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I Called the AI Boom in 2019 – What I’m Seeing Now Spells Danger

Happy Independence Day!

In years’ past, I’ve used today to talk about financial independence – why it’s important and how to achieve it.

But today, I’m here to issue a warning.

Because something huge is headed toward the biggest AI stocks on the market.

It’s history’s most consistent pattern. And most long-term investors have no idea it’s coming…

I call it the Final Phase.

And if you don’t know how to trade it, you’re going to get crushed.

Today, I’m going to tell you how I called the AI boom back in 2019, what I see coming for AI stocks now, and how buy-and-hold investors can protect themselves from going broke when the Final Phase is complete.

How I Got to the AI Trade Before Everyone Else

Back in 2019, when most folks were just starting to hear murmurs about the metaverse (remember that?), I was already talking about artificial intelligence (AI).

I was tracking advancements in robotics… but not the kind of robots used to perform a scripted routine, like the kind used in manufacturing – or even your Roomba.

I’m talking about the kind of advanced automation that requires AI. Medical robots designed to administer emotional support… bipedal walking robots that interact with real world objects…

The stuff of science fiction.

Except it was real. And not only that, some of the biggest players in tech were jumping on board.

Even then, I knew this wasn’t some pie-in-the-sky investment idea that would take decades to play out…

Because I’ve been using elements of AIin my trading for years – custom algorithms, machine learning, big data… the list goes on.

So I understand the space… and I knew the timing was right.

And I knew that the real investment wasn’t a small Japanese company making companion robots, but the complex software and advanced chips necessary to power the AI revolution.

I told my followers about it. And anyone who listened to me at the time had a chance book:

  • 250% in shares of Meta…

  • 326% in shares of Microsoft…

  • and 3,156% in shares of Nvidia.

It’s been a great run.

But in the Final Phase, anyone holding these AI stocks could wind up broke, thanks to one of history’s most consistent market patterns.

It’s going to be brutal, so pay attention. Today’s lesson will explain everything…

History’s Most Consistent Pattern Could Destroy Your Portfolio

To illustrate what’s coming, I’m going to use the Internet boom of the late 1990s.

Back then, everyone was talking about Internet stocks. Taxi drivers, shoeshine boys, even my mother-in-law.

It was a frenzy.

And of course, everyone was suddenly an expert. Everyone had a hot tip. The next up-and-coming Internet stock that was going to mint millionaires.

But folks who were just buying and holding stocks got crushed when the market turned.

Yes, it was a historic boom that drove many stocks higher than anyone thought possible.

And yet, most people ended up losing a lot of money during that boom.

Why?

Because they couldn’t time the market. 

For example, take a look at what happened with shares of Viavi Solutions (VIAV).

It jumped as high as 42,000% during the boom…

But when the market crashed, most investors couldn’t get out fast enough and saw their profits evaporate in a matter of weeks.

How many people do you think bought at the bottom and sold at the absolute peak?

Nobody.

You would have to be the luckiest person in the world to have that kind of timing.

And look, it’s not just the flash-in-the-pan Internet stocks, either…

Take Cisco (CSCO), for example.

It jumped more than 85,000% in the 1990s…

But once the party was over, it came crashing down.

And look at what happened…

Even now, almost 25 years later, shares of CSCO are still below their peak from 2000.

As an investor, that’s two lost decades that you’ll never get back.

Right now, my research shows that AI is going through the same patterns. And as I’ll show you in the coming days, the biggest names are headed for a crash in the same way the trendiest Internet stocks did more than two decades ago. 

That’s why I said earlier that if you don’t know how to play the last phase of this AI boom…

You could end up losing ALL your profits in the blink of an eye. It will happen so quickly that you won’t be able to sell until it’s too late…

And you might spend years – even decades – just trying to catch up.

Now, we know that the coming months will see more profits in AI than we’ve seen in the last five years.

But we also know that, at some point, the music is going to stop and the whole thing is going to come crashing down.

As far as I’m concerned, there’s only one way to solve that problem…

The Best Way to Avoid the Slaughter

When this happens to AI, it’ll spell disaster for anyone holding these stocks.

As great as Nvidia (NVDA) stock looks right now, it could wind up being the next Cisco – and spend the next 25 years underwater.

So you need to make as much as you can as fast as you can from these stocks – and get out with your shirt.

But if this move is sudden and will catch most people off guard, how can you predict when to take action?

That’s the question I’m going to answer on Tuesday, July 9, at 8 p.m. I’m hosting a webinar to reveal all the details about how I’m trading the Final Phase.

This briefing is free to attend, so make sure you don’t miss it by signing up here.

And tomorrow, I’ll tell you how I plan on timing the market profit from the Final Phase – and get out clean.

Good trading,

Tom Gentile
America’s Pattern Trader