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Editor’s Note: As the waves of tech innovation ripple through our economy and society, it’s going to create unfathomable opportunities.

But it will come at a cost.

You don’t want to find yourself on the wrong side of this gap, which is why I’ve teamed up with my InvestorPlace colleagues Eric Fry and Luke Lango to help you prepare for the shift.

The reality is this “Technochasm” is about to drastically accelerate… so we’re stepping forward to not only warn investors but help them thrive during this next chaotic chapter of AI.

It all leads up to our urgent briefing on Thursday, March 27, at 10 a.m. Eastern where we will be sharing three critical steps you must take now to stay on the right side of this. Click here to immediately save your seat for this free event.

Now, in yesterday’s Market 360, we heard from Eric. So, today I have asked Luke to share his views on the unprecedented waves of change that are headed our way – and how investors can prepare. Without further ado, here’s what Luke had to say…

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Hello, Reader.

For years, the American economy has been a tale of two realities:

• One where the rich continue to get richer bolstered by AI-driven stock market gains and asset appreciation…
• And another where folks in the lower-income brackets are falling further behind.

Now, Jamie Dimon, the head of America’s largest bank, is warning that the gap is widening at an alarming rate.

Speaking at Adobe Inc.’s  (ADBE)’s annual summit in Las Vegas last week, the CEO of JPMorgan Chase & Co. (JPM) warned that while the economy is still in its “soft landing” phase, turbulence is mounting, and it’s hitting low income Americans the hardest.

“The bottom 20% [of earners in the U.S.] didn’t get a pay raise for 25 years. They’re dying younger,” he said. “Their schools aren’t good, and they live in crime-ridden neighborhoods.”

Meanwhile, he noted, wealthier Americans have benefited from decades of soaring stock and home prices.

Dimon’s warning highlights a stark truth: The wealth gap in America is widening at an accelerating pace.

According to an October 2024 report from the nonpartisan Congressional Budget Office, the top 10% of wealthy Americans now control 60% of the nation’s wealth, while the poorer half of the country holds only 6%.

As inflationary pressures mount, geopolitical instability rises, and tariffs threaten to shake up trade, the growing economic divide is deepening.

If you’re not positioning yourself on the right side of this divide, the risks are only getting bigger.

So, in today’s issue, let’s review everything you need to know about the growing wealth gap (and it’s real cause)…

How AI is supercharging this decades-old phenomenon…

And explore some ways to ensure your financial future doesn’t get left behind.

The Vanishing Middle

Decades ago, we were a country with relative wealth equality and boasted a vast and robust middle class. 

Today, the middle class is shrinking… and not in a good way. Millions of folks are sinking below the poverty line.

As this massive socioeconomic shift continues, a shrinking sliver of our population controls an ever-larger portion of our national wealth. 

According to a 2014 study by academics at the National Bureau of Economic Research, wealth inequality reached levels not seen since the Great Depression in 2012.

Since the early 1980s, according to the study, the share of household wealth owned by America’s top 0.1% increased from 7% to 22%. In 1980, the richest 1% of Americans owned about 30% of all household wealth in the country, while the bottom 90% owned about 24% of all household wealth. 

I wish I could tell you this situation will be resolved soon… but it won’t. 

If you want to avoid getting crushed by the force behind this wealth gap, you’ll have to take action yourself… and you’ll have to do it now. 

Few people understand it, but there’s an incredibly powerful force behind America’s wealth gap. 

Once you learn the story, I encourage you to make sure you and your money are on the right side of the chasm. 

Here are the details…

Don’t Get Blockbustered

In the spring of 2000, a man named Reed Hastings traveled to Dallas with a big business idea. 

Hastings approached the management of movie rental giant Blockbuster with a proposal. He wanted Blockbuster to buy his small business for $50 million. 

At the time, Hastings’ company – Netflix Inc. (NFLX) – had a promising business model. It allowed people to rent movies through the mail. Netflix, at the time, was small and struggling to turn a profit. 

Blockbuster essentially laughed Hastings out of the room. 

You know the rest of the story…

Netflix secured investment from other sources and built a hugely popular mail-order DVD rental business. And around 2007, it began transitioning into America’s No. 1 video “streaming” service. This innovation crushed traditional brick-and-mortar rental companies like Blockbuster. 

In 2002, Netflix had less than 3 million subscribers. As of late 2024, the company boasted 302 million subscribers and its stock had reached a market valuation of nearly $400 billion. 

Blockbuster’s market valuation? $0.

The destruction of seemingly strong and dominant businesses by innovative technology-focused upstarts is a story we see over and over and over and over…

Consider Uber Technologies Inc. (UBER) demolishing the “old” taxi industry while making its founders billionaires…. or shares of Amazon.com Inc. (AMZN) soaring more than 2,000 while dozens of old-school brick-and-mortar retailers were driven into bankruptcy. 

