Corp. (TRGP)

The post Trump’s Chip Ban Hits NVIDIA – Here’s Why It’s a Huge Buying Opportunity appeared first on InvestorPlace.

Today, I want to take a little break from all the talk about tariffs and market volatility. Instead, I want to share a two-part series from Senior ÃÛÌÒ´«Ã½ Analyst Brian Hunt that I think you’ll find incredibly valuable. The second part of this series will be available in your next Smart Money on Saturday.

Drawing on the upcoming Easter holiday, Hunt will explain how picking stocks can be like an Easter egg hunt… and how if you want to make big returns, you need to make sure you are in the right one. I’ll let Brian explain it from here…

In the spring of 2000, a man named Reed Hastings traveled to Dallas with a big business idea.

Hastings approached the management of movie rental giant Blockbuster with a proposal. He wanted Blockbuster to buy his small business for $50 million.

At the time, Hastings’ company – called Netflix – had a promising business model. It allowed people to rent movies through the mail. Netflix was also small and struggling to turn a profit.

Hastings believed a Blockbuster purchase of Netflix would be a win-win deal for both parties. Blockbuster’s managers did not. They didn’t think Netflix’s business model made sense for them. A Netflix executive later said that Blockbuster essentially laughed Hastings out of the room.

You probably know the rest of the story.

Netflix secured investment from other sources and built a hugely popular mail-order DVD rental business.

Around 2007, it made a brilliant move and began transitioning into America’s No. 1 movie and television streaming service. This innovation crushed traditional brick-and-mortar rental companies like Blockbuster.

In 2002, Netflix had less than 3 million subscribers. By 2022, it had reached 222 million subscribers and climbed to a market valuation of $129 billion.

Blockbuster’s market valuation in 2018?

Zip.

It went bankrupt a long time ago… and its “pass” on Netflix is widely regarded as one of the worst decisions in modern corporate history.

To give you an idea of how an investor would have done with an early Netflix stake, consider that Netflix stock fell to a split-adjusted low of $0.35 per share in 2002.

Assume you did not buy the bottom, but instead invested $5,000 at $0.50 per share, picking up 10,000 shares of Netflix.

In 2022, that $5,000 investment would have been worth $2.87 million… a 574-fold return.

Netflix’s story is one of my favorite examples of one of the most powerful concepts in the world of finance and investing.

The concept?

If you want to make giant returns in stocks, you must be in the right Easter egg hunt.

Below, I explain why…

How to Find Stocks That Can Return 100-Fold Hide

On Wall Street, companies are often grouped and labeled according to their size.

Investors typically place a company in one of three size categories: large-caps, mid-caps, and small-caps.

“Cap” is short for “market capitalization.” This is the term used to describe the value of a public company. To figure out a company’s market cap, all you have to do is multiply the total number of shares the company has in the market times the market price of a single share.

The group names are common sense. Large-caps are large. Small-caps are small. Mid-caps are in between.

For example, the popular software company Microsoft is a large-cap. In November 2022, its market cap was around $1.79 trillion.

Or, take iPhone maker Apple. It’s also a large-cap. In November 2022, its market cap was around $2.4 trillion .

Mid-caps are smaller than large-caps. Typically, investors consider companies with market caps in between $2 billion and $10 billion to be mid-caps.

The difference between a large-cap and a mid-cap can be huge. A mid-cap company worth $5 billion is less than 0.2% of the size of giant Microsoft.

Finally, we have small-caps.

These are companies with market caps under $2 billion.

While the difference between a mid-cap and a large-cap can be huge, the difference between a small-cap and a large-cap can be incredible.

For example, take a small-cap with a market value of $500 million.

This is just 10% of a mid-cap with a market value of $5 billon… which means it is less than one tenth of one percent the size of a large-cap like Microsoft.

Large-caps can be good investments. They are typically stable, established, profitable companies. They often pay dividends. Large-caps can be great investments for conservative investors.

But if you’re interested in making 10, 20, or even 50 times your money (or 574 times your money like with Netflix) in a single investment, you’d be smart to look at small-cap stocks.

Small-cap companies have much greater potential to produce giant returns for their shareholders in a short time than any other kind of company.

The reason is simple…

It’s much, much easier for a young, $500 million small-cap to grow 10-fold than it is for a mature $500-billion giant to grow 10-fold.

That’s just basic math.

If your daughter sold 10 boxes of Girl Scout Cookies around the neighborhood on her own, you could probably help grow her results 10-times (selling 100 boxes) by driving her around, putting a little pressure on your friends, neighbors, and coworkers to buy some boxes.

But what if your daughter was a natural saleswoman and had sold 100 boxes on her own?

To enjoy 10-times growth under that scenario, she’d have to sell 1,000 boxes. Not so easy anymore. That’s the mathematical challenge behind enjoying giant growth when a company is already doing giant sales.

Or, think about these situations…

• When a small $300 million market-cap beverage company creates a hit product that generates an additional $1 billion in sales, it’s a huge deal that can make the company’s stock rise by hundreds or thousands of percent.

However, if beverage giant Coca-Cola creates a way to generate an additional $1 billion in sales, it barely registers on its massive income statement.

• When a small $200 million restaurant company with 40 locations expands to 200 more locations, its market value can soar. But if mega-chain Starbucks adds 200 new locations to its already massive 14,000+ locations, it’s a blip on the company’s balance sheet.
• When a small $600 million software company creates an amazing new way to collect, manage, and analyze healthcare data, financial data, or marketing data, it can increase revenue by over $1 billion… and its stock can soar 10-fold.

However, if giant Microsoft adds $1 billion to its $100 billion+ annual revenue, it’s a drop in the bucket that won’t even make the news.

Now, all this DOES NOT mean a large company is automatically a bad investment. It just means that it’s not an ideal investment for someone looking to make big returns in a relatively short period of time.

Remember, a $500 million small-cap is just one-tenth of one percent of a $500 billion large-cap.

That’s why a search for stocks with huge growth potential should start in the small-cap stock world.

This is where companies with the potential to grow 10, 20, 50… even 574 times larger live and hide out.

But it gets even better for small-cap investors.

There’s another tremendous benefit they enjoy that large-cap investors do not.

I believe this benefit is best explained with the story of an Easter egg hunt, which I will explain in the second part of this series. Stay tuned for that in Saturday’s Smart Money.

Regards,

Brian Hunt

InvestorPlace Senior ÃÛÌÒ´«Ã½ Analyst

P.S. Eric Fry, here.

As you may know, I’ve been following the AI megatrend for a long time now.

That’s why I was intrigued when I learned that our corporate partners at TradeSmith released an AI algorithm that can forecast prices one month into the future.

Imagine having access to the same kind of AI-powered predictive capabilities previously available only to elite Wall Street firms. I can’t think of a more valuable tool to have in a chaotic market like this…

That’s why TradeSmith CEO Keith Kaplan hosted The AI Predictive Power Event earlier this week – so that regular investors can profit during the chaos… instead of fearing it.

If you didn’t get a chance to attend, click here to start watching the replay now.

The post What Kind of Easter Egg Hunt Are You In? appeared first on InvestorPlace.

That’s right. With the economy cracking under the weight of a global trade war and sentiment falling off a cliff, the captain of the monetary ship looked us in the eye and said, “We’re going to wait and see.”

Wall Street didn’t like it. Stocks and yields initially sank in response.

But we’re here to tell you, don’t panic just yet. More importantly, don’t listen to the words; watch the feet.

Powell may have said “no cuts for now,” but the evolving reality on the ground says something very different… 

In fact, we believe the Fed is on the brink of launching a full-blown rescue mission for the U.S. economy – and it could send stocks soaring.

Let’s break it down.

Powell’s Stagflation Dilemma and the Federal Reserve’s Tough Choice

To us, Powell’s message yesterday made clear that the Fed is confused.

He said that Trump’s massive tariff regime is larger than expected and that it will likely create more inflation and slow the economy more than expected. That’s a problem because rising inflation + falling growth = stagflation.

That would be an economy where central banks are damned if they do and damned if they don’t.

Should they raise rates to fight inflation or cut them to combat the slowdown?

Powell said the Fed doesn’t know which it’ll be yet – so it’s going to sit on the sidelines and wait to find out.

That might sound measured and diplomatic. But in reality, it’s a dangerous game of chicken. And Powell knows it.

Why the Fed Must Act: Financial Conditions Are Too Tight

If you strip away the ‘Fed speak’ and look at the data, the picture becomes clear: The central bank should already be cutting rates.

Bloomberg’s U.S. Financial Conditions Index – a catch-all measure of credit spreads, equity levels, and money supply – shows that outside of 2020’s COVID crash, financial conditions are now tighter than they’ve been at any time in the past decade.

Indeed, they are currently tighter than they were during China’s 2015 slowdown, the 2018 Fed freak-out, and 2022’s inflation panic.

Financial conditions are too tight… 

Because here’s the backdrop we are dealing with right now:

• Consumer confidence is near a 50-year low. According to the University of Michigan’s latest survey, consumer sentiment plunged 11% this month to 50.8 – a 12-year low and the second-lowest level on record since 1952.
• Retail sales are slowing, especially on a core basis. Though sales surged 1.4% in March, this uptick is likely temporary as consumers attempt to ‘frontload’ tariffs. In February, retail sales rose 0.2%, much lower than the 0.7% increase economists projected.
• Business investment has stalled, down $130 billion from Q3 to Q4 of 2024. 
• The housing market is frozen solid. Data from the National Association of Realtors shows that existing home sales fell 1.2% year-over-year.
• Despite all of the above, bond yields are spiking, not falling. The 10-year now sits at 4.29%, above where it was before Trump’s “Liberation Day” announcement.

This is not a good cocktail. 

It practically screams for Fed action. And we believe Powell is quietly preparing for that –  regardless of what he’s saying in public.

Inflation Fears Are Overblown

Now, yes, there’s one reason the Fed has been sitting tight: inflation.

Tariffs could cause reinflation. And the Fed doesn’t want to be cutting rates right as inflation starts running hot again. That’s understandable… in theory.

But in reality, this inflation threat is probably overblown. After all:

• CPI inflation is currently running at 2.4% – very close to the Fed’s 2% target.
• Core CPI inflation is at 2.8% and falling.
• Producer prices and import/export prices are all showing cooling trends. Data from the Bureau of Labor Statistics shows that U.S. import prices decreased 0.1% in March following a 0.2% increase in February. Similarly, PPI for final demand decreased 0.4% in March, goods declined 0.9%, and services fell 0.2%.

Yes, tariffs may cause a temporary blip in inflation. But the Fed knows better than to base long-term monetary policy decisions on short-term price distortions. It’s said as much in the past.

And when you weigh the risks – a modest, short-lived inflation bump versus a full-blown economic breakdown – we think Powell will ultimately choose growth.

When Will Powell and the Federal Reserve Step In? The Likely Rescue Timeline

So, when does the cavalry arrive?

We think it’s coming in June.

That’s when the data will likely have piled up just enough to give Powell and his colleagues the political and academic cover to start cutting. We expect that by then the trade war will likely be cooling (more on that in a second), inflation fears will be abating, and markets will be loudly begging for help.

Our base case is a rate cut in June, preceded by strong forward guidance in the Fed’s May meeting. In fact, we wouldn’t be surprised to hear ‘the pivot’ begin as early as next month.

And when that happens…

The markets will move.

The Cooling Trade War Is a Catalyst

Of course, this Fed story is only half the equation.

The other half is the global trade war — which, we’re happy to report, appears to be losing some steam.

Since the U.S. launched its “Liberation Day” tariffs in early April, we’ve actually seen tariff rates fall, not rise.

The average U.S. tariff rate spiked from 2.5% to 27% on April 2. But with the 90-day pause and electronics exemptions, that number has already fallen to about 23%.

If rumored auto parts exemptions come to fruition, we’ll drop to ~20%. And if steel/aluminum or China deals are locked in, we’ll slide closer to 10%.

That’s a pretty sharp reversal.

Yes, the rhetoric from Washington is still aggressive. But as with the Fed, actions speak louder than words. And right now, the actions suggest deescalation.

That’s very bullish.

Once Powell and the Federal Reserve Pivot, Stocks Could Soar

Put it all together:

• The Fed is almost out of excuses. The data says cut. And it likely will soon.
• The trade war is beginning to abate, and tariff rates are falling.
• Financial conditions are too tight and about to loosen.
• Inflation is easing, not surging.
• And innovation – especially in the AI industry – continues to march forward.

The storm clouds are still thick today. But if you know where to look, the sun is already peeking through.

We believe that as these two macro levers – monetary policy and global trade – begin to shift, the stock market could rip higher. We wouldn’t be surprised to see the S&P 500 up 10% to 15% from current levels by late summer.

So, while others panic, we’re getting ready to pounce.

Now, we’re not saying the road will be easy. There will be more volatility, headline noise, and stock market drops. 

But with the Fed about to step in, the trade war thawing, and the AI revolution continuing to accelerate…

This is a time to be disciplined, strategic, and optimistic.

Buy the dip. Own the future. The rescue is coming.

If you’re looking to make the most of it, consider buying AI 2.0 stocks on this recent dip.

We’re talking AI that can respond to real-world environments; embodied intelligence that can see, hear, walk, talk, lift, carry, organize, fix, learn…

After all, there’s a reason why every tech titan is suddenly obsessed with humanoid robots.

That’s where we believe the next trillion-dollar investment opportunities will be found. And we’ve found a compelling way to play that next phase of the AI Boom.

Uncover the details on our favorite AI 2.0 pick.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Questions or comments about this issue? Drop us a line at langofeedback@investorplace.com.

The post Powell vs. Reality: Why the Federal Reserve Will Step In to Save ÃÛÌÒ´«Ã½s appeared first on InvestorPlace.

We’ll begin today’s Digest with a reminder…

Tonight at 8:00 pm Eastern, Keith Kaplan, the CEO of our corporate partner TradeSmith, is holding The AI Predictive Power Event.

The evening centers on TradeSmith’s AI-powered algorithm “An-E” (short for Analytical Engine).

Built in-house using machine learning models trained on over 1.3 quadrillion data points and 50,000+ backtests, An-E can help you better time and target your trade entries/exits within a 30-day price projection.

The technology forecasts the share price of thousands of stocks, funds, and ETFs one month into the future along with the conviction level of that prediction. It’s equally applicable in both bull and bear markets.

Here’s Keith:

While human investors react with fear, delay, or overconfidence, a new breed of trading algorithm – like our cutting-edge system, An-E – is making precise, unemotional forecasts about where the market is heading next…

Unlike humans, AI doesn’t get emotional. It doesn’t chase headlines.  It doesn’t second-guess every move. Instead, it digests mountains of data and makes calculated projections – especially when things get messy. 

And in this turbulent market, messy is the new normal…

Because the platform is rooted in quantitative analysis, its advanced predictive modeling isn’t guesswork. An-E analyzes millions of data points, learning patterns, pricing behavior, and momentum signals that most investors would never catch. 

It’s not too late to join Keith. By clicking here, you’ll automatically be signed up and registered to attend tonight at 8:00 pm Eastern.

There’s so much happening these days that it’s tough to stay on top of every headline.

I want to take today’s Digest in a specific direction, but let’s do a brief walk-through of a handful of stories impacting the market as I write Wednesday morning.

First, there’s Nvidia Corp. (NVDA), which announced on Tuesday that it will incur a $5.5 billion charge due to new U.S. export restrictions on its H20 AI chips. The U.S. Commerce Department now requires licenses for exporting these chips to China and certain other countries, citing national security concerns. This is dragging NVDA down about 10% as I write.

Related to the trade war, China is apparently open to tariff negotiations but wants to see a series of steps from the Trump administration before it will enter such talks.

These steps include showing more respect to Beijing and, according to Bloomberg, “a more consistent US position and a willingness to address China’s concerns around American sanctions and Taiwan.”

Michelle Lam, Greater China economist at Societe Generale SA says:

There is a bit more clarity on what China is looking from: respect, consistency and a point person.

So now the ball is in US court on whether they can meet these demands. But that is still difficult — especially if the aim is to contain China’s rise.

Next up, this morning’s retail sales report found sales increased 1.4% in March. This was more than the forecast of 1.2%.

In one sense, this is a great report, showing that the U.S. shopper remains able – and willing – to keep spending. On the other hand, the heavy spending might reflect a frantic “clearance sale” mentality as shoppers rushed to buy ahead of what many believe are higher prices on the way.

Finally, Federal Reserve Chair Jerome Powell spoke earlier today at the Economic Club of Chicago, saying:

We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension.

If that were to occur, we would consider how far the economy is from each goal, and the potentially different time horizons over which those respective gaps would be anticipated to close.

Shortly after the comments, stocks hit their lows of the session (up to that point). As I write early-afternoon, they’re still sliding.

Let’s establish some context before we try to answer…

At face value, these trade wars are about unfair trade practices.

But that can’t be the whole story. After all, we’ve already had Israel, Vietnam, and the European Union either lower their tariffs on U.S. goods to 0% or propose such a move, and yet the Trump administration’s response was “not good enough.”

What appears to be “good enough” is mass onshoring. In other words, the real goal appears to be bringing back manufacturing to within the United States.

Last week in the Digest, we offered an explanation for why Trump finds this so important:

The U.S. has a key vulnerability that most Americans don’t realize: We no longer produce the vast majority of the goods that are critical for day-to-day “normal” life…

If China cut us off today, we’d have a national emergency on our hands tomorrow.

Just three days later, President Trump wrote:

What has been exposed is that we need to make products in the United States, and that we will not be held hostage by other Countries, especially hostile trading Nations like China, which will do everything within its power to disrespect the American People.

So, we have a huge push to bring back large swaths of the supply chain within U.S. borders.

Now, various politicians and business organizations are applauding the number of domestic jobs and economic tailwind this could create.

A few examples…

• “We’re going to bring jobs back, and we’re going to get new and improved reciprocal trade agreements done.” – Senator Roger Marshall, M.D. (R-Kansas)
• “President Trump has the right plan to secure our economy, restore fairness to international trade, and bring back good-paying jobs to the United States.” – Rep. Greg Steube (R-FL)
• “President Trump is right: restoring a level playing field on trade will unlock the next blue collar boom – creating jobs and powering our economy through ‘Made in America.’ Huge news for Main Street!” – Small Business Administration

They could be right. We hope they are.

Yet this is where we need to dig in. You see, even if they’re right, those jobs will come with an enormous asterisk – one that points toward an equally enormous investment opportunity.

That’s the question that most people (and investors) aren’t great at asking – much less answering correctly.

We’re decent at looking one step ahead to that first fork-in-the-road decision and its potential outcomes. But beyond that, most people stop evaluating.

Too often, this lack of “second-level thinking” leads to an array of suboptimal outcomes. In the investment world, the consequence is usually underperformance. 

In his book, The Most Important Thing, the co-chairman of Oaktree Capital Howard Marks writes:

First-level thinking is simplistic and superficial, and just about everyone can do it (a bad sign for anything involving an attempt at superiority).

All the first-level thinker needs is an opinion about the future, as in “The outlook for the company is favorable, meaning the stock will go up.” Second-level thinking is deep, complex and convoluted.

What does first-level thinking suggest about Trump’s onshoring push?

Tons of new jobs! Economic explosion! Earnings bonanza! Stocks to the moon!

Perhaps.

But second-level thinking suggests something else…

Below, we quote RSM, which is a global network of audit, tax, and consulting firms, particularly focused on serving the middle market.

It’s from 2021 so the numbers have likely changed slightly, but you’ll get the idea.

From RSM:

In 2019, the average hourly manufacturing wages in China were about $5.25 per hour, according to the latest available data from the Chinese Bureau of Statistics.

The comparable U.S. average manufacturing wage in 2019 was nearly four times that, at $21.38 per hour. 

According to ZipRecruiter, the most recent average manufacturing wage in the U.S. has climbed to about $25.00 per hour.

A moment ago, I quoted Rep. Greg Steube, speaking about “good-paying jobs.”

I assume “$5.25 per hour” is not a good-paying job.

If not, then we have a tricky binary on our hands…

• We can choose “bad-paying jobs” that keep retail prices stable yet would seemingly not provide a livable wage (and potentially be illegal, coming in below minimum wage). Or…
• We can go with “good-paying jobs” that would be great for new workers, but the U.S. consumer would foot the bill via much higher retail prices.

Not a great choice.

“Jeff, you’re creating a false binary. Domestic hourly wages wouldn’t push retail prices that much higher.”

It depends on which sector and specific type of manufacturing. But overall, don’t fool yourself – payroll costs are a massive part of overall expense.

Here’s HR company, Paycor:

Labor costs can account for as much as 70% of total business costs according to the U.S. Bureau of Labor Statistics.

And while we could quibble about how much more expensive onshoring might be, “some degree of higher prices” appears inarguable. Shifting from lower-cost production overseas to higher-cost production domestically brings a cost.

Here’s the AP News:

Imports help keep prices in check, economists say, partly because of lower labor costs overseas and because increased competition in the U.S. market forces American companies to be more efficient.

Domestic real estate for manufacturing is significantly more expensive than foreign real estate for manufacturing.

Here’s Tetakawi, a business consulting company:

Industrial real estate is in hot demand in Mexico, but still remains highly competitive compared to costs found in many U.S. markets. 

Tetakawi’s research finds that “Typical Monthly Industrial Building Rent” in the U.S. is about 62% more expensive than rents in Mexico for mid-price rents, and 42% more expensive for high-price rents.

Tetakawi comes to the same conclusion when looking at typical electricity rates. They’re vastly more expensive in the U.S.

For one example, high-price rates (as measured in per kWh in USD) are about 78% more expensive in the U.S. than in Mexico. Mid-price rates are more in line, but remain more expensive in the U.S.

Bottom line: Someone eats this cost.

Will it be the U.S. companies (and our portfolios via lower earnings) or U.S. consumers (and our economy, via higher retail prices)?

Trump is pushing hard for domestic jobs… but domestic jobs would explode labor costs… C-suite executives don’t want exploding labor costs because it hits earnings, stock prices, and their bonuses…

What’s the action step?

I suspect you already know…

Robotics.

What CEO won’t be doing a direct cost comparison?

On one hand, we have a human manufacturing workforce with its higher U.S. hourly wages, not to mention healthcare and other benefits expenses. Then there’s the downside of human error on the job…

On the other hand, we have the one-time CapEx expense of robots and their marginal upkeep expense. Of course, they don’t come with benefits expenses, not to mention sick days and human error.

Barring some sort of policy guardrails, how does this push for onshoring result in anything other than an acceleration of the transition to robotics?

From Time:

If tariffs persist in the medium term, [Nobel Prize-winning economist Daron Acemoglu] tells TIME, he expects companies “will have no choice but to bring some of their supply chains back home—but they will do it via AI and robots.”

Let’s go to Luke:

The U.S. government is now pursuing an economic strategy built on reindustrialization, supply chain security, domestic manufacturing, and economic sovereignty

But to pull it off in a globally competitive world? You need automation and robotics – AI in the real world.

With tariffs in place, trade deals being renegotiated, and the reshoring wave gaining steam, this strategy is already in motion. And the robotics arms race is officially on.

To achieve its economic goals, the U.S. will need to deploy millions of intelligent machines in warehouses, fulfillment centers, ports, airports, factories, fields, and construction sites.

In short, intelligent robots are now a national necessity.

We’re running long, but we’ll tackle this in more detail with Luke’s help in an upcoming Digest. But if you’d like to jump ahead to a research presentation Luke created on the topic, you can click here.

Forget country-specific tariffs, trade imbalances, and “deals.”

Yes, all that stuff will push and pull at stock prices in the coming weeks. But big picture, it’s just noise.

The more important influence is Trump’s goal of radically reshaping domestic manufacturing and supply chains as a matter of national security. It carries a high price tag that businesses will be eager to work around.

And the winners of that workaround?

The companies that leverage robotics, and the investors who saw the writing on the wall.

Here’s Luke:

The trade war may have lit the match. But the fire now spreading across this country is an economic one, unleashing a new 21st-century Industrial Revolution powered by AI, fueled by necessity, and backed by policy.

If you’re an investor, this is your early-in moment…

Because we’re confident that in five years, everyone will be talking about robotics stocks the same way they talk about AI chip stocks today.

More on this to come.

Have a good evening,

Jeff Remsburg

The post Here’s the Real Winner of Trump’s Onshoring Push appeared first on InvestorPlace.

Nvidia Corp. (NVDA) has established itself as the undisputed AI darling of today’s stock market, without a doubt generating life-changing amounts of wealth for many investors.

But its soaring popularity and front-page dominance can sometimes lead investors to throw on their rose-colored glasses and see only what they want to see.

Just look at the latest headline Nvidia made…

On Monday, the tech giant announced that it plans to completely produce its AI computers in the United States, and it plans to produce up to $500 billion of AI infrastructure in the U.S. over the next four years through manufacturing partnerships. Shares of Nvidia popped on the news.

While this move is monumental for the company and continues to capture investors’ excitement, it’s up to us to look beyond Nvidia’s hype, and examine its current valuation.

So, in today’s Smart Money, I’ll dive into the details of Nvidia’s American manufacturing shift… and why it’s not quite as homegrown as the headlines suggest.

Then, I’ll share the name of a tech company that’s already manufacturing in the U.S. – and trading at bargain prices.

Nvidia’s “American” Move

Nvidia has secured over a million square feet of manufacturing space across the country with plans to produce Blackwell chips in Arizona and AI supercomputers in Texas.

Its partner Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) has already begun Blackwell chip production at their Phoenix facilities. Meanwhile, construction is charging ahead on supercomputer manufacturing plants across Texas. Nvidia has also partnered with Taiwanese electronic manufacturing giants Foxconn (also known as Hon Hai Technology Group) to build supercomputer facilities in Houston and with Wistron for similar operations in Dallas.

According to Nvidia’s timeline, both plants are expected to escalate production in the next 12-15 months.

The chip king is also forming partnerships with Amkor Technology (AMKR) and Siliconware Precision Industries to establish packaging, assembly, and testing operations in Arizona.

Now, shares of Nvidia fell about 10% today after the company disclosed that the U.S. will limit sales of its advanced chips to China. But, in the wake of President Donald Trump’s everchanging tariff regime, it’s important to point out that this new manufacturing announcement has nothing to do with tariffs.

Major semiconductor companies like Micron Technology Inc. (MU) and Samsung Electronics have been gradually shifting production to the U.S. for several years now. But relocating such a sophisticated high-tech supply chain is a complex, time-consuming process that just can’t happen overnight.

That said, Nvidia’s stated goal is ambitious: to generate up to half a trillion dollars of AI infrastructure within the United States over the next four years. However, of the five major manufacturing partnerships Nvidia announced, four involve Taiwanese companies. So, Nvidia’s “domestic” production plans are still largely tied to foreign companies.

I’m not pointing this out from any political perspective, but rather as an important observation for investors. With Taiwanese partners collaborating with Nvidia on these projects, they could presumably maintain access to or ownership of the technologies behind these chips and supercomputers.

Both Republicans and Democrats have consistently advocated for American companies to independently design and manufacture next-generation AI technologies domestically.

And this is precisely what one lowly valued tech company has been striving to accomplish for years. It’s an “unpopular” company that faced a disappointing past… but I’m not abandoning this name just yet.

Balancing Innovation With Valuation

I’m talking about Intel Corp. (INTC).

Intel represents exactly what both political parties claim to want – an American company designing and building cutting-edge technology on American soil. Yet the market’s enthusiasm hasn’t followed political rhetoric.

Intel’s stock can’t seem to get out of its own way. Despite being America’s original semiconductor pioneer, most investors assume the company is a has-been. But when Intel finally begins producing chips from the multi-billion-dollar fabs it has in the U.S., the company’s earnings could lurch to the upside. Based on those prospective future earnings, the stock is trading for 16 times 2026 earnings and just 10 times the estimate 2027 result. That valuation is far below the S&P 500’s.

And with a market subject to the whims – and even social media posts – of the current administration, my strategy is to invest in companies with modest valuations, which typically offer greater downside protection than their high-flying counterparts.

Stocks trading at reasonable multiples tend to weather the storm far better than those with a pretty price tag. This is why my approach to investing prioritizes companies with solid fundamentals trading at attractive valuations.

And Intel is just one example of the value-oriented opportunities I’m keeping an eye on in this ever-changing market environment.

You can find the names of more undervalued gems in my Fry’s Investment Report portfolio. These are companies that offer both growth potential and defensive qualities that overvalued darlings simply cannot match.

Click here to learn how to join me at Fry’s Investment Report.

Regards,

Eric Fry

P.S. Tonight at 8 p.m. Eastern, TradeSmith CEO Keith Kaplan is holding a special AI Predictive Power Event to showcase TradeSmith’s breakthrough AI algorithm, An-E.

Short for Analytical Engine, An-E harnesses the incredible predictive power of AI to gain insights into the market by forecasting stock prices one month into the future, potentially handing you big gains while avoiding big losses.

As we find ourselves in this constantly changing, uncertain market, An-E could be more useful than ever. And just for signing up for tonight’s special event, you’ll receive five of An-E’s most bearish stock forecasts for free.

The AI Predictive Power Event is just hours away, so click here to reserve your seat now.

The post Nvidia Moves to Manufacture in the U.S. – This Overlooked Company Is Already Doing It appeared first on InvestorPlace.

With China confronting a potential 245% tariff on imports to America, the uncertainty roiling Wall Street continues. After initially rallying in response to last week’s pause, stocks have begun sliding once again. The S&P 500 is down more than 1% over the past two trading days, while the Nasdaq has fallen nearly 2%. 

