 |
| By Jim Nelson |
There was a question asked in our weekly editorial meeting this week: 40,000 or 4,000?
Where will the Dow go from here?
While 40,000 is the consensus, 4,000 isn’t out of contention.
No one really expects to see a 90% market free fall in the next month, year or several years. But there is talk of overvaluation that cannot be ignored.
Nilus Mattive, your safe money expert shared this chart:
It shows the Wilshire 5000 divided by the U.S. GDP. This is shorthand for all publicly-traded stocks valued against the United States gross domestic product.
In other words, just how inflated stock prices are compared to the actual economy.
As you can see, the worry is that we’re looking at prices that are “quite inflated.”
Others, especially after Nvidia (NVDA) reported earnings after the bell on Thursday, see the growth in the new AI economy picking up the slack.
After all, we’ve covered the massive build-out of modern-age AI-focused data centers.
We’ve covered the effects AI is having on productivity, jobs and profit margins.
And we’ve certainly covered the outsized gains AI investing can bring.
So, with this new paradigm in the economy and on Wall Street, who knows if the Dow at 40,000 or 4,000 makes more sense?
Of course, your editors are working exhaustively to map all this out.
Here’s what they had to say this week:
Buy Dream Stocks, Not Meme Stocks
Meme stocks like GameStop (GME) have come back around. Director of Research & Ratings Gavin Magor cautions that they are just as bad of an idea now as they were in 2021.
AI Enters its Human Interaction Era
The speed at which AI is growing is unbelievable. Tech Analyst Jon Markman shares just how far it’s already come AND how to invest in the winners.
The Cannabis Countdown Has Begun
Cannabis is likely on its way to finally being rescheduled in the U.S. This will have a massive impact on the companies already operating in states where recreational and medical marijuana is legal. Megatrends Analyst Sean Brodrick has the best ways to play it.
How to Squeeze Profits from the AI Job Market
Startup specialist Chris Graebe digs deep into how AI is affecting jobs, how it will replace many and how to ride this wave rather than get swallowed by it.
This ‘Easter Egg’ Could Lead You to Market-Beating Returns
There’s a subtle “Easter egg” in the new spy movie “Argylle.” And tech expert Michael A. Robinson was not only able to find it … he is showing you how to profit from it.
Have a great Memorial Day weekend,
Jim Nelson
Managing Editor, Weiss Ratings Daily
