History’s Most Consistent Pattern Could Destroy Your Portfolio
RJ Hamster
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July 5, 2024
History’s Most Consistent Pattern Could Destroy Your Portfolio
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Something huge is headed for Nvidia and the biggest AI stocks in the market.
Thanks to one of history’s most consistent market patterns, anyone holding these stocks could lose their shirts.
This comes from Tom Gentile, the latest addition to our corporate family.
For newer Digest readers, Tom is a veteran pattern trader, identifying reliable stock price patterns in historical data, then placing calculated wagers that those patterns will repeat.
His mastery of chart patterns makes his warning especially concerning. As he writes below, “My research shows that many of today’s top AI stocks are setting up for a similar boom-bust pattern [as we saw in the dot-com crash].”
In today’s guest piece, Tom offers a roadmap for the boom/bust pattern he sees coming – and how to create lifechanging wealth before the eventual fallout.
If you’re an AI investor, this is an important Digest. As Tom writes, you don’t want to invest in the next Cisco – and spend the next 25 years underwater.
According to legendary trader Tom Gentile, who predicted the rise of AI in early 2019… and gave his readers a chance to turn $10,000 into as much as $325,000 in shares of Nvidia…
If you’re just buying and holding AI stocks, you could lose your shirt in the coming days.
But if you know what to do, you’re going to have multiple chances to turn $5,000 into as much as $30,000 in about 30 days or so… and do it over and over again… starting on July 9.
Which is why he’s hosting an urgent online strategy session this coming Tuesday at 8 pm ET.
Since the launch of ChatGPT in November 2022, artificial intelligence (AI) stocks have been on a tear.
Microsoft (MSFT), an early investor in ChatGPT, is up 79%.
Meta Platforms (META), which is building rival AI systems, is up 326%.
And Nvidia (NVDA), the world’s leading maker of AI chips, has gone up 621%.
It’s been a great run.
But as you’ll see today, something huge is headed for Nvidia and the biggest AI stocks in the market.
Thanks to one of history’s most consistent market patterns, anyone holding these stocks could lose their shirts.
But as I’ll show you today, there is a way to profit from the upside these stock offer, without suffering devastating losses.
First, for folks who don’t know me, a brief introduction…
From Forklift Driver to Top Trader
I didn’t start out with a career in the markets in mind.
My first real job was stocking shelves and driving a forklift at Home Depot.
But I knew I didn’t want to do back-busting work for the rest of my life.
So, while working my day job at Home Depot, I taught myself to trade in my parents’ basement.
There was a lot of trial and error at first. But soon, I got pretty good at it.
And in 1993, I started a trader education company called Optionetics with my mentor and world-renowned trader George Fontanills.
Maybe you’ve heard of us. Heck, maybe you’ve even been to one of our seminars. We’ve held them all over the world – Orlando, London, Paris, even Saudi Arabia. More than 300,000 students in all.
In 2009, I was lucky enough to sell Optionetics to the world’s largest brokerage firm for $20 million.
I could have retired. But that’s not who I am.
Instead, I put together a team of data analysts, programmers, and actual rocket scientists from NASA and Raytheon to build software to find hidden patterns in the market…
… patterns anyone can trade for profits.
I began sharing them with a small group of traders. Eventually, I reached an audience of more than 1 million with my insights, trade recommendations, and educational materials.
Over my career, I’ve seen just about every stock market pattern you can imagine.
And the pattern I see coming for AI stocks is one of the most consistent… and most devastating.
History’s Most Lucrative – and Devastating – Pattern
Think back to the dot-com boom in the late 1990s.
I remember it well. Everyone was talking about internet stocks – even my mother-in-law.
It was a frenzy.
Everyone had a hot tip. You couldn’t go to a dinner party without someone telling you about an up-and-coming internet stock that was going to mint millionaires.
But most buy-and-hold investors ended up losing a lot of money during that boom.
Take dot-com stock Viavi Solutions (VIAV), for example. It makes tools to monitor the health and performance of digital networks.
It jumped as high as 42,000% during the boom.
Then the market turned, and this happened…
You would have to be the luckiest person in the world to have gotten in at the bottom and out at the peak.
Or take Cisco Systems (CSCO).
This Silicon Valley company makes the routers and switchers that make the internet run. And it became the poster child for the dot-com mania.
Cisco jumped more than 85,000% in the 1990s.
But once the party was over, it came crashing down.
And look what happened next…
Almost 25 years on, and its share price is still below its dot-com peak.
As a long-term investor, that’s two lost decades.
And the dot-com boom isn’t the only time this pattern has occurred.
We also saw it in meme stocks and crypto during the pandemic… in housing stocks in 2008… in Japanese stocks in the early 1990s… and in the entire stock market in the 1920s.
And my research shows that many of today’s top AI stocks are setting up for a similar boom-bust pattern.
The biggest names are headed for a crash in the same way the trendiest internet stocks did more than two decades ago. And those who aren’t prepared could get wiped out…
I predict that, over coming months, we’ll see more profits in AI than we’ve seen in the last five years.
Then the music is going to stop… just like it did at the end of the dot-com boom.
If you don’t know how to play it, you could end up losing ALL your profits. It will happen so quickly that you won’t be able to sell until it’s too late.
As great as Nvidia looks right now, it could wind up being the next Cisco – and spend the next 25 years underwater.
You could spend years – even decades – trying to catch up.
Luckily, there’s a way to capture the gains… and avoid the devastating losses.
As I mentioned, I’ve dedicated my life to spotting hidden patterns in the stock market.
By finding these patterns, I can predict future market events with a high degree of certainty.
And one of my systems is designed to tell me precisely when the Final Phase will hit.
I’m revealing everything you need to know about how it works and how you can use it to navigate this Final Phase on Tuesday, July 9, at 8 p.m.
I’ll tell you more about what’s coming… how to protect your money over the long term… and how to use my proprietary tool to profit over the short term.