ÃÛÌÒ´«Ã½s are in turmoil; there’s blood in the streets, as they say. But in the middle of all this chaos – the economic fear and geopolitical noise – something remarkable is happening…

America’s AI Boom has begun.

And it may end up being the greatest silver lining of this entire trade war saga.

A Billion-Dollar American AI Bet

While politicians posture and stock prices buckle, the most important companies in the world are making some of the biggest bets in modern economic history. And it’s not happening overseas but right here in the USA. 

They’re building factories, forging partnerships, and investing hundreds of billions of dollars in the reshoring of America’s AI infrastructure.

It may be a tactical response to global instability or a strategic play for long-term control.

Either way, it looks like a sensational investment opportunity to us.

Let’s start with the kingmaker.

Nvidia (NVDA), leader of today’s AI Boom, just announced plans to invest up to $500 billion – half a trillion dollars – into American AI infrastructure over the next four years.

This is already in the works.

• Production of Nvidia’s latest chip – the Blackwell AI chip – has officially begun in Phoenix, Ariz., at Taiwan Semiconductor Manufacturing’s (TSM) new U.S. plant. That’s right; Taiwan’s silicon giant is making its crown jewel chip for Nvidia on American soil.
• Nvidia is also building supercomputer manufacturing facilities in Texas through partnerships with Foxconn and Wistron –  the first time ever it will make these machines in the U.S.
• The firm is also teaming up with Amkor Technology (AMKR) and Siliconware Precision Industries to develop packaging and testing operations, all based in Arizona.

And here’s the kicker:

This has all been announced after the White House exempted electronics components from its reciprocal tariffs on China.

In other words, despite sourcing many components from China, Nvidia still decided to go big on American soil. 

Whether tariffs persist or evaporate, whether trade deals are signed or supply chains snap, Nvidia has concluded that the future of AI infrastructure is American.

And it’s not the only tech titan to do so.

The Great American AI Infrastructure Land Grab

Nvidia may be the headliner, but the chorus of companies backing the American AI Boom is loud – and growing louder by the day.

• Apple (AAPL) recently pledged to invest $500 billion in the U.S. over the coming years, including the construction of a massive AI server facility in Houston, which is expected to open in 2026.
• Meta (META) is pumping $10 billion into its largest-ever data center campus in northeast Louisiana, dedicated exclusively to AI development.
• Microsoft (MSFT) just tripled its original proposal, announcing a $3.3 billion investment to build an AI superhub in southeast Wisconsin.
• OpenAI, Oracle (ORCL), SoftBank (SFTBY), and others have teamed up under the White House’s Project Stargate, pledging to invest up to $500 billion into AI infrastructure and innovation hubs across the U.S.

This feels like more than a boom; it’s an explosion.

But why the sudden rush to reindustrialize America’s tech backbone?

Because the trade war has exposed the fragility of globalization.

With tariff risks rising and geopolitical tensions simmering, Big Tech is de-risking its supply chains. And the best way to do that? Build at home.

But it’s not just about economics anymore. It’s about national security.

AI has become the backbone of 21st-century power. Control over AI infrastructure means control over future prosperity.

The White House knows it. So does every company racing to pour concrete and erect fabs and data centers across the American heartland.

What began as a tariff tantrum may very well end in the largest technological buildout on U.S. soil since the interstate highway system.

Trade War Turbulence Begets Opportunity: What to Do Right Now

Yes, stocks are whipsawing. Indices are bleeding red.

But that’s what volatility before a paradigm shift looks like.

While the headlines scream about destruction, the groundwork is being laid for creation.

And in times like these, the best investors know the right play: Be greedy when others are fearful.

Tariffs and the threat of an ongoing trade war have wrought widespread fear and pain. But through that fog, the signal is clear: Capital is coming home. Infrastructure is getting built.

AI is going domestic.

And in our view, that’s not just resilience. That’s rocket fuel.

So, what’s the move?

You don’t need to chase every bounce or  time every dip.

But what you should be doing is building your AI stock watchlist and looking for entry points – because rampant fear creates opportunity.

Focus on:

• Semiconductor leaders reshoring U.S. production (think NVDA, AMD, TSM partners).
• AI software companies (think PLTR, AXON, META, MSFT).
• Advanced manufacturing plays in packaging, testing, and thermal systems (think SNPS, COHR, AMAT).

This may well be the dawn of the Fourth Industrial Revolution… and it’s being built on American soil.

The Final Word: A Trade War and a Tech Renaissance

Let the media bemoan tariffs and the analysts fear-monger over GDP hits.

We understand why a lot of people are afraid right now. 

But we also see the bigger picture.

The trade war may bruise the short-term outlook; but we think it’s quietly setting the stage for the next great American economic boom, all powered by AI.

Factories are rising. Infrastructure is booming.

If this is what a crisis looks like… just wait for the recovery.

The time to start buying is not when the news gets better.

It’s now – while the future is being built, brick by brick, right here at home.

Though, buying into AI isn’t the only way to take advantage of this potentially momentous time in the industry’s history.

Now you can use this powerful tech to help you uncover Wall Street winners – while avoiding the losers at the same time… even amid as choppy a market as we’re seeing right now. 

Our corporate partner TradeSmith has developed a homegrown AI – An-E, short for Analytical Engine – a breakthrough system designed that can project prices one month into the future for thousands of stocks… and you’d be shocked at how close many of these forecasts are.

In just a few hours – today, April 16 at 8 p.m. EST – they’re hosting an emergency briefing called “The AI Predictive Power Event,” in which they’ll go over all the details behind An-E and exactly why it’s the ultimate tool to help you navigate the uncertain times we’re living in today.

You can register for the event automatically by going here.

And when you do, you’ll receive access to five of An-E’s most bearish forecasts for the coming month, all for FREE.

These five stocks could be among those most negatively impacted by Trump’s new tariff policy… so you’ll want to check them out right away.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Questions or comments about this issue? Drop us a line at langofeedback@investorplace.com.

The post Why the Trade War May Have Just Supercharged U.S. AI Development appeared first on InvestorPlace.

Is it…

• “Let your winners run” or “Little pigs get big, but big pigs get slaughtered”?
• “Cut your losers short” or “Time in the market beats timing the market”?
• “Be greedy when others are fearful” or “Never catch a falling knife”?
• “Stick to your investment plan” or “When the facts change, I change my mind”?

There will always be an investment maxim that, in hindsight, will have been the “wise” path you should have taken (usually quoted to you by a 23-year-old, wet-behind-the-ears recent hire at a brokerage firm).

You know that stock you sold when it fell 20%, triggering your stop-loss?

When it reverses and turns into a 300% winner, you should have known that…

“The stock market is designed to transfer money from the active to the patient,” as Warren Buffett once said.

But when you hold onto that other 20% loser in your portfolio – only for it to collapse 85% and never recover – you should have known that…

“Selling your winners and holding your losers is like cutting the flowers and watering the weeds,” as Warren Buffett once wrote.

(Technically, this comes from Peter Lynch, but Buffett liked the quote so much that he included it in one of his year-end reports to shareholders.)

Bottom line: Investing is hard.

About a decade ago, the research shop Longboard studied the total lifetime returns for individual U.S. stocks from 1983 through 2006.

They found that the worst-performing 6,000 stocks – which represented 75% of the stock-universe in the study – collectively had a total return of… 0%.

The best-performing 2,000 stocks – the remaining 25% – accounted for all the gains.

Here’s Longboard on the takeaway:

The conclusion is that if an investor was somehow unlucky enough to miss the 25% most profitable stocks and instead invested in the other 75% his/her total gain from 1983 to 2006 would have been 0%.

In other words, a minority of stocks are responsible for the majority of the market’s gains.

It gets worse.

The above statistic, that 75% of the stocks had a collective return of 0%, masks a darker financial reality…

While it would be unfortunate to sink your money into a stock that generated no gain, the unspoken implication is that you’d at least walk away with your original investment capital.

Not so much.

The Longboard study found that 18.5% of stocks lost at least 75% of their value.

In other words, nearly one in five stocks didn’t just return zero… they were double-digit losers that destroyed investment capital.

Here’s the breakdown:

Other studies have found similar results.

Research from economist and academic Hendrik Bessembinder that looked at equities from 1926 to 2015 concluded that about 60% of stocks were so bad that their performance was worse than one-month U.S. Treasury notes.

From Bessembinder:

It is historically the norm in the U.S. and around the world that a few top-performing companies have great influence over how the market does overall.

It’s the norm and I expect it to be the case in the future.

While it may be “the norm,” it points toward a sobering takeaway for investors…

It’s not easy finding the big winners. And if you don’t find a big winner, getting a 0% return isn’t the worst potential outcome. Instead, significant loss of your hard-earned money is a very real threat – and it happens with greater frequency than most investors realize.

By the way, it’s not just you and me who struggle with underperformance.

Here’s market analyst and author Charlie Bilello:

Most professional money managers (>90%) underperform their benchmarks over the long run.

Good thing you only pay them 1% of your entire portfolio!

(Do the quick math on that, and then imagine carrying a briefcase of cash with that amount into their office each January to pay them. Are they worth it?)

Again: Investing is hard.

How about one that sidesteps emotions and zeroes in on fundamental strength?

Maybe one that leverages artificial intelligence to analyze volumes of historical data and millions of data points to help investors make wiser decisions?

Last week in the Digest, we highlighted “An-E,” which is short for analytical engine. This is an AI-based investment product from our corporate partner, TradeSmith.

If you’re not familiar with TradeSmith, they’re one of the most respected quant shops in our industry. They’ve spent over $19 million and over 11,000 man-hours developing their market analysis algorithms with a staff of 36 people working on developing and maintaining their software and data systems.

Here’s Keith Kaplan, CEO of TradeSmith, with more on An-E:

A lot of today’s chatter about artificial intelligence is about “the future” – about AI’s potential, and the great things this technology can achieve.

But at TradeSmith, we don’t have to visualize too far into the future.

For us, that “future” is already here.

We’ve figured out how AI can deliver market-beating wealth – and not just on the easy, good days.

What we’ve created can help you thrive even in the worst market conditions.

And that means recognizing opportunities, yes, but also sidestepping danger. That’s where TradeSmith’s proprietary AI trading algorithm – An-E, short for analytical engine – comes in.

What sets An-E apart from the crowd is that it can forecast stock prices one month into the future… and many of these forecasts are incredibly accurate.

And it’s not just useful for stocks that are set to go up… An-E also zeroes in on the losers, too.

Over the last few days in the Digest, we’ve highlighted case studies illustrating An-E’s predictive power. Let’s look at another bearish example (An-E is equally effective in bear markets as it is in bull markets).

Back on March 6, An-E predicted that Dolby Laboratories Inc. (DLB) would suffer a 12.91% drop after 21 trading days.

The AI’s conviction level on its prediction was 63%.

After 21 trading days, DLB closed at $72.49, just above An-E’s prediction of $71.85. This put the loss at -12.13%, nearly identical to the forecasted -12.91% decline.

He’ll walk you through how An-E forecasts stock prices one month in advance with remarkable accuracy – and how you can use it to find high-probability trades that unlock short-term profits.

By the way, just for joining automatically, Keith will give you five of An-E’s most bearish forecasts – stocks it’s projecting to drop hard in the coming weeks.

Back to Keith:

We’re in the midst of one of the most radical economic shifts we’ve ever seen. Global trade is being rewritten, markets are in flux, and many investors are scrambling to make sense of it all.

But this is exactly the moment AI like An-E was designed for.

With markets more unpredictable than ever, “buy and hold” simply won’t cut it anymore. The smart money is learning how to move with the market’s rhythm – and AI is the key to making it possible.

American publisher and author William Feather once wrote, “One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.”

Do you know who’s on the other end of your “astute” stock transactions?

Increasingly, it’s AI (or at least high-powered quantitative algorithms), which surpasses humans in its analytical/predictive powers by orders of magnitude.

Here’s Business Insider with how Wall Street is cannonballing into AI.

Welcome to Wall Street’s AI era…

Quant hedge funds are beginning to rely on the latest AI chips, like Nvidia’s popular GPUs, to test some of their most advanced models.

Google Cloud is helping quantitative investment firms like Two Sigma and Hudson River Trading innovate around a shortage of sought-after Nvidia AI chips.

The article goes on to highlight a long list of companies that are turning to AI in one way or another.

Can the average investor compete?

Perhaps the better question is: “Will the average investor even try to compete?”

The answer appears to be “no.”

In 2018, the Bureau of Labor Statistics surveyed how Americans spend their time. After “sleeping” and “working,” what was the most time-intensive activity for survey respondents?

Watching TV.

That clocked in at 2.84 hours per day.

And how much time, on average, was allocated to personal financial management?

0.03 hours per days… which is less than two minutes.

Here’s Keith again:

Not every chunk of bad news means doom for your portfolio. In fact, volatility like we’ve seen presents a massive opportunity.

This is AI’s time to shine.

With An-E on your side, the odds of you finding more winners and avoiding more losers is higher than before.

Join me tomorrow at 8 p.m. Eastern at The AI Predictive Power Event by signing up here automatically… and you’ll discover how.

Whether you’re playing offense by targeting winners or defense by avoiding losers, An-E gives you the clarity you need when it matters most.

To reserve your seat, just click here to instantly reserve your spot and we’ll see you there.

So, what’s the best way to end today’s Digest?

Clearly, with yet another investing quote – but this one might be the wisest of all.

From author, asset manager, and trader Andreas Clenow:

Beware of trading quotes.

Have a good evening,

Jeff Remsburg

The post Why Good Investing Advice Can Still Lose You Money appeared first on InvestorPlace.

And while that’s good for the economy in the long run, I know that their effect on the market so far has been quite unsettling.

That is where our corporate partner, TradeSmith, comes in. They have created an invaluable tool using an AI-powered algorithm called An-E (short for Analytical Engine). It analyzes millions of data points per day to make a one-month price forecast on thousands of stocks, with remarkable accuracy.

Having a tool like this in your back pocket is a powerful advantage. And tomorrow at 8 p.m. Eastern, you can learn all about it for free at the AI Predictive Power Event.

Trust me, if you have any fear or uncertainty about the market we’re in… this is a tool you’ll want to have at your disposal. Click here to automatically save your spot for the event now!

In the meantime, I’ve asked Keith to share a bit more about how predictive algorithms, like An-E, are outpacing human traders. Take it away, Keith…

$2 trillion. Gone in a flash.

That’s how much value was lost from the markets after President Trump’s unexpected tariff announcement – setting off one of the most volatile periods in recent market history.

For most investors, it triggered the same response: fear and hesitation, which led to painful losses.

But for a growing class of traders, this chaos didn’t bring uncertainty – it brought opportunity.

Because in the middle of extreme volatility – when headlines change by the hour and traditional strategies fall apart – a powerful new force is emerging as the clear winner in the battle for market profits: AI.

While human investors react with fear, delay, or overconfidence, a new breed of trading algorithm – like TradeSmith’s cutting-edge system, An-E (short for Analytical Engine) – is making precise, unemotional forecasts about where the market is heading next.

And in today’s chaos, that edge is proving invaluable.

The Shift: Why AI Is Dominating in Volatile ÃÛÌÒ´«Ã½s

In stable markets, it’s easy for anyone to feel like a smart investor.

But real skill – and real profits – show up when things fall apart. Volatility is the stress test.

That’s why AI is taking over.

Unlike humans, AI doesn’t get emotional. It doesn’t chase headlines.  It doesn’t second-guess every move. Instead, it digests mountains of data and makes calculated projections—especially when things get messy.

And in this turbulent market, messy is the new normal.

Meet An-E: The AI Forecasting Engine Built for Chaos

AI-powered trading systems like robo-advisors have been gaining steam for years. In 2024 alone, U.S. robo-advisors managed over $1.46 trillion in assets.

But basic robo-advisors are just that – basic.

The real leap forward? Predictive AI. Tools that don’t just manage your portfolio – they forecast future stock movements before the rest of the market reacts.

That’s what sets An-E apart.

Unlike most robo-advisors that only adjust based on your risk tolerance, An-E takes it several steps further.

It uses advanced predictive modeling to forecast stock prices 21 trading days into the future – a huge advantage when markets are whipping back and forth like they are now.

And this isn’t guesswork. An-E analyzes millions of data points, learning patterns, pricing behavior, and momentum signals that most investors would never catch.

Here’s what that looks like in real time…

Case in Point: Duolingo Inc. (DUOL)

On March 3, 2025, AN-E projected that Duolingo Inc. (DUOL) would rise to $325.30 within 21 trading days – a projected increase of 10.18%.

What made this signal stand out even more was An-E’s 66% confidence gauge – its own internal measure of how likely the forecast was to come true.

And just 21 days later, the stock exceeded that projection, hitting $327.28 – locking in an even bigger gain of 10.89%.

In a choppy, panic-driven market, that kind of signal isn’t just valuable; it’s game changing. The average investor sees volatility and backs away. But with the right tool, volatility becomes a profit machine.

And that’s exactly what you want in today’s landscape. Because while there will always be winners, volatility also creates landmines – and knowing when companies are poised to crash could save your portfolio from serious losses.

So, what about the downside? Take this bearish forecast:

On March 7, 2025, An-E projected that Discover Financial Services (DFS) would fall from $167.52 to $150.83 within 21 trading days – a projected drop of 9.97%.

This time, An-E’s confidence gauge was even higher – 72%  – suggesting a strong likelihood the bearish move would materialize.

And by April 7, 2025, DFS plummeted to $150.88 – a nearly perfect match to An-E’s forecast, and a real-world 9.93% drop.

Whether it’s going long on opportunities or short on risk, An-E thrives where human instinct fails.

Human Emotion vs. Machine Precision

Let’s face it: Human traders struggle in unpredictable markets. We get nervous. We chase headlines. We miss out – or worse, buy at the top and sell at the bottom.

But An-E doesn’t do panic.

It simply scans millions of data points and highlights the moves most investors will miss – both bullish and bearish – with no emotion involved. That includes which stocks could collapse next, something no investor can afford to ignore right now.

In fact, when the S&P 500 dropped nearly 6% the day after the tariff news, An-E’s bearish forecasts became more crucial than ever.

AI is no longer a niche tool – it’s becoming the foundation of modern trading.

In 2023, investment in AI-powered financial services hit $35 billion. By 2028, it’s projected to soar past $126 billion.

Why? Because the numbers don’t lie.

A quarter of firms already say AI strategies are delivering their highest returns. And more investors are turning to AI not just to survive in volatile markets – but to win.

Here’s the turning point…

TradeSmith’s Emergency Briefing

To help investors navigate the storm, TradeSmith is hosting a special AI Predictive Power Event on Wednesday, April 16 at 8 p.m. Eastern to reveal exactly how An-E works and which stocks to avoid immediately based on An-E’s bearish projections.

And just for signing up, you’ll get five of An-E’s most bearish stock forecasts for free – stocks that could be falling hard in the coming weeks.

We’re in the middle of the most radical economic shift. Global trade is being rewritten, markets are convulsing, and investors are struggling to find their footing.

But AI like An-E is built for this exact moment.

It cuts through the noise, sees what human intuition can’t, and delivers forecasts you can actually trade on – whether markets are crashing, bouncing, or stuck in a whipsaw.

If you’re still relying on guesswork in a market like this, you’re falling behind.

Join the emergency briefing on April 16 and see how you can turn today’s volatility into tomorrow’s opportunity.

Click here to reserve your seat instantly – and get five free bearish forecasts now.

Sincerely,

Keith Kaplan

CEO, TradeSmith

The post When AI Takes the Lead: Why Predictive Algorithms Are Outpacing Human Traders appeared first on InvestorPlace.

Then this weekend, the White House went even bigger… but the move received far less attention.

That is, late Friday night, in a quiet yet seismic shift within the ongoing trade war, the U.S. announced a reciprocal tariff exemption for electronics exported from China – a category that includes computers, smartphones, and semiconductors. 

It’s easy to miss among the headlines, but make no mistake: This is the most significant trade war development since “Liberation Day” – even more than the 90-day pause announced last week… 

And we think it could mark the beginning of a 20% meltup in stocks.

Why?

Because China exports over $100 billion worth of electronics to the U.S. every year, making it a cornerstone of global commerce.

And now those exports are no longer being hit with the full force of “Liberation Day’s” 145% tariffs. Instead, they’re back to just 20% (at least for now); and the impact on the U.S. tariff picture is huge.

There are four reasons why this electronics exemption could light a fire under the market – and why we think stocks are setting up for a monster rally into summer…

How the $100 Billion Electronics Tariff Exemption Changes Everything

The 90-day tariff pause that triggered last week’s epic relief rally was widely covered by the media and celebrated by investors. But if you look under the hood, it only shaved less than one percentage point off the average U.S. tariff rate – from just under 27% to just over 26%.

But the subsequent electronics exemption slashed the average U.S. tariff rate from just over 26% to around 23%.

That’s more than three times the impact of last week’s sweeping pause.

It’s all about volume. 

Electronics represent over 20% of total Chinese exports to the U.S. By reducing tariffs on that major sector, the U.S. essentially cut a massive weight off the global trade system.

And Federal Reserve research shows that each one-point rise in the average U.S. tariff rate cuts GDP by 0.14 percentage points. So, before the exemption, we were looking at a -3.3% drag on U.S. GDP. Now that drag is down to -2.9%.

That’s a big deal.

Especially when you’re trying to steer a slowing economy away from recession.

From 27% to 20% in Two Weeks: A Clear Trend

For weeks, we’ve been advising folks to forget the noise, and watch the numbers.

And here’s what the numbers say:

• After the “Liberation Day” tariffs were announced, the average U.S. tariff rate skyrocketed from 2.5% to nearly 27%.
• The 90-day pause trimmed it down to 26%.
• Friday’s electronics exemption pulled it further down to 23%.
• Reports are now circulating that auto parts may be next. And if those are exempted too, we’ll be looking at a 20% average tariff rate by week’s end.

From 27% to 20% in two weeks…

That’s not just a dip. That’s a trend.

Now, of course, the administration’s rhetoric remains confusing. This past Sunday, April 13, Commerce Secretary Howard Lutnick said the electronics weren’t truly exempt but rather delayed. Trump himself doubled down, saying sectoral semiconductor tariffs were still coming.

But we think that’s all part of the game.

These walk-backs are calculated. This White House wants to look tough while cutting deals behind the scenes. They’re keeping trading partners guessing; but the tariff rate keeps drifting lower.

And we think it’ll keep on that path, moving toward 10% or less by early summer.

This Tariff Delay Might Just Become Permanent

Trump’s recent 90-day pause applies to reciprocal tariffs. But Lutnick said sectoral tariffs, specifically on semiconductors, will be enacted within the next 30 to 60 days.

That means we now have a one- to two-month window to reach trade deals with China, the EU, and other trading partners before the pause ends and the sectoral tariffs begin.

If deals are struck – and we believe they will be – then the White House’s proposed electronics tariffs may never actually come to pass.

They’ll join the long list of policy threats that never made it to the finish line.

And that’s the point: Timing is everything.

We think the White House is using this window to deescalate quietly and land a few high-profile trade wins, creating a “winning” moment for Trump before tariffs inflict real economic damage.

Why the Latest Tariff Rollbacks Could Fuel a 20% Stock ÃÛÌÒ´«Ã½ Rally

Let’s not overcomplicate this.

Since “Liberation Day,” stocks have moved in lockstep with the average U.S. tariff rate. When the rate spiked from 2.5% to 27%, stocks tanked. Last week, as the rate slid from 27% to 26%, stocks staged their best weekly rally since 2023.And when the average tariff rate fell again to 23% early this week, stocks jumped once more.

There’s now a clear, powerful inverse correlation between tariff pressure and equity performance.

We think that if the tariff rate keeps falling – perhaps toward 20% after auto exemptions, then toward 10% if a deal with China is made – stocks could surge 20%-plus.

That’s the roadmap. And the White House seems to be following it… if not in word, then at least in action.

What the 90-Day Pause Means for Investors

Yes, the commentary from Washington is confusing at best, contradictory at worst.

But look past the bluster to the numbers:

• Reciprocal tariff pause = 90 days of breathing room.
• Electronics exemption = $100 billion of breathing room.
• Average U.S. tariff rate = down four full percentage points from the peak.
• Stock market reaction = clear and bullish.

Now, we’re not calling a straight line up for the markets. Volatility will persist. There will be more reversals and threats.

But the trajectory is what matters. And right now, the tariff trajectory is lower…

Which means stocks should be following a path higher. 

In fact, we believe stocks are preparing for a massive rebound into summer.

If you’re looking to make the most of it, consider buying AI 2.0 stocks on this recent dip.

We’re talking AI that can respond to real-world environments; embodied intelligence that can see, hear, walk, talk, lift, carry, organize, fix, learn…

After all, there’s a reason why every tech titan is suddenly obsessed with humanoid robots.

That’s where we believe the next trillion-dollar investment opportunities will be found. And we’ve found a compelling way to play that next phase of the AI Boom.

Uncover the details on our favorite AI 2.0 pick.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Questions or comments about this issue? Drop us a line at langofeedback@investorplace.com.

The post Tariff Cuts and Stock Surges: The $100B Exemption Driving ÃÛÌÒ´«Ã½s Higher appeared first on InvestorPlace.

Last Friday, the Trump administration announced exclusions for smartphones, computers, semiconductors, and other electronics from President Donald Trump’s “reciprocal” tariff list.

However, in a post on Truth Social on Sunday, President Trump confused everyone, writing “There was no Tariff ‘exception’ announced on Friday.”

Yet Yahoo! Finance reports:

The fact remains that Trump has offered at least a temporary boost to companies with close links to China, and investors are responding by sending stocks of directly impacted companies like Apple and Dell (DELL) higher on Monday morning.

To clarify, these companies are still subject to the 20% fentanyl-related tariff, plus whatever tariffs were in place under the first Trump administration and the Biden administration. But it appears they’re avoiding the brunt of the all-in 145% tariff in place.

This might not last…

Yesterday, Commerce Secretary Howard Lutnick said that many tech products will face separate tariffs in a month or two. And Trump chimed in, saying that tariffs on tech products will still exist but simply be moved to a different “bucket.”

So, we’ll see how this shakes out. But for the moment, Wall Street is happy(ish). As I write Monday, all three major indexes are up – though they were up far bigger earlier in the session. Given how volatile stocks are these days, who knows where they’ll be by the time you read this.

One note before we move on…

Last Thursday’s Digest included a deep dive into what may be Trump’s real motivation in this trade war – quick, vast reshoring as a matter of national security because the U.S. is dangerously dependent on other countries, mostly China.

With that context, here’s Trump from Friday:

We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations.

What has been exposed is that we need to make products in the United States, and that we will not be held hostage by other Countries, especially hostile trading Nations like China, which will do everything within its power to disrespect the American People.

We’ll continue updating you on this story. It’s going to be a massive influence on the market and your portfolio.

For why, let’s go straight to our macro investing expert, Eric Fry:

Many overseas stock markets will begin to outperform our own. And that’s not just a geopolitical factor; it’s also a valuation one.

We have valuation extremes in the U.S., relative to many foreign markets. In other words, the U.S. market has never been more richly priced relative to many foreign markets than it is today.

For smart investors, this valuation chasm can serve as a signal to look toward foreign stocks.

That is not to say great opportunities will not continue to exist in the U.S. stock market. But I believe we will start to see more opportunities popping up in the foreign markets.

Historical data supports Eric’s conclusion. To illustrate, let’s use the cyclically adjusted price-to-earnings ratio (CAPE).

This is a long-term measure of a market’s valuation. It’s your traditional P/E ratio, but it uses rolling 10-year average earnings to smooth out business cycle fluctuations.

The CAPE ratio isn’t a market-timing tool. But it does offer investors a helpful and remarkably accurate expectation of long-term forward returns.

This happens because markets tend to mean revert over time. So, a stock or index that has a high CAPE value today is more likely than not to see its value fall in the coming years.

As I write – even after the historic drawdown we’ve experienced in recent weeks – the U.S. market’s CAPE ratio sits at 33.15. As you can see below, this remains one of the highest readings in more than 150 years.

Of course, a high CAPE reading would be irrelevant if foreign stock valuations were equally expensive. But that’s not what we find.

For that data, we’ll turn to my friend and respected quant investor, Meb Faber of Cambria Investments.

Earlier this month, Meb updated the latest global CAPE ratios. With the U.S. reading at 33.15 as our context, here those are:

• Median CAPE Ratio: 16
• 25% cheapest: 11
• 25% most expensive: 25
• Average of Foreign Developed: 19
• Average of Foreign Emerging: 14

So, the U.S. is twice as expensive as the median reading, and about 230% as expensive as the average foreign emerging market.

Even compared to the average of the 25% most expensive, the U.S. is about 33% pricier.

Beyond CAPE, Meb provides three additional valuation metrics: Cyclically Adjusted Price to Dividends, Cyclically Adjusted Price to Cash Flow, and Cyclically Adjusted Price to Book.

The results?

Averaging all four valuation-metrics, the U.S. is tied with India for having the highest reading out of the nearly 50 foreign markets Meb tracks.

That’s what I used to belief, too.

But Meb’s 2016 study on the topic shows that over the long term, it’s not accurate:

Many pundits will list the myriad reasons why the U.S. deserves its lofty valuation, rule of law, GAAP earnings, stable government (ha!), etc., but a quick look at history casts doubt on the explanations…

First, if the U.S. is truly “special” it should always be special, right? Meaning, if the U.S. market is so fantastic that a higher valuation is always warranted, then historically, it should always have a higher valuation.

But that’s not what history tells us.

