Wyckoff Accumulation pattern on DisneyIf we can hold these lows, I believe that there's an accumulation going on that could reverse the Macro downtrend on Disney. ~$90 has been a very important price point for Dinsney in the last 8 years.
This thesis supported by: the stock finding itself at the lows of March 2020, the Monthly RSI being at ~39 and Monthly Hidden Bullish Divergence forming inside of a Falling Wedge.
Investment
Investing In Artificial Intelligence (AI) : Beginner’s GuideThe field of artificial intelligence (AI) has emerged as a highly attractive investment option, captivating the attention of investors worldwide. With its capacity to reshape industries and drive innovation, AI has gained prominence as a transformative technology. By simulating human intelligence and performing intricate tasks, AI is revolutionizing sectors ranging from transportation to finance and beyond. Given the rapid growth of the AI market, which is projected to reach revenues of up to $900 billion by 2026, having a comprehensive understanding of how to invest in this dynamic field has become crucial for investors.
In this comprehensive guide tailored for beginners, we will delve into the fundamentals of AI, exploring its underlying concepts, methodologies, and applications across various industries. By gaining insight into the inner workings of AI, investors can grasp the potential impact it can have on different sectors, enabling them to identify promising investment opportunities.
Moreover, we will examine diverse investment strategies that investors can consider when venturing into the AI market. These strategies will encompass a range of approaches, from investing in established AI companies and technology giants, to exploring opportunities in startups and early-stage ventures that are driving innovation in the AI space. Additionally, we will explore investment vehicles such as AI-focused exchange-traded funds (ETFs) and mutual funds, providing investors with a broader exposure to the AI market.
Throughout this guide, we will address the key factors to consider when investing in AI, including the evaluation of AI technologies, understanding regulatory and ethical implications, and staying updated with the latest industry trends. By equipping investors with the necessary knowledge and insights, this guide aims to empower them to make informed investment decisions in the dynamic and evolving landscape of AI.
As AI continues to redefine industries and shape the future, investing in this transformative technology presents an exciting opportunity for investors seeking long-term growth and exposure to cutting-edge innovation. Through this beginner's guide, we invite investors to embark on a journey into the world of AI investment, unlocking the potential for both financial returns and contributions to the advancement of society as a whole.
Artificial Intelligence (AI) Explained
Artificial Intelligence (AI) has emerged as a groundbreaking technology that aims to replicate human intelligence in computers and machines, surpassing human capabilities in terms of speed and accuracy. Leading companies like Microsoft (MSFT) and Google (GOOGL) utilize AI to develop systems capable of problem-solving, answering inquiries, and executing tasks that were traditionally performed by humans.
The advancement of AI systems has expanded their applications across diverse industries and sectors. One notable transformation is occurring in the transportation industry, where electric and autonomous vehicles are revolutionizing travel and poised to contribute trillions of dollars to the global economy. In the banking sector, AI is employed to enhance decision-making processes in high-speed trading, automate back-office functions such as risk management, and even introduce humanoid robots in branches to reduce costs. These examples only scratch the surface of the extensive range of AI applications.
Analysts at International Data Corp. (IDC), a renowned market intelligence provider, project that the AI market will generate global revenues of up to $900 billion by 2026. This estimate reflects a significant compound annual growth rate of 18.6 percent from 2022 to 2026, underscoring the exponential growth potential of AI.
What was once considered a luxury has now become an essential component of modern businesses. The global pandemic has accelerated the adoption of AI, making it pervasive across all aspects of business operations. From healthcare and manufacturing to finance and customer service, AI has demonstrated its value in enhancing efficiency, optimizing processes, and driving innovation.
Investing in AI presents an opportunity to capitalize on its transformative potential. However, it is essential for investors to approach AI investments with a thorough understanding of the technology, its applications, and the companies leading the way. As AI continues to shape industries and redefine the future, investors who navigate this dynamic landscape stand to benefit from its long-term growth and the potential for significant returns.
How To Invest In Artificial Intelligence
As a retail investor, you may already have exposure to artificial intelligence (AI) through various prominent U.S. public companies that utilize AI or invest in this technology. However, if you're specifically interested in investing in AI, there are several approaches you can consider:
Individual Stocks: Conduct thorough research and invest directly in companies that specialize in AI development, application, or integration. Look for companies with a strong focus on AI, a robust research and development program, and a history of innovation in the field.
Exchange-Traded Funds (ETFs): Explore AI-focused ETFs that concentrate on companies involved in AI technologies. These funds offer diversification by investing in a portfolio of AI-related stocks, providing exposure to a broad range of companies in the AI sector.
Index Funds: Invest in broad market index funds that include leading companies at the forefront of AI development. These funds track major market indices like the S&P 500, which often include prominent players in the AI industry.
Additionally, Contract for Difference (CFD) trading is another option for investing in AI. CFDs allow you to speculate on the price movements of AI-related assets without actually owning the underlying assets. By taking long or short positions, you can potentially profit from both upward and downward price movements in the AI sector. However, it's important to note that CFD trading carries a higher level of risk and requires a good understanding of market dynamics.
Top AI Stocks To Consider:
Microsoft (MSFT)
As of May 2023, Microsoft, the renowned developer of the Windows operating system, holds the position of the largest Artificial Intelligence (AI) company. In recent times, Microsoft has made significant strides in the field of AI, unveiling a range of new features and initiatives across its product line.
One notable development is the integration of AI-powered enhancements into Edge, Microsoft's web browser. These enhancements leverage AI technology to provide users with improved browsing experiences, including enhanced performance, personalized recommendations, and advanced security features.
Furthermore, Microsoft has incorporated AI capabilities into Bing, its search engine. The integration of AI allows Bing to deliver more accurate and relevant search results, enhancing the overall search experience for users.
Highlighting its commitment to AI, Microsoft announced a substantial investment in OpenAI, the creator of ChatGPT, a widely used language model. This multiyear and multibillion-dollar partnership have resulted in the deployment of OpenAI models across Microsoft's product range, including the Azure OpenAI Service. Additionally, Microsoft's Azure cloud platform serves as the exclusive provider for OpenAI's cloud-based services.
By investing in OpenAI and integrating AI capabilities into its products and services, Microsoft aims to harness the power of AI to deliver innovative solutions and enhance user experiences. This strategic focus on AI demonstrates Microsoft's recognition of the transformative potential of this technology and its dedication to remaining at the forefront of the AI industry.
Tesla (TSLA)
In the realm of electric vehicles (EVs), Tesla stands apart from technology giants like Microsoft and Alphabet by leveraging AI and robotics to drive innovation. The company has positioned itself as a leader in self-driving cars, an area heavily reliant on AI for tasks such as visual processing and strategic planning.
Tesla is actively pursuing the development of self-driving technology and has been working on AI inference chips that are specifically designed to run its full self-driving software (FSD). These chips enable efficient and powerful processing capabilities, enabling Tesla vehicles to make real-time decisions and navigate autonomously.
Beyond self-driving vehicles, Tesla has expanded its AI endeavors into the realm of humanoid robots. In October 2022, CEO Elon Musk unveiled "Optimus," a highly anticipated robot. Musk envisions a future where Tesla's robot business surpasses the value of its cars, indicating a broader ambition to extend beyond the automotive industry.
