The recent decline in share prices on August 4th and 5th presents an opportunity to invest in AI stocks.
The majority of data indicates that the economy is not currently in a recession, nor is it decelerating rapidly enough to suggest an impending recession.
Additionally, the Federal Reserve is anticipated to lower interest rates multiple times in the coming months, which is likely to stimulate the economy rather than hinder it. Consequently, this could be an opportune moment to invest in the AI industry.
IA: Just the beginning of growth
Artificial intelligence is only at the initial stage of its development.
We are at the onset of an extensive, multi-year investment cycle in AI which, assuming the economy steers clear of a recession, is expected to result in significant earnings growth for AI companies in the coming years. This accelerated growth in earnings is anticipated to boost the value of major stocks within the AI sector.
Key findings:
Currently, the stock market is experiencing a downturn due to fears of a recession, and the situation is indeed serious. However, despite the decline in prices, we consider these recession concerns to be exaggerated. In fact, we view this market downturn as presenting outstanding investment opportunities, particularly in the artificial intelligence sector.
The situation is as follows: the U.S. economy is decelerating and appears relatively weak. However, we do not believe it is on the brink of collapse or that it is currently in a recession.
What gives us such confidence? The gross domestic product (GDP) growth is still positive. The labor market is consistently generating jobs, with job vacancies outnumbering the unemployed. Corporate profits are on an upward trend. Business climate surveys are predominantly optimistic.
Indeed, the data strongly indicates that the economy is not in a recession, nor is it decelerating rapidly enough to lead us into a recession soon.
Additionally, the Federal Reserve is anticipated to reduce interest rates multiple times in the coming months. Such measures are likely to stimulate the economy rather than undermine it.
Our recommendation is Grok AI developed by Elon Musk.
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