AI
AI | InformativeNYSE:AI
The bearish line is identified at 37, which may indicate a bearish signal and potential downward price movement. In this scenario, the target prices could be set at 36.43, 35.60, 33.82, and 32.05.
*In addition to the provided information, I have observed three black crown candlesticks, which typically signify a bearish pattern. Furthermore, on the 1-hour chart, the price is in close proximity to the support of the EMA200, located at 36.99. These factors further support a bearish outlook for AI.
C3.AI stocks suppressed by the 1.618 level of the golden sectionC3.AI stocks suppressed by the 1.618 level of the golden section
This chart shows the weekly candle chart of C3. AI stocks for the past year. The graph overlays the low point at the end of 2022 against the golden section. As shown in the figure, the high points of C3.AI stocks at the end of May and July were precisely suppressed by the 1.618 level of the golden section in the figure, while the high point in June almost touched the short start level in November 2021! So for a period of time in the future, the probability of C3. AI stocks will probably rise again against the 0.618 to 0.809 positions in the golden section of the pullback chart!
Apple Inc. : Potential Harmonic; Bearish ConsolidationAAPL has been on the rise ever since it broke above the descending Bullish Dragon Trend Line and confirmed the middle of the Trading Range as support, but as it's risen, both the PPO and RSI have been consolidating tightly within the Overbought Zone which also aligns with the PCZ of a Bearish Deep Gartley on the PPO; just recently, price has hit the HOP level of a Potential Bearish Shark pattern. If we start to see the RSI and PPO come down sharply from the Overbought zones and closer to the 50 levels, then we could confirm a safer Bearish Entry with the stop marginally above the HOP level and target the 0.382 and 0.618 Fibonacci Retraces below.
This AI Startup has lots of potential!Upstart is a Loan Provider that uses AI to automate the Process of giving out Loans, this reduces the costs drastically, so they are much cheaper and a lot more profitable . The Stock went from 400 Dollars to only 10 Dollars, but the AI-Hype pushed the Stock back up to 70 Dollars. Upstart has risen 600% in the last 3 months! The Stock formed a rising Channel but broke down a few days ago and is now retesting the Parabolic Curve. If Upstart goes below the Curve it will probably go down to a Range between 20-30 Dollars . On August 8th the Quarter Results will be published and they will probably be negative. I will update you!
Have a nice Day!
WLD Ready For Another Drop?While world coin is relatively new with little past price action to analyze it has been respecting general patterns and retrace ratios quite nicely.
This is an hourly line chart that clearly shows price has broken below its previous uptrend and possibly forming a head and shoulders pattern for a continuation to the downside.
Just using the simple TA head and shoulders target of head to neckline would give a technical target of approximately 2.15. This level also is the .786 retrace level of the local swing low to swing high for another 6-7% move to the downside.
Trade well.
ETH Bullish From Here? Looking at our TA on ETH combined with our new AI/Machine learning indicators (releasing soon), we can see ETH is setting up for another bullish run. Our indicators have called the tops and bottoms pretty accurately, now it looks like we may have short-term upside.
The big levels to watch out for are 1815 (support) and 1850 (resistance). If Ethereum cracks 1815 then that would invalidate our bullish thesis and set for a potential fall to 1780 then further of 1650. Although if we break 1850, then that sets clear skies to our next target of 1900, followed by 2000.
As we're in this current chop, we always advise everyone to never force a trade and wait for a trade to come to you. This means waiting until multiple indications signal a buy (oversold at support, etc) or vice versa. Trading is all about discipline and those who don't have it will quickly be humbled.
If you enjoyed our TA or have any questions about our upcoming indicator release, please comment below or send us a DM :)
Is AI excitement creating a stock market bubble?History shapes our views and we are always seeking analogs comparable to current events. Even if we know that ‘past performance is not indicative of future performance’, we are still comforted when we draw parallels to the past. Many are now drawing parallels of the current tech enthusiasm to the dawn of the internet.
The quintessential example of a ‘bubble’ occurred in the late 1990’s. Some hallmarks of that time:
When companies put the suffix ‘.com’ on their names, their share prices soared. Any company can do this and it has nothing to do with any real business prospects or potential.
With the absence of profits or even sales, new metrics were created to make the case for progress in businesses like webpage visits or clicks.
Many of the leading internet companies did not have positive earnings but, even in the more established S&P 500 which required profitability to get included, we approached price levels of 100x earnings for many large cap names. Hundreds of billions of dollars of market capitalisation was supported by dreams of wild future profits.