In addition to self-driving technology and robotics, Tesla is actively involved in various AI fields. This includes the development of Dojo chips and systems, which aim to enhance AI training and accelerate computational processes. Tesla also focuses on neural networks, autonomy algorithms, code foundations, and evaluation infrastructure to continuously improve and refine its AI capabilities.
By applying AI and robotics to the EV industry, Tesla is at the forefront of technological advancements and aims to shape the future of transportation. Its commitment to developing cutting-edge AI solutions demonstrates the company's dedication to pushing the boundaries of innovation and redefining the possibilities within the automotive industry.
IBM (IBM)
In May 2023, IBM, a computing giant with a long-standing history in the technology industry, made a significant announcement regarding its platform called Watsonx. This platform is designed to empower developers by providing them with a comprehensive set of tools for creating AI models.
Watsonx equips developers with machine learning tools, foundational models, hardware resources, and data storage capabilities, enabling them to build sophisticated AI applications. By offering a range of resources within a unified platform, IBM aims to streamline the AI development process and make it more accessible to developers.
In collaboration with Hugging Face, a prominent provider of open-source AI libraries, IBM has integrated the benefits of Hugging Face's libraries and extensive collection of open models and datasets into the Watsonx.ai studio. This collaboration allows developers to leverage Hugging Face's resources and tap into a vast array of pre-trained models and datasets, accelerating the development of AI solutions.
Beyond its AI offerings, IBM has been actively involved in AI integration research. The company's Global AI Adoption Index explores the impact of AI adoption on businesses and society as a whole. This research initiative aims to provide insights into the current state of AI adoption, identify trends, and understand the potential implications of AI on various industries and sectors.
IBM's commitment to advancing AI technology, as demonstrated by its Watsonx platform and research initiatives, highlights the company's ongoing efforts to drive innovation and facilitate the integration of AI into diverse domains. By empowering developers and exploring the broader implications of AI adoption, IBM continues to play a significant role in shaping the future of artificial intelligence.
Alphabet (GOOGL)
Alphabet, the parent company of Google, has been actively investing in the AI sector, demonstrating its commitment to advancing artificial intelligence technologies. In April, Alphabet's venture capital subsidiary, CapitalG, played a leading role in a $100 million funding round for AlphaSense, an AI startup. This investment not only highlights Alphabet's financial support for AI innovation but also strengthens its presence in the AI industry.
In addition to its investment activities, Google, as a part of Alphabet, has made substantial investments in other AI-related companies. For instance, Google has invested approximately $400 million in Anthropic, a competitor to ChatGPT, further expanding its involvement in the AI landscape. Furthermore, Google has acquired Alter, a startup specializing in AI avatars, which showcases its strategic focus on enhancing AI capabilities and exploring new applications for the technology.
Within its own product ecosystem, Google has introduced various generative AI tools that leverage the power of artificial intelligence. One notable example is Bard, Google's own counterpart to ChatGPT, which provides real-time access to information from the web. This demonstrates Google's efforts to develop AI models capable of generating dynamic and contextually relevant content.
Moreover, Google is incorporating AI functionality into its Workspace suite, starting with popular tools like Gmail and Google Docs. By integrating AI capabilities into these productivity tools, Google aims to enhance user experiences, improve efficiency, and enable new possibilities for collaboration and content generation.
Alphabet's investments in AI startups, acquisitions, and the development of generative AI tools highlight the company's dedication to harnessing the potential of artificial intelligence. Through these initiatives, Alphabet continues to shape the AI landscape and drive innovation in the field.
Amazon (AMZN)
Amazon, a prominent player in the AI field, has established itself as a leader by offering a comprehensive suite of AI and machine learning (ML) services through its cloud computing platform, Amazon Web Services (AWS). AWS provides a wide range of tools and services that empower developers and businesses to integrate AI and ML functionalities into their applications and workflows efficiently.
Notably, Amazon not only provides AI services to other businesses but also harnesses AI capabilities within its own operations. For instance, the company employs sophisticated AI algorithms in its online store to deliver personalized product recommendations to customers, creating a more tailored and engaging shopping experience.
One of Amazon's most recognizable AI applications is Alexa, the virtual assistant powering Echo devices. Powered by natural language processing and ML algorithms, Alexa can comprehend and respond to user commands, enabling users to interact with their devices using voice commands. This integration of AI technology has revolutionized the way people interact with their smart devices and has become a prominent feature in many households.
Amazon's commitment to AI is further evident through its ongoing investments in AI research and development. The company continually seeks to advance AI technologies, exploring new applications and improving existing capabilities. By embracing AI in various aspects of its business, Amazon aims to enhance customer experiences, drive innovation, and remain at the forefront of AI integration in the industry.
Oracle (ORCL)
Oracle (ORCL), a renowned provider of cloud computing solutions, has emerged as a leading player in the AI landscape by offering the Oracle Cloud Infrastructure. This robust cloud platform serves as the foundation for various workloads, including AI applications, empowering businesses to leverage the benefits of AI technology.
Recognizing the growing significance of AI, Oracle has taken steps to enhance its AI capabilities for enterprise customers. Notably, the company has expanded its collaboration with Nvidia, a prominent chipmaker specializing in AI hardware. This strategic partnership allows Oracle to harness the power of Nvidia's advanced AI-focused GPUs (Graphics Processing Units) and other hardware technologies.
By integrating Nvidia's hardware into its infrastructure, Oracle aims to deliver enhanced AI performance to its enterprise customers. This collaboration equips businesses with the ability to process vast datasets and execute complex AI algorithms more efficiently, leading to improved insights and outcomes. By leveraging Nvidia's powerful AI hardware, Oracle demonstrates its commitment to providing cutting-edge AI solutions that address the evolving needs of businesses in the era of digital transformation.
Through its collaboration with Nvidia and its focus on advancing AI capabilities, Oracle solidifies its position as a leading provider of AI-enabled cloud infrastructure and reinforces its commitment to empowering businesses with the tools and technologies needed to harness the potential of AI in their operations.
How To Select The AI Stocks To Invest In :
When selecting AI stocks to invest in, it's important to conduct thorough research and consider various factors. Here are some key considerations to help guide your decision-making process:
1) Company's fundamentals: Review the financial health and performance of the company. Analyze its financial statements, including the balance sheet, income statement, and cash flow statement. Look at key indicators such as the price-to-earnings (P/E) ratio, return on equity (ROE), and debt-to-equity (D/E) ratio to assess its profitability and financial stability.
2) Technical analysis: If you're a short-term trader, utilize technical analysis to study price patterns and trends. Use technical indicators and candlestick charts to identify entry and exit points based on historical price movements.
3) Analyst ratings: Consider the latest analyst ratings and commentary on specific stocks. Analyst opinions can provide valuable insights, but keep in mind that they are subjective and should be considered alongside other factors.
4) Latest company news: Stay updated on a company's news and developments. Look for announcements related to AI investments, acquisitions, R&D initiatives, and new product offerings. This information can indicate a company's growth potential and competitive positioning.
5) Competitive landscape: Assess the company's position within the AI industry and its competitive advantage. Consider its technology, market share, and ability to innovate. Evaluate how it compares to other players in the market.
