We’ve Entered a New Age of Investing
Alex Moschina|March 16, 2024
Remember the olden days of investing?
When you could gauge a stock’s strength by digging through earnings reports… financial statements… you know, fundamentals.
Then high-frequency trading – or HFT – overtook the markets. All of a sudden, chart patterns and technicals seemed like the only way to get ahead. “In order to beat the machines, we must think like the machines” was the common refrain among traders and CMTs peddling expensive online courses.
Now it appears we’ve entered a new age…
The Age of Narrative.
According to Shah, narrative is the true driving force behind Nvidia (NVDA)’s near-300% run over the past year.
It’s a topic he dove into here on Monday.
And, fittingly, we closed the week with Shah’s thoughts on what has frequently been Big Tech’s other darling… Apple (AAPL).
If you compare the performance of these two stocks so far in 2024, the difference is striking.
Apple, arguably the most innovative, culture-shifting company of the past century, has drifted steadily lower. Meanwhile, Nvidia shares have only continued their relentless ascent toward the stars (save for a few recent dips).
Whereas Nvidia has been benefiting from the explosive growth of AI… Apple has done very little (at least up to this point) to capitalize on the technology.
What the iPhone maker does next will be crucial to its fate over the coming months.
“Apple’s only hope,” says Shah, “is a fast-track addition of a host of fabulous new AI functionality in the iPhone 16.”
Will it happen? Maybe. But the company has a history of waiting – and watching – as others integrate new tech like AI… then bounding in with its disruptive take.
The iPod wasn’t the first portable mp3 player. And the iPhone wasn’t the first touchscreen phone.
And yet, when Apple launched those products, they quickly became must-have items. At the height of the iPod’s success, Apple was selling nearly 60 million of the devices annually.
Clearly Apple knows how to leverage a burgeoning technology and format it in a way that makes it irresistible to consumers.
We can take the Apple Watch as another great example. At the time of launch, many analysts scoffed at the idea of, essentially, strapping a smartphone to one’s wrist. And yet, today, the Apple Watch is the most popular watch sold around the world.
So, the question isn’t will Apple incorporate AI into its devices…
It’s when… and, just as importantly, how?
Until then, as Shah suggested in Friday’s Total Wealth here, would-be Apple investors may want to wait on the sidelines.
Of course, there’s far more to the markets than the goings-on of two megacap tech stocks. In the pieces linked below, we have coverage of five ETFs that are making moves… an international shipper that’s on track for big growth… and the case against crypto bears.
We’ll have lots more for you next week.
Alex Moschina
Alex Moschina is the associate publisher of Manward Press. A gifted writer, editor and financial researcher, Alex’s career in publishing began more than a decade ago when he worked at one of the world’s leading providers of academic research and reference materials. Alex first cut his teeth in the realm of investing when he joined the team at White Cap Research in 2010. There he was charged with covering emerging market trends and investment opportunities. A stint as senior managing editor and editorial director at the prestigious Oxford Club followed. A frequent speaker at conferences and events, Alex has led educational workshops across the U.S. and Canada.