The rate at which these huge disruptions occur will speed up over the coming decade.

They will make the wealth gap grow wider every year. 

And they’re why my InvestorPlace colleagues and I call this gap “The Technochasm.”

If you’re on the right side of the Technochasm, you’re virtually guaranteed to make a fortune. 

If you’re on the wrong side, you could lose your job and the value of your portfolio could crater. 

This is why new industries are springing up at an ever-increasing pace… while old industries are withering away even more rapidly. 

It’s all thanks to technological exponential progress. 

And now, this process is happening faster than ever before.

That’s thanks to the emergence, in 2022, of ChatGPT and other generative AI apps…

AI: The Next Wave of the Technochasm 

AI is turbocharging the Technochasm.

Consider…

• AI will automate up to 70% of office work in the next decade, according to Goldman Sachs. 
• Companies like Alphabet Inc. (GOOGL), Amazon, and Meta Platforms Inc. (META) are cutting tens of thousands of jobs to replace them with AI-driven automation. 
• AI-driven companies are growing exponentially—AI chip developer Nvidia Corp.’s (NVDA) stock has surged over 1,000% in the last five years, while AI-powered software companies like Palantir Technologies Inc. (PLTR) and Twilio Inc. (TWLO) have also skyrocketed. 

But here’s the most important point: We are still in the early stages of AI’s impact. The biggest opportunities—and the biggest Technochasm risks—are yet to come.

That’s why on Thursday, March 27, at 10 a.m. ET, I’m going on camera along with my fellow InvestorPlace Senior Analysts Louis Navellier and Luke Lango to share a groundbreaking AI announcement that could make or break investors moving forward. You can automatically save your seat for that free event right now by going here.

During that broadcast, Luke, Louis, and I will show you the three critical steps you must take now to stay on the right side of the Technochasm. 

We’ll also explain how a trillion-dollar flood of money could soon surge into AI, thanks to moves by President Donald Trump.

We are at an inflection point—those who act now will reap the rewards. Those who ignore this shift risk being left behind. 

Learn how to get on the right side by joining us on Thursday, March 7, for our urgent AI briefing. Sign up automatically here.

Good investing,

Eric Fry

Editor, Smart Money

Trump and tariff “flexibility” … uncertainty in FedEx’s guidance … Charles Sizemore with Trump’s real tariff goal … why a monster rally could be in the cards

As I write Monday morning, stocks are exploding higher on hopes of lighter-than-expected tariffs.

The optimism began last Friday when President Trump told reporters that there will be “flexibility” in his tariff plans.

From Trump:

People are coming to me and talking about tariffs, and a lot of people are asking me if they could have exceptions. And once you do that for one, you have to do that for all.

I don’t change. But the word flexibility is an important word. Sometimes it’s flexibility. So, there’ll be flexibility, but basically, it’s reciprocal.

Then, yesterday, The Wall Street Journal reported that the Trump administration is likely to narrow the tariffs it enforces on April 2.

From the WSJ:

[Which] sector-specific tariffs, however, are now not likely to be announced on April 2, said an administration official, who said the White House is still planning to unveil the reciprocal -tariff action on that day, though planning remains fluid. The shift was earlier reported by Bloomberg…

The focus of the reciprocal action now looks to be more targeted than originally thought, according to people with knowledge of the planning, though it will still hit countries that account for most of the U.S.’s imports…

The fate of the sectoral tariffs, as well as tariffs on Canada and Mexico that Trump said were justified by fentanyl trafficking, remains uncertain. 

The article suggests that Trump could limit his tariffs to the “dirty 15,” which is how Treasury Secretary Scott Bessent put it last week. These are countries with trade imbalances the Trump administration doesn’t like.

Now, same as Wall Street, I’m excited to see what appears to be some softening in Trump’s tariff stance. If it continues, today’s rally could turn into a significant bull run over the coming weeks (more on that later).

But let’s also recognize that the WSJ article reinforced the bane of the market for weeks now …

“Uncertainty.”

A key earnings-report last Thursday echoed this concern…

(We’ll circle back to Trump and tariffs momentarily.)

“Continued weakness and uncertainty in the U.S. industrial economy.”

That was the reason FedEx management cited for why it cut its profit forecasts for the third straight quarter last Thursday after the closing bell.

Wall Street didn’t like the news and punished FedEx on Friday, driving the stock 6.5% lower (and as much as 11% lower intraday).

FedEx is one of a handful of stocks considered bellwethers for corporate America and, by extension, the stock market because it plays an integral role in global commerce.

Business slowdowns or geopolitical tensions affecting trade often show up in FedEx’s earnings and outlook, so it can serve as a “canary in a coalmine” for the global economy.

Now, last Thursday, FedEx reported reasonably solid quarterly earnings. The problem was its full-year guidance, which management cut.