6) Management team: Evaluate the leadership and management team of the company. Look for experienced executives who have a track record of success and a clear vision for the company's future.
7) Industry trends: Stay informed about the latest trends and advancements in the AI industry. Understand how AI is being adopted across different sectors and the potential impact it may have on the company you're considering.
8) Regulatory environment: Consider the regulatory landscape surrounding AI. Assess how regulations and policies may affect the company's operations and growth prospects.
9) Diversification: Manage risk by diversifying your investments across different AI stocks and sectors. This helps mitigate the impact of individual stock performance and provides exposure to a range of opportunities.
Conclusion:
Investing in AI presents unique opportunities for investors as this cutting-edge technology continues to transform industries and drive innovation. The potential for AI to revolutionize various sectors, enhance efficiency, and create new business models is immense. Whether through individual stock investments, AI-focused ETFs, index funds, or even CFD trading, investors can participate in the AI market and potentially benefit from its growth.
However, investing in AI requires careful consideration and research. It is important to understand the fundamentals of AI, including its applications and potential impact on industries. Analyzing company financials, such as balance sheets and income statements, can provide insights into the financial health and long-term potential of AI-focused companies.
Staying updated on industry trends, news, and developments is crucial. Monitoring AI-related investments, partnerships, research, and product advancements can help identify companies that are at the forefront of AI innovation.
Diversification is also key in AI investing. Spreading investments across different AI stocks, sectors, and geographies can help mitigate risk and capture opportunities in various segments of the AI market.
Lastly, it is important to remain informed and adaptable as AI technology continues to evolve. Regularly assessing and adjusting investment strategies based on market conditions and emerging trends is essential to capitalize on the transformative potential of AI.
By understanding the fundamentals, conducting thorough research, and staying informed, investors can position themselves to potentially benefit from the growth and impact of AI in the years to come.
WIPRO- Hourly/Daily/Weekly Timeframe-Channel/Tringle patternNSE:WIPRO
WIPRO has beaten so badly in last few months. The stock is near major support levels. The Sellers are trying to push it however somehow it is holding its levels.
Weekly : It has formed double bottom (355-360 level) at the bottom of the channel. As per weekly chart 370-380 was earlier resistance from where we saw sharp buying. Now it is retesting these levels and holding it from past 2 days. Besides it’s a .5 Fib level as well.
Daily : On 26th June there is a rejection from the bot (Hammer) which indicates 370-373 is strong support levels.
Hourly : From past 3 days it’s consolidating between 378-390 in tringle pattern. On Friday 30th June if we see a bullish price action near these levels it’s the best time to go long with small SL.
For positional traders SL should be around 370.
This is only for educational purpose, please manage your risk accordingly.
Bull Market Booming: Top Tips to Maximize Your Investment Gains!It appears that a bull market has taken hold in the US market, as evidenced by the remarkable rise of the S&P 500 index, surging over 20% from its October lows. Adding to this favorable outlook, the Federal Reserve has finally implemented a much-anticipated pause in the cycle of interest rate hikes.
With the shift in market sentiment from bearish to bullish, investors are eagerly looking for avenues to leverage this upward trend and make the most of the prevailing conditions.
Today, we will delve into the various factors that indicate the arrival of a bull market, along with strategies and invaluable tips to help you seize the opportunities presented by this favorable market scenario.
What Lies Behind All This Optimism?
The current wave of optimism in the market and the emergence of a new bull market can be attributed to several significant factors that are often overlooked or avoided in discussions. One key reason behind this optimism is the remarkable earnings results reported by companies.
Investors are celebrating the fact that companies are no longer delivering mediocre performance. Instead, they are exceeding expectations and showcasing strong growth. This shift in mindset from accepting average results to embracing a "glass-half-full" outlook is driven by the realization that companies are meeting and even surpassing the high growth expectations set for them.
This surge in optimism is fueled by the confidence that companies have proven their ability to generate substantial earnings and capitalize on market opportunities. Investors are therefore responding by driving up the market and contributing to the overall bullish sentiment.
It is important to acknowledge and consider this fundamental aspect when discussing the reasons behind the current optimism and the substantial year-to-date increases observed in the market. The impressive performance of companies and their ability to meet or exceed growth expectations have played a vital role in shaping the current bullish market sentiment.
S&P 500 daily chart
The positive forward guidance provided by CEOs further reinforces the current optimism in the market, as it signals their increased confidence in navigating challenges, particularly those posed by inflation. A notable example of this trend can be seen in Nvidia's Q1 earnings report, which highlighted the company's upwardly revised guidance. This adjustment reflects the strong demand for AI technologies that power applications at major industry players such as Google, Microsoft, and OpenAI, the creator of ChatGPT.
Nvidia's projected revenue of $11 billion for Q2 significantly surpassed the estimates put forth by Wall Street analysts. This impressive figure serves as tangible evidence that the AI craze is more than just hype. The surge in demand for graphics processing units (GPUs) from both established tech giants and startups as they develop their AI platforms has been a key driver behind Nvidia's remarkable performance. As a result, the company's shares experienced a staggering 26% surge, propelling Nvidia's market value to an extraordinary $1 trillion.
This achievement places Nvidia among the elite group of publicly traded US companies that have reached this milestone, joining the ranks of industry giants such as Apple, Microsoft, Google parent Alphabet, and Amazon. The significance of Nvidia's market value milestone further solidifies the notion that the demand for AI technologies is substantial and here to stay, providing a strong foundation for the ongoing bull market in the US market.
Tesla stock daily chart
Tesla has also emerged as a significant player worth noting in the current market landscape. The company has experienced a remarkable turnaround, with its stock value surging by an impressive 70% over a six-month period, including a notable 53% increase in the past month alone. This is a noteworthy development, considering that Tesla had suffered a substantial loss of around two-thirds of its value in 2022.
The strategic and timely price cuts implemented by Tesla, although initially perplexing to some, are now proving to provide the company with a potential market share advantage. These price adjustments have contributed to the renewed interest and confidence in Tesla, ultimately fueling its recent resurgence.
As the Q1 reporting cycle has concluded, the results reveal a strong performance for tech stocks in the latter half of the year. This surge can be attributed to the prevailing optimism surrounding the Federal Reserve's approach to nearing the end of its rate hike cycle. The anticipation of higher interest rates, coupled with concerns of slower economic growth and softer labor market conditions, has contributed to a decline in inflation. Surprisingly, the adverse effects that were initially expected to impact households and businesses have been less severe than initially predicted.
Furthermore, with the concerns surrounding the US debt ceiling alleviated and the mitigation of inflation risks, the overall market sentiment has undergone a transformation from bearish to bullish. This shift in sentiment is likely to continue, with stocks, particularly mega-cap tech companies like Tesla, expected to maintain strong returns throughout the remainder of the year.
Overall, Tesla's impressive turnaround and the positive performance of tech stocks exemplify the overall market's optimistic outlook, driven by a combination of factors such as Federal Reserve actions, inflation dynamics, and improved market conditions.
Top Bull Market Stocks to Consider Buying Now: Tesla (TSLA)
This is not financial advice.