And for what is happening in the first half of 2023:
There are companies putting ‘AI’ (artificial intelligence) into their names, but it is not yet a huge number and, alongside this, the transition of big numbers of private companies tapping the public markets has not yet happened. Additionally, companies putting AI into their names have real business reasons for doing so.
Naturally, investors will look to track measures like the intensity with which firms are using AI or engaging with data. Because people remember the 2000-02 ‘Tech Bubble’ period, we doubt that investors will also then say that ‘earnings don’t matter’ or ‘revenues don’t matter’—or at least that could still be some time away.
When people look at how the big indices, like the Nasdaq 100 Index and the S&P 500 Index, are being driven higher by the largest companies, we see that all of those large companies are ‘real businesses’. They have revenues, they have cash flows, and they have earnings. It’s absolutely true that investors might look at Nvidia, as an example, and think that the multiple is too high for the growth that they expect to see—but it’s not a case where Nvidia is selling the dream of making a chip one day. Nvidia chips exist, they are sold, and Nvidia is the clear leader in providing the graphics processing units (GPUs) that allow AI to run.
Even if the market could very well be ripe for a near-term correction after a nearly 6-month run, and even if that run was accompanied by a hype cycle in AI, we are not seeing signals that the broad technology focused stocks are in bubble territory.
Let’s look at some numbers
During the ‘Tech Bubble’ investors decided to not consider the classic statistics. We will not make that mistake here.
We create a view of the ‘Expanded Tech’ sector. Companies like Meta Platforms and Alphabet are in ‘Communication Services.’ Amazon.com (even accounting for that .com suffix) is in ‘Consumer Discretionary’. Information Technology includes Microsoft and Apple. If we use this ‘Expanded Tech’ designation, we capture a broader cross section of technology.1
In 1998-2000, roughly speaking, this index was hitting a forward P/E ratio2 of more than 55x. The initial run up was based on prices and euphoria—the second spike into the 50x range would have been from the quick drop in forward earnings expectations when the popping of the bubble was clear.
Looking at what the same Index is currently trading at in terms of forward P/E present, it is still below 30x. 28.4x is not ‘cheap’, so we are not seeking to indicate that tech is currently cheap in any way.
Back in 2000, real interest rates were higher. However, we would note that this multiple expansion has occurred alongside a higher interest rate environment—not always an easy feat for stocks to achieve. Back in 2000, when the tech sector was over 55x forward earnings, real interest rates (measured by TIPS bonds) were double where they are currently.
We can see how the ‘other stocks’ that are not tech have been doing by way of valuation. These other stocks never broke a 30x forward P/E ratio during the tech bubble.
The current valuation of the ex-tech part of the S&P 500 is at 16.7x, and is very close to the average over the full period. This is not ‘cheap’, but certainly not getting into the more expensive territory.
The bottom line: a bubble is not just ‘a bit expensive’ but, rather, a bubble represents a situation where there is a clear case that prices have gone extremely far beyond fundamentals. Forcing ourselves back to a classic figure, forward P/E ratio, we don’t see evidence of that being the case.
Dealing with the AI hype cycle
Still, we understand that performance in thematic equities can come in waves. One way to deal with these waves is to allocate to certain themes and then recognise that, over a cycle (something closer to 10 years than 5 years), there are going to be periods of strongly positive and strongly negative returns.
In many cases, knowing whether the themes are working or not is something completely different from looking at the share price performance. What we know today is that, in the current quarter, Nvidia is expecting revenues in the range of $11 billion USD3. It will be critical to watch that trajectory, which then indicates a 12-month run rate above $40 billion. Do we actually see that materialise? Similarly, companies like Microsoft and Alphabet will continue to talk about the topic and launch new options for their customers. These are the kinds of things that we can honestly see and monitor.
Signals of a greater degree of froth could entail seeing a much more robust IPO (initial public offering) market in specific AI companies, which may happen in the future but is not here yet. We are not saying that one day there cannot ultimately be a bubble—we are all still human, and human behaviours create bubbles—but what we are seeing at this moment is not yet there.
Sources
1 This is akin to older definitions of the section before GICs made some changes to internet and communications stocks.
2 P/E ratio = price to earnings ratio.
3 Source: Factset, as of Nvidia’s earnings guidance given on their Q1 2023 earnings call.
This material is prepared by WisdomTree and its affiliates and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of the date of production and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by WisdomTree, nor any affiliate, nor any of their officers, employees or agents. Reliance upon information in this material is at the sole discretion of the reader. Past performance is not a reliable indicator of future performance.