So, what’s the missing variable between today’s solid earnings and tomorrow’s potentially weaker earnings?

You guessed it. Our “word of the day.”

From Barron’s:

Tariff uncertainty is reducing overall activity.

As noted above, next week on April 2^nd, President Trump will reportedly unveil his plan for reciprocal tariffs

Here’s Axios:

The new tariff regime will take aim at trading partners that officials believe treat domestic exporters unfairly.

The result will be Trump’s most aggressive tariff actions to date, which could hike costs for consumers, damage longstanding trade relationships and spark global trade wars.

In recent weeks, Trump has referred to April 2 as “Liberation Day,” saying his upcoming tariff decision is “the big one,” distinguishing it from the series of levies we’ve seen imposed so far.

Here’s Trump from Truth Social:

For DECADES we have been ripped off and abused by every nation in the World, both friend and foe. Now it is finally time for the Good Ol’ USA to get some of that MONEY, and RESPECT, BACK

As I’ve highlighted in recent Digests, tariffs make me nervous.

If they’re used briefly to apply negotiating pressure for the ultimate purpose of making trade freer and less expensive, fantastic. Let’s use them, establish better deals, then return to prosperous trading.

But if used for too long, they risk reigniting inflation, dragging down economic growth, and eroding Main Street America’s spending power.

Plus, as we noted in last Tuesday’s Digest, we’re not seeing abundant evidence of “ripped off and abused” on a wide basis:

Does this new levy match a 25% tariff that Canada has had in place on the U.S?

Not from what I can tell. According to the World Trade Organization’s 2023 data, Canada’s simple average Most-Favored-Nation (MFN) applied tariff was 3.8% for all products. For agricultural products, the tariff was 14.8%.

For added perspective, prior to Trump’s 25% tariff on Canadian goods, U.S. tariffs toward Canada were somewhat like Canadian tariffs toward the U.S.

According to the Tax Foundation, the average U.S. tariff on all U.S. imports (including Canada) was approximately 2.5% in 2024. However, certain Canadian products had higher tariffs, such as softwood lumber. Last summer, President Biden raised its tariff from 8.05% to 14.54%.

In the days since that Digest, I looked at the tariff situation between the European Union and the U.S. I can’t find evidence of a massive tariff differential there either. Yes, certain sectors have specific, far higher tariffs, but those appear to be select cases.

From the European Commission:

There is not one “absolute” figure for the average tariffs on EU-US trade, as this calculation can be done in a variety of ways which produce quite varied results.

Nevertheless, considering the actual trade in goods between the EU and US, in practice the average tariff rate on both sides is approximately 1%.

(As I noted in last Tuesday’s Digest, if you have data that suggest a different conclusion, please email me at [email protected]. I’m happy to feature it in this conversation.)

So, if horribly lopsided tariffs aren’t necessarily at the heart of Trump’s tariff plan, what might be?

According to our geopolitical expert, Charles Sizemore, a more aggressive effort to “rebalance” global trade via the Mar-a-Lago Accord.

What is the “Mar-a-Lago Accord” and what would it mean?

For newer Digest readers, Charles is the Chief Investment Strategist at our corporate partner, The Freeport Investor, where he marries political and macro analysis with the investment markets.

Here’s Charles with more on this Accord:

It’s based on a November 2024 paper written by the chairman of Trump’s Council of Economic Advisors – a Harvard Ph.D. called Stephen Miran.

And at its heart, it proposes forcing America’s trading partners to strengthen their currencies versus the U.S. dollar, making U.S. exports cheaper and imports more expensive.

Now, there is no evidence that Trump or his administration has officially proposed or is actively pursuing this plan. But it’s worth examining since it might explain Trump’s focus on tariffs.

At the center of the Mar-a-Lago Accord is one thing – a weaker dollar. Here’s Charles:

Trump wants to boost American manufacturing by making American products cheaper than their foreign competition.

He wants to balance America’s $900 billion trade deficit (the difference between the value of imports and exports) by weakening the exchange rate of the U.S. dollar.

When the dollar is strong relative to overseas currencies, it makes U.S. exports more expensive. A weaker dollar makes U.S. exports more affordable.

Think of a weaker dollar as a “stealth tariff.” It gives U.S. exporters an advantage but without the negative political fallout of a trade war.

The easiest way for Trump to make his policy agenda sustainable is make the dollar weaker.

Part of this plan would target national debt reduction.

Foreign holders of U.S. Treasurys would be required to exchange their bonds for interest free 100-year bonds.

Charles highlights how this would instantly chop about $300 billion off the federal government’s $1 trillion annual interest bill. Very good news.

Of course, countries holding our debt may not be thrilled about swapping out Treasury payments for 100-year zero-coupon bonds (they’d be sold at a discount, so holding them to maturity would be the only way foreign governments would get back their investment and make a return).

