As you know, I’ve been pounding the table on the incredible opportunities in the stock market right now. And despite the naysayers calling it a “bubble,” the evidence is clear: earnings are the key catalyst that will propel stocks to new highs.
Don’t just take my word for it. As Luke Lango, a respected tech expert and venture capitalist, recently pointed out in his article, This Perfect Storm Will Send Stocks to New Highs, the correlation between earnings and stock performance is undeniable:
“When earnings are rising, stocks rise, too. When earnings are falling, stocks fall, too.”
And the great news? Earnings are set to skyrocket, thanks to two powerful forces: rate cuts and AI advancements.
The Fed’s Gift to Investors
As Lango points out, the Federal Reserve’s aggressive rate hikes in 2022 have taken a toll on the U.S. economy. But with inflation now under control, the Fed has room to lower rates – and markets are betting big on a cut by September.
What does this mean for you? As Lango explains:
“When the Fed lowers interest rates, that will ‘rejoice’ the currently hobbled U.S. economy. You’ll see things like the automotive market, housing market, and other debt-related markets start to rebound. You’ll see consumer spending pick up … You’ll see consumer confidence rise … And, with all that, you will see corporate earnings rise, too.”
The AI Revolution Is Just Getting Started
But that’s not all. The AI megatrend is still in its early innings, and companies are investing heavily to stay ahead of the curve. As Lango notes, quoting top Wall Street firms:
“We continue to believe that AI-leveraged names are still the most attractive to own heading into earnings.”
Cantor Fitzgerald
“Investors remain generally optimistic on the current AI megatrend ‘winners’, mostly because of sustained earnings strength.”
Deutsche Bank
In fact, Broadcom (AVGO) just hiked its AI target for the full year, signaling that demand for generative AI is showing no signs of slowing down.
Your Chance to Profit
So, what does this mean for you, dear reader? It means that now is the time to position your portfolio for the explosive growth ahead.
As Lango puts it:
“Broadly, the AI theme remains hot. It will soon couple with rate cuts to provide a big jolt to earnings, which should in turn provide a big jolt for the stock market.”
That’s why, at Market Monitors, we’ve been recommending top-tier tech stocks poised to benefit from these powerful trends. Click here to see what stocks we’re recommending right now.
Don’t miss out on this once-in-a-generation opportunity. The “perfect storm” is brewing, and savvy investors who act now stand to reap the rewards.
P.S. Is This Elon Musk’s Favorite A.I. Stock?
While everyone is talking about Nvidia, Microsoft, and Google, Luke Lango believes this under-the-radar company could be Elon Musk’s favorite A.I. stock.
Why? Because it’s supplying Musk with a key piece of advanced tech for his new A.I. venture.