Indeed, Tesla's influence extends beyond its position as a dominant player in the electric vehicle (EV) market. The company's offerings go beyond vehicles and encompass solar and energy storage solutions. Tesla's plans to establish a factory in Shanghai for manufacturing Megapack batteries further solidify its position as a leader in the renewable energy sector. These batteries play a crucial role in storing renewable energy, alleviating strain on the grid during peak hours, and promoting a more sustainable energy ecosystem.
While Tesla's growth will be primarily driven by its vehicle production, the company's positive outlook is reinforced by upcoming price cuts and the launch of new products such as the highly anticipated Cybertruck and Semi. These product expansions contribute to the company's overall growth potential and indicate its commitment to innovation and diversification within the EV market.
Despite some mixed recent financial results, investing in Tesla during the current bullish market phase is seen by many as a reasonable bet on the company's potential to become the world's largest automaker. Tesla's strong market presence, technological advancements, and commitment to sustainability have garnered significant investor confidence and positioned the company for continued success in the evolving automotive and renewable energy sectors.
Alphabet (GOOGL)
Alphabet stock daily chart
Google, with a staggering market capitalization of $1.6 trillion, stands as one of the most prominent names in the business world. It secures its place among the top five most valuable companies globally and boasts a widely recognized and esteemed brand.
Google remains at the forefront of groundbreaking advancements in various technological spheres, including mobile technology, cloud services, data analytics, artificial intelligence (AI), and virtual reality. These innovative developments continue to drive the company's success and shape its competitive edge. Notably, a significant portion of Google's revenue stems from its dominance in internet advertising, a lucrative sector that contributes substantially to its financial performance.
The active integration of AI within Google's operations serves as a strong catalyst for the growth of its shares. As AI technology becomes increasingly prevalent, it expands the addressable market for Google, creating new avenues for growth and revenue generation. The global corporate AI market, in which Google actively participates, is projected to experience a remarkable annual growth rate of 34.1% until 2030. This highlights the immense potential and opportunities that lie ahead for Google as it leverages AI capabilities to propel its business forward.
With its continuous pursuit of technological innovation and a diversified revenue stream, Google remains a formidable force in the industry, poised for sustained growth and influence in the years to come.
Intel (INTC)
Intel stock Monthly chart
The increasing adoption of artificial intelligence (AI) technology has created a surge in demand for chips, leading to notable market movements for prominent AI chip manufacturers. Both Advanced Micro Devices (AMD) and NVIDIA have experienced significant share price increases since the start of 2023, capitalizing on the growing enthusiasm surrounding AI advancements.
In light of this trend, chipmaker Intel is also seeking to position itself as a key player in the AI chip market. Intel has been engaged in negotiations for a strategic initial public offering (IPO) investment with Arm, a renowned British chipmaker. This move follows NVIDIA's previous unsuccessful attempt to acquire Arm.
By exploring this potential partnership, Intel aims to solidify its position in the AI chip sector and leverage Arm's expertise and technology to enhance its own capabilities. The negotiations highlight the fierce competition among chipmakers to secure a prominent position in the rapidly expanding AI market.
As the race for AI chip dominance intensifies, these developments demonstrate the strategic moves undertaken by major players in the industry to stay ahead in the evolving landscape of AI technology. The outcome of these negotiations will undoubtedly have implications for the future trajectory of the AI chip market and the competitive dynamics among key players such as AMD, NVIDIA, and Intel.
Strategies For Investing In A Bull Market
If we are indeed in the early stages of a new bull market, it's crucial to have strategies in place to make the most of rising stock prices. Here are four strategies to consider:
1 ) Diversification and Asset Allocation: Review your asset allocation to ensure you have sufficient exposure to stocks to benefit from the bull market. Consider rebalancing your portfolio by reducing your allocation to bonds and cash while increasing your allocation to equities. However, exercise caution and remain aware that market conditions can change rapidly. Don't assume that stocks will only go up from here. Maintain a well-balanced portfolio that includes a mix of stocks, bonds, and cash. If you're uncertain about the ideal mix, the Rule of 110 suggests subtracting your age from 110 to determine the percentage of your portfolio to allocate to stocks.
2 ) Focus on Growth Stocks and Sectors: In a bull market, growth stocks and sectors tend to perform well. Look for innovative companies that leverage technology to create efficiencies or address global challenges. Industries experiencing rapid growth in 2023 include CBD product manufacturing, 3D printing, solar power, and artificial intelligence. Remember that growth stocks offer higher return potential but also come with increased risk compared to more established companies.
3 ) Consider Value Investing: Value stocks are equities that appear undervalued relative to their intrinsic value. They may be trading at lower prices due to investor overreactions or a market environment that favors faster-growing assets. In a strong bull market, value stocks may lag as investors favor growth assets. However, for patient, long-term investors, this presents a buying opportunity. Value stocks often shine during bear markets and may offer dividend payments. Utilize the bull market to increase your holdings of value stocks, which can act as a buffer during the next bear market while providing dividend income.
4 ) Dollar-Cost Averaging: Implement a strategy known as dollar-cost averaging (DCA), where you invest a fixed amount on a regular schedule, regardless of market fluctuations. For example, invest $400 on the same day each month instead of trying to strategically time the market. DCA helps manage the volatility often seen in the early stages of a bull market. By investing consistently, you buy more shares when prices are low and fewer shares when prices are high. This approach lowers your average cost basis over time and minimizes the impact of short-term market fluctuations.
Remember that these strategies should be tailored to your individual financial goals, risk tolerance, and time horizon. It's advisable to consult with a financial advisor who can provide personalized guidance before making any significant investment decisions.
Risks To Be Aware Of In A Bull Market
While bull markets can present favorable opportunities, it's crucial to be aware of potential risks and pitfalls. Here are three significant risks to consider:
1 ) Overconfidence and Speculation: During a bull market, there is a tendency for investors to become overconfident and take on higher levels of risk. This can lead to speculative investing, where investors chase after high-risk, high-reward opportunities. However, when the bull market eventually ends, these speculative investments may experience substantial losses. It's important to maintain a balanced approach to investing and avoid excessive risk-taking, as downturns can permanently impact the outlook for smaller, less established companies.
2 ) Market Bubble: Bull markets can sometimes give rise to market bubbles, where stock prices become significantly detached from their underlying value. This occurs when investors, driven by excessive optimism, push prices to unsustainable levels. While market bubbles can provide opportunities for gains in the short term, they also carry the risk of a sudden correction or crash. Once the bubble bursts, panic can set in, causing a rapid decline in stock prices and the onset of a new bear market. It's essential to remain cautious and be aware of signs of excessive market exuberance.
3 ) Impact of Interest Rates and Inflation: The interplay between interest rates, inflation, and economic conditions can influence the trajectory of a bull market. Changes in interest rates by central banks, such as the Federal Reserve, can impact borrowing costs and corporate profitability. Additionally, shifts in inflation levels can affect consumer spending power and overall economic growth. Uncertainties regarding future interest rate hikes or spikes in inflation can introduce volatility and potentially dampen or reverse a bull market. It's important to monitor economic indicators and the actions of central banks to gauge their potential impact on market conditions.
It's worth noting that predicting the specific outcomes of these factors in the coming months or years is challenging. The key is to remain vigilant, maintain a diversified portfolio, and consider the long-term perspective when making investment decisions. Consulting with a financial advisor can provide valuable guidance in navigating the risks associated with a bull market.