This could result in foreign governments dumping our bonds, driving up yields. Not so much “very good news.”

Now, even if this part of the plan isn’t pursued, Charles believes a devalued dollar would still be front-and-center for one purpose: to shrink the U.S. trade deficit. This is what President Reagan pursued in the 1985 Plaza Accord.

Forgetting the “why”, let’s turn our attention to the “what?”

Let’s shift our focus to the potential outcome of a weaker dollar. There are pros and cons.

A weaker dollar would be supportive of more U.S. manufacturing since a strong dollar has the opposite effect. Here’s Charles:

A strong dollar makes U.S. exports cost more in overseas currency terms.

This encourages manufacturers to move production overseas instead of locating them in America.

And, to a point, a weaker dollar would be good for your portfolio.

More than 40% of the S&P 500’s revenues come from overseas. So, if the dollar weakens, those overseas revenues convert into more dollars during the currency conversion. That means more profits.

But the downside of a weaker dollar is inflation. After all, a weaker dollar requires more of those weak dollars to pay for the same basket of goods.

Back to Charles:

The Mar-a-Lago Accord will – by design – reduce the buying power of your dollars.

Yes, it may be a boon for U.S. exporters and the folks who work for them. It may even boost jobs.

But it won’t be a free lunch. And the downside will be that the dollars you earn and save will be worth less.

So, what’s the related action step?

No surprises here; we’ve answered it many times in the Digest.

Make sure you own:

• Top-tier stocks with pricing power to protect profit margins
• AI/technology stocks with strong earnings growth potential
• Gold – the go-to wealth preservation asset for millennia
• Gold miners – essentially gold with leverage
• Real estate – another proven wealth preserver
• Bitcoin – yes, it’s been struggling in the wake of its December all-time high, but even a small allocation remains a wise move
• Some cash – not too much cash. But if bearish sentiment results in another leg lower, you’ll need some cash to take advantage of great assets on sale

To learn how Charles is playing this in his service Freeport Investor as a subscriber, click here to learn more about joining him. I’ll add that beyond his investment portfolio, no one breaks down the connection between the political and investment worlds as well as Charles.

Now, let’s end today by circling back to the buying pressure we’re seeing on Wall Street.

Are we seeing the long-awaited rebound rally begin?

In recent Digests, we’ve highlighted how, in the short-term, sentiment is the primary driver of a stock’s price. For durations of one year or less, sentiment is responsible for nearly 50% of a stock’s movement.

However, in the long-run, earnings are the true driver. The farther out you go, the greater the link between earnings and price.

For example, after 10 years, earnings account for 74% of a stock’s movement while sentiment drives just 5% of it.

Circling back to FedEx, what happened with this bellwether last week is a good symbol for what’s happened with the overall market.

Current earnings have been bullish. But current sentiment has been bearish based on worries about future earnings (due mostly to tariffs).

As of now, if earnings remain bullish and something changes that flips bearish sentiment bullish (say, Trump softening on tariffs?), then we’re in for a massive rally as Wall Street shifts its gaze away from “fearful sentiment” and refocuses on “robust earnings.”

Think of a slingshot being pulled back to within centimeters of its max elasticity. When that pressure is released, the momentum is extraordinary.

In the same way, if today’s bullish sentiment settles in, the market will explode higher.

But if something changes that spooks Wall Street, throwing cold water on our forecasted strong earnings, then our “stretched” slingshot breaks…and stocks take a fresh leg lower.

All this points toward April 2, and Trump’s big tariff reveal

If Trump comes in light on tariffs? Melt-up.

But if Trump goes big on tariffs and sounds unapologetically hawkish? Melt-down.

As it looks today, “melt-up” has the slight edge and Wall Street is getting excited.

As the Alexander Pope poem goes, “hope springs eternal.”

Have a good evening,

Jeff Remsburg

Editor’s Note: There are a lot of distractions in the market right now – distractions that are overshadowing a sea change happening right under the surface.

You see, five years ago my InvestorPlace colleague Eric Fry made a bold prediction about how a phenomenon he called the “Technochasm” would split the economy and the stock market in two.

On one side of the gap are the companies (and investors) who leverage rapid technological innovation. On the other: Investors and businesses that get caught off guard and fall behind.

Fast forward to today, everything he predicted is coming true. And now, we think it’s about to shift into overdrive.

Now, over the next three days, you will be hearing from my colleagues Eric Fry and Luke Lango, as well as myself. And that’s because we want to warn you of this event – and tell you how to prepare. It all leads up to our urgent briefing on Thursday, March 27, at 10 a.m. Eastern. That’s when we will share a groundbreaking AI announcement you won’t want to miss.

Click here to immediately save your seat for this free event.

In the meantime, here’s more from Eric.

Hello, Reader.

