The AI Mega-trend Stocks Investing - When to Sell?
Companies / AI May 28, 2020 - 03:23 PM GMTBy: Nadeem_Walayat
Amidst such prevailing doom and bloom just remember that the AI mega-trend is one of the most powerful mega-trends of our time, maybe even more so than the climate change mega-trend because the AI mega-trend could change the very nature of our reality.
Which is why I have been repeatedly warning for 5 years to PREPARE FOR EVERYTHING TO CHANGE!
We can guess at what is to come but the only way we mere mortals can have a piece of the AI pie is through owning the AI stocks. For which we still have some time to get invested into, maybe several years before the two exponential curves of AI (machine intelligence) and Quantum computing converge and then literally EXPLODE!
Maybe 8 years away? Maybe 15 years? It's hard to say when the explosion of convergence will happen BUT the closer we get the more that future will be discounted by stock prices.
Which is one of the primary reasons the AI stocks have recovered most of their Corona panic declines, dragging the general stock market indices up with them, whilst many other sectors have barely nudged from their lows given the dire economic consequences of the Chinese virus.
And as I stated a couple of weeks ago, the only real risk I see on the horizon for our stock holdings are severe windfall taxes levied on the tech sector that instead of suffering is profiting from the global pandemic following the mad dash to do everything online.
The bottom line is that things are NEVER going back to the way they were, many sectors of the economy will be downsized or completely cease to exist, whilst other sectors are already booming and it is that sector we want to be exposed to - AI tech stocks!
When to Sell Your AI Stocks
I get many comments asking when to sell the AI stocks given the sharp rallies over the past 6 weeks so as to capitalise on their gains. Which in my opinion defeats the whole point have having invested at deep discounts for 20-30% or so gains from March purchases, which is trading stocks rather than investing and in my opinion is nothing compared to what is to come, for instance imagine all those who bought Amazon at say $1700 and then sold it at $2000, and now are regretting doing so at $2375, hoping that it will fall to $2000 again so they can buy back in, which just illustrates investors in the AI mega-trend need to adjust their mindset.
a. TIME which is to be invested in for YEARS, and likely more than a decade, that's not to say AI stocks are not likely to rise by double digits most years but you want the acorns to grow into a HUGE Oaks!
b. The AI trend is EXPONENTIAL which means the stock price accounting for splits should be heading exponentially higher than where ever it trades this year.
So personally I am not even thinking of selling any AI stocks, instead my mindset is focused on trying to buy more, and this is AFTER having increased my exposure significantly during March!
Anyway lets see if we can get lucky with more discounting ahead before most of the AI stocks follow Amazons lead and trade to new all time highs.
The whole of this extensive analysis was first made available to Patrons who support my work: AI Mega-trend Stocks Buying Levels Q2 2020
- Stock Market Trend Forecast Summary
- Britain's FAKE Coronavirus Death Statistics Exposed
- Implied Case Fatality Rate
- United States Coronavirus Trend Trajectory Update
- Perceiving Coronavirus as a Disruptive Technology
- The AI Mega-trend
- When to Sell Your AI Stocks
- AI Mega-trend Stocks Buying Levels Q2
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Nadeem Walayat
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Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.
Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.
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