I'm guessing many of you are still excited about the AI craze... I am, too. I can't help it. I've spent decades in finance, specifically focused on using computers to generate the highest returns possible.

Editor's note: We're at the end of 2024... When you hear from us next in the Chaikin PowerFeed, we'll be in the new year. Our offices and the markets are closed this Wednesday for New Year's Day. So we won't publish the PowerFeed that day. You can expect to receive your next issue on Thursday, January 2. But today, we're back with another essay from Chaikin Analytics founder Marc Chaikin about artificial intelligence ("AI"). We've shared insights from Marc on the topic in the past couple editions of the PowerFeed. And today, we're sharing another one – adapted and updated from one of his PowerFeed essays from July last year. In it, Marc cautions about a particular approach when it comes to taking advantage of the AI trend... How Not to Invest With AI By Marc Chaikin, founder, Chaikin Analytics I'm guessing many of you are still excited about the AI craze... I am, too. I can't help it. I've spent decades in finance, specifically focused on using computers to generate the highest returns possible. So, when a new computer tool promises to revolutionize the way we work... I take it seriously. And I'm having fun with it, too. Many of my colleagues have received an e-mail from me that included some content written using AI. I just love how incredibly natural AI writing sounds these days. It's truly an incredible leap. But that doesn't mean everything AI-related is golden. Today, we're going to explore a dark spot in AI. And we'll use the Power Gauge to help us with it... Recommended Links: 'This Could 5X Your Money – No Matter What Happens in 2025' When the Pentagon and Wall Street's big investing houses have questions, they've often turned to the man who predicted the crashes of 2008 and 2020. (He even named the dozens of companies that wouldn't survive.) Now, he says what's coming in early 2025 will trigger both huge gains AND more losses, depending on which side you're on. Click here for details. The Bitcoin Supercycle Is HERE: Buy These Six Cryptos Immediately Bitcoin is skyrocketing after Donald Trump's presidential victory. And according to crypto expert Eric Wade, it's just getting started. A proposed federal program backed by the new administration is set to ignite a major new crypto bull run. To help you prepare, Eric just released an emergency briefing detailing six cryptos with 1,000% potential to act on immediately. Click here for his crypto update. You see, the Power Gauge has identified a way not to invest with AI. And I think you should hear about what it has uncovered. After all, the fund literally has "AI" in its name. Now, astute readers will have noticed... Today, we're talking about investing with AI rather than in AI. That's an important distinction. Sure, there are lots of great, and not-so-great, ways to play the AI trend. But some investment tools available to investors also claim to use AI in their processes. The one we're looking at today is the Amplify AI Powered Equity Fund (AIEQ). At first glance, that name looks great. Bigwigs on Wall Street put together an exchanged-traded fund that's specifically powered by AI. But looking at the performance... we can quickly see something is wrong. The S&P 500 Index has absolutely soared this year. And so has the Nasdaq Composite Index. They've gained roughly 24% and 30%, respectively, in 2024. But AIEQ hasn't kept up. It has only gained about 12% this year.  That's still a decent gain. But underperformance like that adds up over time. It's not just an underperforming year for the fund, either. Zooming out even more, we find that over the past five years, the fund is up about 40%. Over that same time frame, the S&P 500 clobbered it with a roughly 82% gain. Today, most of the stocks in the fund earn a "neutral" or worse rating from the Power Gauge.  Put simply, this fund may have AI in its name, but the Power Gauge and fund's performance make it clear... This is not how you want to invest with AI. Now, that doesn't mean I'm not excited about AI. I'm particularly bullish about how investors can leverage these new tools in their own portfolios. But as I said earlier, for all of the great ways to play the AI trend... there are plenty of not-so-great ones out there, too. Good investing, Marc Chaikin Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 -0.96% 8 12 10 S&P 500 -1.13% 63 258 175 Nasdaq -1.31% 20 53 27 Small Caps -0.75% 370 1049 486 Bonds +0.8% — According to the Chaikin Power Bar, Large Cap stocks are more Bearish than Small Cap stocks. Major indexes are mixed. *  *  *  * Sector Tracker Sector movement over the last 5 days Energy +0.7% Financial -0.33% Utilities -0.39% Real Estate -0.47% Staples -0.7% Industrials -0.9% Health Care -1.09% Communication -1.13% Discretionary -1.36% Materials -1.49% Information Technology -1.51% *  *  *  * Industry Focus Telecom Services 8 19 13 Over the past 6 months, the Telecom subsector (XTL) has outperformed the S&P 500 by +29.74%. However, its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #7 of 21 subsectors and has moved up 13 slots over the past week. Indicative Stocks ASTS AST SpaceMobile, Inc ATEX Anterix Inc. FYBR Frontier Communicati *  *  *  * Top Movers Gainers AMTM +8.89% EQT +5.12% CTRA +3.57% DVN +2.47% FANG +1.67% Losers SMCI -4.07% ON -3.86% WBA -3.74% MU -3.62% TSCO -3.61% *  *  *  * Earnings Report Reporting Today Rating Before Open After Close No earnings reporting today. Earnings Surprises No significant Earnings Surprises in the Russell 3000. *  *  *  * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You're receiving this e-mail at edwardlorilla1986.paxforex@blogger.com. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2024 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. www.chaikinanalytics.com. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors. Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.