“The sky is the limit” is an encouraging way to say that anything is achievable. Possibilities are endless, so goals should be vast. There are, after all, no roadblocks among the clouds.

And while it’s a nice idiomatic sentiment, the phrase, which dates to a book from 1908, finds itself limited.

Especially when, 60 year later, NASA’s historic Apollo 11 mission sent man further than the sky… and on to the rocky surface of the moon. We discussed man’s historic first lunar steps – and the space stocks that subsequently shot into orbit– in Thursday’s Smart Money. (I see the phenomenon blasting off again… this time with AI stocks.)

But now, nearly another 60 year later, even the moon is no longer the limit.

That is, if all goes according to Elon Musk’s cosmic ambitions.

In a post on X last weekend, Musk claimed that his Starship, the flagship spacecraft from SpaceX, is set to embark on a historic journey Mars by the end of 2026. This time, its passenger won’t be a typical astronaut, but Tesla Inc.’s (TSLA) AI-powered humanoid robot.

Meanwhile… Musk is expanding his reach into the U.S. government, serving as a senior advisor to President Donald Trump and as head of the cost- and jobs-cutting Department of Government Efficiency.

With his hands in both private industry and public policy, Musk’s moves now carry unprecedented weight.

So, in today’s Smart Money, let’s dive into how Musk’s ambitions have led to SpaceX’s plans to explore Mars…

And the opportunity these ambitions provide for investors.

Plus, I’ll point you toward another groundbreaking Musk innovation that also could deliver big gains, if you know where to look.

Let’s dive in…

Out of Science Fiction

Musk’s passion for Mars isn’t a new development.

Since 2001, he’s been advocating to bring humanity to the “fourth rock from the sun,” beginning with his involvement in the Mars Society, a space advocacy organization that promotes human exploration and settlement.

This long-standing dream became SpaceX’s mission: to establish a self-sustaining human presence on Mars, ultimately making humanity a multiplanetary species.

Galactic, colonial ambition? Check.

The infrastructure to carry it out? Also, check.

In 2010, SpaceX began missions for its Falcon 9 rocket – a reusable, two-stage rocket designed to safely transport people and payloads into Earth’s orbit and beyond. By reusing key rocket components, SpaceX dramatically reduced launch costs and has executed 447 successful missions to date.

The Dragon spacecraft, also flying since 2010, can transport up to seven passengers to and from Earth’s orbit. As the only current vehicle capable of returning large amounts of cargo from space and the first private spacecraft to carry humans to the International Space Station (ISS), Dragon recently brought astronauts Suni Williams and Butch Wilmore back home after their extended stay in space.

Starship represents SpaceX’s most advanced system yet. Designed to carry 100 people on interplanetary journeys, the vehicle will also support satellite delivery, lunar base development, and even Earth-based transportation. With an unmatched payload capacity and lower per-launch costs than current Falcon vehicles, Starship may revolutionize cargo and crew delivery across the solar system.

And Musk claims it will start with Optimus.

With plans to send humanoid robots now to Mars, Musk is one step – or perhaps light years – ahead of conventional thinking.

We know this from many of Musk’s previous achievements – from revolutionizing online payments with PayPal Holdings Inc. (PYPL) to transforming the automotive industry with Tesla.

His companies don’t just develop products…

They redefine entire industries.

SpaceX’s Explosive Growth

SpaceX has seen rapid growth, becoming America’s No.1 space exploration company, thanks to its collaboration with NASA. And Musk’s involvement with the U.S. government seems likely it will only continue.

If all goes according to plan, Musk could be sending humans to Mars in just five years.

And that’s not even the big opportunity with SpaceX.

The more immediate opportunity is Starlink, SpaceX’s broadband satellite network. By leveraging its revolutionary reusable rocket technology, SpaceX has already deployed 7,000 Starlink satellites, adding approximately 60 new units weekly and providing service across 114 countries.

Starlink now has 5 million users. And with 5.5 billion internet users worldwide, the growth potential is extraordinary. Last year alone, Starlink doubled its customer base.

In fact, this week, Starlink satellites were officially installed in the White House.

So, if you claim a “stake” in SpaceX today, you’d be getting on the ground floor of what could be a new internet giant.

With additional satellites going into space, I predict its service will keep getting better and cheaper, leading to massive gains in shares of SpaceX.

But here’s the challenge: SpaceX is a privately held company. Investing in it requires you to be wealthy… or have some serious Silicon Valley connections.

However, I’ve discovered a way for regular investors to claim a stake in this revolutionary company. I’ve compiled all the details in my new special report, How to Become Elon Musk’s Partner in SpaceX. You can learn how to access this report in my new free, special broadcast.

But of course with Musk, there’s always more…

He is working on another revolutionary project involving the race toward superintelligent AI – what I call “Apollo 2.0.”