Below is a chart showing the U.S.’s CAPE versus the world ex U.S. (i.e., foreign stocks). Going back to 1980, both have an average CAPE ratio of about 22. Let me repeat: the historical valuation premium has been ZERO.

Beyond that, the amount of time each spends being more expensive than the other is basically a coin flip.

And if we look at returns on the year, the U.S. market is badly trailing some global markets.

As you can see below, while the S&P is down more than 7% on the year, Japan (via EWJ, the iShares MSCI Japan ETF) is flat, while Europe (via FEZ, the SPDR Euro Stoxx 50 ETF) is up 12% and China (via FXI, the iShares China Large-Cap ETF) is up 13%.

If you want to go specific stocks, look for foreign companies that either have limited exposure to tariff wars or enough fundamental strength to weather the storm.

You’ll be looking for companies with strong cash flows that trade at reasonable valuations.

On Saturday, fellow Digest writer Luis Hernandez highlighted one of Eric’s latest picks that fits the bill – Canada Goose Holdings Inc. (GOOS). It’s a global performance luxury and lifestyle brand.

As to limited trade war exposure, here’s Eric:

Canada Goose exports its goods to the U.S. duty-free. Under the U.S-Mexico-Canada Agreement (USMCA) President Trump signed during his first term, the U.S. levies no tariffs on apparel and textile exports from Canada to the U.S.

On valuation, it trades at a P/E ratio of 15.2. That’s miles beneath the S&P’s current P/E of 26.7.

If you don’t have the time to research specific foreign stocks, you can buy entire foreign markets via an exchange-traded fund.

For example, to buy “Europe,” look at FEZ, the SPDR Euro STOXX 50 ETF.

Eric currently holds three “whole country ETFs” in his Investment Report portfolio that give subscribers exposure to a basket of the top stocks in those respective countries. For those specifics as a subscriber, click here.

As Eric clarified after highlighting foreign markets, “That is not to say great opportunities will not continue to exist in the U.S. stock market.”

So, how do you find those great opportunities?

One answer is by letting data do the heavy lifting for you.

Past performance has predictive power. It doesn’t guarantee future success, but it can signal which stocks have a higher probability of outperformance.

With this in mind, let’s jump to Keith Kaplan, CEO of our corporate partner TradeSmith. They’re one of the most respected quant shops in the investment universe.

Here’s Keith:

Investing operates along the principle of “past performance has predictive power.”

You want to stock your portfolio with strong performers – companies poised for sustained growth. And just as importantly, you want to avoid the losers before they drag down your portfolio.

That’s what TradeSmith’s proprietary AI trading algorithm, dubbed “An-E” (short for Analytical Engine), is designed to do…

In 21 trading days or less.

Let’s do another.

About a month ago, An-E signaled a trade on AAON Inc. (AAON). It gave the reading a “confidence gauge” of 62%, signaling An-E’s conviction level of its own projection.

To clarify, a 62% confidence level isn’t better than 50%, nor is it worse than 90%. A higher confidence level simply means that the algorithm anticipates a higher likelihood of a stock hitting the price it projected.

So, how’d it play out?

While the confidence reading on AAON’s projection wasn’t exceptionally high, it still hit nearly on target…

By its target date of April 3, 2025, the HVAC equipment maker’s stock reached $79.16. This was just 58 cents off its projection – and a gain of about 7%.

In a recent essay, Keith provided a real-time illustration of An-E’s bear market accuracy, concluding:

An-E doesn’t need calm waters to find winners. And right now, An-E’s bearish forecasts are just as sharp…

This isn’t just about finding what to buy. It’s about knowing what to dodge – and when to get out before things go haywire.

This Wednesday at 8 p.m. ET, Keith is holding The AI Predictive Power Event. You’ll discover exactly how this tech works, and how it can guide you through today’s market volatility – whether “up” or “down.”

I’ll note that just for signing up, you’ll get five of An-E’s most bearish forecasts. These are stocks that the AI platform projects will drop hard in the coming weeks.

Whether you want to trade them or just make sure you don’t own them, those forecasts are yours for free.

Here’s Keith to wrap us up:

Whether you’re playing offense by targeting winners or defense by avoiding losers, An-E gives you the clarity you need when it matters most.

Click here to sign up for The AI Predictive Power Event now and get five of An-E’s most bearish forecasts now.

Have a good evening,

Jeff Remsburg

The post Tariff Exemptions Lift Big Tech appeared first on InvestorPlace.

Stocks continued their downward trend in the front half of the week. But on Wednesday, President Trump announced a 90-day pause on reciprocal tariffs for all U.S. trading partners except China, the markets soared. The S&P 500 rallied 9.5%, the Dow jumped 7.9% and the NASDAQ surged 12.2%.

This was the single best day for the market since 2008. But unfortunately, due to the escalating trade war with China, this rally was short-lived, and stocks traded lower again on Thursday.

Now, I wouldn’t be surprised to see the volatility continue this week. I should note that the markets will be closed for the Good Friday holiday, but there is still a lot going on that we need to keep an eye on.

To help make sense of everything, we are joined by a very special guest in this week’s ÃÛÌÒ´«Ã½ Buzz: economist Dr. Ed Yardeni. In this exclusive interview, he answers some of the most pressing economic questions, including why “bond vigilantes” have hit a homerun, whether China and the U.S. can come to an agreement soon, whether China will need to devalue its currency and much more. You don’t want to miss this!

Click the image below to watch now!

If you aren’t already a subscriber to Navellier ÃÛÌÒ´«Ã½ Buzz, click here to subscribe to my YouTube channel. Also, if you like Ed as much as I do, you can learn more about him and subscribe to his research here. You can also purchase Ed’s book, Predicting the ÃÛÌÒ´«Ã½s, here.

Using AI During ÃÛÌÒ´«Ã½ Volatility

As the recent market volatility continues, you’ll want to be nimble with your investing strategy.

That’s where our friends at TradeSmith come in. They just released a brand-new update to their AI trading tool that you don’t want to miss…

In short, their analytical engine utilizes a custom-fit algorithm that can tell you which stocks are poised to bounce like fresh tennis balls… and which ones could drop like a rock over the next 21 days.

Case in point: Back on March 12, weeks before Liberation Day took an axe to the tech market, it forecasted that Palantir Technologies (PLTR) would drop by -6.79% over the next 19 trading days.

With the window closed on April 8, PLTR had indeed fallen -7.57%.

That’s not just a one-off, either, folks. Over the past two years, the projection has called PLTR’s directional move (up or down) correctly 75% of the time. And 89.84% of the time, the stock price hit the exact price forecast within the 19-day window.

Now, imagine being able to do this not just for Palantir or other popular tech stocks, but for thousands of stocks – and with stocks you already own in your portfolio.

The ramifications of this breakthrough are clear. And in a wild market like this one, you can’t afford to miss learning more about it.

That’s why, on Wednesday, April 16 at 8 p.m. Eastern, TradeSmith CEO Keith Kaplan will tell you everything you need to know about this tool in an event called The AI Predictive Power Event.

Make sure and reserve your spot now while you can. And, as a special bonus for signing up, you’ll receive five bearish forecasts to help you sidestep disaster in your portfolio.

Click here to claim your spot now!

Sincerely,

Louis Navellier

Editor, ÃÛÌÒ´«Ã½ 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Palantir Technologies, Inc. (PLTR)

The post Did the Bond Vigilantes Hit a Homerun? Economist Ed Yardeni Breaks It Down… appeared first on InvestorPlace.

And if you have the right tools.

Our corporate partner TradeSmith has cracked the code on securing short-term gains, even amid the bumpiest turbulence. And it’s all thanks to an AI-powered algorithm called An-E (short for Analytical Engine).

Built in-house using machine learning models trained on over 1.3 quadrillion data points and 50,000+ backtests, An-E can help you see what stocks could go up or down within a 30-day projection. An-E projects the share price on thousands of stocks, funds, and ETFs one month into the future.

The result? A powerful advantage unlike anything you’ve ever experienced before.

You can learn all about it in The AI Predictive Power Event on April 16 at 8 p.m. Eastern. Click here to save your spot for the event now!

Now, I’ll let Keith talk more about how this strategy can work for you…

$2 trillion. Gone in a flash.  

That’s how much value was lost from the markets after President Trump’s unexpected tariff announcement – setting off one of the most volatile periods in recent market history.  

For most investors, it triggered the same response: fear and hesitation, which led to painful losses. 

But for a growing class of traders, this chaos didn’t bring uncertainty – it brought opportunity. 

Because in the middle of extreme volatility – when headlines change by the hour and traditional strategies fall apart – a powerful new force is emerging as the clear winner in the battle for market profits: AI. 

While human investors react with fear, delay, or overconfidence, a new breed of trading algorithm – like TradeSmith’s cutting-edge system, An-E (short for Analytical Engine) – is making precise, unemotional forecasts about where the market is heading next.  

And in today’s chaos, that edge is proving invaluable. 

The Shift: Why AI Is Dominating in Volatile ÃÛÌÒ´«Ã½s 

In stable markets, it’s easy for anyone to feel like a smart investor. 

But real skill – and real profits – show up when things fall apart. Volatility is the stress test. 

That’s why AI is taking over. 

Unlike humans, AI doesn’t get emotional. It doesn’t chase headlines.  It doesn’t second-guess every move. Instead, it digests mountains of data and makes calculated projections—especially when things get messy. 

And in this turbulent market, messy is the new normal.

Meet An-E: The AI Forecasting Engine Built for Chaos 

AI-powered trading systems like robo-advisors have been gaining steam for years. In 2024 alone, U.S. robo-advisors managed over $1.46 trillion in assets. 

But basic robo-advisors are just that – basic. 

The real leap forward? Predictive AI. Tools that don’t just manage your portfolio – they forecast future stock movements before the rest of the market reacts. 

That’s what sets An-E apart. 

Unlike most robo-advisors that only adjust based on your risk tolerance, An-E takes it several steps further. 

It uses advanced predictive modeling to forecast stock prices 21 trading days into the future – a huge advantage when markets are whipping back and forth like they are now. 

And this isn’t guesswork. An-E analyzes millions of data points, learning patterns, pricing behavior, and momentum signals that most investors would never catch. 

Here’s what that looks like in real time… 

Case in point: Duolingo Inc. (DUOL) 

On March 3, 2025, An-E projected that Duolingo Inc. (DUOL) would rise to $325.30 within 21 trading days – a projected increase of 10.18%.  

What made this signal stand out even more was An-E’s 66% confidence gauge – its own internal measure of how likely the forecast was to come true.  

And just 21 days later, the stock exceeded that projection, hitting $327.28 – locking in an even bigger gain of 10.89%. 

In a choppy, panic-driven market, that kind of signal isn’t just valuable; it’s game changing. The average investor sees volatility and backs away. But with the right tool, volatility becomes a profit machine.  

And that’s exactly what you want in today’s landscape. Because while there will always be winners, volatility also creates landmines – and knowing when companies are poised to crash could save your portfolio from serious losses.  

So, what about the downside? Take this bearish forecast: 

On March 7, 2025, An-E projected that Discover Financial Services (DFS) would fall from $167.52 to $150.83 within 21 trading days – a projected drop of 9.97%. 

This time, An-E’s confidence gauge was even higher – 72%  – suggesting a strong likelihood the bearish move would materialize.  

And by April 7, 2025, DFS plummeted to $150.88 – a nearly perfect match to An-E’s forecast, and a real-world 9.93% drop.  

Whether it’s going long on opportunities or short on risk, An-E thrives where human instinct fails. 

Human Emotion vs. Machine Precision 

Let’s face it: Human traders struggle in unpredictable markets. We get nervous. We chase headlines. We miss out – or worse, buy at the top and sell at the bottom. 

But An-E doesn’t do panic. 

It simply scans millions of data points and highlights the moves most investors will miss – both bullish and bearish – with no emotion involved. That includes which stocks could collapse next, something no investor can afford to ignore right now. 

In fact, when the S&P 500 dropped nearly 6% the day after the tariff news, An-E’s bearish forecasts became more crucial than ever. 

AI is no longer a niche tool – it’s becoming the foundation of modern trading. 

In 2023, investment in AI-powered financial services hit $35 billion. By 2028, it’s projected to soar past $126 billion. 

Why? Because the numbers don’t lie. 

A quarter of firms already say AI strategies are delivering their highest returns. And more investors are turning to AI not just to survive in volatile markets – but to win. 

Here’s the turning point… 

TradeSmith’s Emergency Briefing 

To help investors navigate the storm, TradeSmith is hosting a special AI Predictive Power Event on Wednesday, April 16 at 8 p.m. Eastern to reveal exactly how An-E works  and which stocks to avoid immediately based on An-E’s bearish projections. 

And just for signing up, you’ll get five of An-E’s most bearish stock forecasts for free – stocks that could be falling hard in the coming weeks. 

We’re in the middle of the most radical economic shift. Global trade is being rewritten, markets are convulsing, and investors are struggling to find their footing. 

But AI like An-E is built for this exact moment. 

It cuts through the noise, sees what human intuition can’t, and delivers forecasts you can actually trade on – whether markets are crashing, bouncing, or stuck in a whipsaw. 

If you’re still relying on guesswork in a market like this, you’re falling behind. 

Join the emergency briefing on April 16 and see how you can turn today’s volatility into tomorrow’s opportunity. 

Click here to reserve your seat – and get five free bearish forecasts now. 

Keith Kaplan 

CEO, TradeSmith 

The post When AI Takes the Lead: Why Predictive Algorithms Are Outpacing Human Traders  appeared first on InvestorPlace.

When the future feels increasingly uncertain, it’s the near-term opportunities that can make all the difference. That’s where our partner TradeSmith enters the picture, with a powerful new tool designed for today’s unpredictable landscape: An-E (short for Analytical Engine).

It’s a cutting-edge AI system that forecasts the one-month price movements of thousands of stocks, ETFs, and funds. Unlike generic models, An-E crafts a unique forecast for each asset – trained on 1.3 quadrillion data points and more than 50,000 backtests. And this Wednesday, April 16 at 8:00 p.m. EST, the folks at TradeSmith will be debuting this powerful system at The AI Predictive Power Event. (You can click here to reserve your seat now).

This isn’t about making wild bets on where the market will be a year from now. It’s about acting on precise, high-confidence projections over the next 30 days, helping investors adapt faster, limit losses, and position themselves for gains no matter the macro backdrop.

With volatility shaking even the most seasoned traders, knowing what’s likely to fall – or rise – in the short term can be a critical edge. That’s why today, we’re joined by TradeSmith CEO Keith Kaplan to explore how AI is reshaping the way we navigate market turmoil… and seize opportunities others might miss.

It felt like the world was ending. 

Almost exactly five years ago, as the COVID-19 virus amplified from a concentrated contagion to a full-blown pandemic, the CBOE Volatility Index (VIX) – aka, the market’s “fear index” – closed at the highest level ever seen. 

At the same time, the S&P 500 saw its third-largest one-day percentage drop in history: a whopping -11.98% loss. 

We all had similar feelings this week, following the 10% nosedive – a record $5 trillion loss – in the S&P 500 after President Trump’s tariff announcement on Wednesday, April 2. 

The market has since rebounded following the president’s decision to pause reciprocal tariffs on countries other than China. 

But as we learned back in 2020, when the uncertainty is extremely high rather than running for the hills, all we have to do is adjust how we trade. 

And our latest breakthrough at TradeSmith may provide the ideal solution…

With a technology we’ve heard about nonstop for the past two years: artificial intelligence.

Protect and Profit With AI – Even in Panic

A lot of today’s chatter about artificial intelligence is about “the future” – about AI’s potential, and the great things this technology can achieve. 

But at TradeSmith, we don’t have to visualize too far into the future. 

For us, that “future” is already here.

We’ve figured out how AI can deliver market-beating wealth – and not just on the easy, good days. 

What we’ve created can help you thrive even in the worst market conditions.

And that means recognizing opportunities, yes, but also sidestepping danger. That’s where TradeSmith’s proprietary AI trading algorithm – An-E, short for analytical engine – comes in. 

What sets An-E apart from the crowd is that it can forecast stock prices one month into the future… and many of these forecasts are incredibly accurate. 

And it’s not just useful for stocks that are set to go up… An-E also zeroes in on the losers, too. 

Because as we’ve well learned, playing defense in today’s volatile market can be just as valuable as offense – and An-E does both.

Take Occidental Petroleum Corp. (OXY), for example. 

• Price at the Time of Projection: $46.21
• Projected Price: $49.23 by April 2, 2025
• Confidence Level: 70%

On March 3, 2025, An-E projected that the stock would rise from $46.21 to $49.23 within 21 trading days – a projected gain of 6.53%, backed by a 70% confidence level, signaling An-E’s strong conviction in the forecast. 

And the result? By April 1, 2025, OXY just about hit that target at $49.19 – locking in a gain of 6.44% in just 20 trading days. 

A modest gain, but when you repeat that rhythm over a year the results can really add up. 

But there’s so much more to An-E than just picking winners when market conditions are calm…

On March 4, 2025, An-E projected that Light & Wonder Inc. (LNW) would fall from $106.60 to $92.52 in 21 trading days – a projected drop of 13.20%. That confidence gauge came in at a 63%.

And as projected, by April 2, 2025, LNW dropped to $91.95 for an actual loss of 13.74%. 

Think about it. If you’d seen that one of the stocks you were thinking about buying had a 63% chance of dropping in the next month, would you still buy it? I don’t think so. 

And in market conditions like these, avoiding the losers can be just as valuable than finding the winners – if not more.

The Art of Finding Winners and Avoiding Losers

Whether you’re boosting your upside or guarding against drawdowns, An-E isn’t just another tool – it’s a paradigm shift. As markets grow more unpredictable, it delivers the precision and foresight needed to adapt, just like we did in past market crises. 

The future of trading is here, and An-E is leading the way. 

We designed An-E to provide price projections for thousands of stocks, funds, and ETFs in the next 21 trading days.

We also designed it to be easy to use. 

An-E doesn’t handcuff you to your computer screen for hours. You don’t have to perch there watching the second-to-second price action and waiting to make your move.

All you have to do is open your email when a trade alert hits your inbox and decide whether you want to make a move.

That’s it.

So, there’s little wonder why we’ve seen overwhelming demand for this service. It’s one of the most popular pieces of technology we’ve rolled out in years.

In the face of today’s market turbulence, TradeSmith is stepping in with an urgent online event to help you navigate the storm.

And on Wednesday, April 16 at 8:00 p.m. EST, we’re hosting The AI Predictive Power Event to show you exactly how An-E works. We’ll walk you through how An-E forecasts stock prices one month in advance with remarkable accuracy – and how you can use it to find high-probability trades that unlock short-term profits. 

We’re in the midst of one of the most radical economic shifts we’ve ever seen. Global trade is being rewritten, markets are in flux, and many investors are scrambling to make sense of it all. 

But this is exactly the moment AI like An-E was designed for.

With markets more unpredictable than ever, “buy and hold” simply won’t cut it anymore. The smart money is learning how to move with the market’s rhythm – and AI is the key to making it possible. 

Click here to register for the event. 

P.S. Just for signing up for the event, you’ll receive five of An-E’s most bearish forecasts for the coming month. These insights can help you determine which stocks to avoid during this market shakeup, so be sure to check them out.

The post The 30-Day Advantage: How AI Is Redefining Short-Term Trading appeared first on InvestorPlace.

This Week’s Ratings Changes:

Upgraded: Buy to Strong Buy

Downgraded: Strong Buy to Buy

Upgraded: Hold to Buy

Downgraded: Buy to Hold

Upgraded: Sell to Hold

Downgraded: Hold to Sell

Upgraded: Strong Sell to Sell

Downgraded: Sell to Strong Sell

To stay on top of my latest stock ratings, plug your holdings into Stock Grader, my proprietary stock screening tool. But, you must be a subscriber to one of my premium services. Or, if you are a member of one of my premium services, you can go here to get started.

Sincerely,

Louis Navellier

Editor, ÃÛÌÒ´«Ã½ 360

The post Weekly Stock Grader Analysis: Upgrades & Downgrades on Top Blue-Chip Stocks appeared first on InvestorPlace.

Instead, what you should be doing is looking for a way to change the way you trade – with a strategy that not only protects, but profits during the upheaval.

TradeSmith CEO Keith Kaplan has a way to do just that, using the power of AI. Built in-house using machine learning models trained on over 1.3 quadrillion data points and 50,000+ backtests, their predictive technology can help you see what stocks could go up or down within the next month.

The result? A powerful advantage unlike anything you’ve ever experienced before.

You can learn all about it in The AI Predictive Power Event on April 16 at 8 p.m. Eastern. Click here to save your spot for the event now!

Now, I’ll let Keith talk more about how this strategy can work for you…

It felt like the world was ending.

Almost exactly five years ago, as the COVID-19 virus amplified from a concentrated contagion to a full-blown pandemic, the CBOE Volatility Index (VIX) – aka, the market’s “fear index” – closed at the highest level ever seen.

At the same time, the S&P 500 saw its third-largest one-day percentage drop in history: a whopping -11.98% loss.

We all had similar feelings this week, following the 10% nosedive – a record $5 trillion loss – in the S&P 500 after President Trump’s tariff announcement on Wednesday, April 2.

The market has since rebounded following the president’s decision to pause reciprocal tariffs on countries other than China.

But as we learned back in 2020, when the uncertainty is extremely high rather than running for the hills, all we have to do is adjust how we trade.

And our latest breakthrough at TradeSmith may provide the ideal solution…

With a technology we’ve heard about nonstop for the past two years: artificial intelligence.

Protect and Profit – Even in Panic

A lot of today’s chatter about artificial intelligence is about “the future” – about AI’s potential, and the great things this technology can achieve.

But at TradeSmith, we don’t have to visualize too far into the future.

For us, that “future” is already here.

We’ve figured out how AI can deliver market-beating wealth – and not just on the easy, good days.

What we’ve created can help you thrive even in the worst market conditions.

And that means recognizing opportunities, yes, but also sidestepping danger. That’s where TradeSmith’s proprietary AI trading algorithm – An-E, short for analytical engine – comes in.

What sets An-E apart from the crowd is that it can forecast stock prices one month into the future… and many of these forecasts are incredibly accurate.

And it’s not just useful for stocks that are set to go up… An-E also zeroes in on the losers, too.

Because as we’ve well learned, playing defense in today’s volatile market can be just as valuable as offense – and An-E does both.

Take Occidental Petroleum Corp. (OXY), for example.

• Price at the Time of Projection: $46.21
• Projected Price: $49.23 by April 2, 2025
• Confidence Level: 70%

On March 3, 2025, An-E projected that the stock would rise from $46.21 to $49.23 within 21 trading days – a projected gain of 6.53%, backed by a 70% confidence level, signaling An-E’s strong conviction in the forecast.

And the result? By April 1, 2025, OXY just about hit that target at $49.19 – locking in a gain of 6.44% in just 20 trading days.

A modest gain, but when you repeat that rhythm over a year the results can really add up.

But there’s so much more to An-E than just picking winners when market conditions are calm…

On March 4, 2025, An-E projected that Light & Wonder Inc. (LNW) would fall from $106.60 to $92.52 in 21 trading days – a projected drop of 13.20%. That confidence gauge came in at a 63%.

And as projected, by April 2, 2025, LNW dropped to $91.95 for an actual loss of 13.74%.

Think about it. If you’d seen that one of the stocks you were thinking about buying had a 63% chance of dropping in the next month, would you still buy it? I don’t think so.

And in market conditions like these, avoiding the losers can be just as valuable than finding the winners – if not more.

The Art and Science of Finding Winners – and Avoiding the Losers

Whether you’re boosting your upside or guarding against drawdowns, An-E isn’t just another tool – it’s a paradigm shift. As markets grow more unpredictable, it delivers the precision and foresight needed to adapt, just like we did in past market crises.

The future of trading is here, and An-E is leading the way.

We designed An-E to provide price projections for thousands of stocks, funds, and ETFs in the next 21 trading days.

We also designed it to be easy to use.

An-E doesn’t handcuff you to your computer screen for hours. You don’t have to perch there watching the second-to-second price action and waiting to make your move.

All you have to do is open your email when a trade alert hits your inbox and decide whether you want to make a move.

That’s it.

So, there’s little wonder why we’ve seen overwhelming demand for this service. It’s one of the most popular pieces of technology we’ve rolled out in years.

In the face of today’s market turbulence, TradeSmith is stepping in with an urgent online event to help you navigate the storm.

And on Wednesday, April 16 at 8:00 p.m. EDT, we’re hosting The AI Predictive Power Event to show you exactly how An-E works. We’ll walk you through how An-E forecasts stock prices one month in advance with remarkable accuracy – and how you can use it to find high-probability trades that unlock short-term profits.

We’re in the midst of one of the most radical economic shifts we’ve ever seen. Global trade is being rewritten, markets are in flux, and many investors are scrambling to make sense of it all.

But this is exactly the moment AI like An-E was designed for.

With markets more unpredictable than ever, “buy and hold” simply won’t cut it anymore. The smart money is learning how to move with the market’s rhythm – and AI is the key to making it possible.

Click here to register for the event.

Sincerely,

Keith Kaplan
CEO, TradeSmith

P.S. Just for signing up for the event, you’ll receive five of An-E’s most bearish forecasts for the coming month. These insights can help you determine which stocks to avoid during this market shakeup, so be sure to check them out.   

The post The New Way to Trade in an AI-Powered ÃÛÌÒ´«Ã½ appeared first on InvestorPlace.

Several years ago, we at InvestorPlace and our partners at TradeSmith began working on AI-powered investing systems to bring Wall Street’s edge to ordinary investors. These AI algorithms crunched millions of data points and found connections between fundamental data and future returns that no ordinary human could. 

In 2023, for instance, one of Global Macro Specialist Eric Fry’s systems helped us identify Sight Sciences Inc. (SGHT) before a massive 135% rally. Then, in 2024, our systems identified Nvidia Corp. (NVDA) before a 30% rally. Here’s what we said: 

The quantitative system sees Nvidia’s recent 15% selloff as overdone… Shares now trade at 25 times 2026 earnings – not far from the average S&P 500 firm… 

This weakness could be a long-term opportunity. 

The best part is that our AI systems can be tailored to different needs. Some are designed for longer-term “buy-and-hold” investors, while others are crafted for swing traders seeking to compound their gains.  

I’m bringing this up now for two reasons. 

First, the past several weeks have shown the importance of keeping a cool head. President Donald Trump’s “will-he-or-won’t-he” tariff threats have shaken some of the most confident investors out of the market, even as our own analysts have urged people to stay invested. AI can help investors see through the roller coaster of emotions. 

Second, trading today depends more on the news cycle than ever before. Bull markets can quickly turn to bear ones (and back again) on a single social media post. We foresee more of this happening over the next four years, which means AI and other quant tools will become essential in sorting through the daily deluge of information. 

That’s why we’re reintroducing An-E, the top AI-powered algorithm from TradeSmith. This system has now been trained on over 1.3 quadrillion data points and is the work of dozens of Wall Street and MBA professionals.  

In addition, the system is based on a short, 30-day holding period. That means it can react quickly to news, and allow gains to quickly compound over time.  

And at TradeSmith CEO Keith Kaplan’s upcoming AI Predictive Power presentation, he’s going to walk you through how the upgraded “An-E” works – live, on camera. 

Keith will demonstrate how to get your own forecasts and use An-E’s confidence gauge to stack the odds in your favor. He’ll even share a few of An-E’s latest predictions. Click here to save your spot. 

Now, I’d ordinarily love to reveal An-E’s top picks for you right here. In fact, its current top 10 bullish picks have a historical target accuracy of 72%. That’s a phenomenal “hit rate” for any system… let alone one focused on short-term moves. 

But I’ll have to leave Keith to do that unveiling in his presentation. In the meantime, I’ve been allowed to reveal five picks from Luke Lango Price Breakout quant system. These firms are equally promising, and give you a sense of the power that AI and other quant systems have in finding great investments in turbulent times.  

Buying the (Garlic) Dip 

Our first pick is a pizza company virtually everyone knows. The 41-year-old firm has grown to over 6,000 locations worldwide and has differentiated itself by targeting a higher-end clientele than that of Domino’s Pizza Inc. (DPZ) or Pizza Hut from Yum! Brands Inc. (YUM). 

We’re talking about Papa John’s International Inc. (PZZA). 

In ordinary times, Papa John’s trades in the upper 20X forward price-to-earnings range thanks to its capital-light business model. The company outsources the cash-intensive restaurant business to franchisees and collects an average of 5% to 6% of revenues. That means its returns on invested capital average 15% — twice the market average. Papa John’s also maintains a steady dividend that’s averaged a 1.7% yield over the past decade. 

The market’s recent selloff now makes PZZA a dough that’s ready to rise. Shares of this high-quality firm trade at just 18X forward earnings after a 35% selloff, and this cheapness is also reflected in an ultra-high dividend yield, which now sits at 5.5%. (All else equal, a lower share price increases the dividend yield.) The last three times PZZA shares traded this cheaply were in May 2024, July 2018, and June 2012. In those instances, shares jumped between 15% and 35% over the following months. 

Luke’s Price Breakout system sees a similar outlook this time around. Papa John’s maintains a strong brand and positive same-store-sales growth. And the firm remains far better capitalized than markets seem to think with a 3X interest coverage ratio.  

Though market troubles are far from over, Papa John’s shares are now too cheap to ignore. 

Serving Up Dividends 

Our next pick might not serve fresh 14-inch pizzas… but its price is equally appealing. 

Over the past several decades, SpartanNash Co. (SPTN) has pumped cash by supplying grocery and household goods to retailers and government entities. Its long list of customers includes the U.S. military, and more than 2,300 independent grocers. 

