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Editor’s Note: As November 5 approaches, many investors are feeling anxious. At InvestorPlace, we encourage you to remain level-headed. Avoid making panic-driven sell decisions. Instead, consider a quant system that transforms market turmoil into profit opportunities.
This week, I spoke with Freeport Society Chief Investment Strategist Charles Sizemore. His approach aims to protect your portfolio from volatility while potentially benefiting from it. In these unpredictable times, having a dependable resource is crucial. For further insights, you can view my urgent “Day-After Summit” here.
Moreover, InvestorPlace CEO Brian Hunt has shared his insights on what he describes as the “Age of Chaos.” I invited him to discuss how the upcoming election could intensify this chaotic period.
Over to you, Brian.
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“We’re entering an Age of Chaos…”
That declaration was made in my book, which reached select InvestorPlace subscribers in September 2023.
In the book, I highlighted that the 2020s are shaping up to be one of the most volatile yet opportunity-rich decades in U.S. history.
This phenomenon is triggered by several massive megatrends overlapping globally.
As we will explore, these “Chaos Agents” show no signs of slowing down; in fact, they seem to be gaining momentum.
We are on a dangerous trajectory. By preparing now, there’s potential not just to protect your wealth but to expand it. InvestorPlace’s quant expert Louis Navellier and Charles Sizemore elaborated on this during their urgent “Day-After Summit,” which you can access here.
Rising Dollar Hedges Highlight Economic Concerns
One of the significant Chaos Agents is what I term the Four D’s: Debt, Deficits, and Dollar Debasement.
Many governments worldwide have committed to promises they can’t financially support, resulting in staggering debt and unfunded liabilities.
These obligations cannot be met using sound money; rather, they require progressively more diluted currency.
This situation is leading to significant currency debasement and disruptions in financial markets.
With Donald Trump proposing to eliminate federal income tax and Kamala Harris’s plan to cut taxes for 100 million Americans, the situation is likely to worsen post-November 5.
How serious is the situation in America?
The latest government data shows that interest payments on the national debt are $882 billion for 2024, while national defense spending is $874 billion. This indicates that we’re spending more on interest than on defense—an alarming reality.
Political leaders and voters largely resist spending cuts, reinforcing my long-held position: All roads lead to further dollar debasement.
This trend explains why assets like gold, silver, and other dollar hedges are gaining popularity.
If my assumptions regarding the Four D’s hold true, these assets will likely continue to rise significantly.
Subscribers to Charles’ Freeport Investor are poised to benefit, as he included a gold exchange-traded fund in our model portfolio just over a year ago, which has appreciated by 35% since then.
He has also recommended Bitcoin as a strategy against a declining dollar, with it increasing almost 60% in our model portfolio.
Bitcoin has earned the nickname “digital gold”—a robust currency that is easy to store and trade, offering both wealth preservation and a counter to currency devaluation.
The following chart supports an optimistic outlook for Bitcoin.
This month, Bitcoin has escaped a downward trend (visible in the blue lines).
Over the next half-year, I predict it could exceed $75,000.
AI Revolution: Fueled by Exponential Growth
Another influential Chaos Agent is exponential technological progress.
After years of gradual increases, computing technology is advancing at an astonishing pace.
Each year sees improvements in speed, power, affordability, and size of computers.
These changes have far-reaching effects on our economy, leading to rapid shifts in industries, creating new ventures, and eliminating old businesses.
Take OpenAI’s ChatGPT for instance; it garnered 100 million monthly active users just two months post-launch.
In contrast, Facebook achieved that milestone after 4.5 years, and it took Spotify 10 years to reach a similar user base.
The surge in technology is energizing developments in AI, robotics, self-driving cars, personalized healthcare, and innovative space travel.
This growth trend is also delivering significant stock returns to those who are well-informed.
Leading AI chip manufacturer NVIDIA Corp. (NVDA) recently achieved a new all-time high, reflecting an increase of approximately 850% since the beginning of last year. Its rise underscores the dynamic intersection of technology and investment opportunities.