So, love him or hate him, we’ve seen that Musk’s big ideas repeatedly translate into groundbreaking projects – and potential investment gains.

To learn more about the next generation of AI and Musk’s next breakthrough, click here.

Regards,

Eric Fry

During these busy times, it pays to stay on top of the latest profit opportunities. And today’s blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Stock Grader recommendations for 89 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.

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Article printed from InvestorPlace Media, https://investorplace.com/market360/2025/03/20250324-blue-chip-upgrades-downgrades/.

©2025 InvestorPlace Media, LLC

What if the next great tech revolution wasn’t AI… but something even bigger?

Last Thursday, NVIDIA’s CEO Jensen Huang did something unprecedented – he invited his critics to the table. Just months after dismissing quantum computing as decades away, Huang turned the spotlight onto the very companies proving him wrong.

At NVIDIA’s first-ever “Quantum Day,” the world’s top quantum minds unveiled breakthroughs that could reshape industries – from drug discovery to AI itself. But Huang wasn’t just there to listen. He had a plan.

With the launch of NVIDIA’s Accelerated Quantum Research Center and game-changing Quantum-X networking chips, NVIDIA is making its move. And legendary investor Louis Navellier believes that those who recognize the opportunity today could be looking at gains on par with the AI boom that sent NVIDIA soaring 7,000%.

Last week, Louis held a live event that dove into the enormous advancements that quantum computing will bring, and how to invest in it now, before the masses recognize what’s happening.

Today, we’re turning to the Digest over to Louis for all those details, as well as what NVIDIA revealed at Quantum Day.  

This is your moment to get ahead of the curve. The mainstream media hasn’t caught up yet, but when they do, the quantum sector could ignite.

So, what are the latest developments? And more importantly – how can you profit?

Here’s Louis to tell us.

Have a good weekend,

Jeff Remsburg

***********************

“This is the first event in history where a company CEO invites all of the guests to explain why he was wrong.”

That’s how NVIDIA Corporation’s (NVDA) CEO Jensen Huang kicked off his company’s highly anticipated Quantum Day – or “Q-Day” – Thursday afternoon.

If you remember, back in January, Huang was asked at the CES trade show what he thought about the prospects for quantum computing.

Huang replied that he thought a “useful” quantum computer was maybe 15 to 30 years off. Those comments caused a bit of a firestorm, and a group of quantum computing stocks got crushed as a result.

I mention this because I’ve been telling you for weeks that quantum computing is on the verge of a “breakthrough” moment.

I also told you to ignore Huang’s words and to watch his actions instead.

The reality is by hosting Thursday’s event, Huang’s goal was twofold:

1) To give these companies a chance to show how far quantum has come, and what obstacles the bleeding-edge technology still faces.

2) To position NVIDIA to take advantage of quantum’s potential… and its future profits.

As we’ve covered NVIDIA’s plans for quantum computing, I hope you’ve also positioned yourself to profit.

That’s because quantum is at a similar stage as where artificial intelligence was back in 2016, right before NVIDIA went on a historic 7,000% run.

Those who got in early made life-changing gains. Those who didn’t? Well, they missed out.

That’s the whole reason why I hosted the Next 50X NVIDIA Call event in the first place.

Because right now, quantum computing is offering investors a similar opportunity.

And if we learned one thing from Thursday’s Quantum Day, it’s this…

Quantum computing isn’t some distant fantasy. This tech revolution is happening now – and NVIDIA intends to lead the way.

That’s why investors everywhere are tuned in to see exactly what NVIDIA CEO Jensen Huang revealed.

So, in today’s Market 360, let’s talk about what we learned from Q-Day, what this means for the quantum computing revolution… and how you can profit from it.

Huang’s Quantum Leap

Let’s start off with the big news, which is the fact that NVIDIA announced the creation of the Accelerated Quantum Research Center.

The company will collaborate with quantum researchers from Harvard and the Massachusetts Institute of Technology to take on some of the most pressing challenges facing quantum computing.

The plan? Pair quantum hardware with NVIDIA’s supercomputers to pave the way for what it calls “accelerated quantum supercomputing.”

See, instead of seeing quantum computing as a threat to AI supercomputers (and, thus, NVIDIA), Huang’s idea here is to play to the strengths of each.

Quantum computing can help AI supercomputers blow past the limitations on the calculations they can perform. In turn, the researchers at the center will use the AI supercomputers to help smooth out some of the current roadblocks with quantum. That includes reducing qubit noise, or disturbances that cause quantum computers to mess up their calculations.

If NVIDIA can help tackle this problem, it will speed up the adoption of quantum computing on a commercial scale.

Aside from NVIDIA’s Accelerated Quantum Research Center, which is set to begin operations later this year, Huang also cited the company’s Quantum-X photonics networking chips during Q-Day, which will double performance and increase AI compute scalability fivefold.