This Michigan-based firm is usually not exciting… nor does it want to be. Earnings are relatively stable, and it has recorded only one year of losses in the past 20 years. Military bases, after all, always need food delivered. 

Fortunately, this predictability makes SPTN an attractive target for quantitative systems. The stock tends to trade in a narrow band, and any system using machine learning (ML) eventually figures out they can generate consistent profits by buying these companies low and selling high. 

The recent selloff has now put SpartanNash’s stock at its “buy low” point. Dividend yields have edged above 4.5%, and shares trade for 0.9X book value – a typical bottoming-out level. The last two times this happened were in June 2024 and December 2024; shares rose roughly 15% each time afterward.  

For long-term investors, it’s a chance to buy a blue-chip firm for cheap. And for short-term traders, it’s a chance to score double-digit gains by investing in one of the most boring companies on Earth. 

Taking the Show on the Road 

Rising tariffs on Chinese goods have battered e-commerce companies that sell to Americans. Shares of Amazon.com Inc. (AMZN) have slipped 8% in the past month, and those of Temu owner PDD Holdings Inc. (PDD) have plummeted 23%. Fewer affordable goods to sell means lower profits for e-commerce marketplaces. 

But not every e-commerce player is affected by the trade war. In fact, some may even benefit. 

That’s likely why Luke’s Price Breakout system has chosen South Korean e-commerce giant Coupang Inc. (CPNG). The “Amazon of South Korea” is the country’s largest retailer, responsible for more than 1 in every 8 Korean won spent on consumer goods. Its “Rocket Delivery” network is unbeatable, providing same-day or one-day delivery services to roughly 99% of the country. 

American tariffs on Chinese goods will now create a pent-up supply of products seeking a place to go. Much of it will end up in Southeast Asia or the European Union – China’s two largest trading bloc partners. And a large chunk will also find its way to South Korea, which has traditionally been China’s fourth-largest trading partner behind these two blocs and the United States. 

That would prove a windfall for Coupang, which generates profits based on the volumes of goods sold. Analysts have upped their 2026 earnings-per-share forecasts for CPNG to $0.83, up from January’s estimates of $0.78, and they foresee topline growth in the mid-teens for the next several years. CPNG might also benefit in the short term from nervous investors seeking to diversify. 

American markets might be trending down… and our AI system says looking beyond the U.S. might be the key. 

More Belt-Tightening? 

In December, I named Dollar General Corp. (DG) as my top stock to buy for 2025. The stock had dropped to irresistibly low levels, and shares appeared ready to bounce on a new administration. 

Though the past four years might have been difficult for Dollar General, the changing tide of rural consumer sentiment makes DG my No. 1 pick for 2025.  

Shares of the rural-focused retailer have since risen 17%, compared to a -10% decline in the broader S&P 500 index. 

Luke’s quant system believes there’s still time to get into this conservative play. This week, the AI system ranks DG in the top 5% of all companies to buy. 

One reason could simply be an investor pivot toward defensive stocks. Companies like Dollar General tend to do well during periods of belt-tightening (since they provide essential goods), and shares will often rise during periods of economic strain. The stock surged 36% in the middle of the Covid-19 pandemic. 

The other reason is that Dollar General is still wildly cheap relative to other retailers. Companies like Costco Wholesale Corp. (COST) and Walmart Inc. (WMT) continue to trade at over 35X forward earnings, leaving DG (16X earnings) as one of the few “value” stocks left among its class.  

Shares have an enormous upside on “multiples expansion” alone, and Luke’s quant system is sensing an opportunity. 

Buying the Tariff Bounce 

Finally, our last recommendation includes JBT Marel Corp. (JBTM). 

In January, Chicago-based John Bean Technologies merged with Iceland-based Marel Corporation, creating a global manufacturer of food service machinery. The two firms now have one of the broadest portfolios in the industry, covering everything from industrial citrus juicing machines to extrusion blow-molders for bottle-making.  

According to Luke’s system, JBTM’s recent 25% drop in share price now puts the company in oversold territory. The stock trades at a reasonable 17X forward earnings, and is essentially back to where it was pre-merger. This is despite the combined firm having far better protections from U.S. tariffs than before. JBT Marel now has factories in over a dozen countries, and earns 50% of revenues from aftermarket parts and services, which are less affected by tariffs. 

To be sure, JBT Marel is still exposed to some tariffs because it must import steel and other raw materials to produce its machines. It’s also sensitive to changes in industrial demand; shares sank as much as 45% during the Covid-19 pandemic. 

Still, Luke’s quant system suspects the selloff has finally gone too far. So, it’s making a contrarian bet on a JBTM bounce. 

Using AI to Forecast the Future 

It’s hard to overstate how close the investing world is to a full-blown AI revolution. What once took months of analyst meetings, financial modeling, and “boots on the ground” research can now be replicated in seconds.  

It’s also about accuracy. These AI models don’t get tired. They don’t suffer from emotional bias or cognitive dissonance. And they don’t worry about the things that should not matter. 

The results speak for themselves.  

An-E predicts the moves over the next 21 trading days of thousands of stocks… and its “Confidence Gauge” signals its conviction level of its own projections. TradeSmith’s editors then scan An-E’s readings to find where its highest projected price gains match with its high-conviction “Confidence Gauge” signals.  

This kind of AI system is made for this kind of market. 

The recent tariff news caused a sharp market correction. 

Some stocks will rebound – but others are headed for a steeper fall. And here’s the thing: Most investors won’t know which is which until it’s too late. 

But with An-E on your side, the odds of you finding more winners and avoiding more losers are higher than before. 

That’s why TradeSmith is holding an emergency briefing on Wednesday, April 16, 2025 at 8 p.m. Eastern – called The AI Predictive Power Event. During this event, you’ll discover exactly how this tech works… and how it can guide you through today’s market storm. 

And just for signing up, you’ll get five of An-E’s most bearish forecasts – stocks it’s projecting to drop hard in the coming weeks. 

Bottom Line: We’re in the middle of a dramatic global trade shift – and the markets are feeling the heat. 

But An-E can still find winning trades in a down market. 

Whether you’re playing offense by targeting winners or defense by avoiding losers, An-E gives you the clarity you need when it matters most.

Click here to sign up for The AI Predictive Power Event now and get five of An-E’s most bearish forecasts immediately.  

Until next week, 

Tom Yeung 

ÃÛÌÒ´«Ã½ Analyst, InvestorPlace 

Thomas Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.

The post The ÃÛÌÒ´«Ã½ Meltdown Is No Match for Our Quant System’s 5 Latest Picks appeared first on InvestorPlace.

What began with his “Liberation Day” announcement of universal tariffs has since evolved into a full-blown trade war, with America going toe-to-toe with China, the EU, Canada, Vietnam, and many other countries around the world.

To many, this moment looks like a risky threat; perhaps a massive policy blunder.

But we think that for smart investors, this perceived catastrophe is providing a great buying opportunity in the next decade’s market winners…

Because beneath the political posturing and violent market volatility – like Wall Street’s 10% down-days – something much bigger is brewing:

What we see as the rebirth of American industry and the dawn of a new industrial age; one powered not by steel or steam but AI-powered robots.

Welcome to the era of Physical AI.

The Big Idea: Reindustrialization Meets Robotics

Let’s unpack the strategy behind Trump’s aggressive trade policies.

We don’t think it’s just about squeezing China or enacting hefty tariffs for the sake of it.

Instead, it’s about reshoring – rebuilding American manufacturing; bringing the jobs, supply chains, and economic activity back home. And it seems that the president is all in.

Every tariff, press conference, and social media post all reinforces the same message: America First. American Made.

This is no longer just campaign rhetoric. It’s national policy.

But here’s the problem…

The path to bolstering U.S. manufacturing is hindered by the math.

For example, let’s talk wages.

American labor costs significantly more than labor in China or Vietnam. The U.S. minimum wage stands at $7.25/hour, compared to ~$3.50/hour in China and ~$1/hour in Vietnam.

That’s a 2x–7x labor cost premium – and it’s a major barrier to domestic manufacturing competitiveness.

So, how can the U.S. level the playing field?

How U.S. Trade Policy Is Fueling an AI Manufacturing Boom

This is where the AI robotics revolution enters the picture.

Because if you can’t compete with overseas wages using human laborers, you do so with machines.

Robots don’t need breaks, call in sick, unionize, or demand raises. In other words, they erase the labor cost differential.

And thanks to the incredible advances in AI, robotics, and automation, we now have the technology to revolutionize American manufacturing right now.

We’ve all seen the headlines about ChatGPT, Gemini, Claude, and other chatbots competing for the generative AI crown.

But that’s AI 1.0 – productivity restricted to digital spaces.

Now comes AI 2.0: embodied AI. Think humanoid robots that don’t just compute but physically act: walking, lifting, building, and problem-solving in the real world.

And this isn’t speculative anymore. It’s real. Consider:

• Tesla (TSLA) is leading the charge with Optimus, its humanoid robot that’s already performing tasks inside its factories.
• Nvidia (NVDA) just launched Project GR00T, a new suite of AI models built specifically for robotics use cases
• Meta (META) launched a humanoid AI division aimed at building the “iOS of robotics”
• Apple (AAPL) is investing in smart home robotics
• Alphabet (GOOG) is funding humanoid robotics startups like Apptronik
• OpenAI is exploring building its own robot
• Microsoft (MSFT) is backing Sanctuary AI, which just completed its first commercial delivery with a humanoid robot

Big Tech isn’t just watching. They’re investing aggressively.

And Wall Street is starting to follow.

Why Robotics and Automation Are Now Essential for U.S. Industry

Let’s tie this all together.

The U.S. government is now pursuing an economic strategy built on reindustrialization, supply chain security, domestic manufacturing, and economic sovereignty

But to pull it off in a globally competitive world? You need automation and robotics – AI in the real world.

With tariffs in place, trade deals being renegotiated, and the reshoring wave gaining steam, this strategy is already in motion. And the robotics arms race is officially on.

To achieve its economic goals, the U.S. will need to deploy millions of intelligent machines in warehouses, fulfillment centers, ports, airports, factories, fields, and construction sites.

In short, intelligent robots are now a national necessity.

And that creates a generational investment opportunity.

This won’t be a short-term hype cycle. This is a multi-year megatrend, with tailwinds from:

• National industrial policy
• Technological maturity
• Investor capital flows
• Supply chain security mandates
• Defense and military spending
• Federal subsidies and state incentives

In other words… this boom is just getting started.

And we’re not talking about buying Tesla stock to play this revolution. Instead, it’s time to home in on the next generation of AI 2.0 leaders.

Best Robotics Stocks to Watch in 2025

We’ve been closely tracking companies that we believe could be big winners in this Physical AI revolution for some time now. Here are some of the areas we’re watching:

1. Humanoid Robotics

• Companies building general-purpose, humanoid robots that can function in dynamic environments and directly replace human laborers

2. Industrial Automation & Logistics

• Robotics firms already powering warehouses and fulfillment centers, like Symbotic (SYM), whose tech is now being used across Walmart‘s (WMT) U.S. distribution network

3. AI Chipmakers & Sensor Firms

• The makes of these machines’ brains and eyes – companies that make the GPUs, LiDAR and vision sensors, and edge processors that enable real-world AI

4. Software Platforms for Robotics

• Just like iOS for iPhones, there will be a winner in “robot OS”: platforms that help control fleets of machines in coordinated workflows

5. Next-Gen Mobility

• Autonomous forklifts, robotaxis, and delivery bots, all of which are seeing rising demand in this post-globalization environment

The Final Word: A 21st-Century American Comeback

Tariffs, inflation, and market volatility may dominate today’s headlines.

But if you zoom out, you’ll see something much bigger unfolding.

America is rebuilding, powered by machines and guided by policy.

The trade war may have lit the match. But the fire now spreading across this country is an economic one, unleashing a new 21st-century Industrial Revolution powered by AI, fueled by necessity, and backed by policy.

If you’re an investor, this is your early-in moment…

Because we’re confident that in five years, everyone will be talking about robotics stocks the same way they talk about AI chip stocks today.

But by then, the easy money will have already been made.

So don’t wait.

When the winds of change start blowing, the best investors don’t build shelters. They build portfolios.

And the winds just picked up.

So, if you’re looking for the best AI 2.0 stocks to buy now…

See our top robotics stock pick for 2025.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Questions or comments about this issue? Drop us a line at langofeedback@investorplace.com.

The post AI Robotics & the 2025 Industrial Revolution: How Investors Can Capitalize appeared first on InvestorPlace.

“BE COOL! Everything is going to work out well,” President Donald Trump posted on Truth Social on Wednesday morning. “THIS IS A GREAT TIME TO BUY!!!” 

It turned out it was. On Wednesday afternoon, the president announced a 90-day pause on all “reciprocal” tariffs on non-retaliating countries. American markets surged 9%, and Asian ones jumped even higher. 

Eric had anticipated possible meaningful reductions to the new tariff regime. That’s why, despite the market noise and headline headaches, he recently added a high-quality athletic apparel firm in his elite-trading service The Speculator that would benefit from the delay of tariffs.  

The company in question imports a large quantity of its products from Vietnam, and it had become priced like a coiled spring waiting to go off on any good news. Here’s what Eric wrote to his subscribers… 

The “Black Swan” tariff event is causing the selloff, not any fundamental flaw with the brand itself. 

Therefore, if the swan simply flies way, the share price could soar…. 

If that change occurs, the new U.S. tariffs on Vietnamese imports could disappear entirely as well. I think that’s a bet worth taking. No one wants this trade war, especially not the Asian countries that produce so much of the clothing we buy here in the U.S. 

He’s been proved right so far. Shares of this firm surged double digits on Wednesday as the bulk of tariffs on Vietnam (and just about every other country besides China) were postponed. Only 10% tariffs have gone into effect. 

But I know many of you are still worried about what can go wrong.  

So, in today’s Smart Money, we’ll take a quick look at what could happen in the worst-possible outcome.  

Then, I’ll share the three ways that the smart money is approaching this new normal… a “will-he-won’t-he” market, where tariffs still might be around the corner.  

After all, Eric’s bet on that high-end apparel maker isn’t the only investment he’s recommended in recent days. 

Let’s take a look… 

Imagining the Unimaginable 

Many financial disasters have been attributed to a “failure of imagination” of things that could go wrong.  

The 1997 Asian financial crisis was triggered when Thailand devalued its currency relative to the U.S. dollar. That single act caused a cascade of events that led to a stunning 83% decline in nearby Indonesia’s gross national product and the resignation of two world leaders. The Bank of Thailand certainly did not foresee that outcome. 

Closer to home, the 2008 global financial crisis was caused by a similar lack of imagination. In this case, American banks and insurers failed to anticipate how mortgage-backed securities could become worthless if a real estate slowdown triggered thousands of defaults all at once. 

The savings and loan crisis of the 1980s and ’90s… the dot-com bubble burst in 2000… the Covid-19 pandemic… history is full of unexpected crises that only needed a little bit of imagination to predict. 

Today, we’re faced with a new potential meltdown. Trump’s “will-he-won’t-he” game of tariffs are triggering immense amounts of fear and uncertainty in financial markets. There’s also no guarantee that his 90-day pause on tariffs will remain in effect. 

Bond markets remain wary. Over the past several days, 10-year government bonds have jumped from 3.8% to 4.5%, even though the opposite should have happened. (Usually, falling stock prices should cause yields to fall as well.)  

This is an ominous sign. The last time the Treasury market gapped up this way was during the Covid-19 pandemic. 

We’re also seeing some massive unwinding of leveraged bets – often a sign of an impending financial crisis. Over the past several days, according to the Financial Times, hedge funds have been forced to close out “mega-leveraged Treasury arbitrage trades, like it did in March 2020.” 

“The most violent move in the last six weeks has been that swap-spread trade coming to a violent conclusion,” said Ed Al-Hussainy, a rates strategist at Columbia Threadneedle, in an interview with Bloomberg News. “This tells us that banks are now looking to raise and looking to preserve cash.” 

That means the experts are still worried about what comes next. President Trump has proved he’s willing to take the stock market to the brink of a bear market, and if high tariffs ultimately do come in, we could see a sudden surge of inflation… and perhaps even stagflation. 

The smart money is cutting back their riskiest bets because they’re now imagining a possible outcome where this brinkmanship creates this disastrous outcome. 

So, how is Eric preparing his paid-up subscribers for this future crisis that might not happen? After all, we know that panic selling often happens right at the bottom of the market. 

We’re approaching this in three ways… 

Taking the Show on the Road 

Eric’s tariff-surviving strategy is best shown in his Fry’s Investment Report portfolio.  

1. Blue Chip Companies.  

The first is to invest in blue-chip companies with limited downside and significant upside. Here, companies like Corning Inc. (GLW) stand out, which Eric recommends in Fry’s Investment Report. This upstate New York company has been innovating since its founding in 1851, and brought us products like Pyrex glassware for the kitchen and Gorilla Glass for smartphones.  

Corning is now riding a new once-in-a-generation wave of demand for fiber-optic cable for AI-focused data centers, and it recently announced plans to build the only solar panels made with wafers and cells made in the U.S. Although the company fell after “Liberation Day” last week, it ended Wednesday 10% higher.  

2. Oversold Stocks.  

The second is buying oversold companies that were caught up in the tariff panic. One very recent addition to Fry’s Investment Report was selling at 16 times forward earnings when he bought it last week… well below its 31X historical average.  

Even after its double-digit gain on Wednesday, shares till have plenty of upside just to get back to “average” valuations. Every sports better will know that a bet with a 1-in-2 chance of a 30% loss and a 1-in-2 chance of a 100% gain is a wager you should make every time. 

3. Tariff Winners.  

Finally, we’re looking at stocks beyond America that are less affected by Trump’s “will-he-won’t-he” policies.  

Earlier this year, Eric established two new positions in countries seeing a turnaround in fortunes. These two nations only export 1% to 3% of their GDP to the U.S. and have fundamental factors that could help them “zig” even as American markets “zag.” 

Then on Monday, Eric introduced a new company in Fry’s Investment Report that falls into this third camp. The firm, which produces 100% of its products in Canada, is seeing a revival thanks to the “Buy Canada” movement. The 90-day pause on global tariffs won’t change the way Canadians see U.S. goods overnight. 

As a bonus, this firm is also protected from potential future tariffs, because its products are covered by the U.S-Mexico-Canada Agreement (USMCA) that President Trump signed during his first term. So, even if tariffs on Vietnam and other countries are put in place after this 90-day pause, this Canadian firm should be able to keep exporting its goods to the U.S. tax-free. 

Now, I’d like to tell you more about this “heads-I-win, tails-I-don’t-lose” company. But to do that, you’ll have to subscribe to Fry’s Investment Report.  

You can do that here. 

In the meantime, we remain optimistic that U.S. stock market will pull through the recent crisis as it always does. But with bond traders beginning to imagine the worst-case outcomes, a little bit of strategic buying will go a long way in protecting your portfolio from the next inevitable reversal. 

Regards, 

Thomas Yeung 

ÃÛÌÒ´«Ã½s Analyst, InvestorPlace 

P.S. Amidst the current market chaos, a massive sea of change is going on in the investing world right now… 

For a while now, Wall Street has experimented with using AI to help target the most lucrative investments on the market. But, in the past few years, they’ve gone “all in.” Now, they’re spending millions to develop this technology. 

So, how can you compete in this more technologically driven future we’ve entered? Our partners over at TradeSmith tracked down an incredible solution for you. 

And on Wednesday, April 16 at 8 p.m. Eastern, they’re going over the full details behind a remarkable new system called An-E. This AI-powered algorithm projects the share price on thousands of stocks, funds, and ETFs one month into the future. 

Click here to sign up for the AI Predictive Power Event now. 

The post How We’re Playing the “Will-He-Won’t He” ÃÛÌÒ´«Ã½Â  appeared first on InvestorPlace.

The reciprocal tariffs are on … or not … or maybe just a little … except for China, and those are still big … but they could still come back for everyone else … maybe.

It’s no wonder the markets felt like a roller coaster this week.

In the chart below, you can see how the market reacted after the tariff news on April 2.

Last Sunday, President Trump said he wasn’t concerned about the stock market.

“I don’t want anything to go down, but sometimes you have to take medicine to fix something.”

But after declaring a 90-day pause on the tariffs, the stock market shot up and Trump was happily talking about, “the biggest day in financial history.”

But we haven’t recovered all the losses … at least, not yet.

So, after enduring one of the wildest weeks on Wall Street ever, what are we to do now?

InvestorPlace’s global macro analyst Eric Fry shared plenty of good advice this week alongside of his accurate forecast of the tariff “pause.”

Let’s look at Eric’s advice. Plus, I’ll give you one of his Investment Report picks that’s thriving despite the market whipsaws.

A Macro View of the ÃÛÌÒ´«Ã½s

For newer Digest readers, Eric takes a “macro” view of the markets.

Most of Wall Street focuses on “micro” analysis – price/earnings ratios, income statements and other company details.

Eric looks for the big-picture trends that drive huge, multi-year moves in entire sectors of the market. Then he narrows his focus to find the stocks that will be the biggest winners in these megatrends.

Using this method, Eric has clocked more than 40 10X stock winners.

That may not sound so incredible … but let me put this in context …

Investing experts are lucky to make one 1,000% call in their career. It’s rare to have more than one, but it does occasionally happen.

But 40?

That’s not just above the rest; that’s in the stratosphere.

When I spoke to Eric on Monday, he said unequivocally that the administration’s method to roll out the tariffs was unworkable.

And he made a prediction…

My bullish scenario is that this proposed tariff policy is so bad that it’s good. I think obviously there’s been severe trade imbalances for a long time that we need to correct as a nation. I personally don’t believe this particular policy is the best way to achieve that, and it is so ill-conceived and potentially devastating that I don’t think it’ll last long.

I think the Trump administration will probably start to score some victories country by country, and I’m hoping enough mini victories that it would be able to claim a victory over the entire thing and abandon this sweeping global tax that it has imposed on 185 countries.

And if that happens, I think the markets reverse. I’m optimistic because I doubt that this particular iteration of the tariff policy will remain in effect for very long.

I spoke to Eric again on Wednesday, just an hour after the announcement that the tariff plan was being pulled back … and the markets had already started to rally. Here’s part of that conversation.

The markets are rallying as we speak pretty significantly, and so the trade war is not over, but it’s certainly taken a new twist.

And I would point out that this particular move by Trump mirrors almost exactly what billionaire Bill Ackman had been advocating for the last two days. Bill Ackman is a billionaire hedge fund manager in New York, a major contributor to the Republican Party, a major supporter of Donald Trump.

He was not alone. Jamie Dimon, CEO of JPMorgan had said similar things in the last 48 hours, as had other prominent Trump supporters on Wall Street.

So, I think it’s likely that the president saw prominent members of the Republican Party and major donors to the Republican Party breaking ranks with him on this particular policy. I think that’s the biggest reason why he made this announcement today.

Even as the markets were soaring on Wednesday, Eric was quick to note that there were probably bumps in the road ahead … which we saw immediately on Thursday when the market fell again.

Here was his advice to investors feeling whipsawed by the market action.

When stocks are falling, you always own too much of them. And when they’re going up, you don’t own enough of them. That’s just kind of the nature of the beast.

But you have to continue to look ahead and not be buffeted too badly by the headlines, by the noise, and just continue to as coolly as you can. Assess the opportunities that are in front of you, and then pull the trigger if it’s appropriate.

So, I think that is a practice that runs through all markets: bull markets, bear markets. And in this particular case, I think the same thing.

One Stock to Consider Today

The philosophy that has served Eric so well is reflected in his most recent picks. In his Investment Report service, Eric recently recommended luxury clothing maker Canada Goose Holdings Inc. (GOOS).

For readers less familiar with the brand, here’s Eric:

Canada Goose is a global performance luxury and lifestyle brand founded in 1957. Like Patagonia and North Face, Canada Goose manufactures and sells a range of outdoor sportswear like parkas, puffers, rain jackets, and hoodies – both for genuine outdoor adventurers and for urban chic wannabes.

Now, the obvious question is “what about the trade war? Won’t that hurt Goose’s profits?

Eric writes that while “buying Canada” in the U.S. has become more expensive in most cases, Canada Goose exports its goods to the U.S. duty-free. Under the U.S-Mexico-Canada Agreement (USMCA) President Trump signed during his first term, the U.S. levies no tariffs on apparel and textile exports from Canada to the U.S.

Of course, that doesn’t mean GOOS is in for a smooth ride higher. Expect volatility, which is what GOOS has experienced in April as you can see below.

But whatever the short-term ups and downs might be, Eric urges investors to reorient their focus:

I have no idea where the stock market is heading next, nor do I know how long or how deep the current selloff will go. But I do know that buying great companies at good prices is the key to building wealth over the long term, which is why I will continue to make select “Buy” recommendations throughout this downturn.

It’s a good bet volatility in general is going to continue, and when it does, you’re best served by ignoring the noise, and continue to coolly assess the opportunities in front of you and act when it’s appropriate.

Click here to learn more about Eric’s Investment Report picks.

Enjoy your weekend,

Luis Hernandez

Editor in Chief, InvestorPlace

The post Whiplash Week on Wall Street – How to Stay Grounded appeared first on InvestorPlace.

The ‘experts’ have emerged from their bunkers. But it seems none of them can agree on what’s to come.

Some say to buy the dip. Others advise to stay far away. And many still warn: This is 2008 all over again.

So… which is it? Historic buying opportunity, or just the first leg of a much larger collapse?

We’ll venture to answer that – not with opinion and theory but with data.

And to us, the data is screaming one thing: If you’ve got time on your side, you should be buying stocks hand over fist right now. 

Though, of course, we’ll let you decide for yourself.

Here’s what we’re seeing…

A Fast-and-Furious Decline in Stocks

This recent market madness began when President Trump’s “Liberation Day” tariffs were announced on Wednesday, April 2. Investors didn’t take the plan lightly.

That Thursday, April 3, the S&P 500 dropped more than 5%. Then on Friday, it slid another 5%-plus.

That’s a 10% two-day crash – a move that’s not just rare but nearly unprecedented.

Since 1950, this kind of price action has occurred just five times:

• Twice during Black Monday (1987)
• Twice during the great financial crisis (2008–09)
• Once during March 2020’s COVID Crash 

Now, here’s the important part: All five times, the S&P was higher one year later. The average 12-month return? 33%. Even with the worst-case outcome, stocks were up 18% by that time the next year.

But, of course, the selling didn’t stop in the two days after the “Liberation Day” tariffs were announced. 

This past Monday added more pain. The three-day total decline reached 11%, marking the 11th-largest three-day drop since 1950.

On Tuesday, April 8, we slid even further, bringing the four-day collapse to 12.1% – the 12th-worst four-day stretch in modern market history.

And guess what?

Every other time the market has fallen more than 10% in three days or more than 12% in four days, it was higher a year later.

And sometimes, stocks moved way higher. After similar four-day collapses, the market’s average return over the next 12 months is nearly 70%.

Then came the snapback rally.

Bullish Historical Signals

On Wednesday, April 9, President Trump announced a 90-day pause on all country-specific reciprocal tariffs (except China). It was the first signal that the administration might pivot from trade war escalation to negotiation.

And the market’s response was explosive. The S&P 500 surged 9.5%, marking one of the biggest one-day gains of all time.

Since 1950, the S&P has only rallied more than 5% in a single day 23 times. In 21 of those instances (91% of the time), the market was higher a year later, with an average return of 27%.

So far, that fits the pattern: Big selloff. Big rally. Big opportunity.

Now, we’ll admit; Thursday was rough. Stocks gave up a large portion of the 9%-plus gains they notched on Wednesday.

Indeed, the S&P dropped 3.5%, leading some to cry “dead cat bounce.”

But historically? Even that’s bullish.

Since 1950, every single time the S&P 500 rallied more than 5% in one day, and then dropped more than 2% the next day, the market was higher a year later, with average 12-month gains north of 37%.

In other words, even the rejection of a bounce has been a bullish historical signal.

Does the Data Say to Buy Stocks Now?

And then there’s the widespread fear. 

The volatility index (VIX) – Wall Street’s fear gauge – has spiked more than 100% in just a few days. It’s now hovering around levels we’ve only seen during the 2008 financial crisis and the COVID crash. 

And what did markets do after the VIX last touched these levels?

They ripped higher.

After the VIX hit 50-plus in 2008, stocks rallied more than 60% in 12 months.
And after the VIX spiked during COVID, stocks exploded 70%-plus in a year.

Fear of this magnitude doesn’t last. But it does create opportunity – for those brave enough to act.

We’ve likely all heard Warren Buffett’s famous adage: “Be fearful when others are greedy, and greedy when others are fearful.”

But how many investors actually live by it?

Because the truth is that this is what fear – what blood in the streets – looks like:

• Double-digit percentage drops in a matter of days
• Terrifying headlines about trade wars and GDP crashes
• Talking heads calling for the next Great Depression

This is what most folks run away from. But history shows it’s exactly what you should be buying into.

The Final Word on This Buying Opportunity

Now, we want to be clear. We are not saying this is the bottom. In fact, we don’t think it is.

The volatility is still high. The situation with China is still unresolved. More short-term pain could absolutely be on the way.

But here’s the thing: You don’t need to buy the exact bottom – just bottom enough.

And based on the price data, volatility signals, and fear levels, it’s hard to argue we’re not in that zone already.

If you’ve got a six- to 12-month time horizon, the odds are stacked in your favor.

Every historical signal we track suggests that this is a generational buying opportunity for patient investors.