Tips For Benefitiing From A Bull Market
To successfully navigate a bull market and maximize your investment potential, it's important to consider the following strategies:
1 ) Stay Disciplined: Maintaining discipline is crucial in avoiding excessive risk-taking and speculative behavior. Define your investing parameters and process, and stick to them. Establish clear criteria for the types of investments you're willing to make and the level of risk you're comfortable with. Evaluate any exceptions carefully and have a clear exit plan for more speculative assets. By staying disciplined, you can mitigate the risks associated with overaggressive investing and ensure a more measured approach to capitalizing on the bull market.
2 ) Think Long-Term: Adopting a long-term perspective is key to protecting your investments from short-term market fluctuations and potential downturns. While it can be tempting to make impulsive decisions based on short-term market movements, it's important to focus on your long-term financial goals. Allocate a portion of your portfolio to cash reserves to cover emergencies or major purchases, so you don't need to tap into your investment accounts during market volatility. This long-term outlook allows you to weather market cycles and take advantage of opportunities that may arise, while also providing stability and peace of mind.
3 ) Rebalance Regularly: Bull markets can lead to overexposure to stocks as their value appreciates. Regularly rebalancing your portfolio helps maintain your desired asset allocation. For example, if your target allocation is 70% equities and 30% bonds and cash, and stocks have outperformed, your allocation may shift to 75% stocks and 25% bonds and cash. By periodically selling stocks and purchasing bonds, you can restore your desired asset allocation and lock in some profits from the bull market. Rebalancing also helps manage risk by ensuring that your portfolio remains aligned with your risk tolerance and investment objectives.
4 ) Seek Professional Advice: Each individual's financial situation is unique, and it's important to consider your circumstances when implementing investment strategies. Regularly review your investment plan and consult with a financial professional to ensure it remains aligned with your goals and risk tolerance. A financial advisor can provide personalized guidance based on your specific situation, help you navigate market trends, and offer insights on potential investment opportunities. They can also assist in assessing the performance of your portfolio and making adjustments as needed.
By following these strategies, you can position yourself to make informed investment decisions, manage risk, and capitalize on the opportunities presented by a bull market. However, it's important to remember that investing involves inherent risks, and past performance is not indicative of future results. Stay informed, monitor market conditions, and be prepared to adjust your strategies as needed.
Conclusion:
As the bull market gains momentum, it is essential for investors to be well-prepared and make informed decisions. Employing various strategies such as diversification and asset allocation, emphasizing growth stocks and sectors, considering value investing, and implementing dollar-cost averaging can significantly enhance one's ability to navigate the market effectively. Nevertheless, it is crucial to remain cautious of potential risks, including overconfidence, market bubbles, and the influence of interest rates and inflation. To maximize gains during the bull market while minimizing potential risks, it is vital to maintain discipline, adopt a long-term perspective, regularly rebalance portfolios, and seek professional advice. It is important to note that individual circumstances vary, thus investment strategies should be tailored to align with personal financial goals and risk tolerance.
Understanding Market Corrections:Definition & Key ConsiderationsInvesting in the stock market has the potential to generate substantial wealth over the long term, although it comes with inherent risks. One notable obstacle that investors frequently encounter involves safeguarding their capital during periods of declining stock prices. When the market undergoes a downturn, the inclination to panic and sell off investments to evade additional losses can be strong. However, this reactive approach often results in even greater financial setbacks and hinders the ability to capitalize on future market rebounds. In this comprehensive article, we will delve into the concept of a market correction and delve into various strategies that can assist investors in preserving their capital amidst market downturns, enabling them to emerge stronger when the market inevitably recovers.
Market Correction: A Comprehensive Explanation
In the realm of financial markets, a market correction is a notable event characterized by a substantial decline in the value of a financial instrument. This decline typically ranges between 10% to 20% and can encompass individual stocks of a specific company or even extend to encompass entire market indices comprising a vast array of companies. The duration of a correction can vary significantly, ranging from as short as a single day to as long as a year, with the average duration spanning approximately four months.
Market corrections can be triggered by a myriad of factors, each with its own unique catalyst. These factors can range from a company's disappointing financial performance and weak earnings report to more extensive global geopolitical conflicts. In some instances, corrections may occur seemingly without any discernible external cause.
It is worth noting that market corrections are not exclusive to stocks alone. They can manifest in various other financial instruments such as commodities like oil, platinum, and grain, as well as currencies, funds, specific industry sectors, or even the entire market as a whole. This exemplifies the widespread impact that a correction can have across diverse segments of the financial landscape.
To illustrate the significance of a market correction, let's consider an example from recent history. In the year 2018, the prices of over 500 companies experienced a decline of 10% or more. This widespread correction exemplifies how fluctuations in market conditions can influence a substantial number of companies simultaneously, affecting their valuation and investor sentiment.
In conclusion, a market correction denotes a notable decline in the value of financial instruments, with the range typically falling between 10% to 20%. The causes behind these corrections can be diverse and encompass factors ranging from company-specific issues to broader global conflicts. Moreover, corrections can impact various financial instruments and market segments, underscoring their potential for wide-reaching consequences within the financial landscape.
Example : AMZN stocks Daily chart showing a correction in 2018 - 2020
Market corrections are not uncommon events within the realm of financial markets. On average, a decline of 10-20% in the stock market transpires approximately once a year. These corrections, characterized by a significant decrease in stock prices, serve as reminders of the inherent volatility and fluctuations present in the market.
While corrections of 10-20% occur relatively frequently, more profound market declines exceeding 20% are less frequent, transpiring approximately once every six years. These substantial corrections are often referred to as market collapses, signifying a more severe and prolonged downturn.
One illustrative example of a market collapse occurred in response to the global pandemic outbreak in March 2020. The COVID-19 pandemic triggered a swift and severe decline in stock markets worldwide, leading to a precipitous drop of approximately 38% within a matter of days. This extreme correction exemplifies the impact of unforeseen events and external factors on market stability and investor sentiment.
It is important to recognize that market corrections and collapses are not solely confined to a particular asset class or geographic region. They can have a broad-ranging effect, transcending national boundaries and impacting various financial instruments, indices, and markets worldwide.
In summary, market corrections, defined by significant declines in stock prices, are regular occurrences, transpiring approximately once a year with a magnitude of 10-20%. Market collapses, on the other hand, encompass more profound declines exceeding 20% and typically transpire once every six years. These events serve as reminders of the dynamic nature of financial markets and their vulnerability to various factors, such as the recent pandemic-induced collapse in 2020, which had a profound impact on global markets.
Example : SPX500 / US500 stocks Daily chart showing a correction in 2020
Investors who adopt a long-term investment strategy tend to navigate corrections with relative ease, primarily due to their extended investment horizon. By committing their funds for a substantial period, typically ranging from 5 to 10 years, these investors are less likely to be perturbed by temporary price declines. On the other hand, individuals who rely on leverage or engage in short-term trading bear the brunt of corrections, experiencing greater challenges and losses.