Now, during the panel with quantum industry leaders, there was a call for more collaboration in the field.

One CEO said, “I would hope in the future that there is more sharing and maybe even the ability to work together, because the promise of quantum computing and what it can do for mankind is so significant.”

Another panelist said that to think quantum computers will replace classical computers is a mistake.

Instead, they will work together. The way the panelist characterized it, quantum computers are more like “processors,” or “very specialized machines” that will be used “in the complex workflow, alongside CPUs and GPUs, but really for specialized tasks.” 

In other words, as Huang put it, we shouldn’t expect quantum computers to be better at spreadsheets or to deliver our food quicker.

Instead, they will deliver answers to questions we never even knew we had.

We’re talking about drug discovery… using synthetic compounds to create new materials… developing self-driving cars that work… and more.

And near the end of the main Q-Day panel, Huang asked the industry leaders what they would all be discussing whenever they meet next year.

One CEO expects to be talking about using quantum to better train AI models.

Another said they were excited to discuss the real-world use cases of quantum computers.

Meanwhile, another noted, “We will see, in the next year, the first real tangible use cases of an AI agent working in conjunction with a quantum computer, doing things it otherwise couldn’t have done before.”

Others, meanwhile, were eager to quiet the skeptics and see quantum deployed in data centers – and also to see as many as 10 breakthroughs in physics, chemistry, biology and more.

“Well, guys, let’s go make it happen,” Huang finished.

The Best Way to Invest in the Quantum Revolution

Q-Day made one thing clear.

The momentum is building fast. Not only have there been a slew of breakthroughs in quantum computing recently – but the attention from the mainstream media is starting to build, too.

Now, I don’t want you to be at a barbecue this summer when someone mentions something they heard on the news about quantum computing before you get in on this revolution.

That day is coming soon, folks. And by then, it may already be too late.

That’s why I’ve been talking about this for the past two weeks. And it’s also why I hosted the Next 50X NVIDIA Call event.

If you didn’t catch this free broadcast, you should know that I started talking about my No. 1 quantum computing pick – a little-known small-cap company deeply partnered with NVIDIA, Microsoft Corp. (MSFT), Amazon.com Inc. (AMZN), and even NASA.

This hidden gem holds 102 patents, positioning it at the forefront of the Quantum Revolution. And after Q-Day today, this tiny stock could soar – potentially delivering massive gains for early investors.

But my No. 1 pick isn’t alone. I also highlighted a handful of other high-quality quantum stocks that offer smart ways to invest early and safely in this explosive sector.

These stocks pulled back after Huang’s Q-Day, but this isn’t surprising given their volatile nature and recent runup. And given NVIDIA’s big push into the quantum computing space, I expect them to bounce back soon.

So, now is the perfect time for investors to buy the dip and position themselves for the potential profits ahead.

It’s why I urge you to watch a replay of my Next 50X NVIDIA Call now.

In it, we start to talk about which stocks I recommend (and which ones to avoid) in the fast-growing quantum sector, including the tiny company I think has the greatest potential to deliver NVIDIA-like gains as this whole thing develops.

But don’t wait. As soon as NVIDIA’s Quantum Day announcements become widespread, these quantum stocks could move very quickly.

You can watch the replay now – before it’s taken down.

Sincerely,

Louis Navellier

Editor, Market 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

NVIDIA Corporation (NVDA)

Editor’s Note: On Wednesday, the Federal Reserve held its Federal Open Market Committee (FOMC) meeting. At the meeting, the Fed announced it would keep interest rates at its target range of 4.25% to 4.5%. It maintained its outlook for two rate cuts this year.

My InvestorPlace colleague Luke Lango believes this dovishness just gave investors a great reason to buy right now. He is joining us today to share more of this thoughts… and reveal the best stocks to buy.

Take it away, Luke…

Thank you, Mr. Jerome Powell. This week, the U.S. Federal Reserve Board Chair told investors that the central bank is ready and willing to step in and support the U.S. economy with multiple rate cuts, if need be. By doing so, he put an end to the recent market crash… 

And gave folks the signal to buy stocks. 

Investors have been on edge for a month now, ever since U.S. President Donald Trump launched a trade war against the nation’s largest trading partners. Given Wall Street’s anxiety about those tariffs’ potential economic impact, stocks were consistently sliding lower.

The White House’s commentary incited even more fear, with Trump and others saying they are willing to accept some short-term economic pain – even a recession – to achieve their long-term economic goals. 

Naturally, investors have been very nervous. 

But Powell and Co. just quelled those fears, essentially telling Wall Street: “Don’t worry – we’ve got your back.”

And we think this dovishness implies it’s time to back up the truck and buy the market’s dip.

This Dovishness Is Bullish

Going into yesterday’s Fed announcement, many investors were apprehensive that the central bank would shift decisively hawkish. 