So, you may not feel good buying today. But you’ll probably feel great looking back on it a year from now.

Let’s stay smart, patient, and long-term focused to make the most of this moment.

And when it is time to buy the dip, AI 2.0 stocks may be the best bet. 

We’re talking AI that can respond to real-world environments; embodied intelligence that can see, hear, walk, talk, lift, carry, organize, fix, learn…

Indeed, there’s a reason why every tech titan is suddenly obsessed with humanoid robots.

That’s where we believe the next trillion-dollar investment opportunities will be found. And we’ve found a compelling way to play that next phase of the AI Boom.

Uncover the details on our favorite AI 2.0 pick.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Questions or comments about this issue? Drop us a line at langofeedback@investorplace.com.

The post This Is What it Looks Like to Buy Stocks ‘When There’s Blood in the Streets’ appeared first on InvestorPlace.

Just consider some of the major developments from the past week…

• On Monday, the market rallied on rumors that the Trump administration would suspend tariffs for 90 days. The White House stated this was “fake news,” and the stock market abruptly reversed course.
• Automobile manufacturers halted shipments or held their shipments at the docks in response to the U.S.’s proposed 25% tariff on vehicle imports.
• Due to the reciprocal tariffs and concerns about slowing global growth, there was mania in the bond market. The 10-year Treasury yield swung from below 4.0% last week back to 4.5% on Wednesday to settle around 4.45% today.
• Crude oil prices plunged to four-year lows, with West Texas Intermediate (WTI) crude now around $60 per barrel.
• On Wednesday, President Trump shocked the world when he announced a 90-day reciprocal tariff pause that encompassed all of the U.S.’s trading partners with the exception of China.
• Let’s make a deal! More than 70 nations have reportedly contacted the White House and are ready to negotiate lower tariffs.
• The stock market staged a rally of historic proportions on Wednesday, with the S&P 500, Dow and NASDAQ surging 9.5%, 7.9% and 12.2%, respectively.
• The Trump administration increased its tariffs on China to 145% in response to China’s 84% tariffs on American goods. The escalating trade war drove another market reversal, with stocks erasing nearly half of Wednesday’s gains in Thursday trading.
• On Friday, China said it will raise tariffs on U.S. goods to 125%, up from the 84% previously planned, effective Saturday. 

That’s a lot of news, folks. But lost in all the drama this week was the fact that we received the latest batch of inflation reports: the Consumer Price Index (CPI) and the Producer Price Index (PPI).

These are especially important right now, as they will likely be the last readings before we see the impact of the tariffs in the numbers.

So, in today’s ÃÛÌÒ´«Ã½ 360, let’s take a look at what the CPI and PPI are telling us – and what that means for the market and the likelihood of key interest rate cuts. And finally, I’ll wrap things up by telling you about another financial event that’s set to throw the markets into turmoil – and how you can prepare.

Consumer Price Index

On Thursday, the CPI report came in better than expected. Prices fell 0.1% in March, which beat expectations for a 0.1% rise. I should also point out that this was the first time the monthly CPI has fallen since May 2020. On an annual basis, prices increased 2.4%, below February’s 2.8% annual gain and economists’ expectations for a 2.6% rise.

Core CPI, which excludes food and energy, showed a 0.1% increase over the prior month, besting February’s 0.2% monthly gain. On an annual basis, core CPI went up 2.8% over last year. That’s down from 3.1% in February.

Digging into the details, energy prices declined by 2.4%, and gasoline prices plunged 6.3%. There were also declines in categories such as airline fares and vehicle insurance, as well as used cars and trucks.

Meanwhile, the food index rose 0.4% in March and 3% year-over-year. This was primarily driven by the 5.9% increase for eggs. Additionally, food for home rose 2.4% over the last 12 months while food away from home increased 3.8% over the last year.

Food wasn’t the only index that saw an increase for the month, however. Medical care, clothes and new vehicles were all higher in March.

The biggest piece of this report for me was owners’ equivalent rent, or shelter costs. Following February’s slight rise of 0.3%, the index is back up, rising 0.4% in March. That marks the smallest monthly increase since November 2021. This is a very positive sign since housing costs have been the biggest problem in the CPI reports lately.

Producer Price Index

Friday’s PPI report showed that wholesale inflation is cooling off. The PPI fell 0.4% in March, compared to expectations for a 0.2% increase and February’s 0.1% rise. This marks the largest drop since last October.

Excluding food and energy, “core” PPI decreased 0.1%. Economists were looking for a 0.3% rise. This brings the annual increase to 3.3%, its lowest rate since last September.

Diving deeper, 70% of the decrease for March can be traced to the index for goods, which fell 0.9%. This was the index’s largest decrease since October 2023. The biggest impact on this index was the 11.1% drop in prices for gasoline.

Goods prices, excluding food and energy, rose 0.3% in March. This is the second monthly increase and marks the biggest two-month increase in two years. Service prices, meanwhile, fell 0.2% in March, the largest decline since July 2024.

What This Means for the Fed

The good news? Both reports show easing inflation.

The bad news? I wouldn’t read too much into either of these reports. The CPI report, in particular, was welcome news – and I’m especially glad to see shelter costs finally cooling.

But the fact is that next month’s reports are a significant wildcard. And until we have those numbers, it is hard to judge how important this month’s reports are – or what the Fed is going to do next.

That being said, I do think these reports could coax the Federal Reserve to cut rates in either May or June. And while the bond market is clearly going through some oscillations right now, I expect things to calm down and for market rates to meander lower.

I’m also still firmly in the camp that we will be getting at least four rate cuts this year. That’s because global interest rates are headed lower. Much of the world is in bad economic shape right now – much worse than us. And because of that, global central banks will be cutting their key interest rates.

Eventually, the Fed will follow in their footsteps.

Another Event on the Horizon

Currently, folks are in a tariff-triggered frenzy. But I want to urge you to remain calm. The fact is the U.S. is an oasis compared to the rest of the world. We are demographically superior, our states naturally compete with each other, we assimilate our immigrants, and our rate of innovation and entrepreneurship is unparalleled.

And for that reason, we are poised to remain the world’s growth engine.

So, I want you to keep your eye on the ball. Because the fact is, thanks to the AI Revolution, a massive wave is on the horizon – and many don’t even see it coming…

It’s so serious that I call it a financial tsunami.

When this tidal wave makes landfall, its impact will be more violent and more severe than any financial crisis we’ve ever seen. Hundreds of millions of American livelihoods – including my own – are in danger of being wiped out.

But it will also create an unimaginable amount of wealth.

As someone who has been in the investing world for more than 40 years, I’m one of the few people who actually knows what’s coming… and how to prepare for it.

That’s why I’ve created this free special presentation to share with you everything you need to prepare – and profit – from this unstoppable force.

Whether you’ve managed to save $10,000 or $10 million, this information could prove essential to your financial survival. And since the countdown has already begun, time is running short.

Click here to watch my special presentation now.

Sincerely,

Louis Navellier

Editor, ÃÛÌÒ´«Ã½ 360

The post Could March’s Inflation Reports Nudge the Fed to Cut Rates? appeared first on InvestorPlace.

Three new headlines out this morning…

First, on the tariff front, China has hit back, raising its tariff on U.S. goods to 125% from 84% yesterday.

The increase came with a jab from the Chinese Finance Ministry:

Even if the U.S. continues to impose higher tariffs, it will no longer make economic sense and will become a joke in the history of world economy.

With tariff rates at the current level, there is no longer a market for U.S. goods imported into China.

It’s a reasonable point. With both countries now implementing 100%+ tariffs, most of the bilateral trade will grind to a halt.

Second, inflation continues to fall. Following yesterday’s cool Consumer Price Index (CPI) report, this morning brought a similarly cool Producer Price Index (PPI) report.

Wholesale prices unexpectedly dropped 0.4% in March. Economists had been looking for an increase of 0.2%.

Core PPI, which strips our volatile food and energy prices, also dropped. It fell 0.1% against the estimate for a 0.3% climb.

This good inflation news needs to be taken with a grain of salt. It reflects the period before President Trump’s “Liberation Day” tariffs, so higher prices are on the way unless something changes.

Third, consumer sentiment continues to slide. According to the University of Michigan’s April survey, consumer sentiment has fallen to 50.8, down from 57.0 last month.

Additionally, inflation expectations have reached their highest level since 1981.

Putting it altogether, there are two broad takeaways – one good, one bad.

The “good” is that the data increases the likelihood that the Federal Reserve cuts interest rates this year. The “bad” is that said cutting may be needed to stave off economic pain resulting from the trade war, pessimistic consumers who are closing up their wallets, and disoriented corporate planners who have stopped investing/hiring because they aren’t sure where the economy is headed.

On that note, this morning, BlackRock’s CEO Larry Fink said the U.S. is either “very close, if not in, a recession now.”

So, what does all this mean for stocks?

I think we’re going to have a generational buying opportunity this year, not unlike what we saw back in 2008, where stocks traded just so unbelievably low that you had some incredible opportunities to buy.

I’m looking forward to that.

But in the meantime, you have to be willing to resist the emotion of selling based on fear and panic, and buying based on the fear of missing out.

That comes from master trader Jeff Clark.

While many investors are bullish after President Trump’s 90-day tariff pause on Wednesday, Jeff believes much lower prices are ahead. This would mean that the meteoric gains we saw two days ago, that are continuing Friday afternoon as I write, are a classic “bear market rally.”

Now, this is not a reason to panic.

In fact, Jeff writes that there’s plenty to look forward to – massive rallies (within a broader decline) that we can trade for fast, double-digit profits, followed by that “generational buying opportunity” at the ultimate bottom.

Today, we’ll look at three angles on this:

• Jeff’s roadmap for how this bear market will play out
• How to trade it as it falls using Jeff’s preferred “divergence” pattern
• A second way to trade it using a powerful artificial intelligence system from our corporate partner TradeSmith that predicts upcoming price movements

For newer Digest readers, Jeff is a legendary trader with more than four decades of experience. In his service, Jeff Clark Trader, he uses a suite of indicators and charting techniques to profitably trade the markets regardless of direction – up, down, or sideways.

Today, Jeff believes we’re headed “down” as we’ve entered a bear market and have already hit the high of the year.

So, where might the bottom be?

Here’s Jeff:

Ultimately, I think where we’re headed, if this is truly a bear market as I think it is, is the same level as late-2023 when we were somewhere around the 4,150 level or 4,100 level (for the S&P).

That’s about 23% lower than where the S&P trades as I write Friday afternoon.

Jeff plans to play this in two ways: 1) trading oversold rips higher (even as the broader trend is “down”), which will give him the dry powder to, 2) take advantage of that “generational buying opportunity” when the dust settles.

Here’s Jeff with the timing of that eventual buy-and-hold moment:

The real opportunity to buy I think is probably going to wind up sometime in October, November.

We can trade between now and then, but…like oftentimes happens, you get that final washout in October or November, and that’ll give us a really good opportunity to jump in and put some capital to work at super depressed prices.

On Wednesday, stocks posted historic gains. With the market roaring, I reached out to Jeff to ask him if his bear market prediction remained.

From Jeff:

I’m sticking to my forecast for a relief rally – which we’re getting [on Wednesday] – that makes a lower low, followed by another move lower to below Monday’s low of 4,835.

To be clear, this isn’t likely to happen all at once. Here’s Jeff’s latest thinking from his Morning Update about the short-term ups and downs:

The stock market did the bare minimum needed yesterday in order to keep the short-term momentum in the bullish camp…

The daily technical indicators remain in oversold territory. Indeed, in some cases they are “extremely oversold.” There is lots of energy available to fuel a bounce. Though, it’s going to take a positive “China-trade” headline to get that going.

Ultimately, I expect any rally will peak at a lower high – which is technically below 6150. Though, I’m struggling to see any argument where the S&P can get above 5800, or more likely 5600.

As long as the S&P can hold above 5200, the bulls get the nod. But the closer we get to 5600, and as the technical conditions move towards neutral, traders should be looking to lighten up on their long exposure.

In a bear market, many traders look to short the market and “ride the slide.” Jeff prefers a different angle.

Here he is explaining:

One of the greatest things that I found trading in a bear market environment is not trying to make money as stocks fall. You can certainly do that by shorting and buying puts and that sort of stuff.

But really, it’s those rip-your-face-off rallies that are developed out of deeply oversold conditions where you can make 10%, 15%, 20% on a stock in a matter of days.

To find these rippers, Jeff uses a multifaceted approach to stock trading that involves various technical indicators to help with market timing.

At the heart of his methodology is the use of divergence analysis, particularly through indicators like the Moving Average Convergence Divergence (MACD), Relative Strength Index (RSI), and Commodity Channel Index (CCI).

If you’re less familiar with divergence trading, this strategy profits from particular “divergences,” such as when the price of a stock is moving in one direction, but a technical indicator (like RSI, MACD, or CCI) is moving in the opposite direction.

Think of it like this:

• Price says: “I’m going up!”
• Indicator says: “Hmm… I don’t believe you.”

Jeff views this “disagreement” between price and momentum as a clue that price is about to change.

His plan is to track and trade such divergences all the way down to the bear-market bottom, generating cash along the way, then plow all that money into great stocks at the bottom.

As noted earlier, Jeff expects that bottom (in the S&P) will be around the 4,150 level or 4,100 level sometime in late-Fall.

Here’s his overall suggestion/roadmap for traders today:

If you’re holding stocks long all the way through that, that could spell a little bit of trouble.

But if you take advantage of opportunities where you get deeply oversold conditions, where you can get into a good bounce – play that bounce.

But be quick to take your profits off the table and then allow the market to come back down again and give you another opportunity…

Bottom line is, I think there’s going to be an awful lot of opportunity to trade.

To learn more about joining Jeff, and trading divergence patterns alongside him, click here.

For another way to play this volatile market – whether it turns into a bear or returns to a raging bull – let’s turn to our corporate partner TradeSmith.

They’re one of the investment industry’s leaders in quantitative/algorithmic trading, having spent over $19 million and over 11,000 man-hours developing their market analysis algorithms.

Years ago, they saw the writing on the wall and began developing a predictive AI algorithm. It uses millions of data points to forecast upcoming price points, helping traders plan their entries and exits.

Let’s go to TradeSmith’s CEO, Keith Kaplan:

What we’ve created can help you thrive even in the worst market conditions.

And that means recognizing opportunities, yes, but also sidestepping danger. That’s where TradeSmith’s proprietary AI trading algorithm – An-E, short for analytical engine – comes in.

What sets An-E apart from the crowd is that it can forecast stock prices one month into the future… and many of these forecasts are incredibly accurate.

And it’s not just useful for stocks that are set to go up… An-E also zeroes in on the losers, too.

Because as we’ve well learned, playing defense in today’s volatile market can be just as valuable as offense – and An-E does both.

Keith points toward one of Warren Buffett’s positions, Occidental (OXY) as an example.

(Disclaimer: I own Occidental.)

On March 3, An-E projected that OXY would jump from $46.21 to $49.23 within 21 trading days. That was a projected gain of 6.53%, backed by a 70% confidence level.

The result?

About two weeks ago, on April 1, OXY nearly hit that target, climbing to $49.19. That registered as a gain of 6.44% in only 20 trading days.

If that return doesn’t get you excited, remember, this played out in just 20 days. Also, let’s recall Jeff’s advice above: “Be quick to take your profits off the table.”

This isn’t necessarily the market in which you want to have long-term exposure.

Here’s Keith:

On March 4, 2025, An-E projected that Light & Wonder Inc. (LNW) would fall from $106.60 to $92.52 in 21 trading days – a projected drop of 13.20%. That confidence gauge came in at a 63%.

And as projected, by April 2, 2025, LNW dropped to $91.95 for an actual loss of 13.74%.

Think about it. If you’d seen that one of the stocks you were thinking about buying had a 63% chance of dropping in the next month, would you still buy it? I don’t think so.

And in market conditions like these, avoiding the losers can be just as valuable than finding the winners – if not more.

Whether you’re more interested in An-E’s ability to help you trade rips higher or sidestep dips lower, you can learn more next Wednesday at 8:00 PM Eastern. This is when Keith is hosting The AI Predictive Power Event to show you exactly how An-E works.

He’ll walk you through how this powerful AI tool forecasts stock prices one month in advance with remarkable accuracy – and how you can use it to find high-probability trades that unlock short-term profits.

But if not, we need to prepare for a bear market at worst, and exaggerated volatility at best.

If you want a powerful AI platform, rooted in historical data, to help guide you through this unpredictability, tune in to learn more with Keith next Wednesday. You can register for the event by clicking here.

I’ll let him take us out today:

Whether you’re boosting your upside or guarding against drawdowns, An-E isn’t just another tool – it’s a paradigm shift.

As markets grow more unpredictable, it delivers the precision and foresight needed to adapt, just like we did in past market crises.

The future of trading is here, and An-E is leading the way.

Have a good evening,

Jeff Remsburg

The post The Bear is Here – How to Trade It appeared first on InvestorPlace.

Instead, what you should be doing is looking for a way to change the way you trade – with a strategy that not only protects, but profits during the upheaval.

TradeSmith CEO Keith Kaplan has a way to do just that, using the power of AI. Built in-house using machine learning models trained on over 1.3 quadrillion data points and 50,000+ backtests, their predictive technology can help you see what stocks could go up or down within the next month.

The result? A powerful advantage unlike anything you’ve ever experienced before.

You can learn all about it in The AI Predictive Power Event on April 16 at 8 p.m. Eastern. Click here to save your spot for the event now!

Now, I’ll let Keith talk more about how this strategy can work for you…

*

It felt like the world was ending.

Almost exactly five years ago, as the COVID-19 virus amplified from a concentrated contagion to a full-blown pandemic, the CBOE Volatility Index (VIX) – aka, the market’s “fear index” – closed at the highest level ever seen.

At the same time, the S&P 500 saw its third-largest one-day percentage drop in history: a whopping -11.98% loss.

We all had similar feelings this week, following the 10% nosedive – a record $5 trillion loss – in the S&P 500 after President Trump’s tariff announcement on Wednesday, April 2.

The market has since rebounded following the president’s decision to pause reciprocal tariffs on countries other than China.

But as we learned back in 2020, when the uncertainty is extremely high rather than running for the hills, all we have to do is adjust how we trade.

And our latest breakthrough at TradeSmith may provide the ideal solution…

With a technology we’ve heard about nonstop for the past two years: artificial intelligence.

Protect and Profit – Even in Panic

A lot of today’s chatter about artificial intelligence is about “the future” – about AI’s potential, and the great things this technology can achieve.

But at TradeSmith, we don’t have to visualize too far into the future.

For us, that “future” is already here.

We’ve figured out how AI can deliver market-beating wealth – and not just on the easy, good days.

What we’ve created can help you thrive even in the worst market conditions.

And that means recognizing opportunities, yes, but also sidestepping danger. That’s where TradeSmith’s proprietary AI trading algorithm – An-E, short for analytical engine – comes in.

What sets An-E apart from the crowd is that it can forecast stock prices one month into the future… and many of these forecasts are incredibly accurate.

And it’s not just useful for stocks that are set to go up… An-E also zeroes in on the losers, too.

Because as we’ve well learned, playing defense in today’s volatile market can be just as valuable as offense – and An-E does both.

Take Occidental Petroleum Corp. (OXY), for example.

• Price at the Time of Projection: $46.21
• Projected Price: $49.23 by April 2, 2025
• Confidence Level: 70%

On March 3, 2025, An-E projected that the stock would rise from $46.21 to $49.23 within 21 trading days – a projected gain of 6.53%, backed by a 70% confidence level, signaling An-E’s strong conviction in the forecast.

And the result? By April 1, 2025, OXY just about hit that target at $49.19 – locking in a gain of 6.44% in just 20 trading days.

A modest gain, but when you repeat that rhythm over a year the results can really add up.

But there’s so much more to An-E than just picking winners when market conditions are calm…

On March 4, 2025, An-E projected that Light & Wonder Inc. (LNW) would fall from $106.60 to $92.52 in 21 trading days – a projected drop of 13.20%. That confidence gauge came in at a 63%.

And as projected, by April 2, 2025, LNW dropped to $91.95 for an actual loss of 13.74%.

Think about it. If you’d seen that one of the stocks you were thinking about buying had a 63% chance of dropping in the next month, would you still buy it? I don’t think so.

And in market conditions like these, avoiding the losers can be just as valuable than finding the winners – if not more.

The Art and Science of Finding Winners – and Avoiding the Losers

Whether you’re boosting your upside or guarding against drawdowns, An-E isn’t just another tool – it’s a paradigm shift. As markets grow more unpredictable, it delivers the precision and foresight needed to adapt, just like we did in past market crises.

The future of trading is here, and An-E is leading the way.

We designed An-E to provide price projections for thousands of stocks, funds, and ETFs in the next 21 trading days.

We also designed it to be easy to use.

An-E doesn’t handcuff you to your computer screen for hours. You don’t have to perch there watching the second-to-second price action and waiting to make your move.

All you have to do is open your email when a trade alert hits your inbox and decide whether you want to make a move.

That’s it.

So, there’s little wonder why we’ve seen overwhelming demand for this service. It’s one of the most popular pieces of technology we’ve rolled out in years.

In the face of today’s market turbulence, TradeSmith is stepping in with an urgent online event to help you navigate the storm.

And on Wednesday, April 16 at 8:00 p.m. EDT, we’re hosting The AI Predictive Power Event to show you exactly how An-E works. We’ll walk you through how An-E forecasts stock prices one month in advance with remarkable accuracy – and how you can use it to find high-probability trades that unlock short-term profits.

We’re in the midst of one of the most radical economic shifts we’ve ever seen. Global trade is being rewritten, markets are in flux, and many investors are scrambling to make sense of it all.

But this is exactly the moment AI like An-E was designed for.

With markets more unpredictable than ever, “buy and hold” simply won’t cut it anymore. The smart money is learning how to move with the market’s rhythm – and AI is the key to making it possible.

Click here to register for the event.

Sincerely,

Keith Kaplan
CEO, TradeSmith

P.S. Just for signing up for the event, you’ll receive five of An-E’s most bearish forecasts for the coming month. These insights can help you determine which stocks to avoid during this market shakeup, so be sure to check them out.

The post The New Way to Trade in an AI-Powered ÃÛÌÒ´«Ã½ appeared first on InvestorPlace.

• From late February into early March, we dropped 10% in just 20 trading days – one of the fastest corrections ever recorded.
• Then, after President Trump’s “Liberation Day” tariff shock, we fell another 10% in two days; something that’s happened only a handful of times in the past 100 years.
• We followed that up with a historic 8% rally on news of a 90-day tariff pause – some of the biggest single-day gains ever…
• Only to see the market crater again the very next day, giving back more than 3.5% as traders called the pause “signal over substance.”
• Meanwhile, the volatility index (VIX) – the market’s fear gauge – has more than doubled, now hovering at levels we’ve seen only twice before in history: once during the 2008 financial crisis and once during 2020’s COVID-19 lockdowns.

This isn’t your average market pullback. This is whiplash with a capital W.

And it puts us in rare company. Historically, this kind of price action has only happened four other times – during the Great Depression, the start of World War II, 2008’s global financial crisis, and 2020’s COVID crash.

Today’s stock market mayhem is reminiscent of some major historical crashes.

But are we actually staring down the barrel of a crisis like that?

Comparing History

The market’s price action is screaming: “Brace yourself. Something catastrophic is about to happen.”

But does this look like the Great Depression? Not really. 

Yes, the 1930s crash was worsened by a significant tariff package – Smoot-Hawley – that increased the average tariff rate from 13.5% to nearly 20%, triggering a global trade war. That comparison is real.

But in the ‘30s, unemployment was above 20%. Bank failures were happening on a weekly basis. Industrial production collapsed. And there was no central bank with the tools to backstop the financial system.

Today, unemployment is low, near 4%. Banks are relatively healthy. The U.S. Federal Reserve has stockpiled liquidity firepower. And the economy, though cooling, is not collapsing.

So, no, we don’t believe we’re in a tailspin toward 1930s America.

What about World War II? We don’t see that parallel, either. 

Yes, global geopolitical tensions are high. The U.S.-China dynamic is fraught. The Middle East is tense, and Russia and Ukraine remain locked in conflict.

But that’s been true for a while. And while global conflict risk is real, there is no indication that we are on the verge of a world-war-scale military event.

Serious concerns, yes – but not like 1939.

How about the 2008 financial crisis?

At that time, we were dealing with a broken financial system. The banks were loaded with toxic assets. Liquidity evaporated. The entire system teetered on the edge.

But right now, there’s no Lehman, Bear Stearns, or AIG collapse. There hasn’t been a sudden disappearance of trust in overnight lending.

Instead, this is a policy-driven, market-manufactured panic.

The Stock ÃÛÌÒ´«Ã½ Isn’t Facing a Black Swan

And that brings us to the COVID era… which, in our view, bears almost no similarities to what we’re experiencing today. 

We’re not locking down economies, shutting borders, or freezing global supply chains in an instant.

We’re still working, living, and traveling. 

COVID-19 was a black swan health crisis. And this is not that.

This is a classic market overreaction to a real but overstated fear – tariffs and an ensuing trade war.

Now, don’t get us wrong. These tariffs are messy and economically damaging. But they’re not catastrophic.

That is, according to Bloomberg Economics, even with every reciprocal tariff enacted, the average U.S. tariff rate tops out at ~27% (vs. 2.5% last year). Using Fed modeling, that translates to a 3.4% drag on GDP.

That’s certainly meaningful – but not apocalyptic.

By comparison, the 2008 financial crisis knocked U.S. GDP down by more than 8%. The COVID-19 crash did the same.

Even if today’s tariffs stick, we’re talking a fraction of those drops. And we don’t think they’ll be around for long.

An Important Tone Shift

Just a few days ago, President Trump announced a 90-day pause on reciprocal tariffs for all countries except China.

Now, the market didn’t love the lack of detail. And the average tariff rate didn’t drop meaningfully (it only slid from 26.85% to 26.25%, to be exact).

But that’s not the point.

In our view, what’s most important is that the tone has shifted: from escalation to negotiation.

Since the pause was revealed:

• 70 countries have reportedly reached out to the White House for trade talks
• 20 have submitted formal proposals
• Two deals are close to being finalized
• Trump said that he’s confident the U.S. will get a deal finalized with China

The tough talk is over. It’s time for true negotiations.

And we expect that once those deals are locked in, it’ll be off to the races for stocks…

A lookback to the stock market of mid-February shows why.

Indeed, before this trade war started, stocks were at all-time highs, with the S&P 500 up at 6150. Consumer sentiment was strong, with inflation trending lower, easing to 2.8% from January’s 3.0% reading. The AI Boom was accelerating. And corporate earnings were stabilizing; S&P corporate earnings showed year-over-year growth of 17.8% – the highest since Q4 2021.

This wasn’t a stock market on the brink of collapse. It was a market in mid-cycle expansion.

Tariffs clouded that picture. But if we clear the fog – and we believe we’re in the process of doing so – the original bullish thesis comes right back into focus.

And that’s the opportunity here.

The Final Word on Today’s Stock ÃÛÌÒ´«Ã½

Look; we don’t think we’ve bottomed yet. The stock market is still fragile, with extreme volatility.

But that doesn’t mean you wait forever to nail the bottom. You just have to give yourself enough time.

If you’re investing with a 12-month time horizon, we think buying stocks today will look smart.

Not tomorrow, next week, or even next month… But we think that a year from now, when the smoke has cleared, the trade deals are done, and the AI boom continues to gain steam, stocks will be much higher.

That’s why we’re advocating for a measured reentry strategy:

• Nibble on dips
• Focus on quality
• Buy high-conviction names
• Stay patient

This is how you win in volatile markets.

Let me leave you with this… 

This isn’t 1930, 2008, or 2020. 

This is 2025. And while the headlines are scary and the price action is violent, the fundamentals are not screaming “collapse.”

They’re saying: “This is bad. But it’s survivable.”

The trade war will pass as tariffs are negotiated. The Fed will likely cut. And the long-term stock market drivers – AI, innovation, productivity – are still in play.

Don’t get shaken out by short-term panic.

If you have time on your side, this is a moment to be greedy when others are fearful, as Warren Buffett says.

We’re not trying to catch the knife. We’re trying to ride the rebound.

Once this storm clears, the sun’s going to shine very bright.

And when it is time to buy the dip, AI 2.0 stocks may be the best bet. 

We’re talking AI that can respond to real-world environments; embodied intelligence that can see, hear, walk, talk, lift, carry, organize, fix, learn…

Indeed, there’s a reason why every tech titan is suddenly obsessed with humanoid robots.

That’s where we believe the next trillion-dollar investment opportunities will be found. And we’ve found a compelling way to play that next phase of the AI Boom.

Uncover the details on our favorite AI 2.0 pick.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Questions or comments about this issue? Drop us a line at langofeedback@investorplace.com.

The post Today’s Stock ÃÛÌÒ´«Ã½: Another Great Depression or a Massive Overreaction? appeared first on InvestorPlace.

As I write Thursday mid-afternoon, each of the three major stock indexes is down more than 2% (the Nasdaq leads the way, off about 4%)

Perhaps investors are remembering a pesky detail forgotten in yesterday’s meteoric “tariff pause” surge…

We still have new, 10% tariffs in place on dozens of countries around the world.

Just last week, this idea horrified Wall Street. As a reminder, let’s rewind to Citibank and its note to clients:

Looking out, large tariffs would move us closer to the stagflationary risks we have downplayed this past year.

The note, written before “Liberation Day,” modeled a base case of – wait for it – 10% tariffs.

Resist the temptation to join the herd, and be deliberate about your market activity today – whether buying or selling.