The impact of a correction can be readily observed by examining the chart depicting the historical performance of any given company. By selecting the annual or five-year chart display, one can identify specific time periods when the asset's value experienced temporary declines. Additionally, it is crucial to consider the decrease in stock price subsequent to the ex-dividend date, commonly referred to as the dividend gap. It is essential to note that the dividend gap phenomenon is distinct from a correction and should be treated as such.
What Causes A Correction?
A correction in the stock market can be triggered by a multitude of factors and events that impact stock prices. These events can range from speeches given by company executives, investor reports, pandemics, regulatory changes, economic sanctions, natural disasters like hurricanes and floods, man-made disasters, to high-level meetings of world leaders. Even the most stable companies can experience declines in their stock prices due to these events.
It is important to recognize that human behavior also plays a significant role in causing market corrections. The stock market is inherently driven by human participation and investor sentiment, which can sometimes lead to corrective actions. For instance, if a popular figure like Elon Musk garners significant attention and support, investors may pour money into his company beyond its actual earnings. Eventually, the overvaluation of such a "hyped" company may result in a decline in its stock price.
Furthermore, investors often attempt to follow trends in the market. When a particular stock shows an upward trajectory, more people tend to invest in it, thus increasing its demand and subsequently driving up its price. However, as the price reaches a certain peak, some investors choose to sell their holdings to realize profits. This selling pressure can initiate a correction, causing those who entered the market later to incur losses. Therefore, blindly chasing market trends without careful analysis may prove detrimental.
Additionally, corrections can exhibit seasonal patterns. For example, during the summer months, prior to holidays or extended weekends, investor participation in trading may decrease. This reduced trading activity leads to lower liquidity in stocks, creating an opportunity for speculators to exploit the situation. Such periods often witness sharp price fluctuations, potentially resulting in stock prices declining by 10-20%.
It is crucial to understand that corrections are a natural part of the market cycle, and it is neither productive nor feasible to fear them indefinitely. The market cannot sustain perpetual growth, and corrections serve as necessary adjustments. By acknowledging their inevitability, investors can adopt strategies that are mindful of market dynamics and position themselves accordingly.
How Long Do Corrections Last?
Between the years 1980 and 2018, the US markets experienced a total of 37 corrections, characterized by an average drawdown of 15.7%. These corrections typically lasted for approximately four months before the market began to recover. Consider the following scenario: an investor commits $15,000 in January, experiences a loss of $2,355 during the correction, and by May, witnesses their portfolio rebounding to $15,999, based on statistical data. However, it is important to note that outcomes may deviate from this pattern.
It is worth noting that the magnitude of a stock's decline directly impacts the duration of its recovery. As an illustration, during the financial crisis of 2008, US stocks tumbled by approximately 50%. The subsequent recovery of the stock market extended over a period of 17 months, primarily attributed to the active support provided by the US government and the Federal Reserve. This underscores the notion that severe market downturns necessitate more prolonged periods for recuperation, even with significant intervention from regulatory bodies.
Dow Jones Industrial Average index drop in 2008
The timing of a market correction is often challenging for financiers and experts to predict with certainty. In retrospect, it becomes clear when a correction started, but identifying the precise moment beforehand is a complex task. Taking the aforementioned example of the market collapse in October 2007, it was not officially acknowledged until June 2008. This highlights the inherent difficulty in pinpointing the onset of a correction in real-time.
Following a correction, the market's recovery period can vary significantly. In some instances, the market may swiftly regain stability and resume an upward trajectory. However, in other cases, it may take several years for the market to fully recover from a correction. The duration of the recovery depends on a multitude of factors, including the severity of the correction, underlying economic conditions, government interventions, and investor sentiment.
Hence, it is crucial to recognize that financiers and market participants can only definitively determine the start and extent of a correction in hindsight. The future behavior of the market after a correction remains uncertain, and it is possible for the market to swiftly recover or take a considerable amount of time to regain stability.
How To Predict A Correction
Predicting the precise timing, duration, and magnitude of a market correction is inherently unreliable and challenging. There is no foolproof method to accurately forecast when a correction will occur, when it will conclude, or the extent to which asset prices will change.
Some economists and analysts attempt to predict market trends by employing various theories. For instance, Ralph Elliott formulated the Elliott Wave Theory, which posits that markets move in repetitive waves. By determining the current phase of the market—whether it is in an upward or downward wave—one could potentially profit. However, if such theories consistently yielded accurate predictions, financial losses during corrections would be virtually nonexistent.
It is crucial to acknowledge that market corrections are an inherent and inevitable part of market cycles. While attempting to predict corrections may be enticing, it is important to remember that they will inevitably occur, regardless of how long it has been since the previous one. Relying solely on the absence of a correction for an extended period as a basis for investment decisions warrants careful consideration and analysis rather than being treated as a definitive indicator.
Advantages And Disadvantages Of Market Correction
Advantages and disadvantages of market corrections can be summarized as follows:
Advantages of a market correction:
1) Buying opportunities: Market corrections often present favorable buying opportunities for investors. Lower stock prices allow investors to acquire shares at discounted prices, potentially leading to long-term gains when the market recovers.
2) Rebalancing opportunities: Corrections can prompt investors to rebalance their portfolios. Selling overvalued assets and reinvesting in undervalued ones can help optimize investment returns and maintain a diversified portfolio.
3) Expectation adjustment: Market corrections can serve as a reality check, helping investors reassess their expectations and risk tolerance. This can lead to more informed investment goals and strategies.
Disadvantages of a market correction:
1) Financial losses: Market corrections can result in substantial losses, particularly for investors who panic and sell their investments at lower prices. Reacting emotionally to market downturns may amplify the negative impact on portfolios.
2) Economic implications: Market corrections can have broader economic repercussions. They may lead to job losses, reduced consumer spending, and slower economic growth, potentially affecting industries and sectors beyond the financial markets.
3) Psychological impact: Market corrections can trigger fear, uncertainty, and anxiety among investors. These emotions may drive impulsive decision-making, such as selling investments hastily or hesitating to re-enter the market when conditions improve.
It is important for investors to carefully evaluate the potential advantages and disadvantages of market corrections and consider their own risk tolerance, investment goals, and long-term strategies when navigating such market events.
What Should You Do During A Correction?
Correction can make an investor richer or poorer or have no effect at all. The impact of a market correction on an investor's wealth depends on their actions and decisions during that period. It is impossible to predict with certainty the duration or direction of asset value changes during a correction.
However, there are general tips that can help investors navigate through a correction and potentially safeguard their finances:
1) Maintain a calm and rational mindset: During a correction, it is crucial to approach investment decisions with a cool head. Instead of making impulsive moves, take the time to understand the underlying causes of the correction and consider expert opinions and news.
2) Avoid excessive borrowing: It is advisable not to use borrowed money for investments, especially during a correction. This reduces the risk of incurring debts and potential losses. For beginners, it is often recommended to limit investments to the funds available in their brokerage accounts, particularly during a correction.
3) Assess company fundamentals: Evaluate the fundamental strength of a company by analyzing key metrics and ratios. Comparing a company's value with others in the same industry can provide insights. If a company is not overvalued, it may indicate that there is no fundamental reason for a correction, and its value may likely recover in due course.