Nasdaq - Buy targets before continuation.I am eagerly anticipating Nasdaq to hit these targets. Once at least one of the two targets is achieved, I'll consider buying more stocks. If the second target also proves correct, I'll be even more inclined to invest further.
After these targets have been hitted I expect a move towards ATH and beyond. It could take some months for these targets to play out depending if both of them will get hitted or not.
I would say 3-6 months is reasonable.
Good luck out there.
NASDAQ 100’s special rebalance On 24 July, the NASDAQ 100 Index conducted a special rebalance to reduce the concentration of the so-called ‘magnificent seven’ in the index. The seven stocks whose strong performance this year has driven the index are Apple, Amazon, Microsoft, Alphabet, Tesla, Nvidia, and Meta.
The index is typically reconstituted annually in December, with additional rebalancing opportunities each quarter. A special rebalance outside the usual schedule is only happening for the third time in the index’s history, with the first two having been in December 1998 and May 2011. According to NASDAQ, a special rebalance may be triggered if the aggregate weight of companies individually accounting for more than 4.5% of the index tops 48%. Based on this, NASDAQ announced its plan to rebalance the index on 7 July. The new weights were applied before the start of trading on 24 July.
What happened in the past?
Strong rallies in tech stocks were behind the special rebalances both in May 2011 and December 1998. In 2011, Apple was among the stocks that saw its weight being reduced notably following a period of strong performance. And in 1998, it was Microsoft1. Performance of the index following the two rebalances does not give much to go by. Following the rebalance in December 1998, the NASDAQ 100 continued on its upward trend while the index was weighed down following the rebalance in May 2011.
What it means for investors
For investors looking to position themselves tactically to benefit from this development, arguments can be made to support both bullish and bearish cases. Passive money tracking the NASDAQ 100 Index will be forced to sell the biggest names on Wall Street which have made a significant contribution to the index’s performance this year. This could create some volatility in the short-term especially given the special rebalance has happened in the middle of the earnings season and market sensitivity to announcements may be heightened. Already in the week of 17 July, when Tesla and Netflix announced their earnings, markets reacted adversely to their cautious outlook for the third quarter. This also means that it would be hard to completely isolate the impact of the rebalance on stock prices. A dip in prices may, however, may be seen by some investors as an entry point.
But while the move from NASDAQ is aimed at reducing the concentration of the biggest tech names in the index, the special rebalance does not mean that the NASDAQ 100’s risk profile has changed materially. The index follows a modified market capitalisation methodology which means that, subject to some limits of influence, the biggest companies will still occupy the largest weight. The index, therefore, continues to give investors a way to capture the sentiment in growth stocks, bullish or bearish.
In some of our recent blogs, we have also emphasised how the NASDAQ 100 is not a way to capture specific tech megatrends such as artificial intelligence (AI), despite investor sentiment towards AI driving the fortunes of some of the top names in the index. Dedicated AI strategies, such as the NASDAQ CTA Artificial Intelligence Index, tend to have relatively low overlap with the NASDAQ 100. Again, the rebalance does not fundamentally change this.
Closing word
The NASDAQ 100 Index was launched in 1985. This is only its third special rebalance in almost four decades. For an index which is focused on growth stocks, it signifies how contributors to performance have been concentrated right at the top this year. For tactical investors, there may be opportunities in the short-term resulting from this. For others, it may be a reminder of the need for diversification.
Sources
1 Source: CNBC report from 05 April 2011
This material is prepared by WisdomTree and its affiliates and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of the date of production and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by WisdomTree, nor any affiliate, nor any of their officers, employees or agents. Reliance upon information in this material is at the sole discretion of the reader. Past performance is not a reliable indicator of future performance.
Is the Market Deluding Itself with a Soft Landing Fantasy?As markets surge against expectations, many are starting to believe that the impossible might unfold. The unusually low fund allocation to equities reflects a market sentiment plagued by fear, yet mega caps are continuing to rise against expectations, making some investors feel left behind. With GDP figures beating expectations and headline inflation plummeting, markets are now starting to believe the soft landing narrative. Can the Federal Reserve, after decades of economic engineering, finally dodge a recession? The bond market remains skeptical.
