Keep Calm and Carry on Buying Quantum AI Tech Stocks Dear Reader My focus for much of 2023 was to what degree one would get lucky in ones target stocks during the year, as it can be a case of playing with fire to heavily trim ones holdings, especially the primary and secondary AI tech stocks, all because one thinks one can then rebuy on the next dip. In which respect 2023 proved to be a great year because we got lucky TWICE during the year! Firstly March's correction to S&P 3800, can you imagine that the S&P traded down to 3800 in March! And then again following the July high of 4600 all the way down to 4100! Which even I had started to give up on happening given support at 4200. Furthermore these corrections resulted in huge draw downs in target stocks i.e. we had Google in March that prompted many to ask if they should sell their Google to buy something else because all of the news was bad, to which my response was I AM BUYING MORE GOOGLE! This is another problem with most investors, for some reason they imagine that stock prices fall on good news, if so then buying the dips would be EASY! Instead stock prices tend to plunge on BAD NEWS! YOU DO NOT GET GOOGLE TRADING DOWN TO $86 ON GOOD NEWS! And this is why most investors fail to buy when stocks are cheap! Every time a stock plunges on bad news I get asked about the drop, where if I am not already fully loaded my response tends to be I am buying more, THE NEWS THAT MOST FOCUS ON IS A LOAD OF RUBBISH! Good luck with trying to buy stocks when cheap on GOOD NEWS! Because when the news is good the stocks have already soared to new highs and which point Investors want to know when will the stock price next drop so they can buy! Instead it should be to TRIM on good news and to BUY on bad news! And that is the only real advantage I have over most investors as I have conditioned myself to do the exact opposite of what most do, yes there is my analysis and decades of experience, but also having been conditioned to SEE BAD NEWS DROPS as buying opps whilst GOOD NEWS RALLIES to trim into. Look at what the stock market did following EVERY Market TOP.
So even if you were totally clueless at investing and bought at the very top of every bull market then all you had to do was to hold onto what you bought and let INFLATION do it's magic. This is why the likes of Dollar Cost Averaging works, it's not magic, it's INFLATION! DO YOU NOW UNDERSTAND HOW THE GAME IS PLAYED? So the starting point for successful investing is to understand that draw downs are discounting events, where the greater the deviation from the high the greater the buying opportunity, then after having bought at -x%. and if we gets really lucky at -20% (double for individual target stocks) then all one needs to do to become investing Geniuses is to HOLD ONTO ONES INVESTMENTS! And NOT SELL for peanuts as I see many investors do after having gained say 20% they get fearful that they are going to give up all of their gains and so SELL for PEANUTS! When all they needed to do is to HOLD for 5years, 10 years to see the truly epic gains of X5 and more on individual stocks. So make the conscious effort to condition one selves to invest in this manner, else you will be FOMOING into market tops and panic selling out at market bottoms as the likes of Clown Cramer was doing at META $100, that he repeatedly proclaimed as being finished!
If you only take one thing on board, then let it be this - Keep calm and carry on buying Quantum AI Tech stocks as they deviate from their highs, as the greater the drop in good stocks then the greater the buying opportunity being presented. And this has been my mantra since at least 2009! Where I try and remind folks forget about trying to buy THE bottoms as you will only find that you missed the bottoms and be sat watching and waiting from the sidelines hoping in hindsight for another chance to buy the likes of META at $200 let alone at $100! When all you had to do was to buy the deviations from the high. Your best buys will always be your most painful buys, buying META at $100 was PAINFUL! Buying TESLA at $110 was PAINFUL, Buying AMD at $60 was PAINFUL, Buying Nvidia at $120 was PAINFUL! Where the only mechanism that enabled one to do so was to BUY the DEVIATION FROM THE HIGHS! Nothing else would have got one invested at such PAINFUL times to buy stocks when one is already sat on large draw downs, buying whilst the likes of Clown Cramer encouraged panic selling at what would turn out to be their bear market bottoms. And then after having bought to hold onto and not sell for peanuts.