4) View the correction as a buying opportunity: Prominent investors like Warren Buffett and Nathan Rothschild have emphasized that corrections present excellent opportunities for investment. If a stock's price has fallen, consider purchasing it based on the company's performance rather than solely focusing on the size of the discount. Maintaining some savings in cash allows for timely investments in undervalued assets.
5) Acknowledge the normalcy of corrections: It is important to recognize that corrections are a regular part of market cycles and serve as tests of an investor's composure. Following an investment strategy that includes provisions for investing during periods of 10-20% lower stock prices can help protect savings and optimize long-term returns.
By adhering to these general tips and maintaining a disciplined investment strategy, investors can better navigate market corrections and potentially preserve and enhance their financial well-being.
Conclusion
In summary, market corrections are an intrinsic aspect of the stock market's ebb and flow, and it is essential for investors to anticipate and navigate them effectively. During such periods, the inclination to succumb to panic and hastily sell investments can be strong. However, maintaining composure and adhering to prudent strategies that safeguard capital are crucial for weathering corrections and emerging stronger when the market inevitably rebounds. While corrections present challenges, they also offer advantageous opportunities, such as the ability to acquire stocks at discounted prices. Conversely, the potential for substantial losses exists, emphasizing the importance of a measured approach. A long-term investment strategy, rooted in sound analysis rather than reactionary emotions, serves as a vital compass for surviving corrections. By focusing on the broader picture and resisting the temptation of short-term market fluctuations, investors can position themselves for long-term success amidst the natural ebb and flow of the market.
Reversal Broad. Diamond on Coronation with target up to R38.28Broad. Diamond has appeared on the daily.
Either the price breaks down as a continuation from the prior trend.
Or the price breaks up.
My bet is on the price break up. Thats because the low of the Dimaond is showing a Sell Side Liquidity Order Block. (Explained lower)
Othe rindicators
7>21 Price>200
RSI>50
Target one is a short term T to R38.28. Break above this and we will have a larger W Formation that will send it to at least R47.00.
SMC: Sell Side LIquidity Order Block - Bullish
Smart Money buys into positions (and sweeps liquidity) from traders who are long (get stopped) and for short traders who enter into their trades.
ABOUT THE COMPANY
Coronation Fund Managers is a South Africa-based investment-led, owner-managed business.
It was founded in Cape Town in 1993.
Coronation provides both institutional and personal investment management services.
It is one of the largest and most successful asset management companies in South Africa.
The firm is known for a long-term, valuation-driven investment approach.
Coronation offers a range of products like unit trust funds, retirement products, and offshore investments.
HOW IT GOT ITS NAME
We're not sure, but we can speculate. The term "Coronation" generally refers to the process of placing a crown on a monarch's head, symbolizing their rise to power, authority, and responsibility, which could be a metaphor for the company's mission and goals in the financial sector.
Remgro broken above a 12 month Box Pattern - Target R170Box formation has clearly formed on Remgro.
It started last year this time, and the price has been jumping between the high and low range.
But now the price has broken up and out of it. This could be the boost it needs to rocket up to the next target.
MAs - 7>21>200
RSI>50
Target 1 is set to R170.00. But there is a caveat.
Bullish
CAVEAT
The JSE ALSI 40 is still trading within the Symmetrical Triangle. It's currently at the apex but today's price action is down.
We really need the price to break up and out of it. THis will show that the buying and demand is stronger than the supply.
ABOUT THE COMPANY
Remgro is a prominent investment holding company based in Stellenbosch, South Africa.
Remgro was incorporated in 1948, originally part of the wider Rembrandt Group founded by Dr. Anton Rupert.
The company was initially a tobacco manufacturer before diversifying into other industries.
Remgro became an investment holding company in the 1980s, focusing on managing a range of investments rather than manufacturing.
The company has investments in various sectors such as banking, healthcare, consumer products, sports, and others.
Some of the well-known companies in its portfolio include Mediclinic, Distell Group, RMB Holdings, and FirstRand.
Johann Rupert, son of Anton Rupert, served as the Chairman of Remgro.
HOW IT GOT ITS NAME
Remgro, short for Rembrandt Group Limited, gets its name from the larger conglomerate it was part of, the Rembrandt Group, which was founded by Dr. Anton Rupert in the 1940s.
The name "Rembrandt" was likely chosen as a nod to the famous Dutch painter, Rembrandt Harmenszoon van Rijn, reflecting the Dutch heritage of the Rupert family. When the Rembrandt Group restructured in the 1980s and 2000s, the investment arm became known as Remgro.
MRPL - DAILY TIME FRAMEThe Structure looks good to us, waiting for this instrument to correct and then give us these opportunities as shown on this instrument (Price Chart).
Note: Its my view only and its for educational purpose only. Only who has got knowledge about this strategy, will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. and try trade the big moves.
we do not get into bullish or bearish traps. We anticipate and get into only big bullish or bearish moves (Impulsive Moves). Just ride the Bullish or Bearish Impulsive Move. Learn & Know the Complete Market Cycle.
Buy Low and Sell High Concept. Buy at Cheaper Price and Sell at Expensive Price.
Keep it simple, keep it Unique.
please keep your comments useful & respectful.
Thanks for your support....
Tradelikemee Academy
MRF - 240 MINS CHART TIMEFRAMEThe Structure looks good to us, waiting for this instrument to correct and then give us these opportunities as shown on this instrument (Price Chart).
Note: Its my view only and its for educational purpose only. Only who has got knowledge about this strategy, will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. and try trade the big moves.
we do not get into bullish or bearish traps. We anticipate and get into only big bullish or bearish moves (Impulsive Moves). Just ride the Bullish or Bearish Impulsive Move. Learn & Know the Complete Market Cycle.
Buy Low and Sell High Concept. Buy at Cheaper Price and Sell at Expensive Price.
Keep it simple, keep it Unique.
please keep your comments useful & respectful.
Thanks for your support....
Tradelikemee Academy
TATASTEEL - DAILY TIME FRAMEThe Structure looks good to us, waiting for this instrument to correct and then give us these opportunities as shown on this instrument (Price Chart).
Note: Its my view only and its for educational purpose only. Only who has got knowledge about this strategy, will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. and try trade the big moves.
we do not get into bullish or bearish traps. We anticipate and get into only big bullish or bearish moves (Impulsive Moves). Just ride the Bullish or Bearish Impulsive Move. Learn & Know the Complete Market Cycle.
Buy Low and Sell High Concept. Buy at Cheaper Price and Sell at Expensive Price.
Keep it simple, keep it Unique.
please keep your comments useful & respectful.
Thanks for your support....
Tradelikemee Academy
Artificial intelligence: signs of acceleration in 2023“One final investment area that I’ll mention, that’s core to setting Amazon up to invent in every area of our business for many decades to come, and where we’re investing heavily, is Large Language Models (“LLMs”) and Generative AI. Machine learning has been a technology with high promise for several decades, but it’s only been the last five to ten years that it’s started to be used more pervasively by companies. This shift was driven by several factors, including access to higher volumes of compute capacity at lower prices than was ever available. Amazon has been using machine learning extensively for 25 years, employing it in everything from personalised ecommerce recommendations, to fulfillment center pick paths, to drones for Prime Air, to Alexa, to the many machine learning services AWS offers (where AWS has the broadest machine learning functionality and customer base of any cloud provider). More recently, a newer form of machine learning, called Generative AI, has burst onto the scene and promises to significantly accelerate machine learning adoption.”
