The Next Investing Mania Is Beginning – Here’s How to Profit

The Next Investing Mania Is Beginning – Here’s How to Profit

By Louis Navellier, Editor, Breakthrough Stocks

I like to say the bigger the crowd, the lower the IQ. This is especially true of the stock market.

But don’t take my word for it…

Charles Mackay’s classic book on investing manias, Extraordinary Popular Delusions and the Madness of Crowds, says it all.

First published in 1841, it examines some of the biggest financial bubbles in history – the Dutch Tulip Mania (1636-1637), the South Sea Bubble (1720), and the Mississippi Scheme (1719-1720).

Each speculative frenzy led to massive gains early on… followed by dire consequences later.

Let’s look closer at the Dutch Tulip Mania. It’s often cited as the world’s first investing mania.

Then we’ll get into the new mania that’s beginning now… and how, as early investors, we can profit.

1,000% Gains in a Matter of Months

Tulips were introduced to Europe from the Ottoman Empire in the late 16th century.

They became a status symbol in the Netherlands, one of Europe’s richest nations at the time.

As demand for tulips grew, particularly for rare varieties, so did their prices. By the early 1630s, tulip prices soared. Bulbs changed hands for the value of houses… even entire estates.

At the height of the mania, prices were rising by more than 1,000% within a matter of months.

The mania spread so fast and wide. The whole of Dutch society was getting involved. As Mackay recounts…

Nobles, citizens, farmers, mechanics, seamen, footmen, maidservants, even chimney sweeps and old clothes-women, dabbled in tulips.

Of course, all manias eventually end. By 1637, the bubble in tulip bulb prices had burst. Mackay…

Substantial merchants were reduced almost to beggary, and many a representative of a noble line saw the fortunes of his house ruined beyond redemption.

This was devastating for folks who piled in as the boom was reaching fever pitch. But like with all manias, there was a silver lining. For early speculators, the profits were astronomical.

Manias Don’t Happen Overnight

Take a more recent example – the dot-com boom in the 1990s.

I had just launched my Growth Investor advisory at InvestorPlace. So, I remember it well. Folks saw fortune-making gains as investors bought dot-com stocks to capitalize on the internet economy.

Take Cisco (CSCO). It’s a major player in networking technology and the poster child of the dot-com boom. From 1995 to its peak in March 2000, its stock surged 800%.

Or take Amazon (AMZN). It went public in 1997. By its peak in December 1999, its stock price had surged by more than 5,000%.

And in 1999, shares in chipmaker Qualcomm (QCOM) rocketed 2,619%.

I’ve been a professional investor for more than 40 years. Over that time, I’ve seen my fair share of manias. Here’s what most folks don’t realize…

Manias don’t happen overnight. They quietly build in the background over many years.

And folks who invest ahead of the crowd stand to make potentially life-changing profits.

I bring this up because we’re on the verge of another tech mania – in next-generation AI.

Out With the Old, In with the New

Right now, investors are focused on the old story – first-generation AI.

Think Nvidia (NVDA) and other AI chipmakers. Or think Microsoft (MSFT)and other Big Tech firms that are integrating generative AI into their software and platforms.

Don’t get me wrong. The gains in this first generation of AI stocks have been impressive.

Since the start of 2023, Nvidia is up about 873%. It now has a market value of nearly $3.4 trillion.

And over that time, Microsoft’s share price has nearly doubled – not bad for a company worth about $1.5 trillion at the start of that move.

And this is only the beginning of the story…

The winners of what I call the Real AI Boom won’t just upgrade software and social media with AI.

They will use AI to entirely reshape existing occupations. 

And these changes will roll out across society – and reshape America – on an even bigger scale than we saw in the late 1990s when the internet began to go mainstream.

Soon, folks will laugh in the face of a college kid who says, “I want to go to medical school,” or “I want to go to law school,” or “I want to be an engineer.”

All the “respectable” jobs of the 20th century will be downsized, eliminated, or knocked off the pay scale by such a large margin that it will kill entire industries.

Many of the jobs that define American life today will vanish. This will create the steepest income gap in our nation’s history, as the money and high-paying jobs flow to companies behind next-gen AI.

And this flow will be on a massive scale…

By 2030, the AI market is expected to grow 20x to reach $15.7 trillion.

That’s almost the size of China’s entire annual economic output.

And you don’t have to be left behind…

Last Investment Mania of Our Lifetimes

If, like me, you’re over 50, this could be the last investment mania of our lifetimes.

So, now is the time to invest… before the crowd piles in.

If I’m right, it’s a chance to invest a small grubstake in select, high-growth stocks and see massive potential profits.

I know a thing or two about that…

While I was a student at Cal State in the 1970s, I was tasked with a class assignment to create a stock market model that could beat the market.

This led me to become a pioneer in what’s now known as quantitative analysis – the use of data and financial metrics to identify patterns in stock performance.

I began publishing my quantitative analysis on growth stocks back in 1980. Seven years later, I started managing private accounts for high-net-worth clients.

I now use my Stock Grader system to harness quantitative analysis to find the world’s best-performing growth stocks.

It’s what allowed me to recommend chipmaker Micron Technology (MU) before it rose 2,050%… chip supplier Lam Research (LRCX) before it rose 4,350%… and Intel (INTC) before it rose 3,228%.

I also recommended Amazon before it rose 8,151%… and Netflix (NFLX)before it rose 7,749%.

And the biggest gains are still to come.

My Stock Grader system has uncovered six top-ranked growth stocks using next generation AI. So, there’s still time to prepare your portfolio before the real boom begins.

To watch my Real AI Boom presentation for free – and learn how to get the names of these six stocks – follow this link.

I’ll see you there!

Louis Navellier
Editor, InvestorPlace

P.S. Like all manias, the next gen AI mania that’s coming will one day end. And yes, it has the potential to wipe out unsuspecting investors who get in late.

But if you invest ahead of the crowd… and follow my recommendations, you’ll only invest in stocks that are in tip-top condition. Every small- to mid-cap stock I recommend must be A-rated.

That means at least 25% sales growth and at least 50% earnings growth. These stocks will be among the biggest long-term winners of the boom ahead.

Here’s that link again to watch my Real AI Boom presentation.