Ahh, election years…
The signs littered everywhere, the never-ending news cycle grasping at straws to keep your eyes glued, and the constant stream of phone calls and text messages from random campaigns. (How did you get my number?)
We all love these years, right?!
With the first presidential debate slated for next Thursday, we’re about to get our first look at President Joe Biden versus former President Donald Trump, round two.
Will they bicker over the economy and inflation? Most likely…
Will they lay bare their foreign policy plans as conflicts continue around the world? Maybe…
Will their discourse be laced with subtle (and not so subtle) jabs about age and mental fortitude? You can bet on it…
As an investor, I’ll wait to catch the highlights afterward.
While we may be able to glean some insights into potential opportunities if Biden or Trump wins, I expect there will be lots of mud-throwing from both sides. (Of course, Adam O’Dell sees opportunity in one segment. He’ll have more information next week.)
So instead, let’s stay focused on a mega trend that’s still garnering serious headlines and giving the political ads a run for their money…
AI Stock Mega Trend Continues
AI is delivering incredible gains to investors that are willing to adopt this mega trend early. This market is expected to grow into a multitrillion-dollar mega trend with plenty of profit opportunities along the way.
And I’d expect that to continue — no matter who’s in the White House come January.
If you’re wondering if you missed the boat on Nvidia Corp. (Nasdaq: NVDA) after its incredible 216% gain over the last year, our Green Zone Power Ratings system is still “Bullish.”
NVDA’s Green Zone Power Ratings in June 2024.
With a 66 out of 100 rating, NVDA should beat the market by 2X over the next 12 months.
Considering NVDA did more than 8X the S&P 500’s 25% gain since June last year, that may be a conservative estimate — but we’ll stick to what the system says!
NVDA is getting dinged on the Value and Size factors.
You’re paying a premium for that massive growth.
Now that Nvidia is the most valuable stock traded on the New York Stock Exchange, with a $3.34 trillion market cap, that 0 out of 100 on the Size factor makes sense.
But looking at the AI mega trend, NVDA still holds the crown.
What About AAPL?
Matt Clark touched on Apple Inc. (Nasdaq: AAPL) last week in Money & Markets Daily, so I’ll make this brief.
Apple stock rates a “Bearish” 37 out of 100 in Green Zone Power Ratings right now:
AAPL’s Green Zone Power Ratings in June 2024.
That may come as a bit of a shock, considering we’re talking about one of the biggest tech companies out there, but Apple also dragged its feet on AI.
Now that CEO Tim Cook has laid out the company’s Apple Intelligence features and announced a new partnership with OpenAI, investors are catching on.
Since Apple’s reveal at WWDC on June 10, AAPL stock is up more than 9%, improving its Momentum rating to 48.
I’m still going to follow the guidance on Green Zone Power Ratings since it’s still slated to underperform. But I’ll be watching AAPL’s rating closely from here…
AI is clearly here to stay. Both presidential candidates will likely chime in on this mega trend to some degree during next week’s debate. Maybe they’ll even find some common ground amid all the mudslinging.
Adam is banking on that happening, and he believes it’s going to be a massive tailwind for investors in a volatile election year. He’ll have more details on that front starting on Monday…
Have a great weekend!
Until next time,
Chad Stone
Managing Editor, Money & Markets Daily