Amazon.com CEO Andy Jassy1
When Amazon’s CEO makes such a statement, we pay attention. In 1997, Amazon.com had revenues of $147.8 million; in 2022, this figure was $434 billion for Amazon’s consumer business. Amazon Web Services was conceptualised in 2003, with the first services launched in 2006 and, in 2022, generated $80 billion in revenues.
Elsewhere, The Stanford AI Index Steering Committee, Institute for Human-Centered AI (one of the best annual resources on artificial intelligence), have also just released a new report. Artificial intelligence (AI) is, undoubtedly, a big topic in 2023, and this report provides an excellent resource for understanding how it is progressing. The full piece is almost 400 pages, but we wanted to highlight some key points.
ChatGPT was not the only big AI development of 2022
On November 30, 2022, ChatGPT was launched, but the Stanford AI Index report helps us remember other notable events in 2022. Our 5 favourites:
February 16, 2022: DeepMind trained a reinforcement learning agent to control nuclear fusion plasma in a tokamak2. While this doesn’t mean that fusion powerplants are immediately around the corner, it does show a notable use case for AI to help scientific research in a very, very difficult area.
April 5, 2022: Google released its PaLM large language model with 540 parameters. This was an important step, showing that one avenue to improve the performance of these models was to simply train them on more data. As of this writing, we do not know how this figure compares to the number of parameters in use for OpenAI’s GPT-4.
May 12, 2022: DeepMind showcased Gato, which is a model that can generalise across such activities as: robotic manipulation, game player, image captioning, and natural language generation.
June 21, 2022: GitHub makes Copilot available as a subscription-based service for individual developers. Copilot is a generative AI system that can turn natural language prompts into coding suggestions across multiple languages.
July 8, 2022: Nvidia uses reinforcement learning to design better-performing GPUs, accelerating the performance of its latest H100 class of GPU chips.
Insights on global corporate investment
AI has been one of the hottest areas for corporate investment, but Figure 1 shows the total level of investment shifted downwards, from $276.14 billion to a level of $189.59 billion in 2022 with the market volatility.
The two biggest categories comprising the level of AI investment recently has been ‘Merger/Acquisition’ and ‘Private Investment.’ Both of these categories dropped significantly from 2021 to 2022, but this is not surprising in that both of these would be expected to slow in a less certain economic environment with the US Federal Reserve quickly raising the cost of capital.
One of the most informative charts in the 400-page report is the specific focal areas of investment, and how they have changed.
‘Medical & Healthcare’ was the biggest focal area in 2022, after being second biggest in 2021, trailing only ‘Data Management, Processing and Cloud.’
‘Cybersecurity, Data Protection’ was the fourth biggest investment area in 2022 and the largest that saw an acceleration in investment, meaning investment in 2022 was actually larger than in 2021. The Russia/Ukraine conflict in 2022 created a big focus on cybersecurity.
There is little question, the first four months of 2023 have seen a massive focus on AI, and a massive focus usually leads to at least some hype and some risk of near-term overvaluation. Sometimes this is the nature of thematic investment—we all want something to get excited about, especially if economic growth and geopolitics are less positive. What is emphasised in the letter from Amazon.com CEO, Andy Jassy, and then measured in the 2023 Stanford AI Index report, is that the AI megatrend is continuing to grow and increase in its impact on society and on businesses.
Sources
1 Source: aboutamazon andy-jassy-2022-letter-to-shareholders
2 A tokamak, put simply, is somewhat of a doughnut in shape and is a device used to contain the plasma in a fusion reaction.
NAGREEKEXP - DAILY TIMEFRAMEThe Structure looks good to us, waiting for this instrument to correct and then give us these opportunities as shown on this instrument (Price Chart).
Note: Its my view only and its for educational purpose only. Only who has got knowledge about this strategy, will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. and try trade the big moves.
we do not get into bullish or bearish traps. We anticipate and get into only big bullish or bearish moves (Impulsive Moves). Just ride the Bullish or Bearish Impulsive Move. Learn & Know the Complete Market Cycle.
Buy Low and Sell High Concept. Buy at Cheaper Price and Sell at Expensive Price.
Keep it simple, keep it Unique.
please keep your comments useful & respectful.
Thanks for your support....
Tradelikemee Academy
INVESTMENT IDEA FOR HALAs we can see the stock breaks its trading channel consolidation after 7 months with heavy volume and takes the support of the channel and again it breaks its trading channel on 16th November with heavy volume as compared to the last breakout volume.
STOCK IS TRADING ABOVE 20 50 EMA RSI crossing 60 from below. RSI 65
Hindustan Aeronautics Gets an LOI (letter of intent) for Nine Helicopters from Indian Coast Guard
letter of intent (LOI)
A letter of intent (LOI) is a document outlining the general plans of an agreement between two or more parties before a legal agreement is finalized. A letter of intent is not a contract and cannot be legally enforced; however, it signifies a serious commitment from one involved party to another.
educational purposes only!
RELIANCE POWER - WEEKLY CHART SETUPThe Structure looks good to us, waiting for this instrument to correct and then give us these opportunities as shown on this instrument (Price Chart).
Note: Its my view only and its for educational purpose only. Only who has got knowledge about this strategy, will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. and try trade the big moves.
we do not get into bullish or bearish traps. We anticipate and get into only big bullish or bearish moves (Impulsive Moves). Just ride the Bullish or Bearish Impulsive Move. Learn & Know the Complete Market Cycle.
Buy Low and Sell High Concept. Buy at Cheaper Price and Sell at Expensive Price.
Keep it simple, keep it Unique.
please keep your comments useful & respectful.
Thanks for your support....
Tradelikemee Academy
BIOCON - MONTHLY TIME FRAMEThe Structure looks good to us, waiting for this instrument to correct and then give us these opportunities as shown on this instrument (Price Chart).
Note: Its my view only and its for educational purpose only. Only who has got knowledge about this strategy, will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. and try trade the big moves.
we do not get into bullish or bearish traps. We anticipate and get into only big bullish or bearish moves (Impulsive Moves). Just ride the Bullish or Bearish Impulsive Move. Learn & Know the Complete Market Cycle.
Buy Low and Sell High Concept. Buy at Cheaper Price and Sell at Expensive Price.
Keep it simple, keep it Unique.
please keep your comments useful & respectful.
Thanks for your support....
Tradelikemee Academy
HUDCO 240 MINS CHART LONG SETUP ✅✅✅✅The Structure looks good to us, waiting for this instrument to correct and then give us these opportunities as shown on this instrument (Price Chart).
Note: Its my view only and its for educational purpose only. Only who has got knowledge about this strategy, will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. and try trade the big moves.
we do not get into bullish or bearish traps. We anticipate and get into only big bullish or bearish moves (Impulsive Moves). Just ride the Bullish or Bearish Impulsive Move. Learn & Know the Complete Market Cycle.
Buy Low and Sell High Concept. Buy at Cheaper Price and Sell at Expensive Price.
Keep it simple, keep it Unique.
please keep your comments useful & respectful.
Thanks for your support....
Tradelikemee Academy