| | | | The Next BIG AI Innovation?
First, don’t miss today’s Daily Chart Setup trade idea down lower in this newsletter.
Forget ChatGPT, the next revolution in AI tech is to create a world model that can learn the limits of physical reality. I will go through this cutting-edge tech on today’s show…
Come join me as we dive in and see what’s moving!
Plus, as always, we have stocks popping and dropping so come find out what is moving this morning as I look for stocks and do some live premarket analysis on SPX, SPY, NDX, QQQ, Russell, IWM and other stocks that are potential plays for the day.
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The Roosevelt Gold Playbook Could Be Repeating — Here's How to Play It
Look, I know what you're thinking. Another gold bug talking about crazy price targets. But hear me out — this isn't wishful thinking or some pie-in-the-sky forecast. This is a playbook as old as time, and the smart money at Bank of America (BAC) is paying attention.
Michael Hartnett and his team have been digging into the historical patterns of gold re-evaluations, and what they found should get your attention. This happened before in history — back in 1934, President Roosevelt in the midst of the Great Depression said, "You know what? The dollar is now worthless." He changed the price of gold with a swipe of the pen, going from $20 to $35 an ounce. That's a 69% jump right there.
Then in the 70s, Nixon did it again, effectively ending the gold standard and letting the price run free. Here's where it gets really interesting: Hartnett's team looked at the last four major gold bull runs, and on average, the price jumped 300% over 43 months.
The Math That Should Scare You
If that historical pattern holds, we're not talking about gold running up a little bit higher to $4,500 or even $5,000. We're looking at the potential for $6,000 an ounce by next spring when we get that new Fed chair. And honestly? That might be conservative.
Here's the kicker — almost nobody actually owns gold yet. BAC's private clients have only 0.5% exposure, and institutions are sitting at just 2.3%. Retail is barely dipping their toe in the water. When pension funds and endowments decide to jump in, the move could be explosive.
Three Ways to Play This Move
I see three clear paths here. First, ETFs like SPDR Gold Trust (GLD) give you easy exposure without the hassle. Second, physical gold for the true believers who want zero counterparty risk — you own it, you control it. Third, gold miners for the high-risk, high-reward crowd where profits could jump 30% or more if prices rise another 50%.
The real tell that this trend is going mainstream? When terrible investors start calling me asking if they should buy gold — which is happening now. It's FOMO, sure, but for once, they might actually be on to something. With a new Fed chair potentially coming in May 2025 and loose money policies on the horizon, this playbook could be just getting started.
Now be sure to join me live at 9:15 a.m. ET for “Morning Monster,” my market-open livestream on YouTube!
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