When the yield curve inverted, everyone thought a recession was imminent. However, many overlook the lag between the onset of the inversion and an actual recession. Depending on historical context, a recession can either hit while the yield curve remains inverted or much later, once it has normalised. Thus, relying solely on the yield curve as a recession indicator can be misleading.
Nevertheless, history has consistently shown that a recession follows the inversion at some point. However, the human psyche is notoriously impatient. If a predicted event doesn't manifest promptly, the market tends to discount its possibility. Remember, most people buy at tops and sell at bottoms. So, the real question isn't whether a recession will happen, but rather when.
Why and When Could a Recession Happen?
The Federal Reserve holds significant influence over this timeline. As long as interest rates hover around 5.5%, the recession clock ticks faster. With headline inflation plummeting (orange line) and inflation expectations paralleling this descent (blue line), we must understand what caused inflation initially to gauge where it's headed.
The inflationary surge was mostly driven by the excessive expansion of the money supply. Examining the first derivative of the US money supply (M2) shows a rapid expansion followed by a subsequent decline. Comparing the growth rate of the money supply (yellow line) with the CPI year-over-year (orange line) reveals a 16-month lag. If this lag remains consistent, there's significant potential downside to inflation.
Yet, the Fed continues to hike rates, despite projections of disinflation and deflation. This is because the Fed's job isn't to predict the future, but to respond to current data. Indicators showing a robust labor market and elevated Core PCE caution against prematurely reducing rates. It would be wise for the Fed to await signs of weakening in these indicators before contemplating rate cuts.
This could potentially take a while to materialise, especially since unemployment doesn't seem poised to weaken in the immediate future. Unlike previous business cycles, the current situation stands out due to the Job Openings and Labor Turnover Survey (JOLTS) data. There remains a significant number of job openings for every unemployed individual. This bolsters the resilience of the labor market, making rate cuts less probable.
Furthermore, the Core Personal Consumption Expenditure (PCE) - a lagging indicator - remains historically high and resilient. Powell has emphasised the Fed's intent to avoid repeating the same mistakes made in the '70s, suggesting we should expect higher rates for longer in order to permanently get Core PCE to 2%. He's also highlighted the relative ease of stimulating the economy out of a recession compared to raising rates, implying it might be more straightforward for the Fed to rein in Core PCE by inducing a recession.
Similarly, the government can't afford the risk of the Fed raising rates later on. Considering the government's dependency on low-cost borrowing to manage interest payments on existing debts, higher future rates could pose a big challenge. Fortunately, the Fed uses the Reverse Repo (blue line) as a strategic tool to bypass any potential liquidity crisis until they are able to finance the government's balance sheet (orange line) with cheap debt once again.
Given that interest expenses are nearing 1 trillion USD, the Fed will inevitably have to cut rates to zero and initiate Quantitative Easing (QE) in the future. Remember, the sole limitation to Keynesian economics is inflation. Hence, it's logical for the Fed to avoid risking a resurgence of inflation. In essence, a recession might be essential for the Fed's future assistance to the government.
Deciphering the Stock Market's Puzzle
Despite Powell's frequent emphasis on a 'higher for longer' stance, the market remains skeptical. This is alarming, especially as the full implications of a 5.5% rate haven't been fully experienced by the economy. Once they manifest, job openings will plummet, unemployment figures will surge, and the 'soft landing' illusion might crumble. Historically, such scenarios are common when real rates reach unsustainable levels.
Fortunately for investors, there seems to be room for the AI bubble to continue. Markets typically peak about a month before a sustained increase in unemployment. Hence, forward-looking unemployment indicators like job openings, initial claims (blue line), and continued claims (orange line) are crucial for those wishing to divest before a potential market downturn.
In the current scenario, it might be wise for investors to stay away from higher-risk assets like small caps and cryptocurrencies. Historically, these haven't performed as well as mega caps during liquidity crunches. Investors might want to reconsider taking on additional risks unless there's a sustained surge in global liquidity (yellow line).
Conclusion: A Time for Caution and Opportunity
In conclusion, even though a recession seems inevitable, mega caps may continue their upward trend until the labor market reveals signs of distress. Therefore, it's crucial for investors to closely watch leading unemployment indicators and central bank balance sheets to ensure they're well-positioned for both the upcoming market downturn and the subsequent recovery.
Disclaimer: This article is intended for informational purposes only. It is not intended to be investment advice. Every investment and trading move involves risk, and you should conduct your own research when making a decision. Past performance is not indicative of future results.