The big headline this morning was that the Consumer Price Index (CPI) posted a month-to-month decline of 0.1% in March, the coolest monthly reading since July 2022.

Year-over-year inflation came in at a 2.4% increase, below the 2.6% forecast from economists.

Core CPI, which strips out volatile food and energy prices, rose 2.8%. This was below forecasts for a 3% pace and marked the smallest increase since March 2021.

Normally, such a cool print would spark a market rally. After all, softer inflation increases the odds that the Federal Reserve delivers the rate cuts everyone wants.

However, in this case, the cooler-than-expected readings reflect the period before President Trump’s “Liberation Day” tariffs announcement that spooked Wall Street.

Plus, a major contributor to the decline was slumping energy prices that reflect concerns of a global recession.

So, while cool, the data were somewhat irrelevant and suggestive of economic weakness.

Yesterday, President Trump turned up the pressure on China with 125% tariffs.

He clarified that this morning. The 125% tariff is on top of the previous 20% fentanyl-related tariff. So, the all-in tariff rate on China is 145%.

In yesterday’s Digest, I wrote:

The new 125% tariff leaves China in a tough – and potentially dangerous – spot.

After all, if Beijing feels trapped, it’s more likely to go big with its response.

Let’s zero in on this, because it’s beginning to appear there’s a far larger story bubbling under the surface of “trade war.”

[The AEC] has never sponsored a medical research project where human beings were being used for experimental purposes.

This statement was wildly misleading.

The AEC was indeed involved in human experiments at the time – and would continue to be for years.

From the Advisory Committee on Human Radiation Experiments Report (established in 1994 by President Clinton) from the Department of Energy:

In 1953 the AEC wrote to members of the public that it “does not deliberately expose any human being to nuclear radiation for research purposes unless there is a reasonable chance that the person will be benefited by such exposure” …

[However], uranium miners were not adequately informed about the purpose of research regarding their exposure to radon in the mines.

Above and beyond lack of disclosure, there is evidence that deception was not unusual in data gathering on AEC workers.

Bottom line: The U.S. government withheld information and misled the public, believing that such actions served a greater strategic purpose.

We’ve been told that these trade wars are about unfair trade practices.

But there’s incongruence between words and actions. After all, we’ve already had Israel, Vietnam, and the European Union either lower their tariffs on U.S. goods to 0% or propose such a move, and yet the Trump Administration’s response was “not good enough.”

What appears to be “good enough” is mass onshoring. In other words, the real goal appears to be bringing back manufacturing to within the United States.

Why is this such a big deal?

Because the U.S. has a key vulnerability that most Americans don’t realize: We no longer produce the vast majority of the goods that are critical for day-to-day “normal” life.

The average American has no idea this is the case. And the Americans who do have an idea don’t realize how bad it is.

But the truth is that we’re dangerously dependent on other nations – one in particular.

From CNN back in June of 2020:

The Covid-19 pandemic has revealed a terrible truth: Our mindless over-reliance on China has led us to no longer have the capacity, the expertise or the manufacturing infrastructure to meet our own nation’s needs…

Take, for example, that 90% of antibiotics and 80% of active ingredients for other medicines come from India and China.

That means we no longer have the ability to easily ramp up production of such items here.

This overdependence is hardly limited to medicine.

On “critical minerals,” here’s the German Marshall Fund of the United States:

Critical minerals are non-fuel minerals or mineral materials essential to the economic or national security of the U.S.

They have no viable substitutes yet face a high risk of supply chain disruption, with China controlling 60% of world-wide production and 85% of processing capacity.

For “industrial metals,” here’s Mining Technology:

As a leading producer of graphite, lithium and refined copper, China has an increasingly dominant position in critical mineral supply chains.

With the necessity for these minerals driven by advanced technology and renewable energy capacity, the country’s increasing control both domestically and internationally in regions like Africa raises concerns about diminishing access for Western nations and mining companies.

According to data from the International Energy Agency (IEA), China accounts for approximately 80% of natural graphite and 60% of mined magnet rare earths.

[China] produces 99% of battery-grade graphite, more than 60% of lithium chemical, 40% of refined copper, over 80% of refined magnet rare earths and 70% of refined cobalt today, while also dominating the entire graphite anode supply chain end-to-end.

And for semiconductors – the brains of every electronic gadget we use daily, and the lifeblood of AI and quantum computing – here’s Semiconductors.org:

The share of global semiconductor manufacturing located in the U.S. has plummeted in recent decades…

U.S.-located fabs only account for 12% of the world’s semiconductor manufacturing, down from 37% in 1990…

75% of the world’s chip manufacturing is concentrated in East Asia. China is projected to have the world’s largest share of chip production by 2030 due to an estimated $100 billion government subsidies.

I could go on, but you get the point.

Here’s the bottom line: Our government has downplayed it, but we’re dangerously dependent on other countries for most of our day-to-day supplies, primarily China.

What our officials would rather you not know is that if China cut us off today, we’d have a national emergency on our hands tomorrow.

Let’s explore some possibilities…

One – partisan politics.

Trump and many Republicans historically have opposed “big government spending” unless it’s framed around defense or infrastructure. A massive federal investment campaign would clash with that stance.

Two – cost and hypocrisy.

We already have a federal debt and fiscal deficit that are bordering on unsustainable. Trump can’t have his DOGE team cutting costs and highlighting government waste over here while he spends trillions over there. The optics would be awful.

Three – immediate leverage.

Tariffs can be enacted literally overnight via executive action. Large-scale domestic manufacturing incentives require legislative approval – a much slower and politically contentious process.

Four – immediate pain on China.

Tariffs make it more expensive to import goods from China (and other manufacturing-heavy nations) immediately, nudging U.S. companies to consider relocating production closer to home or to “friendlier” nations (also called “friend-shoring”) – even if Trump’s tariffs on those other countries remain, which they might not.

Five – immediate pain on corporate America.

U.S. companies outsourced to China and other countries for decades to cut costs. Moving back to the U.S. is expensive, risky, and slow. Tariffs create the pressure to reconsider.

And the final reason brings us full circle to the 1950s…

Admitting the full extent of America’s supply chain/manufacturing dependence – particularly on China – could shake consumer confidence, spook markets, and raise serious questions about readiness for conflict or crisis.

So, we get the Cold War strategy: the government admits the threat is real, but the public gets a managed, watered-down version.

If you’re skeptical, ask yourself this…

Based on what you know about Trump – and our government’s history of misleading the public when it serves its purposes – is it not possible there’s some degree of misdirection?

Now, why would there be a misdirect?

Did you know that China faces a demographic and economic collapse?

From the Council on Foreign Relations:

China’s population fell by two million in 2023, marking the second straight year of decline.

Statistics suggest that China’s total fertility rate, which has steadily declined from 1.5 births per woman in the late 1990s to 1.15 in 2021, is now approaching 1.0—far below the replacement level of 2.1 that would maintain current population levels…

Perhaps unappreciated is the extent to which current official population projections actually underestimate the extent of these challenges, precisely because they bake in shaky statistical assumptions that fertility rates will “rebound” in coming decades.

Here’s Business Sweden with the impact of the demographic collapse on the Chinese economy:

The ageing population and declining workforce are straining China’s economy.

Labour shortages threaten industrial productivity, and global supply chains may face disruptions as labour-intensive industries relocate to regions with lower costs.

Raising a child in China costs approximately 6.3 times GDP per capita, one of the highest rates globally, further discouraging higher birth rates.

And here’s Forbes:

This limited number of workers will have to support themselves, their immediate dependents, and about half of what each retiree needs.

It will matter not whether the retirees have adequate pension resources or fall on public support, the economics will be the same.

Workers, in addition to other needs, will have to produce retiree demands for food, clothing, shelter, medical service and more.

Under such pressure, it is hard to see how China will be able to produce much of an economic surplus, for exports, for instance, or for the investment projects that are necessary for rapid economic growth.

What if China realizes that this is the strongest it’s going to be?

Perhaps, behind closed doors, our government has information concerning this and feels it’s important to shore up our manufacturing base immediately.

If so, then this tariff absurdity – though ugly and disjointed – might be the fastest way to jumpstart the critical reshoring process.

Even if I’m dead wrong about “why,” the push for onshoring is happening regardless.

And that means investors should see the writing on the wall…

From pharmaceutical manufacturing… to rare earth mineral mining… to semiconductor production… to steel manufacturing… to high-tech defense and weaponry buildout…

Anything and everything critical to U.S. dominance will be on the receiving end of billions, possibly trillions, of public/private dollars as we race toward domestic manufacturing autonomy.

In other words, we could be on the cusp of a super boom.

Inflationary? Most likely.

But supportive of enormous earnings/economic growth? Absolutely.

Such a domestic buildout would have huge implications for electric power generation… oil and gas pipeline companies… construction & engineering stocks… factories and robotic automation… you name it.

I’ll leave you with this: Look beyond tariffs.

The story we’ve been told in today’s headlines doesn’t add up 100%. And that suggests something else is happening under the surface.

I suspect that those who sniff it out are going to make a tremendous amount of money.

Have a good evening,

Jeff Remsburg

The post The Bigger Story Beneath Tariffs appeared first on InvestorPlace.

But what if… as the tariff turmoil brings the market to its knees… you were in a position to sidestep the chaos? Even better… what if you could rake in profits through it all?

That’s exactly what Keith Kaplan, CEO of TradeSmith, and his team have done.

See, they’ve created an algorithm using AI that tells you which stocks could turn a profit over the next month, along with the ones to avoid.

Simply put, we believe there’s no better tool to help you navigate today’s uncertain market, which is why, on Wednesday, April 16th at 8 pm ET, we’re putting on a special emergency briefing called “The AI Predictive Power Event.”

That’s when Keith will go over all the details about how it can help you navigate the market right now.

Trust me, if you have any fear or uncertainty about the market right now… this is a tool you’ll want to have at your disposal.

Click here to claim your spot now.

In the meantime, I’ll turn it over to Keith where he’ll tell you more about the power of AI forecasting and how it can help you profit in any market…

It’s tough not to overreact during wild market swings.

By now, you’re probably receiving as many emails as I am from the New York Times, TIME, CNBC, and more all giving updates on the state of the stock market – sometimes multiple emails in an hour.

It’s especially tough because this downturn is happening nearly to the day of the 2020 COVID crash.

That’s an unpleasant dose of déjà vu.

But at TradeSmith, we’ve learned that not every chunk of bad news means doom for your portfolio.

In fact, volatility like we’ve seen presents a massive opportunity…

It’s all built on a technology we’ve heard about nonstop for the past two years: artificial intelligence.

And this AI trading algorithm could tell you exactly which stocks could turn a quick profit over the next month – while also showing you which to avoid.

This is AI’s time to shine…

Let me show you why.

The Power of AI Forecasts – Especially in Volatile ÃÛÌÒ´«Ã½s

Let’s borrow a page from Major League Baseball (MLB)…

A batting average is one of the key indicators of a player’s hitting ability.

But smart teams don’t just look at a single season’s numbers; they analyze historical trends, power stats, and other advanced metrics to predict who will excel at the highest level.

Consider these two players:

• Player A hit .281 last season and smashed 37 home runs.
• Player B hit .189 last season and managed only five home runs.

If you were building a team, which player would you bet on to deliver results? The answer is obvious.

That’s because past performance has predictive power. It doesn’t guarantee future success, but it signals which players have a higher probability of thriving.

Investing operates on the same principle. You want to stock your portfolio with strong performers – companies poised for sustained growth. And just as importantly, you want to avoid the losers before they drag down your portfolio.

That’s what TradeSmith’s proprietary AI trading algorithm, dubbed “An-E” (short for Analytical Engine) is designed to do…

In 21 trading days or less.

Here’s how…

A ÃÛÌÒ´«Ã½ Meltdown Is No Match for An-E

Take Dropbox Inc. (DBX) as a real-world example…

• Price at the Time of Projection: $25.90
• Projected Price: $27.03 by April 2, 2025
• Confidence Gauge: 75%

This trade signal was generated on March 3, 2025, with a projected price increase of 4.27%.

You’ll see that An-E gave the reading a “confidence gauge” of 75%, signaling An-E’s conviction level of its own projection.

Now, a 75% confidence level isn’t better than 65%, nor is it worse than 90%. A higher confidence level simply means that the algorithm anticipates a higher likelihood of a stock hitting the price it projected.

And to prove it – 21 trading days later, DBX saw a 6.19% gain, effectively crushing the original forecast by nearly 45%!

That’s just one example out of thousands of stocks An-E analyzes and creates projections for every day.

Consider another one in the same time frame: AAON Inc. (AAON).

• Price at the Time of Projection: $73.51
• Projected Price: $79.74 by April 3, 2025
• Confidence Gauge: 62%

While the confidence reading on AAON’s projection was lower than DBX’s, it still hit nearly on target…

By its target date of April 3, 2025 – yes, the day the market took its first downturn following the tariff trauma – AAON hit $79.16. A mere 58 cents off… and a resounding win.

This shows you something important: An-E doesn’t need calm waters to find winners.

Just like a good scout doesn’t flinch when a player is in slump, An-E focuses on the signals that matter.

And right now, An-E’s bearish forecasts are just as sharp…

Let’s look at one last example: Dolby Laboratories Inc. (DLB).

When the market looked shaky, An-E scanned the data and flagged DLB as vulnerable.

Here’s how it played out…

• Trade Signal Issued: March 6, 2025
• Price at the Time of Projection: $82.50
• Projected Price: $71.85
• Projected Drop: -12.91%
• Confidence Gauge: 63%
• Actual Price After 21 Trading Days: $72.49
• Actual Drop: -12.13%

Once again, An-E nailed the forecast with amazing accuracy – even when the broader market was swinging wildly.

This isn’t just about finding what to buy.

It’s about knowing what to dodge – and when to get out before things go haywire.

Mark Your Calendars: An-E Is Coming

The recent tariff news caused a sharp market correction.

Some stocks will rebound – but others are headed for a steeper fall. And here’s the thing: Most investors won’t know which is which until it’s too late.

But with An-E on your side, the odds of you finding more winners and avoiding more losers is higher than before.

That’s why TradeSmith is holding an emergency briefing on Wednesday, April 16, 2025 at 8:00 p.m. Eastern – called The AI Predictive Power Event. During this event, you’ll discover exactly how this tech works… and how it can guide you through today’s market storm.

And just for signing up, you’ll get five of An-E’s most bearish forecasts – stocks it’s projecting to drop hard in the coming weeks.

Bottom Line: We’re in the middle of the most dramatic global trade shift – and the markets are feeling the heat.

But just like a great MLB scout can still find future Hall-of-Famers in a losing season, An-E can still find winning trades in a down market.

Whether you’re playing offense by targeting winners or defense by avoiding losers, An-E gives you the clarity you need when it matters most.

Click here to sign up for The A.I. Predictive Power Event now and get five of An-E’s most bearish forecasts now.

Sincerely,

Keith Kaplan

CEO, TradeSmith

The post How to Use AI to Find Winners and Avoid Losers During a ÃÛÌÒ´«Ã½ Crash appeared first on InvestorPlace.

Well, in a volatile world where long-term projections are unreliable, our corporate partner TradeSmith seems to have cracked the code on securing short-term gains even amid the turbulence. And it’s all thanks to an AI-powered algorithm called An-E (short for Analytical Engine), which projects the share price on thousands of stocks, funds, and ETFs one month into the future.

This AI was trained on over 1.3 quadrillion data points and 50,000-plus back tests to create a custom model for each stock it analyzes – not relying on a one-size-fits-all approach. Its one-month price forecasts give users actionable, near-term intelligence, so you don’t need to guess where the world will be in a year; just follow a 30-day projection with a high confidence rating.

During periods of sharp downturns or unexpected events – like the one we’re enduring right now – knowing which stocks are likely to drop enables you to sidestep crashes, protect capital, and redeploy cash into more promising setups.

Today, TradeSmith CEO Keith Kaplan is joining us to share more about harnessing AI to make short-term gains in a long-term chaotic world.

It’s tough not to overreact during wild market swings.

By now, you’re probably receiving as many emails as I am from the New York Times, TIME, CNBC, and more all giving updates on the state of the stock market – sometimes multiple emails in an hour.

It’s especially tough because this downturn is happening nearly to the day of the 2020 COVID crash.

That’s an unpleasant dose of déjà vu.

But at TradeSmith, we’ve learned that not every chunk of bad news means doom for your portfolio.

In fact, volatility like we’ve seen presents a massive opportunity…

It’s all built on a technology we’ve heard about nonstop for the past two years: artificial intelligence.

And this AI trading algorithm could tell you exactly which stocks could turn a quick profit over the next month – while also showing you which to avoid.

This is AI’s time to shine…

Let me show you why.

The Power of AI Forecasts – Especially in Volatile ÃÛÌÒ´«Ã½s

Let’s borrow a page from Major League Baseball (MLB)…

A batting average is one of the key indicators of a player’s hitting ability.

But smart teams don’t just look at a single season’s numbers; they analyze historical trends, power stats, and other advanced metrics to predict who will excel at the highest level.

Consider these two players:

• Player A hit .281 last season and smashed 37 home runs.
• Player B hit .189 last season and managed only five home runs.

If you were building a team, which player would you bet on to deliver results? The answer is obvious.

That’s because past performance has predictive power. It doesn’t guarantee future success, but it signals which players have a higher probability of thriving.

Investing operates on the same principle. You want to stock your portfolio with strong performers – companies poised for sustained growth. And just as importantly, you want to avoid the losers before they drag down your portfolio.

That’s what TradeSmith’s proprietary AI trading algorithm, dubbed “An-E” (short for Analytical Engine) is designed to do…

In 21 trading days or less.

Here’s how…

A ÃÛÌÒ´«Ã½ Meltdown Is No Match for An-E

Take Dropbox Inc. (DBX) as a real-world example…

• Price at the Time of Projection: $25.90
• Projected Price: $27.03 by April 2, 2025
• Confidence Gauge: 75%

This trade signal was generated on March 3, 2025, with a projected price increase of 4.27%.

You’ll see that An-E gave the reading a “confidence gauge” of 75%, signaling An-E’s conviction level of its own projection.

Now, a 75% confidence level isn’t better than 65%, nor is it worse than 90%. A higher confidence level simply means that the algorithm anticipates a higher likelihood of a stock hitting the price it projected.

And to prove it – 21 trading days later, DBX saw a 6.19% gain, effectively crushing the original forecast by nearly 45%!

That’s just one example out of thousands of stocks An-E analyzes and creates projections for every day.

Consider another one in the same time frame: AAON Inc. (AAON).

• Price at the Time of Projection: $73.51
• Projected Price: $79.74 by April 3, 2025
• Confidence Gauge: 62%

While the confidence reading on AAON’s projection was lower than DBX’s, it still hit nearly on target…

By its target date of April 3, 2025 – yes, the day the market took its first downturn following the tariff trauma – AAON hit $79.16. A mere 58 cents off… and a resounding win.

This shows you something important: An-E doesn’t need calm waters to find winners.

Just like a good scout doesn’t flinch when a player is in slump, An-E focuses on the signals that matter.

And right now, An-E’s bearish forecasts are just as sharp…

Let’s look at one last example: Dolby Laboratories Inc. (DLB).

When the market looked shaky, An-E scanned the data and flagged DLB as vulnerable.

Here’s how it played out…

• Trade Signal Issued: March 6, 2025
• Price at the Time of Projection: $82.50
• Projected Price: $71.85
• Projected Drop: -12.91%
• Confidence Gauge: 63%
• Actual Price After 21 Trading Days: $72.49
• Actual Drop: -12.13%

Once again, An-E nailed the forecast with amazing accuracy – even when the broader market was swinging wildly.

This isn’t just about finding what to buy.

It’s about knowing what to dodge – and when to get out before things go haywire.

Mark Your Calendars: An-E Is Coming

The recent tariff news caused a sharp market correction.

Some stocks will rebound – but others are headed for a steeper fall. And here’s the thing: Most investors won’t know which is which until it’s too late.

But with An-E on your side, the odds of you finding more winners and avoiding more losers are higher than before.

That’s why TradeSmith is holding an emergency briefing on Wednesday, April 16, 2025 at 8:00 p.m. Eastern – called The AI Predictive Power Event. During this event, you’ll discover exactly how this tech works… and how it can guide you through today’s market storm.

And just for signing up, you’ll get five of An-E’s most bearish forecasts – stocks it’s projecting to drop hard in the coming weeks.

Bottom Line: We’re in the middle of the most dramatic global trade shift – and the markets are feeling the heat.

But just like a great MLB scout can still find future Hall-of-Famers in a losing season, An-E can still find winning trades in a down market.

Whether you’re playing offense by targeting winners or defense by avoiding losers, An-E gives you the clarity you need when it matters most.

Click here to sign up for The A.I. Predictive Power Event now and get five of An-E’s most bearish forecasts now.

Sincerely,

Keith Kaplan

CEO, TradeSmith

The post How You Can Use AI to Find Winners and Avoid Losers During a ÃÛÌÒ´«Ã½ Crash appeared first on InvestorPlace.

Well, in a volatile world where long-term projections are unreliable, our corporate partner TradeSmith seems to have cracked the code on securing short-term gains even amid the turbulence. And it’s all thanks to an AI-powered algorithm called An-E (short for Analytical Engine), which projects the share price on thousands of stocks, funds, and ETFs one month into the future.

This AI was trained on over 1.3 quadrillion data points and 50,000-plus back tests to create a custom model for each stock it analyzes – not relying on a one-size-fits-all approach. Its one-month price forecasts give users actionable, near-term intelligence, so you don’t need to guess where the world will be in a year; just follow a 30-day projection with a high confidence rating.

During periods of sharp downturns or unexpected events – like the one we’re enduring right now – knowing which stocks are likely to drop enables you to sidestep crashes, protect capital, and redeploy cash into more promising setups.

Today, TradeSmith CEO Keith Kaplan is joining us to share more about harnessing AI to make short-term gains in a long-term chaotic world.

It’s tough not to overreact during wild market swings.

By now, you’re probably receiving as many emails as I am from the New York Times, TIME, CNBC, and more all giving updates on the state of the stock market – sometimes multiple emails in an hour. 

It’s especially tough because this downturn is happening nearly to the day of the 2020 COVID crash. 

That’s an unpleasant dose of déjà vu. 

But at TradeSmith, we’ve learned that not every chunk of bad news means doom for your portfolio. 

In fact, volatility like we’ve seen presents a massive opportunity…

It’s all built on a technology we’ve heard about nonstop for the past two years: artificial intelligence. 

And this AI trading algorithm could tell you exactly which stocks could turn a quick profit over the next month – while also showing you which to avoid. 

This is AI’s time to shine…

Let me show you why. 

The Power of AI Forecasts – Especially in Volatile ÃÛÌÒ´«Ã½s 

Let’s borrow a page from Major League Baseball (MLB)…

A batting average is one of the key indicators of a player’s hitting ability. 

But smart teams don’t just look at a single season’s numbers; they analyze historical trends, power stats, and other advanced metrics to predict who will excel at the highest level.

Consider these two players:

• Player A hit .281 last season and smashed 37 home runs.
• Player B hit .189 last season and managed only five home runs.

If you were building a team, which player would you bet on to deliver results? The answer is obvious.

That’s because past performance has predictive power. It doesn’t guarantee future success, but it signals which players have a higher probability of thriving.

Investing operates on the same principle. You want to stock your portfolio with strong performers – companies poised for sustained growth. And just as importantly, you want to avoid the losers before they drag down your portfolio. 

That’s what TradeSmith’s proprietary AI trading algorithm, dubbed “An-E” (short for Analytical Engine) is designed to do…

In 21 trading days or less.

Here’s how…

A ÃÛÌÒ´«Ã½ Meltdown Is No Match for An-E

Take Dropbox Inc. (DBX) as a real-world example…

• Price at the Time of Projection: $25.90
• Projected Price: $27.03 by April 2, 2025
• Confidence Gauge: 75%

This trade signal was generated on March 3, 2025, with a projected price increase of 4.27%. 

You’ll see that An-E gave the reading a “confidence gauge” of 75%, signaling An-E’s conviction level of its own projection.

Now, a 75% confidence level isn’t better than 65%, nor is it worse than 90%. A higher confidence level simply means that the algorithm anticipates a higher likelihood of a stock hitting the price it projected. 

And to prove it – 21 trading days later, DBX saw a 6.19% gain, effectively crushing the original forecast by nearly 45%! 

That’s just one example out of thousands of stocks An-E analyzes and creates projections for every day. 

Consider another one in the same time frame: AAON Inc. (AAON). 

• Price at the Time of Projection: $73.51
• Projected Price: $79.74 by April 3, 2025
• Confidence Gauge: 62%

While the confidence reading on AAON’s projection was lower than DBX’s, it still hit nearly on target…

By its target date of April 3, 2025 – yes, the day the market took its first downturn following the tariff trauma – AAON hit $79.16. A mere 58 cents off… and a resounding win. 

This shows you something important: An-E doesn’t need calm waters to find winners. 

Just like a good scout doesn’t flinch when a player is in slump, An-E focuses on the signals that matter. 

And right now, An-E’s bearish forecasts are just as sharp…

Let’s look at one last example: Dolby Laboratories Inc. (DLB).

When the market looked shaky, An-E scanned the data and flagged DLB as vulnerable. 

Here’s how it played out…

• Trade Signal Issued: March 6, 2025
• Price at the Time of Projection: $82.50
• Projected Price: $71.85
• Projected Drop: -12.91%
• Confidence Gauge: 63%
• Actual Price After 21 Trading Days: $72.49
• Actual Drop: -12.13%

Once again, An-E nailed the forecast with amazing accuracy – even when the broader market was swinging wildly.

This isn’t just about finding what to buy.

It’s about knowing what to dodge – and when to get out before things go haywire.

Mark Your Calendars: An-E Is Coming

The recent tariff news caused a sharp market correction. 

Some stocks will rebound – but others are headed for a steeper fall. And here’s the thing: Most investors won’t know which is which until it’s too late. 

But with An-E on your side, the odds of you finding more winners and avoiding more losers is higher than before. 

That’s why TradeSmith is holding an emergency briefing on Wednesday, April 16, 2025 at 8:00 p.m. Eastern – called The AI Predictive Power Event. During this event, you’ll discover exactly how this tech works… and how it can guide you through today’s market storm.

And just for signing up, you’ll get five of An-E’s most bearish forecasts – stocks it’s projecting to drop hard in the coming weeks.

Bottom Line: We’re in the middle of the most dramatic global trade shift – and the markets are feeling the heat.

But just like a great MLB scout can still find future Hall-of-Famers in a losing season, An-E can still find winning trades in a down market.

Whether you’re playing offense by targeting winners or defense by avoiding losers, An-E gives you the clarity you need when it matters most.

Click here to sign up for The AI Predictive Power Event now and get five of An-E’s most bearish forecasts now.

Sincerely,

Keith Kaplan
CEO, TradeSmith

The post How to Use AI to Find Winners and Avoid Losers During a ÃÛÌÒ´«Ã½ Crash appeared first on InvestorPlace.

At roughly 1:30 eastern time this afternoon, President Trump made two big announcements:

• He’s raising tariffs on imports from China to 125% “effective immediately” because of the “lack of respect that China has shown to the World’s ÃÛÌÒ´«Ã½s”
• He’s implementing a 90-day pause on “more than 75 countries” that have reached out to U.S. officials “to negotiate a solution” to trade wars

Here’s Trump on the second point:

Based on the fact that more than 75 Countries… have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.

As I write near 3:00 pm, the stock market is soaring in relief. The Dow is up about 6%, the S&P has climbed almost 7%, and the Nasdaq is nearly 9% higher.

Effective last night at midnight, the U.S. tariff rate on Chinese goods jumped to 104%.

President Trump’s tariffs on dozens of other countries also went into effect. A few examples included 47% duties on imports from Madagascar, 46% on Vietnam, 32% on Taiwan, 27% on India, 24% on Japan, and 20% on the European Union.

Retaliatory tariffs were on the way.

Beijing announced that beginning tomorrow, tariffs on U.S. products entering China will climb from 34% to 84%.

And earlier today, the European Commission voted in favor of its own retaliatory tariffs. From CNBC:

The European Commission, the bloc’s executive arm, said duties would start being collected on a first tranche of tariffs on U.S. imports from April 15, with a second set of measures following on May 15.

According to a draft document seen by CNBC in March, the tariffs target a wide range of goods, including poultry, grains, clothing and metals. The EU has not released a final list of impacted products.

This morning, before Trump’s pause, JPMorgan Chase CEO Jamie Dimon said:

I think probably [a recession is] a likely outcome, because markets, I mean, when you see a 2000-point decline [in the Dow Jones Industrial Average], it sort of feeds on itself, doesn’t it?

It makes you feel like you’re losing money in your 401(k), you’re losing money in your pension. You’ve got to cut back.

This comes after billionaire hedge fund manager Bill Ackman wrote a long post on X that included:

If… on April 9th we launch economic nuclear war on every country in the world, business investment will grind to a halt, consumers will close their wallets and pocket books, and we will severely damage our reputation with the rest of the world that will take years and potentially decades to rehabilitate.

Meanwhile, public opinion on tariffs has been going the wrong way. Here’s Ipsos from yesterday:

Less than half of Americans support 25% tariffs on all cars and trucks made outside the U.S. or tariffs of at least 10% on all of the U.S.’ trading partners…

Three in four say that over the next six months, prices will increase for personal electronics and phones (77%), automobiles (73%), and the items they buy everyday (73%). Majorities also say the same of household appliances (72%), fresh produce (70%), home repairs and improvements (62%), and dairy items such as milk and cheese (56%).