As for the S&P, I consider it to be a nothing burger. Why because my portfolio is already 25% above it's 2021 high, whilst the S&P is only on the cusps of a new high. I am not trying to blow my own trumpet,. I am just trying to ram home the message that investing in index trackers such as the S&P is a red herring! At the end of the day what one makes investing is function of how much work one puts into it. You cannot expect to be up 25% in the previous bull market high if all you did was invest in an index tracker! Those who study hard pass their exams with flying colours, whilst those who don't get crappy results, why do you think investing is any different? Synthetic Intelligence Is Artificial the right word to use for what is taking place as we enter 2024? Artificial - made or produced by human beings rather than occurring naturally, especially as a copy of something natural. Neural networks are a black box, they are not a copy of something natural i.e. are an emergent property, a different form of intelligence, in the past I've called this Alien Intelligence but that is a bit Sci-fi sounding, maybe a better word that could eventually become widespread should be Synthetic Intelligence since it is a form of intelligence and not artificial i.e. the intelligence is real, but different to human intelligence..
Synthetic Intelligence - that which is produced by synthesis, combing parts to form a whole, a human made version of that which has risen naturally, a synthetic intelligence, thus human made but not simulated or artificial but real intelligence much as we synthesis materials such as synthetic diamonds, they are not artificial they are real diamonds. Clearly machine intelligence for many decades has been artificial, a simulated copy of intelligence, but with the advent of deep learning neural nets culminating in today's large language models we are leaving the artificial / simulated intelligence behind and entering the world of Synthetic Intelligence. I think there will come a day when the word Synthetic will replace Artificial to become Synthetic Intelligence. This article is an excerpt from my in-depth analysis and concluding S&P detailed trend forecast for 2024 - S&P Stock Market Analysis, Detailed Trend Forecast Jan to Dec 2024 has first been made available to patrons who support my So for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $5 per month, this is your last chance to lock it in now at $5 before it rises to $7 this month for new sign-ups. https://www.patreon.com/Nadeem_Walayat. Analysis that seeks to replicate the accuracy of 2023:
S&P Stock Market Analysis, Detailed Trend Forecast Jan to Dec 2024 CONTENTS Latest analysis - Stock Market Election Year Five Nights at Freddy's My counter to the headless chickens following the failure of santa clause rally and the first five trading days indicator.
And gain access to my exclusive to patron's only content such as the How to Really Get Rich series. Change the Way You THINK! How to Really Get RICH - Part 1
Part 2 was HUGE! > Learn to Use the FORCE! How to Really Get Rich Part 2 of 3 Part 3 Is Huger! And Gets the Job Done! > Here's what you get access to for just $5 per month - ※ Patrons Get FIRST access to all of my In-depth analysis and high probability Trend Forecasts, usually 2 full months before the rest of the world. Notified by Patreon by email as well as posted on this page and I will also send a short message in case the extensive email does not make it to your inbox. ※A concise to the point Investing Guide that explains my key strategies and rules ※ Regular content on How to Trade & Invest incorporated into most articles so as to keep patrons eyes on the big picture and net get too sucked into the noise of price swings. ※ Access to my comprehensive How to Really Get Rich series of articles, clear concise steps that I will seek to update annually and may also eventually form a Patrons only ebook. ※ Access to conclusions from my ongoing market studies from a total of over 200 conducted studies over the decades. updated whenever the market poses a question to be answered. Also enjoy the fruits of R&D into machine learning such as the CI18 Crash indicator that correctly called both the pandemic crash (Feb 2020) and the 2022 bear market (Dec 2021) well before the fact. ※Join our community where I reply to comments and engage with patrons in discussions. So for immediate access to all my analysis and trend forecasts do consider becoming a Patron by supporting my work for just $5 per month. https://www.patreon.com/Nadeem_Walayat lock it in before it rises to $7 per month for new signup's this month. And ensure you are subscribed to my ALWAYS FREE newsletter for my next in-depth analysis. Your analyst putting his neck on the chopping block for another year. By Nadeem Walayat Copyright © 2005-2023 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved. Nadeem Walayat has over 35 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.
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.
You're receiving this Email because you've registered with our website. How to Subscribe Click here to register and get our FREE Newsletter To access the Newsletter archive this link Forward a Message to Someone this link To update your preferences this link How to Unsubscribe - this link
The Market Oracle is a FREE Financial Markets Forecasting & Analysis Newsletter and online publication. | |||||||||||||||
Tuesday, 23 January 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks
