I’m an optimist by nature. I tend to focus on the good things in my life and I like to think even better things are yet to come.
Most investors are optimists. Why invest in a stock unless you think it’s going up?
But optimism gets tough every four years.
Given the contentious atmosphere around the upcoming presidential election, the world seems more chaotic than ever.
I can’t wait until the election is over. And not to be pessimistic, but we need to be realistic. Despite how much we may crave the relief brought about by election day, November 5 won’t be the end of it.
Counting every vote will take days … we may not know the winner for a week.
Regardless of who wins, we’re all still going to have to manage higher prices for everything – groceries, health care, housing, etc.
We’ve got geopolitical uncertainty that we haven’t seen in decades in Europe and the Middle East, and the threat that it could escalate further.
And we’re still in the early innings of the Artificial Intelligence trend that is moving at lightning speed. As soon as we start using one tool, it feels like another appears. As one business appears to take advantage of AI, another sinks.
More and more stories are appearing about the energy needs associated with AI. As impressive as ChatGPT is, it takes 10 times more energy than a Google search … leaving all of us wondering where the energy is going to come from as AI continues to proliferate.
It’s easy to feel overwhelmed.
But I’m still optimistic.
If you want to feel optimistic too, you can focus on the market’s performance in 2024.
The S&P is up more than 20% in 2024, and it’s not just the Magnificent Seven.
Every sector of the S&P 500 is up double digits this year, except energy.
Here is a chart from Yahoo Finance to illustrate (as of Friday morning).
No matter what some permabears or skeptics might say, this is a broad-based bull market.
Where the growth comes from next
In nature, a convergence often refers to two bodies of water coming together to form a third one. A prime example is how the Allegheny and Monongahela meet in Pittsburgh to form the Ohio river.
Two market forces are converging to accelerate growth in stocks aside from the large cap names that have dominated the market for the last two years.
We’ve written often about the AI trend. Regular Digest readers know that this opportunity is so big – such a massive tailwind – that my colleague Jeff Remsburg and I joke that we can’t write about it enough.
Now, a second tailwind is joining the AI megatrend.
When these two tailwinds converge, the AI story will shift from the names you know, to a second set of stocks that could skyrocket.
How do I know?
We’ve been writing about Louis Navellier and his take on AI recently … but a name you may not know as well is one of Louis’ favorite analysts – Jason Bodner, editor of Quantum Edge Pro from our corporate partner TradeSmith.
Louis has known Jason since he was a teenager, and he is now one of the leading quantitative analysts in the world.
He has a long track record inside some of the most prestigious firms on Wall Street.
He’s a former partner for Cantor Fitzgerald and Senior VP for Jefferies & Company.
For 12 years, Jason was one of the only guys in the world with the authority to execute multi-billion-dollar stock transactions.
That experience led him to create his own powerful system that tracks where the biggest institutions are investing their money.
For example, Jason recommended that his Quantum Edge Pro readers buy Parsons Corp. (PSX) last April.
Parsons is a leader in innovative technology-driven solutions in the defense, intelligence, and critical infrastructure markets. It provides both software and hardware products, along with technical services and integrated solutions. Its areas of expertise include cybersecurity, intelligence, missile defense, space, connected communities, and more.
When he recommended the stock, Jason noted that the stock had a high fundamental score in his system – driven by one and three-year earnings growth of 64.8% and 25.9%, with sales surging 29.7% last year and 12.6% the last three years.
But the kicker was who owned the stock. Jason explained it this way in April,
Institutions own 98.8% of shares, so you would expect Big Money to be active, and that is indeed the case. My system shows 13 Big Money buy signals already in 2024, as shares ran from $62 to nearly $85.
PSN has also appeared on my institutional research’s Top 20 list four times already this year. These are the best of the best – highly rated stocks with Big Money flowing in. Just what we look for.
Here is the chart since Jason recommended it to this Quantum Edge Pro subscribers.
The convergence happening now
Using the data in his system, Jason has detected a change in the markets.
During this window, savvy folks can achieve triple digit returns in a very short time.
Jason’s subscribers could accelerate their life goals in a way they haven’t been able to experience in a long time. In fact, a window of opportunity like this has only opened four times in the last 35 years!
The second factor in this convergence is the Federal Reserve cutting interest rates.
Small caps stocks don’t have the ready access to cash that large companies do, so they often must borrow money to invest in growth.
Lower interest rates mean it’s easier for small-cap stocks to borrow money, which can be crucial for their growth.
The convergence of cheaper money to foster growth and the AI mega trend has drawn the interest of Big Money – the key factor in Jason’s system at Quantum Edge Pro.
Jason has been tracking this development for months. Here was his analysis of the market environment in January.
Companies of every size and stripe are falling all over themselves to highlight how they are incorporating AI into their businesses and technologies. It’s finding its way into more and more products and becoming a bigger part of our daily lives.
Amid all of this, a massive volume of money is about to pour into this sector in waves.
Wall Street is going to be first in line to the big gains, and the American people are going to be last in line.
We can be there near the front of the line. I set my computers to work every day retrieving the most important data and designing sophisticated algorithms to analyze the data – including Big Money inflows – in the way that identifies the best opportunities in the market with the highest probability of making us money.
And now his computers are telling him the money is moving.
Jason calls this phenomenon a “retirement accelerator window” – because it provides a huge opportunity for folks to put their financial goals on hyperdrive.
In an atmosphere of bullish market sentiment (10 of 11 market sectors up double digits this year!), Big Money investors are looking for the next big thing.
The convergence of an unstoppable AI megatrend and falling interest rates has created an opportunity.
Jason recently prepared a presentation about this retirement accelerator window and the opportunity for investors right now. You can access the presentation by clicking here.
Optimists about the market have been rewarded this year.
But the market is always moving, and Jason’s system can help folks prepare for what’s coming next.
Enjoy your weekend
Luis Hernandez
Editor in Chief, InvestorPlace
