Our selling down of some positions today does not imply we are bearish on the current setup for stocks͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
| |  | | June 24, 2024 | | Alert Actions to Take: - Sell 1/4 position of Fabrinet (FN) stock for ~415% profits, leaving a 1/4 position open.
- Sell 1/3 position of Taiwan Semiconductor (TSM) stock for ~75% profits, leaving a 1/3 position open.
- Sell 1/3 position of ASML Holding (ASML) stock for ~53% profits, leaving a 1/3 position open.
- Sell 1/3 position of Bitcoin (BTC-USD) for ~555% profits, leaving a 1/3 position open.
Dear Leah, We’re in a selling mood today.
And it’s not because we’re presently bearish. On the contrary, we’re quite bullish. We are just seeing signs that suggest a major shift is emerging in the stock market, and it could usher in a new class of winners.
Over the past few months, we’ve expected that cooling inflation trends would lead to multiple rate cuts, which, in turn, would reenergize economic momentum and power widespread earnings growth across the entire market.
Right now, all that earnings growth is concentrated in AI stocks – more specifically, AI infrastructure stocks, as companies are spending billions to build the framework necessary to deploy AI applications. And because of this concentrated growth, the current market rally has been very narrow, with AI infrastructure stocks soaring and all others lagging.
We believe that as earnings growth broadens to the rest of the market over the coming months, the rally itself will widen to include all stocks. And AI infrastructure stocks will start to lag as other stocks play catch-up.
Today, it appears the market is shuffling in a manner consistent with this thesis.
Further, we do not think this is a one-day phenomenon. Instead, we think this trend will persist over the next several months, likely into 2025.
So, we're rolling some profits into other AI stocks that we feel will be even bigger winners when this market rally gets wider.
Read the Full Alert |  | | Luke Lango
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