A 20-year professional trader reveals his “money line”
Ditch the indicator and use “MoneyLine”. Simple lines take the guesswork out of knowing when to buy or sell. This is the line on the chart that helped Nic Chahine earn his 83% of option purchases. Here’s how he does it.
The stock market will remain bullish for another three to five years before the AI bubble bursts, according to a veteran technology analyst. Gene Munster.
what happened: Munster, managing partner of Deepwater Asset Management, predicts that the stock market will continue to rise due to the increased adoption of AI technology. He believes this trend will drive the market for the next three to five years, Business Insider reported.
“We are in the early stages of a 3-5 year bull market, which may seem outdated given recent market movements… but if you ultimately believe in the nature of AI , above the hype, the market will continue,” Munster told CNBC on Friday.
Despite the recent market rally, Munster remains optimistic about the future of AI-driven stocks. He expects market growth to be driven by smaller companies specializing in AI, not just big tech stocks.
Munster’s optimism is based on his belief that AI technology will have a bigger impact than the internet. He predicts that the stock market will eventually be buoyed by a new class of high-tech companies, especially those focused on AI.
But Munster also warns that this bubble will eventually burst, bringing the decade to a painful end. Nevertheless, he advises investors not to be hesitant about owning stocks, as there is still potential for wealth creation for some time to come.
“This will end in a spectacular bubble burst, but I think there could be a lot of wealth creation between now and then,” Munster said.
Related article: Stanley Druckenmiller sells 72% of NVIDIA stock, bets big on these stocks
he also pointed out alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) and meta platform (NASDAQ:META) is a unique flagship stock in Deepwater Asset Management’s technology-focused portfolio due to its in-house AI technology.
why is it important: Mr. Munster’s predictions come at a time when the stock market is experiencing major changes. Just recently, Goldman Sachs predicted flat returns for the S&P 500 for the rest of this year, suggesting that the stock market rally has peaked in 2024.
In addition, investment strategists Ed Yardeni He warned that the possibility that the Federal Reserve would ease monetary policy through interest rate cuts could cause the stock market to soar, sending the S&P 500 to a record high by the end of the year.
on the other hand, JP Morgan‘s jamie dimon He expressed concern about persistent inflationary pressures in the U.S. economy. He suggested these pressures could lead to higher interest rates for a longer period of time than investors expected.
Read next: Dogecoin rises 4.45% as anonymous 120 million DOGE is transferred to Robinhood
Image via Pixabay
Designer Benzinga Neuroedited by Kaustab Bagalkot
The GPT-4-based Benzinga Neuro content generation system leverages the extensive Benzinga ecosystem, including native data, APIs, and more, to create comprehensive, timely stories. learn more.
A 20-year professional trader reveals his “money line”
Ditch the indicator and use “MoneyLine”. Simple lines take the guesswork out of knowing when to buy or sell. This is the line on the chart that helped Nic Chahine earn his 83% of option purchases. Here’s how he does it.
Enter to win $500 in stocks or crypto
Enter your email address to get Benzinga’s Ultimate Morning Update, a free $30 gift card, and more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