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Nvidia Surpasses $3.4 Trillion Market Cap, Redefining AI Investment Opportunities
With a market cap of $3.4 trillion, Nvidia stands as the second-largest company in the United States, trailing only behind Apple Inc. (AAPL).
Looking at opportunities in the tech world, the Robotics and Artificial Intelligence ETF (BOTZ) remains a strong contender for investment. It is approaching its 52-week high.
A breakout above $33 for BOTZ could positively reinforce the optimistic investment stance that many have about the robotics and AI sectors.
However, the energy requirements for AI technology are substantial and warrant attention.
Uranium Stocks Reach Unprecedented Heights
Training sophisticated AI models can utilize up to thousands of times more energy compared to standard computing tasks.
Some estimates suggest AI-focused data centers may consume up to 15 times more energy for each task than traditional data centers.
This scenario positions nuclear energy as a key player.
Nuclear power stands out as the sole clean “baseload” energy source capable of meeting large-scale energy demands.
Baseload power represents the constant, minimum energy needed to fulfill basic grid demands and is vital for grid stabilization. Failing to provide sufficient baseload can lead to blackouts and brownouts.
This growing energy demand is fueling a significant resurgence in nuclear technology investment, which has positively impacted the Global X Uranium ETF (URA).
As artificial intelligence continues its evolution, the demand for energy is likely to grow even more rapidly.
The Future of AI: A Potential Breakthrough on the Horizon
Recently, a question was posed to me regarding the next transformative event in AI.
People often seek to identify a new product or service that captivates the attention and spending of millions. They want to know what will drive the next surge of interest.
I shared my thought that an advanced AI assistant could be the breakthrough moment that ignites widespread enthusiasm.
While applications like Siri and Alexa fulfill basic functions—playing music, providing weather updates, and a few other simple tasks—they do not meet the comprehensive needs users have.
What many desire is an AI application that can take a more nuanced approach to assistive tasks, potentially transforming how we interact with technology.
The AI Revolution: Are We on the Brink of a New Era?
The demand for advanced AI tools is more pressing than ever.
Imagine asking for a reservation at a steakhouse just by speaking your request, or having a personal assistant that swiftly finds hotels and flights while also answering medical and legal queries. How efficient would that be? In today’s fast-paced world, saving time and money is crucial.
Tech experts believe that a breakthrough AI assistant from major companies like Apple, Google, or Meta could significantly increase interest in artificial intelligence. This change would make AI an essential part of our daily lives.
As InvestorPlace Senior Analyst Luke Lango points out, Apple is poised to lead this charge with its new rollout of Apple Intelligence.
Apple has so many customers and is such a high-profile company that it’s going to get high functioning AI into the hands of hundreds of millions of people.
It will be on your laptop… your tablet… your phone… even your watch. You will see people using it at the office, on trains, on buses, in the airport, in restaurants.
This will set off a tidal wave of demand for AI features and products from other companies… Plus set off a tidal wave of new demand for AI-related investments.
If you think AI is a hyped-up phenomenon now, you haven’t seen anything yet. Chat GPT was the Big Bang for AI. Apple Intelligence will be the second Big Bang.
Meanwhile, the upcoming presidential election is generating considerable uncertainty. The consequences could linger long after the ballots are cast, likely fueling a turbulent stock market.
In response to the imminent political chaos, Louis and Charles held a special event titled “The Day After Summit.” During this briefing, they discussed how election uncertainties could lead to increased stock market volatility and shared strategies on how to navigate this turbulence to generate profits.
They even provided insights on a trade that could be made before the election to benefit regardless of the next president.
Thus, to prepare for potential market upheaval, consider setting aside some time to watch the briefing before the election triggers a new wave of market chaos.
To life, liberty, and the pursuit of wealth in this Age of Chaos,
Brian Hunt
Cofounder, CEO, InvestorPlace