Palantir PLTR over-heated and due to Cool OffMost powerful thing he said: Infrastructure. 10 years lasting trend. Unimaginable money the government has been pouring into it. I'd add to that anything to do with reshoring as well.
AI + Finance = The Future
EQIX: A way to Short AI & Commercial Real Estate in One StockThis company deals with renting out Commercial Real Estate, mostly to do with Datacenters and other Internet Connected Operations, and due to that, this makes it a perfect stock to get Bearish Exposure to if you are both Bearish on the AI Big Tech Mania and Bearish on Commercial REITs
One of the main risks for this stock is if their biggest clients, like MSFT and AMZN begin to shift away from using Equinix datacenters in favor of creating and using their own in order to save on costs. If MSFT's recent earnings call is anything to go off of, they are currently desperate to increase profit margins and reduce the costs associated with their business operations especially the costs associated with working with third parties.
One area in which they could cut costs would be to reduce their reliance on Equinix datacenters, but in general as the AI Mania begins to wind down we could likely see the Equinix enterprise consumer base shrink even more, in which case we could see price begin to correct to reflect upon their lower cashflows as both the AI and Commercial REITs sectors continue to slow.
Beyond that: We have a Bearish Shark with MACD and PPO Bearish Divergence and PPO Arrow Confirmation; with hardly any support below us. If it plays out we could see a decline of about 50% from the current price level.
#GRT/USDT 12h (Bybit) Symmetrical triangle breakdown and retestThe Graph got rejected on resistance forming a shooting star with an overbought RSI, retracement down to 50MA support seems in play.
⚡️⚡️ #GRT/USDT ⚡️⚡️
Exchanges: ByBit USDT
Signal Type: Regular (Short)
Leverage: Isolated (3.8X)
Amount: 5.0%
Current Price:
0.12445
Entry Targets:
1) 0.13580
Take-Profit Targets:
1) 0.10715
Stop Targets:
1) 0.15015
Published By: @Zblaba
CRYPTOCAP:GRT #GRTUSDT #TheGraph #AI #Web3
Risk/Reward= 1:2
Expected Profit= +80.2%
Possible Loss= -40.2%
Estimated Gaintime= 3-4 weeks
thegraph.com
Microsoft Challenges Fib 3.618 levelMicrosoft - NASDAQ:MSFT
Expectations were beat across the board today but what does the long term monthly chart tell us? All is revealed in the chart. This is a key moment for NASDAQ:MSFT and a pull back or break through to established new highs wouldn't surprise. I'm happy to wait for the confirmations outlined in the chart. That MACD cross though looks appealing.
Earnings Summary
- Profits jumped 20% to 20.1 b
- EPS: $2.69 / Exp $2.56
- Revenue: $56.19B / Exp $55.49B
- Azure (cloud) revenue up 26% / Exp 27%
NVDA- the frontrunner in the new AI revolutiongives some room to its cousin UPST. They took off from the same runway and the blue sky
awaits them. There are others in the same squadron. The flight show will be unprecedented.
Buckle yourself in. Make sure you can find your oxygen mask because there will be some
high-altitude flying. Enthusiastic traders will provide the fuel. Itwill be awesome for sure.
- Avani
META: Potential Early Bearish C Entry on ABCD PatternMETA is showing heavy amounts of MACD Hidden Bearish Divergence and is Extremely Overbought on the PPO after making a 0.786 Fibonacci Retrace of the 2021 Highs and now it is potentially looking to end the BC Wave and begin a CD Wave, which would take it all the way down to the 1.272 Fibonacci Extension located at the $23.56 level.
UPDATE: Adcorp retesting C&H before next leg upC&H formed from Feb 2023 to June 2023.
We then had a breakout. The price continued up and then the buying slowed down.
Now we are getting a dip where the price will be testing the Brim level of the C&H.
Moving Averages are conflicted where 21>7 - Bearish but price is above 200MA - Bullish.
This states the uptrend is still intact.
RSI<50 which is showing slowing down of upward momentum.
Target still remains around R8.74
ABOUT THE COMPANY:
Adcorp Holdings Limited is a South African company providing a wide range of human capital management services.
Founding:
Adcorp was founded in 1975 and has grown significantly since then, becoming one of South Africa's leading employment services companies.
Public listing:
Adcorp was listed on the Johannesburg Stock Exchange (JSE) in 1987, making it publicly traded.
Global footprint :
While Adcorp is headquartered in Johannesburg, South Africa, the company also has operations in various other countries, including Australia, India, and several African countries.