And this morning’s new Economist/YouGov poll showed that 51% of respondents disapproved of the job Trump is doing as president, versus 43% who responded positively.

Was all this getting to President Trump?

This morning, when the markets opened in the red yet again, Trump posted on Truth Social:

BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before.

Not long after that, he posted:

THIS IS A GREAT TIME TO BUY!!!

From CNBC:

[Treasury Secretary Scott Bessent] says that Trump was always planning to pull back his sweeping tariff plans for dozens of countries just days after announcing it.

“This was his strategy all along,” Bessent tells reporters at the White House.

“You might even say he goaded China into a bad position,” Bessent says, referring to the fact that China, which imposed retaliatory tariffs, now faces higher U.S. duties while others get a reprieve.

Whatever is behind the change of heart, a tariff pause is here.

To be clear, the blanket 10% tariff remains in effect. This could have very real effects on business wholesale costs, consumer prices, and inflation.

However, Bessent says that Trump wants to be “personally involved” in negotiations with each country’s tariff rate. This is why the 90-day pause is needed.

From Bessent:

Each one of these is going to be a separate, bespoke negotiation.

So, the hope is that the ultimate tariff rates will land somewhere far lower than before, enabling us to skirt major economic damage.

Whatever the outcome, for the moment, Wall Street doesn’t care. Its feet are no longer being held to the fire.

Let’s return to President Trump’s official announcement:

At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.

The new 125% tariff leaves China in a tough – and potentially dangerous – spot. After all, if Beijing feels trapped, it’s more likely to go big with its response.

From The Wall Street Journal:

In the years since President Trump’s first trade war with China, Beijing has built an arsenal of tools to hit the U.S. where it hurts. Now, it is getting ready to deploy them in full.

On Wednesday, China said it would increase tariffs on all U.S. imports to 84%, a response to new U.S. tariffs on Chinese imports of 104% that went into effect at midnight. It also added six U.S. companies including defense and aerospace-related firms Shield AI and Sierra Nevada to a trade blacklist, and imposed export controls on a dozen American companies including manufacturer American Photonics and BRINC Drones…

Tools that Beijing has already used and is likely to expand include export controls of critical materials American companies use to make chips and defense-related products, regulatory investigations designed to intimidate and penalize U.S. companies, and blacklists intended to bar U.S. businesses from selling to China.

In addition, authorities are preparing new ways to pressure American companies to give up their crown jewels—intellectual property—or lose access to the Chinese market. We’ll bring you more on this in tomorrow’s Digest. As we see it, there’s a bigger story here than tariffs – it’s our intensifying war with China over technological, economic, and ideological dominance.

But today, let’s just take a moment to breathe a sigh of relief.

While there’s likely plenty of turbulence in our future, for the moment, the sun is shining.

Have a good evening,

Jeff Remsburg

The post ÃÛÌÒ´«Ã½s Explode Higher on 90-Day Tariff Pause appeared first on InvestorPlace.

Then, this afternoon, President Donald Trump announced a 90-day pause on his new “reciprocal” tariffs for most countries. The 10% baseline tariff remains in place for all, and the tariff on China has been raised to 125%. So while the trade war isn’t over, the landscape has shifted meaningfully since Eric and Charles recorded their discussion.

Still, we believe their insights are highly relevant – and worth your time. So, we now present their conversation in full. Here’s Eric…

Hello, Reader.

Imagine your sitting down with a longtime friend. 

Suddenly, they place their hand on the table, pull out a hammer, and slam it down onto their poor, unexpecting phalanges.

Ouch!

You watch them do it again… and again… and again.

At some point, you think they’ll have to stop. Surely the pain will become unbearable.

That’s exactly how it feels watching President Trump’s global tariffs play out. Simply put: It hurts.

But the hope is that, eventually, the pain will force him to stop bringing the hammer down.

Now, some folks are applauding President Trump’s new trade war as a stroke of tactical genius – a savvy game of macroeconomic “chicken” that will force the 185 countries subject to his new tariffs to buckle under the pressure and lower trade barriers.

But the stock market is issuing a very different verdict. It is judging the new tariff regime to be a massively destructive economic force – one that will cause both global commerce and economic growth to atrophy severely.

Only time will tell which assessment is correct, but history has weighed in on this topic several times already.

That is why, late last week, I sat down with my colleague Charles Sizemore, Chief Investment Strategist at our publishing partner, The Freeport Society, to discuss Trump’s “Liberation Day” tariffs. Charles is a market veteran of 20-plus years, dedicated to helping people achieve financial freedom through smart investing in this Age of Chaos.

In the video, Charles and I discuss what you should do now to not only preserve your wealth… but continue to grow it through this turmoil.

Click on the video to watch now. You can also read the full transcript below.

My advice is to stay the course and ride through this painful, gut-wrenching volatility. In fact, rather than selling into weakness, I would advise nibbling on some of your favorite positions at these lower prices.

Stock market selloffs are brutal events, but they sow the seeds of future wealth generation if you are bold enough to make some buys when most folks are selling.

Regards,

Eric Fry

Editor, Smart Money

Transcript

Charles Sizemore: Hi. This is Charles Sizemore, Chief Investment Strategist at The Freeport Society.

Do you feel liberated? We are now post-Liberation Day. We are now seeing the aftermath of the big tariff announcement that was made on Wednesday. So, to help me unpack that, what it might mean for us, and what we should do with our money as a result, I brought on Mr. Eric Fry, Editor of Fry’s Investment Report.

Eric, thanks for being on.

Eric Fry: It’s great to be here, Charles. Thanks for having me.

Charles: So, before we get started, I do want to roll out a couple of numbers because this is very relevant to our discussion. So up until very recently, Apple Inc. (AAPL), Microsoft Corp. (MSFT) – Nvidia Corp. (NVDA) came close – they were all in that mid $3 trillion market cap range, or roughly $3.5 trillion. In some cases, even a little bit higher. I want to say Apple actually touched $4 trillion for a while.

To put that in comparison, the entire current market cap of the UK market, every stock that trades in the United Kingdom, is $3.4 trillion. France also about $3.4 trillion. Germany, it’s lower, it’s about $2 trillion. Japan, it’s a little higher, about $6 trillion.

We were in a situation… And we still are, in fact. ÃÛÌÒ´«Ã½ caps have come down a little bit, but not that much, where we had single stocks in the U.S. worth more than the entire stock market of some of our biggest trading partners.

I don’t know about you, but that doesn’t really seem sustainable to me. All things are relative. And well, I’ll let you comment on that. What does that tell you?

Eric Fry: Even before this tariff announcement yesterday (April 2) and the threat of tariffs started, I have been suggesting, starting back around probably December, January, that it was time for these big names to hand the baton to other stocks, other sectors, other markets. And I did highlight a few overseas markets.

And that was both a function of valuation and also a function of where we were and still are, to a great extent, in the investment and profit generation cycle. So, if you look at the great big names, the Mag 7 names, they had invested a ton of money a few years back. And as a group, were largely reaping the rewards of those investments – generating huge sales, fat margins, et cetera.

But now, starting last year, they were entering a new phase where, because of the need to invest spectacular sums of money to maintain an edge in AI technologies, I thought we were seeing a new phase where they were going to have to be spending a ton of money again, and not generating commensurate sales growth. And so, these highly valued companies were likely to, best case, tread water, and I thought more likely trend lower…

Charles: Before you go any further, let me just add to that. These are the finest companies arguably ever made. These are money-minting machines. They’re not immune to the laws of economics. When they have to make very large investments in their future, that is a suck on cashflow today. It affects their profitability today.

Eric: Exactly. And then you always have the law of large numbers. It’s easier to grow a $10 million company into a $20 million company than it is to grow a $3 trillion company into a $6 trillion company, simply because the sources of revenue potentially out there, the total addressable market, is not as large anymore, relative to the company itself. So, it becomes tougher and tougher.

Yeah, they’re all great companies. Most of the Mag 7 I consider great companies.

Charles: Hold on now. You can’t make a comment like that. That’s a tease. So which ones aren’t? Now you’ve got me curious. I probably agree with you, by the way, but I’m just curious where you’re going with this.

Eric: I don’t want to make any enemies here. I would say that one of them is slightly less great. That would be Tesla Inc. (TSLA), in my opinion.

Tesla is a pioneer, has been a pioneer, run by a pioneering founder, and who’s demonstrated the capability to succeed in a number of markets. Including now in satellite communications and space technology and so on.

But Tesla, as it sits today, I think is a highly vulnerable company. And so that’s all I have to say about it.

Charles: I would just add to that, I agree. Of all of the companies that make up the Mag 7, I would say they have the shallowest moats.

Eric: Exactly. That’s really what I’m saying. We agree.

Charles: Yeah.

Eric: Yeah. Overlaying all of this, there was a lot of… Call it irrational exuberance or rational exuberance, I don’t know, post the presidential election where a lot of investors thought that Trump’s presidency was going to be great for the stock market.

So, a lot of people were buying the rumor ahead of the fact. It was all through November, December, into January, investors very excitedly buying stocks. And I thought that could very well be the last hurrah for this phase of the techie component of the bull market. It was a one-decision stock market. You just buy Nvidia or a Mag 7 company and you’re good to go.

Those kinds of very narrow, robotic bull markets usually die. And so, I’ve been expecting money to fan out into other names and into other markets. I had been recommending companies in the pharmaceutical industry and many, recently, overseas stocks, overseas markets where I thought the prospects were better.

Charles: Eric, before you go any further, I do want to point out some of your bona fides here. I am very proud to say that my first introduction to you was over 20 years ago when I read the book you wrote about ADRs back when that was uncharted territory for most investors.

You’ve been actively researching international stocks for a couple decades now. You are absolutely not a Johnny-come-lately here. You’ve seen international stocks go in style, out of style, back in style again, out of style again. You’ve seen a few round trips on this.

Eric: It’s actually been 31 years since that book hit the shelves. Three decades.

And yeah, there is a cyclicality to financial markets, all financial markets.

And broadly speaking, international investing has been out of favor for close to a decade. Whereas previously, if you go back to the 2000s… or a little bit farther, into the late 1990s when we had the big dot-com bubble, technology bubble that was developing and then ended up busting in 2000…

For a decade, it was really tough to make money in the U.S. stock market, a decade after that bubble burst. And there were some pretty harrowing declines throughout not just the tech sector, but across the U.S. markets in general.

But during that period, you could have made a lot of money in a lot of overseas stock markets. And in certain sectors, metals and mining, agriculture.

Charles: Eric, I actually jotted down some numbers before we started. Let’s go to that post-2000 market.

Throughout the ’90s, what was the story? Tech, U.S. tech specifically, and the more speculative and cutting edge, the better.

We know what happened. There was a bear market that started in 2000 that bottomed out by the end of 2002, beginning of 2003. So, between the nasty bear market at the beginning of the 2000s and the nasty bear market at the end of the 2000s, there was this window of about four years, between 2003 and 2007, where the markets did well. The S&P 500 did well. Tech stocks did fine.

However, the EAFE international index, which basically includes all the major markets without the U.S., went up about 180% in that window, which was roughly double the return on the S&P 500.

Now, emerging markets did even better. They were up about 400%, and some individual emerging markets did even better than that. So, as you were saying, there are times when non-U.S. markets really beat the pants off the U.S.

Eric: Right. I mean, the Brazilian market put up a 1,000% gain in that window. I don’t know exactly the timeframe, but it was in that period. And that was both a function of dollar weakness and primarily equity strength, Brazilian equity strength.

So I have been suggesting recently that we are likely to see something that looks like a replay of the early 2000s. I mean, you can’t really tell too much from one day’s activity, but in today’s trading action, we are seeing the Brazilian ETF EWZ is up, MAXI ETF is up, there’s a number of European stocks that are up.

Charles: I might add, as we’re recording this, the S&P 500 is down about 4%. So that puts it in perspective.

Eric: Right. And I just did a quick and dirty look. There’s an index that tracks the Mag 7 stocks. That index, as of today, is down more than 20% from its late-December peak. So, it’s in correction territory. And the S&P is down about 10% over that same timeframe. So, the Mag 7 is doing way worse than the S&P.

But in that identical window, you have things like the pharmaceutical index up. Not much, but up 3%. EAFE is up 7%, the international index you were just referring to. And then the European ETF is up 12%. So again, a fairly short window, we’re only talking about four months here – not even four months.

But I think this trend is indicative of the trend I’m expecting to unfold over the next year or two or three, with a couple of gigantic caveats. And one is that analyzing economic trends, macroeconomic trends – which is where I tend to specialize – and then analyzing individual stocks to participate in those trends, is extraordinarily difficult in a Trump regime.

I’m from California. I guess it’d be like if you had a 7.1 earthquake, and it just never stopped. You’re just constantly trying to get your footing, not knowing what’s coming, what might change, how quickly it might change. So that’s not a normal investment environment.

Charles: Actually, Eric, I want to go back to that because there’s a lot to discuss there. But before we do that, I want to go back to something else you said. You had mentioned dollar weakness was one of the macro themes of that last market, roughly early 2000s to late 2000s, in that window when international stocks did so well. Dollar weakness was the norm then.

Tying that back to the tariffs, one of the stated objectives of the Trump administration in all this tariff business is they want to boost U.S. exports relative to the rest of the world. They want to bring our trade more into balance. Whether that’s a good policy or a bad policy, we can talk about that at a different time, but that is their objective. Their objective is basically to balance our trade deficit.

Well, one of the easiest ways to do that is to revalue the currency. That’s one of the oldest tricks in the book. If you want to export more, you make your currency cheaper. That’s not necessarily good for the consumers in that market, of course, because everything they buy becomes more expensive. But that’s the game, right?

And so coming back to under what conditions do foreign stocks tend to outperform, if dollar weakness is part of that, then I think we are very likely to see that going forward. The dollar’s been very strong lately, partly because it’s been viewed historically as a haven. But if you do have an administration that’s stated objective is to boost export competitiveness, then they will lower the value of the dollar. That is almost a given.

Eric: Yeah, I think you’re right about that. One problem with using tariffs to achieve that goal is that tariffs tend to shrink the absolute pie. Even if your percentage of exports goes up, the total volume of export activity could drop significantly.

So, tariffs are a very, very blunt instrument, which is why we haven’t used them for a hundred years. It’s a little bit like if I went outside right now and I saw some bird poop on my car, and I thought, “Well, gee, I want to get that off. I’m just going to drive it off of a pier into the water, then I’ll get rid of that bird poop on my car.”

I would accomplish my goal, but my car would be under water.

Charles: At what cost, right?

Eric: And if you look at the history of tariffs of this size, we have to go back a hundred years. The last three times that we had things like this was 1890, 1897, and 1930.

Charles: And there was a common theme of what followed after each one of those events.

Eric: I took a look at it again yesterday. During the first six years of those tariff regimes, the first one, the stock market fell 24% over those six years. The next one, stock market fell half a percent. That means it went nowhere for six years. And the last one, it fell 42% over six years, after first falling 70%. That was during the Great Depression. And then you had the Panic of 1893 following one of them, which was like a great depression before the Great Depression.

It’s just a sticky wicket to try to use a broad-brush tariff policy. And one huge problem with it is… Okay, we can sit here and we can say it’s unfair. These trade partners, they’re unfair. But these unfair trading patterns and supply chains took years, if not decades, to develop, right? It’s not easy to just move some production facility from here to there and then have the supply chains that feed it and so on. It takes a really, really long time.

Charles: And by the way, Eric, going back to another one of your points, you said that one of the problems with investing or forecasting in the Trump years is things change quickly.

So if you are thinking, “Okay, this is a new regime, I’m going to move my production to California, to Florida, to Texas,” to wherever, you’re not going to do it instantly. Even if you could move it instantly, you’re not going to because you’re going to wait and see if the policy changes next week. You’re going to be conservative. You’re going to bide your time.

Eric: There are literally companies in the stock market today, and they will suffer, who moved production from China to Vietnam under the last Trump administration to become more U.S.-friendly, to not be producing in China.

And now today you’ve got these sky-high tariffs on Vietnam. And in some of these industries, we can talk about it all we want. Oh, we got to bring them home. Well, we probably don’t want to bring home a lot of textile production. It’s massively water-intensive, it’s dirty. I mean, do we want to be doing it here? I don’t know. Probably not.

Charles: I don’t imagine a world in which my kids are stooped over a loom making textiles.

Eric: All I’m saying is that there are some businesses that – yes, we can do them, but maybe we don’t really want to as a nation. There’s many, many, many that we do and we would love to have come back here. And that trend has already been underway. We’ve been reshoring industries at a very rapid clip for about six years. So that started at the end of the Trump administration, continued at the same trajectory through the Biden administration, and is continuing today. That trend has already been in place. And I think we should be encouraging it, for sure, but I don’t think this is the way to do it.

Charles: There are more subtle ways and more gradual ways. You can use the carrot instead of using the stick. And we were doing all that, by the way. As you said, the trend was already in place. It seemed like a really unnecessary escalation that’s going to backfire.

Eric: Yeah. It ends up being just a scary time now. Now what? And as I said before, because of how quickly things change, it is hard to really handicap using traditional investment analysis. You have to make a lot of guesses about what a non-traditional politician and a non-traditional economic policy is going to look like tomorrow.

So having said that, I’ve just been maintaining course and speed by fanning out into the foreign markets and individual sectors of the U.S. economy that stand the best chance of performing well, no matter what comes.

And today on my screen of recommendations that I track every day, it’s pretty red. And the only exceptions out there are a few in the pharmaceutical area that are up today, and a few foreign stocks that are up today. But most of the rest are… There’s not really a place to hide.

Charles: Well, so let’s talk about that and we can bring this full circle.

What is your advice to investors today? What do we want anybody viewing this to take away? What do they need to do when they get back to their desk or get back to their phone to start buying or selling?

Eric: It’s always this way in the stock market. And people always want to know. How do I hedge? How do I protect myself? What do I do? And there aren’t a lot of answers.

Investing is pretty binary. You’re either in stocks or you’re not. And if you’re not in stocks, you’re in some other asset. And the range of assets that are not correlated with stocks is pretty low. That list is short.

There’s cash which is directly not correlated. It’s inversely correlated, to the extent that a stock falls, your cash is worth more money. So that’s the only one, literally, that is a direct hedge.

Gold is often a hedge, but it’s not perfect, and gold stocks even less so because they’re stocks. Real estate, also a hedge. Not perfect. Real estate often falls in a severe recession, just like stocks do.

Charles: As my professor said back in undergraduate finance, the only perfect hedge is in an English garden. You’re never going to be able to perfectly hedge yourself, but protection is still protection.

Eric: Exactly right. I don’t sugarcoat it. If you’re scared, there is only one true option. That’s to go to cash.

I think that there are middling options, and that’s what I’ve been talking about. There are things on my screen today that are green, and I’ve been advocating buying mostly those kinds of names over the last six months because of my sense that the U.S. stock market was pretty fully valued and that you weren’t going to make a killing there. Best case, probably go sideways. Worst case is what we’re seeing now.

So, I think you can safely-ish continue investing in select opportunities overseas and then in two or three of the sectors in the U.S. market. But I’ve had recommendations in the oil and gas industry for the last year and a half that have been doing fantastically well, and today they’re getting annihilated because of the fear that recession is going to destroy demand for oil and gas.

Charles: You use the R word. I would say at this point it does look like the market is pricing in a recession. And we’ve seen some evidence.

The Atlanta Fed’s GDPNow is forecasting the economy is going to shrink by about 4% when they release the first quarter numbers in the coming weeks. Second quarter, I don’t even want to know. So that’s where we are.

Eric: But again, this all could go away literally in a week. I don’t think it will entirely, but I think a lot of it could go away.

It’s like watching someone hit their hand with a hammer. You watch it and you think, “Well, gee, it’s got to hurt. They’re probably going to stop at some point, right?” And they just keep hitting their hand over and over and over again. That’s how it feels watching this global tariff policy play out over the last 30 days, is that it hurts. And at some point, you would think that there’s enough pain that the message might percolate up into the White House and they might modify the policy.

I would point out a little historical curiosity. The president doesn’t actually have the constitutional power to enact tariffs. That’s a congressional power. But that’s so a hundred years ago.

Charles: That’s funny. You’re one of the only people I know that has actually made that point. I’ve made it privately, but the president can make tariffs in the case of national emergency. There are limited scenarios in which the president has the authority to levy tariffs. It’s really a stretch. The president does not have the authority to just arbitrarily rewrite trade policy though, and I don’t really see anybody stopping that problem.

Eric: Yeah. I mean, this is one of those things that we’ll be discussing in political science classes years from now. This isn’t the only power that the executive in power now is claiming. It’s a different time. So, for better or worse.

Charles: It is indeed.

Well, let’s wrap this up. To summarize for our viewers… Look, U.S. stocks are still some of the best companies in the world, I would say the best companies in the world, but the best companies aren’t necessarily the best stocks or the best investments in any given window.

And what we’ve seen today, the conditions seem to be lining up, and we could have a repeat of what we saw in the 2000s where the American companies didn’t stop being great, they didn’t stop being the best in the world, but they were distinctly out of favor for several years relative to large pockets of the world. That was, of course, aided by a weaker dollar during that period. All of those conditions lined up to create that environment.

It looks like we may be in a similar environment today, which doesn’t mean you should dump all U.S. stocks and hide under a rock, but it does mean you should really strongly consider diversifying. You should look overseas. You should definitely cast your net wider.

Eric: I emphatically agree, Charles. I mean, there were long periods of time when companies like Amazon.com (AMZN), Netflix Inc. (NFLX), and others were fantastic companies, operating brilliantly on the ground, at ground level, but their stocks were bad for a while. Right? It happens. So, there’s a disconnect between what happens on the ground and in the stock market sometimes, over long periods of time. It just depends.

Charles: Exactly.

Well, Eric, thanks for being on today. This was great. It’s nice to get some fresh perspective. We’re definitely giving the viewers information they’re really not going to get elsewhere, or at least if they get this information elsewhere, it might be two or three years from now. They heard it from us first.

Eric: Right.

Charles: Thanks for being on, and I hope to have you on again soon.

Eric: Thanks a lot. Appreciate it. Take care.

Charles: And to everybody viewing, thanks for tuning in today.

This is Charles Sizemore signing off.

To life, liberty, and the pursuit of wealth.

The post Video Issue: How to Survive and Thrive in Trump’s Tariff Era appeared first on InvestorPlace.

Last Wednesday, so-called “Liberation Day” tariffs were officially announced; and the fallout was swift and brutal. On that Thursday and Friday, the S&P 500 fell more than 10% – something that has only happened five other times in the past 100 years:

• During 2020’s COVID Crash
• In the depths of the 2008 Financial Crisis
• On Black Monday in 1987
• When Germany invaded France in 1940 and began World War II
• During the Great Depression in the 1930s

What just happened was rare and meaningful. It was a moment where markets clearly said, “This trade war might actually change everything.”

But will it?

That’s the trillion-dollar question. And the honest answer is: no one knows for sure.

That’s because the wild card here isn’t just tariffs – it’s the unpredictability of the White House behind them.

One day, there’s talk of negotiations… The next, threats of 104% tariffs on China. 

For example, over the weekend, a viral post by hedge fund manager Bill Ackman that suggested a 90-day pause to calm markets gained traction. On Monday morning, stocks surged on a rumor that the White House liked that idea.

Then came the denial: “Fake news.” Tariffs are staying. 

More threats followed. The rally was erased, and stocks tanked again, sinking another 2% between Monday and Tuesday.

This administration is playing an erratic game. But our analysis suggests there are three distinct scenarios that could play out from here, each with very different implications for your money.

Let’s walk through them.

Scenario 1: Hardball Negotiation (50% Probability)

In this scenario, the tariffs are exactly what they appear to be: a negotiating tactic. Trump is trying to strong-arm America’s trading partners into better deals. Yes, it’s chaotic. But ultimately, it’s strategic.

You can see the signs of this approach:

• President Trump’s threat of an additional 50% tariff on China after their 34% retaliation
• Peter Navarro dismissing Vietnam’s offer to cut U.S. tariffs to 0% as “not enough”
• The White House insisting these tariffs are about “long-term fairness,” not short-term market impact

In this world, the tariffs are leverage, not ideology. And once new deals are struck, Trump will roll them back, markets will breathe a sigh of relief, and the global economy will resume its march forward.

What happens to stocks here? We’d expect more near-term volatility; possibly more selling over the next few days or weeks. Once deals are signed, a sharp, V-shaped recovery – and a full rebound into summer – is quite possible.

In this case, the playbook is:

• Stay defensive in the short term (cash, bonds)
• Watch for signs of real progress in negotiations
• When clarity arrives, rotate into growth, tech, and risk-on assets

We think this is the most likely path forward, which is why we’re assigning it a 50% probability.

Scenario 2: Tariffs As True Protectionism (30% Probability)

Now, in this scenario, Trump’s tariff policy is not just strategy. It’s ideology.

He doesn’t just like tariffs as a negotiating chip. He genuinely believes in them as a tool to reshape America’s economy, wherein tariffs bring jobs home, protect domestic industry, and realign global trade in the U.S.’ favor.

In this version of reality, the tariffs aren’t going anywhere. The White House might make a few token deals, but the big ones – the 54% on China, 46% on Vietnam, 20% on the EU – stick around.

This is the 1970s redux… Or worse, the 1930s. Global trade slows. Supply chains freeze. Inflation spikes. Corporate earnings shrink. The Fed can’t easily help without stoking more inflation.

This scenario results in a grinding, multi-year bear market.

What works here?

• Hard assets: Energy, gold, metals
• Domestic infrastructure: Think reshoring, factories, defense
• Dividend stocks: Not sexy but stable

What doesn’t?

• Multinational growth stocks
• Global consumer brands
• Anything reliant on cheap trade and smooth global logistics

This is a stagflation scenario, with slow growth, high inflation, and no easy way out.

We don’t think it’s the most likely path forward, but it’s definitely on the table. We assign this one a 30% probability.

Scenario 3: Deliberate Crash (20% Probability)

Now, this is the wildest scenario of all – but also the most intriguing.

In this version of events, Trump is playing 4D chess with the goal of forcing the Fed’s hand.

By igniting global trade chaos, tanking stock markets, and dragging the economy toward recession, the White House would be aiming to compel the Federal Reserve to cut interest rates dramatically, possibly even reintroducing quantitative easing.

Why would Trump want this?

Because if he can break the market, then rebuild it from the ground up with zero rates and full liquidity, he’ll have the mother of all recoveries heading into the next election cycle.

It’s risky and dangerous. But we are talking about Donald Trump, after all.

In this scenario, we’d expect markets to crash another 30- to 40%, causing the Fed to panic and cut rates aggressively. That would return liquidity to the markets, and stocks would bottom and go vertical.

It’s COVID Crash 2.0 but with tariffs instead of illness.

Your playbook here:

• Get defensive now with cash, short-term Treasuries, gold, dividend stocks
• Wait for the Fed to blink
• Then go full offense in tech, growth, risk, leverage

While we think this is the least likely path, it’s still worth keeping an eye on. We assign it a 20% probability.

The Final Word on Tariffs and the Path Forward

Contrary to popular belief, we’re not in the prediction business. We specialize in probability and positioning.

That means we acknowledge the uncertainty, weigh the likely paths, and get positioned to survive any scenario – and thrive in the most likely.

Right now, we believe it’s best to:

• Stay defensive but flexible
• Hold high-conviction names
• Trim or sell lower-conviction, global-exposure names
• Keep some cash on hand
• Avoid leverage
• Watch the headlines, especially regarding tariff negotiations and Fed moves

If we get visibility to trade deals or Fed intervention, then go risk-on. Until then, sit tight.

Yes, this market selloff has been violent, the headlines are unnerving, and the path forward is foggy at best.

But history is clear. The market has survived crashes, recessions, and depressions; pandemics, hyperinflation, political chaos, world wars – even trade wars.

And it rebounded every single time.

So, this is not the moment to panic sell. It’s a time to stay alert, patient, and ready… Because somewhere on the other side of this chaos will be one of the greatest buying opportunities of this decade.

We’re preparing for it right now.

And when it is time to buy the dip, AI 2.0 stocks may be the best bet. 

We’re talking AI that can respond to real-world environments; embodied intelligence that can see, hear, walk, talk, lift, carry, organize, fix, learn…

Indeed, there’s a reason why every tech titan is suddenly obsessed with humanoid robots.

That’s where we believe the next trillion-dollar investment opportunities will be found. And we’ve found a compelling way to play that next phase of the AI Boom.

Uncover the details on our favorite AI 2.0 pick.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Questions or comments about this issue? Drop us a line at langofeedback@investorplace.com.

The post Tariffs, Tumult, and the Three Most Likely Paths Forward appeared first on InvestorPlace.

Treasury Secretary Scott Bessent said the Trump administration was open to negotiating deals to reduce tariffs, and denied the market selloff had led the White House to change its approach…

“I would say the negotiations are a result of the massive inflow of inbound calls to come and negotiate,” he said…

“I think you’re going to see some very large countries with large trade deficits come forward very quickly,” he added. “If they come to the table with solid proposals, I think we can end up with some good deals.”

Here’s a question…

Vietnam has proposed lowering its tariffs to zero. Is that a “good deal”?

Not according to White House trade advisor Peter Navarro. Here was his response yesterday:

When they come to us and say, “we’ll go to zero tariffs,” that means nothing to us because it’s the nontariff cheating that matters.

It means “nothing”? Really?

Okay, here’s another question…

European Commission President Ursula von der Leyen suggested “zero-for-zero” tariffs with the U.S. for industrial goods, including cars.

