Dear Reader, Is the AI spending boom propping up the entire American economy right now? All signs point to yes, which means the market may be more vulnerable than it looks. Many analysts believe we’re several quarters away from a slowdown, but not Goldman Sachs. “The AI trade is going full throttle…but it will slow down, Goldman Sachs believes, and Wall Street must be ready when that time inevitably comes. And a big drop could pose what they describe as a “substantial downside risk to both the AI trade and the broad S&P 500.” So, where does all this leave investors? It’s not quite time to abandon AI leaders or the market. Hyperscalers are still spending aggressively, and a dovish Fed is likely to inject more fuel. But it is time to tread carefully — testing each step before plunging into the “AI Tiger Pit.” For a head start, our macro investing expert Eric Fry recently released a research package that dives into which AI stocks to sell today based on their valuation, and which to buy. For example, Eric is urging investors to sell Nvidia — a world-class company, but at its current price, perhaps not a world-class investment. From Eric: "Nvidia’s market cap is $4.23 trillion — the largest in the world.It trades at 56 times earnings, about double the market average…You don’t want to stock up on overvalued or faulty companies. You want to invest in the right stocks at the right time." In Eric’s “Sell This, Buy That” research package, he reveals — for free — which market moves you must make today. You can access it right now, right here. Sincerely, Jeff Remsburg
Editor, InvestorPlace Digest | 
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