Diverse services:
Adcorp's services cover a broad range of human resource management needs, including temporary and permanent recruitment, skills development, training, business process outsourcing (BPO), talent management, and payroll services.
Innovation:
Adcorp has shown commitment to innovation, investing in technology. This includes using data analytics and artificial intelligence in talent acquisition and management.
bitcoin has a long way before 100kBitcoin broke a major high time frame structure and currently looks to be in a bearish consolidation. Previous support is now resistance as well as the psycological 30k level. This isnt good for short-medium term returns. Theres a lot of talk of a new bear market beginning but that is just noise imo. The stock market looks to be reversing. The question is going to be is this the end of the bear market rally or will it be a healthy bull market pull back.
Ill be looking at 4 levels:
20k (which there is a cme gap)
15.5k(prior local lows)
10k (major psychological level)
and 3-5k range (previous bear market double bottom and ALOT of Liquidity)
Stay safe
Is Something Brewing at Unity?AI seems to be all the hype these days. Unity announced a closed Beta Program for their AI back in late February of 2023, and just a few weeks ago we got our first look at some of the things we can expect. Unity has almost doubled in price from its ATL's, but I don't think it's done yet. We've got a nice Cup & Handle Pattern forming on the Daily that's beginning to break out. I'd like to see price get above 48$ and stay there as a confirmation for a continuation up.
-Regards,
@DayTradingOil
Inflation vs Innovation Can the Markets Handle the HeatGlobal markets face contradictory forces in 2023. Inflation still simmers as central banks tighten money supply worldwide. Geopolitical friction continues while economic growth likely slows ahead. Yet technological transformation charges ahead, with artificial intelligence poised for explosive improvements. Investors and policymakers must stay nimble in this uncertain environment.
After plunging painfully in 2022, stocks have rebounded with vigor so far this year. This despite raging inflation and the Federal Reserve's hawkish stance on interest rates. Hefty liquidity efforts in China likely buoyed prices. Investors may also have grown too pessimistic amid still-sturdy corporate profits. But sentiment could sour again if supply chain snarls resurface.
In bond markets, yields continue reflecting dreary growth expectations after last year's surge. The inverted yield curve especially screams pessimism on the near-term economy. Meanwhile, the Fed's bond portfolio shrinkage has yet to rattle markets. This implies the Fed's quantitative easing and tightening have limited impact on actual money supply, defying popular perception.
On inflation, early 2023 figures show it easing from 40-year heights but still well above the Fed's 2% bullseye. The Fed remains leery of declaring victory prematurely. Taming inflation sans triggering severe recession is an epic challenge. Geopolitical wild cards like the Russia-Ukraine war that evade the Fed's grasp will shape the outcome.
Amidst these crosscurrents, technological forces advance relentlessly. The frantic digitization around COVID-19 now gives way to even more seismic innovations. The meteoric success of AI like ChatGPT provides a mere glimpse of the transformations coming for healthcare, transportation, customer service and virtually every industry.
The promise appears gargantuan, with AI generating solutions and ideas no human could alone conceive. But the warp-speed pace also carries perils if ethics and safeguards fail to keep up. Mass job destruction and wealth hoarding by Big Tech could ensue absent mitigating policies. But wisely harnessed AI also holds potential to uplift living standards globally.
For investors, AI has already jet-propelled leaders like Google, Microsoft, Nvidia and Amazon powering this tech revolution. But smaller firms wielding these tools may also see jackpot gains, as costs plunge and new opportunities emerge across sectors. That's why non-US and smaller stocks may provide superior opportunities versus overvalued big US tech.
In conclusion, the global economic and financial landscape simmers with familiar threats and novel technological promise. Inflation may moderate but seems unlikely to vanish given lingering supply dysfunction and distortions from massive stimulus. Stocks navigate shifting sentiment amid rising rates and demand doubts. And machine learning progresses rapidly into a future we can now scarcely envision.
Nimbly navigating such turbulence requires flexibility, tech savviness and philosophical courage. Responsibly steering AI's development is a herculean challenge, to maximize benefits and minimize pitfalls. Individuals need to stay skilled while advocating protections against job disruption. Policymakers face wrenching tradeoffs between growth, inflation and financial stability - all compounded by geopolitics.
Yet within uncertainty lies opportunity for those poised to seize it. The future remains ours to shape, if we summon the wisdom and will to guide technology toward enriching human life rather than eroding it. The road ahead will be arduous but need not be hopeless, if compassion and conscience inform our creations.