Is that a “good deal?”

Apparently not. Here’s Newsweek:

Trump was asked whether [von der Leyen’s suggestion] was “enough” by a reporter in the Oval Office to which he replied:

“No, it’s not. The EU has been very tough over the years, I always say it was formed really to do damage to the United States in trade, that’s the reason it was formed.”

Now, even if our trade relationships with Vietnam and the European Union include warts that must be addressed beyond a 0% tariff rate, if freer, fairer trade is the goal, shouldn’t these proposals of 0% tariffs at least warrant some positive acknowledgement?

The absence of such positive acknowledgement prompts a question…

Is there a different end goal in mind?

The author, Tanvi Ratna, is a policy analyst and engineer with a decade of experience in statecraft at the intersection of geopolitics, economics, and technology. Point being, whether you agree with her or not, she’s not coming from out of left field.

Ratna suggests that Trump’s real goal has less to do with “unfair” tariffs and far more to do with unsustainable debt and a complete economic restructuring:

In 2025, the U.S. government must refinance $9.2 trillion in maturing debt. Some $6.5 trillion of that comes due by June.

That is not a typo—that is a debt wall the size of a small continent.

Billions of dollars of debt expense are potentially on the line. Based on data in the article, each basis-point increase in interest rates would put the government on the hook for roughly $1 billion per year – huge motivation for lower interest rates.

Unfortunately, at the start of the year, the 10-year Treasury yield sat at the painfully high level of 4.80% after surging nearly all last fall.

What could bring it down?

Not the Fed.

With the specter of reinflation looming in January, the Federal Reserve appeared to be in no hurry to cut interest rates. And even if it was, the bond market wouldn’t necessarily follow suit.

As we covered in the Digest last fall, after the Fed’s first rate cut last September, the Fed Funds rate and the 10-year Treasury yield diverged in historic fashion.

While the Fed funds dropped, the 10-year Treasury yield surged. The situation grew more abnormal through the end of the year as the 10-year Treasury yield hit that 4.80% level I noted a moment ago.

So, how do you get bond yields (and by extension, federal debt payments) lower when both the Fed and the bond market didn’t appear interested in helping?

Back to Ratna’s Fox News piece:

By introducing sweeping tariffs, the administration is creating precisely the kind of economic uncertainty that drives investors toward safer assets such as long-term U.S. Treasuries.

When markets are spooked, capital exits risk and equity assets (as we see with the stock market collapse) and piles into safe assets, primarily the 10-year U.S. treasury bond. That demand pushes yields lower.

It is a counter-intuitive move, but a calculated one. Some have called it a “detox” for the overheated financial system.

Now, on Sunday, White House National Economic Council director Kevin Hassett denied this is Trump’s grand plan:

He’s not trying to tank the market. He’s trying to deliver for American workers. It is not a strategy for the markets to crash.

Of course, whether this is Trump’s plan or not, Hassett must say this.

If it is the plan, Wall Street can’t be in on it. After all, “fear” is the juice that powers the desired exodus from stocks to bonds.

Ratna suggests that lower interest rates are just the beginning.

The federal deficit remains enormous, and that’s where Elon Musk and his team at DOGE are supposed to slash spending. The goal is to eliminate a trillion dollars from the deficit by later this year.

If successful, that would leave just one more part of Trump’s plan: economic growth.

Here’s Ratna:

By making imports more expensive, they create space for American producers to step back in. The objective is not to punish trade partners—it is to make domestic industry viable again, even if only long enough to rebuild critical capacity…

In the meantime, tariffs themselves will generate revenue—an estimated $700 billion or more in the first year.

That creates more fiscal room for the administration to enable tax cuts and keep spending on Social Security, Medicaid and other programs.

Ratna believes Trump’s overall goal is to reduce America’s debt, reset its industrial base, and renegotiate where it stands in the global order.

If this is, in fact, Trump’s true plan then, at best, it’s a colossal gamble. And the most obvious tripwire is stagflation that could be exacerbated by corporate CEOs who – purposefully – can’t be in on the game.

For this hypothetical plan to work, two things must happen:

• Inflation must be contained so that long-term bond yields fall and remain low.
• Onshoring must be a success, and corporate America must continue thriving

These things aren’t guaranteed to happen.

Beginning with inflation, we’ve been getting mixed messages in recent weeks.

By some measures, inflation is cooling rapidly. Truflation, an independent inflation index, reports a U.S. inflation rate of just 1.40%.

On the other hand, recent data from the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) Price Index show pressure on prices remaining firm.

The latest core CPI inflation data (which strips out volatile food and energy prices) found that prices climbed at a 3.1% pace year-over-year. Similarly, the most recent core PCE figure climbed 2.8% year-over-year, up from the prior reading of 2.6%.

Plus, inflation expectations have been climbing across the board in the wake of this trade war chaos. If expectation turns into reality, the Fed will be unable to cut rates, and the bond market will naturally climb on its own.

Speaking of climbing, the 10-year Treasury yield has surged about 32 basis points in two days. It’s exploded from 3.90% yesterday to 4.22% as I write.

By the calculations we used earlier, that’s about $32 billion extra in federal interest expense.

This is not the plan.

Last month, a Bank of America survey found that 71% of global fund managers expect global stagflation within the next 12 months.

Meanwhile, last week, Citibank echoed this sentiment in a note to clients:

Looking out, large tariffs would move us closer to the stagflationary risks we have downplayed this past year.

This transition happens through a tightening of financial conditions which means fixed-income returns also turn negative.

The note – written before “Liberation Day” – modeled a base case of 10% tariffs, which Citi predicted could push the economy into stagflation in roughly six months. And with 20% tariffs, Citi predicted we’ll see an added “growth shock.”

Well, as we now know, many of Trump’s tariffs are multiples greater than 20%, so “growth shock” could be putting it mildly.

B of A and Citi aren’t the only Big Banks that have raised their stagflation predictions. We’ve seen similar calls from Goldman, Stifel, and UBS.

And yesterday, JPMorgan Chase CEO Jamie Dimon weighed in his annual letter so shareholders:

The economy is facing considerable turbulence (including geopolitics).

We are likely to see inflationary outcomes … Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.

For the bond market, Trump needs to communicate: “I don’t care about economic pain. I’m going to do whatever I want.”

The related emotion needs to be fear. That’s the best shot at pushing down long-term yields and holding them there.

But for corporate America, Trump needs to communicate: “This is temporary and for a greater economic good. Continue your cap ex spending. Continue hiring. Continue onshoring. Trust me. You’ll be okay.”

The related emotion is confidence. That’s the best shot as supporting our economy.

Given these contradictory messages, it’s no wonder we’re hearing two different things from The White House.

On that note, this morning, when asked whether the tariffs are permanent or up for negotiation, Trump said: “They can both be true.”

The reality is that, so far, Trump is successfully delivering the first message yet failing horribly on the second.

Here’s Ackman:

Business is a confidence game and confidence depends on trust…

By placing massive and disproportionate tariffs on our friends and our enemies alike and thereby launching a global economic war against the whole world at once, we are in the process of destroying confidence in our country as a trading partner, as a place to do business, and as a market to invest capital.

The president has an opportunity to call a 90-day time out, negotiate and resolve unfair asymmetric tariff deals, and induce trillions of dollars of new investment in our country.

If, on the other hand, on April 9th we launch economic nuclear war on every country in the world, business investment will grind to a halt, consumers will close their wallets and pocket books, and we will severely damage our reputation with the rest of the world that will take years and potentially decades to rehabilitate.

What CEO and what board of directors will be comfortable making large, long-term, economic commitments in our country in the middle of an economic nuclear war? I don’t know of one who will do so.

When markets crash, new investment stops, consumers stop spending money, and businesses have no choice but to curtail investment and fire workers…

Business is a confidence game. The president is losing the confidence of business leaders around the globe.

This brings us to tomorrow, which marks the day when Trump said he’ll enact his proposed tariffs – the same ones Ackman just suggested would serve as an “economic nuclear war on every country in the world.”

We’ll see.

In moments like these, it’s more important than ever to have a calm, informed perspective.

That’s why our team of experts – Louis Navellier, Eric Fry, and Luke Lango – sat down with our Editor-in-Chief and fellow Digest writer Luis Hernandez yesterday to discuss the volatility.

What happens from here? What should you do with your investments? Is this a “buy” moment or a “hunker down” moment?

Between the three of them, our experts have about 10 decades of investing experience. That matters in times like this.

Just click here to watch the interview.

As to the ongoing tariff war, and what Trump’s real motivation might be, we’ll keep you updated here in the Digest.

Have a good evening,

Jeff Remsburg

The post Why Is Trump Rejecting 0%-Tariff Trade Proposals? appeared first on InvestorPlace.

The S&P 500, Dow and NASDAQ all sold off hard, with all three indices falling more than 10%. Few stocks were spared, as the baby was thrown out with the bathwater.

In fact, Bespoke Investment Group pointed out that the stock market’s three-day plunge (April 3, 4 and 7) was one of the worst three-day trading spans since late 1952.

Percentagewise, this recent three-day decline is comparable to the COVID-19 pandemic and the 2008 Financial Crisis. According to Bespoke, the only three-day decline that was worse occurred during the 1987 crash.

The fact is Wall Street had a very emotional response to President Trump’s so-called “Liberation Day” tariff announcement last Wednesday.

But, as I have discussed in recent ÃÛÌÒ´«Ã½ 360 articles, the Trump administration has a few primary goals with the reciprocal tariffs. So, today, I’m going to briefly recap them, and then I’m going to share three green shoots that are emerging despite this volatile period. Plus, I’ll reveal what investors should be watching for next, as this event could make or break portfolios.

Goal No. 1: Level the Playing Field

The reciprocal tariffs are, first and foremost, a negotiating tactic.

If you looked at any of the tables that laid out the U.S. reciprocal tariffs alongside the tariffs that other countries and nations have on the U.S., then the trade imbalances were crystal clear. And in some cases, the new reciprocal tariffs are still not level with other countries’ levies on the U.S.

So, President Trump shocked everyone when he introduced reciprocal tariffs across the board. No trading partner was spared. At least 10% tariffs were imposed on everyone.

Those countries with persistent trade imbalances were slapped with even bigger tariffs. As an example, China was hit with a 34% tariff (compared to its 67% tariff on the U.S.), and Vietnam was hit with a 46% tariff (compared to its 90% tariff on the U.S.).

In the wake of the reciprocal tariff announcement on Wednesday, there’s been a lot of backlash from countries around the world. But interestingly, most are coming to the negotiating table rather than retaliating with more tariffs. This includes the European Union (EU), the U.K., Switzerland and Singapore.

So, new trade talks will ensue, and new trade deals are anticipated.

Goal No. 2: More Onshoring

On Thursday, April 3, the 25% tariffs on U.S. auto imports were also officially implemented – and auto manufacturers have started to respond. But the response has been along the lines of what President Trump was hoping for… more onshoring.

Back in late March, Hyundai revealed its plans to invest about $21 billion in U.S. onshoring, including a $5.8 billion steel plant. This week, Mercedes-Benz noted that it will consider manufacturing more vehicles in the U.S., and Volvo plans to boost the number of cars it makes in the U.S.

So, Trump’s plan to have more vehicle, technology and pharmaceutical companies onshore operations could ultimately bring trillions back to the U.S.

Goal No. 3: Raise Revenue

White House aide Peter Navarro recently stated that the reciprocal tariffs will boost the U.S.’s revenue by $6 trillion in the next 10 years. He noted that the figure doesn’t include the tariffs on vehicles. Tariffs on vehicles are anticipated to generate about $100 billion each year.

Whether that is accurate or not, one thing is clear: The Trump administration seems to want a 10% tariff on everybody, period. And that’s essentially the equivalent of a VAT (value-added tax) tax.

The reality is we have a big underground economy in America. And getting a VAT passed in the U.S. to help address the deficit is politically unpopular, so we just have to do the tariff.

That’s what Trump is doing, and the White House has never explained this properly.

Additionally, more onshoring clearly equals more revenue for the U.S. And if more corporations onshore and investment pours into the U.S., that will boost revenue, and then income taxes could be lowered.

Three Green Shoots Emerging

We now have a lot more clarity on the Trump administration’s tariff plans and what it hopes to accomplish. This clarity, though, did little to quell Wall Street’s concerns. But the good news is that there are already some “green shoots” emerging…

1. China is the only country that has slapped back with retaliatory tariffs so far. You should first know that there was already a 20% tariff on China. Then the tit-for-tat began as Trump announced another 34% on Wednesday, causing China to retaliate with it’s own 34% on Friday. This impacts all U.S. goods, as well as a restriction on rare earth exports to the U.S. The Trump administration hit back with an additional 50% tariff today, bringing the total tariff on Chinese goods to 104% (it will go into effect at midnight tonight).

However, most other countries and nations are more willing to come to the negotiating table. In fact, the White House reports that it has been contacted by more than 50 nations that are willing to lower their tariffs. The White House plans to stick with the 10% baseline tariffs, but everything above 10% may be negotiable.

Folks are starting to see some evidence that trade barriers could actually fall. Israel set the standard yesterday by announcing plans to eliminate its trade deficit with the U.S. and eliminate trade barriers.

What’s more, reports indicate that talks between the U.S. and Japan could be progressing. So, the irony is we might have freer trade as a result of the Trump administration’s tariffs, but it all has to be negotiated first.

2. Treasury yields have plunged. The 10-year Treasury yield fell as low as 3.9% on Friday, compared to 4.37% on March 26 and 4.79% in mid-January. The 10-year Treasury yield now sits at about 4.26%.

This is important, folks. First, it lowers borrowing costs for funding our government. It also lowers the cost for individuals and businesses, as the 10-year is a key benchmark for lenders.

But most importantly, remember that the Federal Reserve never fights market rates. And falling Treasury yields should push our central bank to cut key interest rates several times this year. In other words, my prediction that the Fed will cut rates at least four times this year may now come to fruition.

And I’m not the only one who thinks so… Three rate cuts were priced into the stock market – but following last week’s tariff announcement and fears of slowing global growth, the stock market briefly priced in five 0.25% rate cuts this year.

3. Energy prices, egg prices and mortgage rates are all falling. Crude oil prices are now at their lowest level in three years, with Brent crude oil at about $62 per barrel and West Texas Intermediate crude at about $59 per barrel. Wholesale egg prices have declined 43% since the start of the year. And 30-year fixed mortgage rates dropped by 20 basis points in the past week, which could help spark the housing market.

Now, I don’t expect this to be reflected in the inflation reports due later this week. (Stay tuned for my coverage on that in ÃÛÌÒ´«Ã½ 360.) But it could show up in subsequent reports, which could help the Fed feel more confident in cutting rates.

The Bottom Line

Overall, I know the market’s reaction to the Trump 2.0 tariffs has been painful.

Recent selling in the stock market has been severe, but it’s come on high trading volume, so we should get a reversal (we got a taste of that reversal today). With that said, though, the market may need to retest its recent lows. So, wild oscillations could persist in the near term.

Hopefully, volatility will diminish as trading volume exhausts itself in the upcoming weeks.

After that, headlines about tariffs diminishing or the Fed cutting key interest rates could be the “spark” that reignites the market and encourages cash to come off the sidelines.

But here’s the thing…

President Trump’s tariffs are only the tip of the iceberg. 

That’s because a financial tsunami is coming our way.

This growing tech threat will be devastating for most Americans.

But it will also make a small group rich beyond their wildest dreams. 

It’s poised to widen the gap between the “Haves” and the “Have Nots” … Permanently changing our economy, rewriting the rules between companies and employees – as well as citizens and the government.

It will also dramatically affect your portfolio and your ability to retire.  

That’s why I created a special presentation – because it’s absolutely critical to make investments in yourself, in your business, and in your portfolio to ensure that you survive and thrive the coming wave of change. 

Click here to watch my urgent warning now. 

Sincerely,

Louis Navellier

Editor, ÃÛÌÒ´«Ã½ 360

The post The 3 Goals of Trump’s Tariffs – and 3 Green Shoots in the ÃÛÌÒ´«Ã½ Right Now… appeared first on InvestorPlace.

But do you know what makes the game really great?

The mistakes – missed shots and turnovers, blundered defensive rotations that leave a shooter wide open in the corner. The heartbreak, the chaos – it’s all part of the drama.

If the players were perfect, the game wouldn’t be half as fun. It would feel too predictable; robotic.

Now, speaking of robotic, I’m convinced we’re not far off from a world where AI-powered robots could play a full game of basketball. I’ve seen humanoid bots dance, make drinks, flip burgers, play rock-paper-scissors, and even shoot jumpers. Give it a few years, and they might be able to run a basic pick-and-roll.

But let me be clear: robots will never replace humans on the basketball court. The reason we love the game – why March Madness lives up to its name – is because of the unpredictability that is born from human imperfection.

That is unique to sports. Basketball might be fun because of mistakes… But mistakes in a warehouse? On a freeway? At a shipping dock? 

In those domains, mistakes are painful and expensive. They slow down supply chains. They break things. Often, they cost lives.

And we believe that’s exactly why those areas are about to be completely overtaken by robots.

The Future Is Robotic

We’re already seeing it. In some places, it’s not the future; it’s happening right now.

Let’s start with a company called Symbotic (SYM).

This firm isn’t making cute dancing bots to generate hype. It’s built a full-blown end-to-end warehouse automation system. 

Symbotic uses fleets of smart, self-guided robots to sort, store, and move products faster, cheaper, and with near-perfect accuracy.

In fact, Walmart (WMT) was so impressed with this tech that it inked a deal with Symbotic to automate every one of its regional distribution centers in the U.S.

That’s not hype. That’s the world’s biggest retailer betting on robot supremacy in one of the most operationally complex businesses on the planet.

Why? Because robots don’t call in sick, get tired, or make costly mistakes.

And this isn’t just about fulfillment centers. Robotic tech is hitting Main Street as well.

Alphabet (GOOGL) subsidiary Waymo has developed a full self-driving system that’s already being used in real-world robotaxi services. You could call one up in Phoenix, San Francisco, L.A., or Austin right now and get picked up by a car with no driver at all.

And every single day, those systems are quietly getting smarter, safer, and more capable.

According to Waymo’s Safety Impact data, as of December 2024, it has driven 50 million rider-only miles without a human driver. And compared to its human benchmark:

Meanwhile, Tesla (TSLA) is busy developing Optimus, its humanoid robot that already works in its factories. Meta (META) just launched a new business unit focused on humanoid bots. Apple (AAPL) is reportedly developing a suite of robotic systems for smart home integration. Alphabet has invested in humanoid startups like Apptronik, and Nvidia (NVDA) is creating AI models tailor-made for embodied intelligence: robots that can perceive and interact with the real world.

AI 2.0: Humanoid Robots

Right now, everyone’s still distracted by AI chatbots. And don’t get me wrong; ChatGPT, Grok, and their peers are impressive and transformative in many ways.

But they’re also digital. They exist in the cloud, in a browser and on your phone.

Their real-world impact is still mostly confined to assisting with research, refining communications, and automating customer support. In our view, that’s merely AI 1.0.

The next big wave of AI is based in the physical, with the merging of intelligence and motion.

It’s AI that can respond to real-world environments; embodied intelligence that can see, hear, walk, talk, lift, carry, organize, fix, learn…

That’s where we believe the next trillion-dollar investment opportunities will be found.

After all, there’s a reason why every tech titan is suddenly obsessed with humanoids. If you want to have a robot do useful work – whether in a house, a factory, or a store – it has to navigate an environment built for humans.

That’s why the humanoid form is so compelling. 

A robot that functions like us can do things like operate tools and machinery, climb and descend stairs, open doors, and navigate clutter. It will be adaptable to a wide range of tasks and industries, making it a general-purpose labor platform, much like a computer is a general-purpose computation platform.

That’s the bet Tesla is making with Optimus. That’s why Meta, Apple, and Microsoft are quietly building foundational tools and systems for humanoids and why OpenAI is reportedly exploring robotics hardware.

Once these robots hit critical usability, every sector of the economy will want one… or thousands.

The Final Word

So, yes, nobody wants to watch a robot take the final in an NCAA title game. Let’s leave the joys of living to the alive. 

But everyone could use one to clean their house, unload groceries, assemble furniture, care for their pets – even patrol properties or assist with an aging parent.

The list goes on. And what’s wild to us is that these robots are almost ready. They’re already working in closed environments. The only thing left? Mass deployment.

That’s why this moment matters. We believe that over the next few years, we’re going to see the physical AI equivalent of a Cambrian explosion.

And the companies at the forefront of this revolution could become the biggest winners of the next decade.

So, where should investors be looking?

You want to find the companies that are:

• Building hardware platforms like Optimus and Apptronik
• Creating robot operating systems (Meta, Nvidia, OpenAI)
• Supplying AI chips, sensors, and actuators
• Developing integration services for homes, factories, and retail environments

In other words, the era of AI 1.0 gains is coming to an end. It’s time to be on the lookout for AI 2.0’s future winners – AI + robotics stocks. That’s where the real compounding begins.

The Robot Revolution won’t be loud. It’ll creep in through efficiency and cost reduction – use cases that make perfect business sense.

And then, suddenly, it’ll be everywhere.

Last night, we watched imperfect humans battle it out on the basketball court – and loved every minute of it.

But now that the Florida Gators have clinched the title win, it’s back to work for the rest of the world. And increasingly, that work will be done not by people but by robots.

The AI boom started with code. But its future moves.

And it’s about to move markets, too.

Learn more about some of our favorite robot stocks right now.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

P.S. You can stay up to speed with Luke’s latest market analysis by reading our Daily Notes! Check out the latest issue on your Innovation Investor or Early Stage Investor subscriber site.

The post Tech’s March Madness: Creating the Ultimate Humanoid Robot appeared first on InvestorPlace.

We’re in a critical seven-day period.

By this Wednesday, this trade war could either resolve (or be showing green shoots) or ratchet higher to an even more painful level.

To unpack this, we’re going to our hypergrowth expert Luke Lango.

Last week, in his Daily Notes in Innovation Investor, Luke detailed President Trump’s new tariffs, along with the market meltdown that’s still roiling stocks as I write Monday.

But Luke notes that there are real, tactical reasons to believe that this is not the beginning of a full-blown trade war, but rather the high-stakes opening move in a negotiation strategy.

Here’s Luke:

Immediately after [Trump’s] announcement, Treasury Secretary Scott Bessent was back on the mic, repeating what has now become a key talking point:

“These tariffs are a cap—not a floor. Countries can negotiate down from them.”

That line matters.

It confirms what we suspected all along: these tariffs are leverage, not dogma. They are meant to force other countries to the table, to get them to make concessions, and ultimately, to allow Trump to declare victory and roll them back.

Bessent’s language was no accident. It was a signal: the White House wants deals. And these tariffs are the stick meant to get them.

This relates to the timing of Trump’s tariffs.

While his blanket 10% tariff went into effect on Saturday, the higher, country-specific tariffs don’t take effect until Wednesday – seven days after Trump’s announcement last week.

Back to Luke:

That’s a seven-day window—a deliberate buffer zone designed for one thing: negotiation.

This is classic Trump. Create chaos. Shock the system. Then invite world leaders to call him, make concessions, and give him the chance to say, “We made a great deal. We’re going to roll back the tariffs. Everyone wins.”

It’s not policy. It’s theater. And the market needs to understand the distinction.

To Luke’s point, last Friday, news broke that Trump was speaking with a Vietnamese official about a potential agreement to reduce tariffs.

Nike, which manufacturers about 25% of its footwear in Vietnam, went from roughly “down 5%” to “up 6%” in less than two hours.

This is a great example of what can happen if/when tariff news “theater” turns positive. We’re looking at the potential for meteoric gains.

This morning brought another example.

As I’ll show you below, when a rumor swirled on the trading floor that President Trump had paused tariffs, the Nasdaq went from “down 5%” to “up more than 4%” in a matter of minutes…

However, when the White House dismissed the idea of a pause as “Fake news,” the gains evaporated.

But bullish spirits quickly returned, and tech stocks re-reversed (to climb higher) shortly thereafter…only to crash again…

Frankly, I’m seasick writing this, and who knows where we’ll end the day…

Luke remains optimistic that “deals” and a stock market resurgence will be the outcome

His rationale is simple: Foreign countries can’t afford a trade war.

Luke cites Vietnam. Its economy is built on export-led growth. A 46% tariff is a death sentence for their supply chain model.

Even for developed countries, Trump’s tariffs would be an economic wrecking ball. The 20% tariff on the European Union would likely be the final shove, sending the region into a recession.

Back to Luke:

This is why we believe countries will play ball—because the cost of not doing so is simply too high.

This isn’t the start of a global economic divorce. It’s the start of a speed-run of trade negotiations, with every country trying to de-escalate before April 9th hits and the pain becomes real.

The next seven days are critical.

We’ll be monitoring. You’ll get all the latest updates here in the Digest.

Cautiously.

At the end of last week, he offered four guidelines that I’ll share in a moment.

But please note that we’re in a fast-moving environment, and Luke’s recommendations could change quickly; I’ll keep you updated as best I can.

But for the moment, Luke recommends that investors:

And here’s his bottom line:

History has shown us that the market’s darkest moments often come right before its brightest breakthroughs.

Yes, the path ahead is bumpy—but we believe it leads somewhere far better than where we are today.

Policies will adjust. Negotiations will happen. Sanity will return. And when it does, those who held the line through the chaos will be the ones best positioned for the recovery.

Oil prices are collapsing.

On Friday, futures for U.S. West Texas intermediate crude (the U.S. oil benchmark) fell 7%, marking their lowest price since 2021. The selloff continued earlier today, as oil dropped below $60 (though it has rallied back above $60 as I write).

Behind the selloff is a one/two punch combo, hitting investors on both the supply and demand side.

Beginning with “demand,” investors fear that Trump’s tariffs will cause a global recession.

Whether it’s consumers cancelling vacation plans (so, less demand for gasoline and jet fuel), or corporate planners projecting less demand for their products (oil is used in countless consumer goods), the trajectory for oil demand appears clear…

Down.

On the “supply” side, last Thursday, eight members of OPEC+ agreed to increase their combined output of crude oil by 411,000 barrels per day. The increase was more than markets had forecasted.

Helima Croft, global head of commodity strategy at RBC Capital ÃÛÌÒ´«Ã½s, said the move was a message to the market:

The countries that are driving this decision are saying, ‘Look, everyone thinks we need $90 oil.

We want to show you we don’t need higher prices. We’re prepared to endure lower prices for a period.

On one hand, lower oil prices could be good for consumers.

Consumers will pay less to fill up the tank and could get a price break on related consumer goods manufactured with crude oil. This could also help offset a resurgence in inflation.

However, it’s bad news for oil investors, as well as longer-term oil infrastructure buildout.

President Trump ran on the idea of “Drill, baby, drill.” But no sane Big Oil exec is going to continue drilling, flooding the market with additional oil/gas inventory as prices plummet.

But don’t take it from me. Two weeks ago, the Federal Reserve Bank of Dallas released its March Energy Survey. From an anonymous Big Oil executive:

The threat of $50 oil prices by the administration has caused our firm to reduce its 2025 and 2026 capital expenditures.

“Drill, baby, drill” does not work with $50 per barrel oil.

Rigs will get dropped, employment in the oil industry will decrease, and U.S. oil production will decline as it did during COVID-19.

Now, eventually, we’ll see oil prices climb again. After all, like it or not, the global economy runs on oil and that won’t change anytime soon, even with the push toward green energy.

However, prices can remain lower (and drop further) for a while. So, for your existing oil plays, make sure you’re braced for weakness, or have identified appropriate stop-losses.

And for the oil/gas stocks you’ve had your eye on, get ready – bargain prices could be on the way.

Last week, we highlighted two ways that courageous investors can step into the chaos and trade today.

The first comes from Andy and Landon Swan, the analysts behind our corporate partner, LikeFolio. They use consumer data to spot shifts and trends in spending behavior on Main Street before it becomes news on Wall Street.

Based on their insights, they place targeted bets during earnings season (which begins later this week when the Big Banks report).

Every Sunday during earnings season, Andy and Landon publish a comprehensive list of all the companies they track that are reporting earnings in the week ahead.

Each company is assigned an Earnings Score from -100 (bearish) to +100 (bullish), with scores near zero being neutral. They also put out a recommended trade that they hand-select from a variety of strategies that offer super short “risk windows” of just five days.

Here’s Landon with the goal:

Get in on Monday, get out by Friday, collect your cash, and enjoy that weekend.

You can learn more about their approach here.

In this trading service Accelerated Profits, Louis zeroes in on high-growth stocks poised for rapid price appreciation. He uses his proprietary stock-rating system to focus on top-tier stocks exhibiting exceptional fundamentals and strong momentum.

The goal is to ride their bursts of bullish momentum, then get out of the market with quick profits, reducing exposure to potential downward volatility.

Even with today’s chaotic market, Louis believes so strongly in his system that he’s promising it can help you see at least $100,000 in payout opportunities over the next 12 months, without needing a huge chunk of money to get started.

For more about this trading system, and Louis’ promise, just click here.

Have a good evening,

Jeff Remsburg

P.S. Don’t miss this market update video from our experts!

Earlier today, our Editor-in-Chief and fellow Digest writer Luis Hernandez interviewed Louis Navellier, Eric Fry, and Luke Lango. They break down what’s happening, where opportunities will likely emerge, and how investors should be responding in their own portfolios.

Whether you’re feeling cautious or looking for opportunity, this is a must-watch. Just click here.

The post Why the Next Few Days Could Define the Rest of 2025 appeared first on InvestorPlace.