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Is AI Taking Over Wall Street?

Hello, and welcome to our Market Alert video for today, which is February 23 2024. So it’s 23 24. Thank you for watching. I hope you are well. We have a lot to get into. I want to update you guys. I got a lot of thank Thank you for all your responses. Our dog noodle, went to the hospital a Sunday night of Super Bowl night and almost died. In fact she did her heart stopped. Fortunately, my wife anticipated that somehow intuitively took her to the emergency room, and they resuscitated her she actually her heart failed in the emergency room is it was a miracle. She’s doing well. She’s back to her normal self. She’s energetic, she’s excited, she’s affectionate. She’s wonderful. And we’re very happy that it worked out the way it did. So Fay and her intuition, her motherly intuition. Anyway, so this week was very interesting. The market was very volatile, leading into the announcement by Nvidia, and Nvidia is the chip maker for artificial intelligence. And AI is going to be in our view, the single most transformative technology perhaps in the history of humankind. So that’s how big this is. And so, the the nervousness was that NVIDIA would miss their numbers that their profits would not be where they were that they’re not continuing to grow, as they were that the whole thing is, uh, you know, just a tempest in a teapot. But their numbers came in, they hit it out of the park, and the stock market was back on a tear to new all time highs. So that’s why we’re calling this segment AI is taking over Wall Street. Now, last week, I was actually interviewed by the Wall Street Journal, and also by Reuters. And they both both reporters asked me the same question. Are you concerned that the stock market is concentrated right now in what they’re calling The Magnificent Seven. These are the companies, the big technology companies that are driving the stock market right now. That’s Nvidia, of course. And then we’ve got Microsoft and Google and those companies, and they’re driving things. And I said, Well, you know, I’ve been doing this long enough that I can remember a few years ago, when we were equally concerned that there were just a set of companies that were driving the whole stock market. And they were called the fangs. And for those of you don’t remember, fangs, the FANG was the acronym for Facebook, Amazon, Netflix and Google Fang. And those companies were going through the roof during the pandemic, they were driving the markets up. And people were concerned that we didn’t have breadth, we want breadth, we want lots of companies doing well, not just five, or six or seven. So in our view, what we’re seeing now is this new technology being brought to the marketplace, the cost of doing that to build AI is tremendous. And most companies don’t have the resources to build it out, program it, build a technology, implement it and make it workable. It’s hugely expensive. Those big companies have billions and billions of dollars in cash that they didn’t know what to do with up until now. And they’re piling it into the whole AI thing. And that’s why they’re the ones that are driving the markets. So when Nvidia announced that there’s that they met their expectations, yes, let’s keep going. And so everybody dived in. And so now Nvidia went up 12% In one day, and it’s follow on today as I record this. So where do we go from here? Our view is that yes, this is the future, whether we like it or not AI is the future. And also it’s going to drive the stock market to a great degree. And also it is reminiscent of Y2K. Y2K, you may recall, that’s when technology, the internet, all that stuff was like really the deal. And all those internet those technology companies and those telecom companies, their stocks were flying through the roof. And everybody was like, that’s the future. Well, they were right. It is we’re right now we have internet, we have Telecom, all those things. It’s true. But we also had a very big bubble. And in 2000, Y2K, we saw that bubble burst, and those technology stocks lost 90% of their value. So yes, we are bullish, we want to ride this wave, no question about it. We’re not concerned about the concentration in the Magnificent Seven. But we have our sell strategy. That’s why we have it, because when bad times come, we don’t want to ride it down 90% like in Y2K, we want to get out and protect you from that, and that’s why we have that. So from that standpoint, we’re feeling good about this year. Those companies we feel are going to drive the market up for the thiis year, now it will be volatile along the way. Now, the other thing is the bond portfolio. Now our bond portfolio has been suffering. You know, we got in back in December, and it’s down since then we anticipate that that’s a temporary thing. Once the Federal Reserve announces that they’re going to lower interest rates, we think that the bond market is just going to fly through the roof, just like stocks are doing currently. And so that’s something that we think will happen at the earliest in July. But markets move before that, and it’s impossible to time stuff. So we want to be there before it happens. So we can take full advantage and we feel confident of where we are. So for now, we’re having a very good year. Off to a great start. I hope that you SCWPerS are out there SCWPering your little SCWPer tails off. And, of course, the SCWPer is the acronym for a second childhood without parental supervision. We want you to do that and we want your money to last as long as you do. We want you to have peace of mind. And we hope we’re doing all of that for you. For those of you who are not SCWPerS yet. Well guess what? That’s our singular goal is to get you there. We want you to go out there and play and have fun. So thank you for watching this video, share it with your friends and family. Oh, one thing. Radio, as you know, is no longer the big deal. And podcasts are, right? And so what we’re doing is we are going to be unveiling our full fledged podcast now, of course, we’ve been podcasting. But essentially, it’s been a repurposed version of the radio show Money Matters. But now we’re looking at actually developing a full fledged bonafide standalone podcast. And last year, we had over 250,000 downloads of our existing podcasts, we anticipate nothing but good things there. But we don’t have a name for it. So we need your help. So if you could send in your ideas of what you think we should call the podcast, we would love that we’re gonna have a contest and see and whoever wins. If we use the name that you’ve given us, we’ll have a special prize for that. So send in your ideas of what we should call the podcast. We don’t want to call it Money Matters anymore, because there are so many Money Matters podcasts that it’s a very confused space. So we want to come up with a new name for our podcast. So help us with that we’d love it. In the meantime, thank you and share this video as I said with as many of your friends and family as you possibly can. We want to create as many SCWPerS as we as as there as there can be. All right, so thanks for watching, and we’ll talk soon.

Please note: transcript has been modified after the time of recording. 

Economic indicators and stock market performance cannot be predicted. Opinions expressed regarding the economy and the stock market belong solely to Ken Moraif on behalf of Retirement Planners of America and may not accurately portray actual future performance of the economy or stock market outcomes. Opinions expressed in this video is intended to be for informational purposes only and is not intended to be used as investment advice for individuals who are not clients of Retirement Planners of America. All content provided is the opinion of Ken Moraif, CEO and Founder of RPOA Advisors, Inc. (d/b/a Retirement Planners of America ) (“Retirement Planners of America”, “RPOA”). ©Copyright 2023