Investing

The Magnificent Seven tech stocks, Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:FB), Nvidia (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA), continued to lead the tech industry in 2024, largely due to their investments in artificial intelligence. But the companies have had varying degrees of success with their AI efforts in 2024. Nvidia, Meta, Microsoft and Amazon have done particularly …

Intel CEO Pat Gelsinger resigned on December 1, following the company’s difficulties in adapting to the AI-driven tech landscape. Nvidia, a leader in AI chip technology, has surged ahead with its advanced GPUs, leaving Intel’s CPUs struggling to compete. Despite initiatives to revitalize the business, including $100 billion in factory investments and government support through the CHIPS Act, Intel has faced financial losses and internal inefficiencies. With interim leaders David Zinsner and Michelle Johnston Holthaus now at the helm, Intel must address structural challenges and regain competitiveness. The company’s future depends on resolving internal conflicts and innovating for the AI era.

Microsoft's (NASDAQ: MSFT) recent $60 billion stock buyback and dividend increase come as part of a broader trend among tech giants like Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOGL), and Meta (NASDAQ: META), all using repurchases to enhance shareholder value. Buybacks can increase earnings per share and provide tax-efficient returns, but only if executed well. However, if poorly timed or mismanaged, they can hurt long-term growth. With the recent 1% excise tax on buybacks under the Inflation Reduction Act, companies face new costs, prompting investors to evaluate these programs carefully.

Eric Sprott, co-founder of Sprott Money, shared his insights into the gold and silver markets, predicting that gold could reach $3,000 per ounce and silver $50 by year-end. While gold has recently hit record highs, silver has lagged behind despite a 20% supply shortage. Sprott remains optimistic about undervalued gold and silver stocks like Discovery Silver and Free Gold Ventures. He also highlights silver's rising demand, driven by sectors like electric vehicles and new technologies. Sprott emphasizes the importance of staying informed, as global market shifts and government actions will significantly impact the precious metals landscape.

U.S. banking stocks are underperforming, with a 6% drop in September 2024, compared to the S&P 500 remaining flat. Bank executives have issued warnings about lower-than-expected recoveries from investment banking and the effects of looming interest rate cuts. With U.S. banks trading at lower P/E ratios (11.7x for 2024 and 10.4x for 2025), analysts view the sector as potentially undervalued. Meanwhile, capital requirements have been scaled back, but pessimism has intensified after Berkshire Hathaway reduced its investment in Bank of America. This may offer an entry point into the sector for value investors.

“Every portfolio should have a 10% core holding of gold and silver as emergency money” was the simple and timeless message in Glen O. Kirsch conveyed 33 years ago in an article entitled: “What’s in Your Core Holdings?” and such a message is even more appropriate today given the unsettling fiscal, economic and investment environment. Words: 692

E*TRADE's Monthly Sector Rotation report highlights investor movement across S&P 500 sectors. In August, Consumer Discretionary, Information Technology, and Consumer Staples saw positive inflows, while Communication Services, Health Care, and Financials faced outflows. Despite concerns about a tech sector rotation, IT continued its strength, driven by stocks like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). Meanwhile, Real Estate declined sharply amid rising interest rates and economic uncertainty. Historical trends suggest that top-performing sectors, like tech in 2023, often lose momentum the following year. This dynamic could impact sector performance in 2024.

$10,000 may be too conservative of a price target for gold up ahead with a lot of pain before we get there, both in commodities and the broad market. A deflationary bust is coming that will wipe out most asset categories, before stagflation takes hold, the Fed intervenes, and commodities skyrocket to previously unimaginable levels.

There are hundreds of AI-related stocks trading on various exchanges around the world and that number has been reduced to 31 pure-play stocks trading on Canadian or American exchanges in 7 categories and put into portfolios which are tracked on a weekly basis. What follows is a summary of these 7 portfolios' performances this week.

Our Micro/Small Cap AI Stocks Portfolio went up 13.5% in July on top of a 3.2% increase in June but that strength has evaporated so far in August declining 13.8% MTD. Below are the performances of each of the constituents week-ending August 16th