☕️ Quantum’s “ChatGPT” moment is closer at hand than ever before

Howdy! 👋 

You and I knew this would happen. 

Why? 

Because we’ve seen this playbook soooooooo many times that we’ve memorized the lines. 

The markets move higher and – when they get high enough that the go-fast crowd has some gains on the table – out come the doomsayers and the cautionary headlines about a “deteriorating” economy, something nasty about tariffs or some other fear-inducing sensationalist headline. 

That, in turn, causes a brief selloff that scares the weak money out at the worst possible moment… at which point the big traders buy in and promptly take prices higher with all the fresh money in their pockets.  

Case in point, all three indices are in the green again as I type... because exactly what I’ve just described happening has happened again this morning. Btw, it wouldn’t be unusual to see another “test” by day’s end. I say that because I don’t think the FOMO crowd is done yet. 

You could almost say that the markets are being manipulated by big traders and news stories intended to provoke specific trading actions… oh, wait. 🤦‍ 

Seriously. 

People think the markets are about numbers, analysis and cold hard facts and – once upon a time – they were. These days and in reality, they’re as much about psychology as anything else. 

Think about who stands to gain when markets reach new highs or new lows and position your money accordingly because I can all but guarantee you that you won’t be the only one. 

Always do what Wall Street does, not what it says. 

Here’s my playbook. 

1 – CNBC – why I hope even more analysts bash Apple 

And, yep, there’s a reason I am “always buying” – something the super savvy Kelly Evans joshed me about yesterday on CNBC. 

Here’s the thing. 

The world’s smartest investors are almost always buying… but not just any ol’ stocks.  

No, they very carefully pick stocks that match up to their worldview, then tend to stick with ‘em for long periods of time. Think Warren Buffett, the late Sir John Templeton, Ron Baron, Abigail Johnson and Mellody Hobson amongst others.  

I’m happy to do the same thing and encourage you to do so as well.  

Using the right tactics, of course. 

Keith’s Investing Tip: If you don’t know what you’re buying and why, you will be left crying. Or worse, left lurching from stock to stock based on which way the winds blow. 

Speaking of which… 

2 - Where do the markets go next? 

Later in the day, I also joined my friend and colleague, the venerable Scott Shellady—aka “The Cow Guy” on RFDTV yesterday for a discussion about where the markets may go next and why I expect China to play hardball unlike most folks who wrongly expected Beijing to roll over. (Watch) 

MyPOV: So many well-meaning investors fail because they lack a rock-solid plan and longer-term perspective which means they’re blinded by short-term noise. Or, simply paralyzed by fear. I’ll be here if you’d like some help, btw. If you’ve got that covered, excellent! 

3 – July rate cut whispers... finally! 

What d’ya know. 

The CPI just dropped a gift-wrapped surprise on Wall Street. 

May CPI came in lighter than expected: 

• +0.1% MoM (vs. +0.2%) 

• +2.3% YoY (vs. +2.5%) 

Core inflation cooled too. 

Translation? 

The rate-cut runway just got a fresh layer of asphalt. Odds of a September cut are now clocking in at 65%. And there are whispers of a July surprise. 

Frankly, I’m surprised it took this long. 

Then again, we are talking about government stats and JPow. 

Sigh. 

Trade Idea: Use any temporary market softness to nibble into QQQ if you’re looking for concentrated tech exposure. I can also envision both real estate and utilities—XLRE, XLU—catching bids. Or my preference and better yet, buy specific stocks that can do even better. 

Let the market come to you, though. 

The last thing you want to do is find out the hard way that you're a speculator, when you thought you were an investor. 

4 – Nvidia’s charm offensive goes global 

CEO Jensen Huang has just unveiled a sweeping set of partnerships across Europe aimed at cementing Nvidia’s role not just as a chipmaker, but as the backbone of sovereign AI infrastructure – a term I may have accidentally coined in 2021 on stage at the MoneyShow. (Read) 

Hooyah! 

Smart move and one that likely keeps Nvidia on the leaderboard for a long time. 

From France to Germany, the UK to Italy, the company is embedding its GPUs into everything from industrial cloud platforms to government-backed research hubs.  

Contrary to what most people think, though, what’s happening isn’t about selling more GPUs — it’s about long-term geopolitical entrenchment.  

Europe has woken up to the risks of relying on U.S.-based cloud platforms, and Nvidia is seizing the moment to become the default AI infrastructure partner across the continent – the “sovereign AI” thingy. 

The strategy also offsets revenue lost to U.S.-China export controls, while tightening Nvidia’s grip on the global AI stack. China will likely “procure” – ahem – acquire new AI chips it can no longer buy here via Europe but that’s a story for another time. 

You know what to do.  

Oh, and in case you missed it, Unka Jensen says quantum computing is reaching an “inflection point.” (Read) 

I hope you’ve got at least one quantum choice in your portfolio like the OBA Family does. The way I see things, quantum’s “ChatGPT” moment is closer at hand than ever before. 

My choice is already the best in class and handily beating the S&P 500 since I re-introduced it to the OBA Family. Obviously, there are no guarantees that it’ll continue to charge higher but my view and my research makes me think that it likely will. 😀 

5 – Meta hires the guy beating ‘em at their own game  

Apparently tired of watching OpenAI, Google, and Microsoft eat his lunch, Mark Zuckerberg is now hiring the guy who fed ‘em.   

Meta is reportedly bringing on Scale AI founder, Alexandr Wang — the same guy who trained models for everyone currently beating Zuck at his own game — and cutting a $14 billion check to make it happen. (Read) 

The move is way off-brand for Zuck, who usually surrounds himself with loyalists and lockstep thinkers.  

What gives?  

I suspect two things: 

1. Meta knows it’s behind.  
2. Zucko is desperate enough to pay top dollar to the dude who kicked his asteroids by helping everyone else sprint past Meta and leave ‘em in the dust. 

Makes sense when you think about it. 

Zuck is not stupid. 

Moreover, he positively hates being relegated to the back seat instead of the driver’s seat. 

Should you buy it? 

Tough call.  

A lot of folks love Meta — and fair enough, it’s returned +40.46% in the past year. But, funny enough, those same people often turn up their noses at so-called “sin stocks” like booze, fast food, firearms or lately even AI. 🤔  

To each their own.  

I’m just as happy you own it if you do as I am that I don’t. 

Well done, btw, if you do!!! 💯 

Bottom Line 

The headlines are almost always filled with reasons not to invest. 

Yet, history shows it’s almost always a great time to do so. 

You got this – I promise! 

As always, let’s MAKE it a great day!  

Keith 😀