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Hey everybody, Tom here.
I get a lot of questions and emails from my readers asking about the best way to trade the AI revolution. It's one of the most important topics of the summer... one I've talked about extensively.
Everyone wants a piece of the AI action, and market experts are predicting that this will be the fastest creation of wealth in history.
But NVDA trades at more than $455 per share! To get into 100 shares of the company leading the AI revolution would cost more than $45,000 - far more than the average trader can afford.
And it's not just NVDA; most artificial intelligence stocks are too expensive for the average American investor to buy right now.
So what the heck are investors supposed to do?
One of my long-time colleagues, Chris Johnson, has his finger on the pulse of this industry, so I asked him to share how he's trading this event.
I'll let him take it from here. More from me tomorrow.
Tom
Mark Twain once said that history never repeats itself, but it does often rhyme.
There are several periods in the market's history that have followed this saying to a T.
And whenever it happens, there's always an opportunity to profit.
Believe it or not, the years 1634 through 1636 are singing in perfect harmony with the current trends in Artificial Intelligence (AI). That's right, AI stocks are following a pattern that dates back almost 400 years.
That pattern will provide prepared investors with what may be the last opportunity to grab AI stocks before they make their real move.
That's right, I said real move. Because the move we've already seen ain't nothing compared to what's coming...
Microsoft shares are up 40% this year. But there's more.
Alphabet shares are trading 50% higher for the year, but there's more.
NVIDIA shares are up more than 200% this year. But there's more, a lot more.
There's more because of what tulip bulbs did almost 400 years ago.
Here's the chart. You may have seen it before, maybe not. But this is the pattern that all innovation-driven bubbles follow.
Tulipmania - as it is referred to as - is considered one of the most famous market bubbles.
The factors that drove the Dutch Tulip Market Bubble are the same that drove the dot-com bubble and then the 2007 housing bubble.
They're the same factors that are now building the AI Bubble.
Investor sentiment and psychology is at the heart of the pattern. That sentiment is fed by the evolution of this technology and its adoption into the marketplace and economy.
That's the reason that this pattern hasn't changed after almost 400 years. You can't change the psychology of investors. It's coded into our "trading minds."
Here's the chart of NVIDIA (NVDA) following that same pattern.
So far, two of the more notable "phases" of the rally have played out - the "Awareness Phase" and …
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About the Author
Tom Gentile, options trading specialist for Money Map Press, is widely known as America's No. 1 Pattern Trader thanks to his nearly 30 years of experience spotting lucrative patterns in options trading. Tom has taught over 300,000 traders his option trading secrets in a variety of settings, including seminars and workshops. He's also a bestselling author of eight books and training courses.