Dear Student,
A few months ago, I made a bold prediction about the future of the biggest AI stocks in the market.
And, as you may recall, I warned that anyone holding these AI stocks could end up broke, thanks to one of history’s most consistent market patterns.
But if you missed it (or forgot with all of the other breaking news events we’ve had), let me give you a quick recap…
We’ll use the same example from before, too – 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! 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.
And, back in June, I shared my research with you showing AI going through the same patterns, with the biggest names heading for a crash just like Internet stocks did more than two decades ago….
I’m talking about historic buying panic – but the gains could be even bigger in the coming last phase of this AI boom.
Take last year… We only had 154 initial public offerings (IPOs) on the US stock market – a 15% drop compared to the previous year. That’s nothing compared to what happened during the internet frenzy in 1999 and 2000 when more than 600 companies went public. (By the way, most of those internet companies going public were not even profitable).
We’ve already seen the initial phase of the AI boom. But as we head into 2025, we could see gains similar to what we saw in 1999, when certain tech stocks jumped 1,300%, 2,472% and 2,700% – in a single year. There’s another difference this time around, too… The gains could happen even faster because AI is advancing eight times faster than the internet.
While this massive market consolidation is going to continue throughout the next decade and beyond, the catalyst that will vault these three stalwart companies into what will be the next phase of AI is what analysts are calling “AI 2.0.” This is when the advancements in artificial intelligence are applied to businesses in every sector of the market, and at every level of the supply chain.
Remember Web 2.0?
That’s when the internet shifted from the adoption phase to the application phase, or from the “read-only” web of the late 90s to the social web that began to emerge in the early 2000s. Web 2.0 leveraged greater user interactivity, collaboration, more user-generated content, increased end-user interoperability and network connectivity, and broader and more sophisticated communication channels.
So, it’s not new technology that heralds the next phase of AI adoption, but how businesses, world governments, and even ordinary people leverage the existing technology in new ways. We’re already seeing the impact of AI 2.0 in AI generated art and media, the explosion in AI applications for businesses in areas like supply chain management, customer relations, and even human resources.
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… that you could end up spending years – even DECADES – trying to catch up.
I also said that while it’s important to know how to lock in a wave of more AI profits in the coming months than we’ve seen in five years… it’s equally, if not MORE important, to prepare for the inevitable crash ahead.
But I’m not the kind of guy to tell you about a problem – without offering a solution…
And that’s why I walked you through my plan for avoiding the AI slaughter using my Money Calendar. As you’ve seen, the Money Calendar alerts me to what’s ahead and gives my readers a chance to profit quickly and safely through options.
So, let’s fast forward to today…
In a few moments, the Fed’s expected to announce the first interest rate cut since the pandemic. We’re also less than 50 days away from the 2024 presidential election.
Now both of these events align with the return of seasonal bullishness – which is great news for the markets.
The problem is… while a small group of AI stocks have had the biggest impact on the overall health of the market, tech companies have been hit harder than most by the big spikes in volatility we’ve seen this year. We’ve seen just how chaotic these stocks have been recently after powering higher for two years straight.
But, as I explain in my recent video update, I believe that a combination of lower interest rates and a stronger market could lead to tremendous gains among this particular group of stocks.
Click on the image below to check it out – and to see how I’m able to pinpoint the perfect buy and sell dates on the hottest AI stocks that exist:
And tomorrow, I want to walk you through my best AI set-up of the year so far – and a potential new AI opportunity you to get in on, too.
So, keep an eye on your inbox around 3 p.m. ET tomorrow (September 19th).
Talk soon,
Tom Gentile
America’s Pattern Trader