That is, since the last time we heard from the Federal Reserve, tariffs, federal spending cuts, and policy uncertainty drove significant upside risks to inflation and downside risks to economic growth. The Fed could have easily been hawkish in response, calling for more inflation and less growth – and paring back rate cut projections.

But that didn’t happen. 

Instead, the Fed largely maintained its economic projections for 2025, ‘26, and ‘27, with only some minor adjustments to growth and inflation expectations. 

It maintained its outlook for two rate cuts this year. 

And in the post-meeting press conference, Powell sounded largely dovish. His big-picture messaging was that he thinks the economy will remain solid amid all these policy changes. But if it isn’t, the Fed is ready and willing to step in and save the day. 

The Fed Will Come to the Rescue

This reassurance from the Fed is huge. 

Wall Street needed consolation that if something goes awry in this global trade war and the U.S. economy starts tumbling into a recession, someone will do something to help. 

The White House has already suggested that it won’t. Its motto has remained ‘short-term pain for long-term gain.’

But the Fed has made clear that it’s ready to don its superhero cape. The central bank offered guidance for more rate cuts this year and said risks to the outlook shifted from inflation to growth.

It is also important to remember that the Fed Funds rate is currently at 4.25%. So, if the economy does slow meaningfully in the next few months, the Fed has 17 ‘rate cuts’ it can implement to reinvigorate economic activity. 

That’s comforting to Wall Street. The Fed has a lot of ammunition it can use to avert an economic slowdown. And yesterday, it suggested it’s ready to do so if need be. 

That’s all investors needed to know to rush in and buy this dip in stocks. 

In fact, look at what’s happening as a result… 

The Final Word

Stocks have rallied nicely over the last two days and are now up more than 3% from their recent lows. The S&P 500 has retaken its critical 250-day moving average, signaling that the worst of this selloff may be over. 

We agree with the market here. 

Stocks may have crashed. But the economy remains healthy. We don’t think this is a bull-market-ending selloff; just a run-of-the-mill pullback. Stocks bottomed exactly where they should have (right around the 250-day moving average). And now they’re bouncing back on a powerful upside catalyst (the Fed staying dovish). 

We believe this means that the recent stock market crash is likely over… and stocks are primed for a big bounce here. 

In other words, it is time to buy the dip. 

But where should folks look for the best buying opportunities?

Well, we’re supremely bullish on AI. We believe it’s the greatest technological revolution in three decades. This breakthrough has already created fabulous investment opportunities, allowing investors to lock in ~990% gains in Palantir (PLTR) and 400% profits in Nvidia (NVDA) over the past two years. And so much more is yet to come.

But here’s the rub: the broader AI trade is crowded. That’s why we’ve been hunting for the next big industry breakthrough…

And we’ve found it in what I call AI 2.0 – a development that could be an order of magnitude bigger than anything we’ve seen in the AI Boom so far.

Discover the next generation of AI that may hold even more profit potential than today’s leading tech companies.

Regards,

Luke Lango

Editor, Hypergrowth Investor

In my 40-plus years in the markets, it’s one of the most regrettable things I’ve seen…

Somewhere along the way, there was an elevation of whoever is leading the Federal Reserve to a kind of “rockstar” status.

I think it happened during the 1990s. Alan Greenspan was the Fed Chair back then, and it was during the dot-com boom.

Remember those days?

The market was on fire. Everything was going up. The tech-heavy NASDAQ soared 800% from 1995 to March 2000.

But in 1996, Greenspan famously warned of “irrational exuberance” in the market.

Wall Street took it as some sort of prophecy. But the reality is that the boom would go on for another three years.

This isn’t the first time the folks at the Fed have been wrong, either.

By early 2001, the federal funds rate sat at around 6.5% and the Fed predicted the economy would be “sluggish in the near term” but would regain strength later in the year. But as the “dot-com bubble” burst and the tragic events of 9/11 took shape, interest rates were cut 11 times down to a record low of 1.75% due to a weakening economy.

In December 2018, the Fed projected that interest rates would be hiked two times and no additional moves would be made in 2019. Fast forward to mid-2019, and the Fed had cut interest rates three times. At the time, the U.S. and China were in a trade war that made the Fed concerned about the stability of the economy.

I bring this up because the Fed held its latest meeting this week. And while no major changes were expected with key interest rates, investors were on pins and needles to find any indication of how many cuts to expect in the coming months.

And to do that, they were primarily looking for movement in the latest “dot plot” survey as well as in Fed Chair Jerome Powell’s comments after the meeting.

Now, I have been on record saying that I think the Fed will be cutting rates four times this year, and in today’s Market 360 I’ll explain why. But first, we’ll review its latest interest rate decision as well as the dot plot and Powell’s comments. Then, I’ll explain where you can find stocks that can move up no matter how volatile the market is.

To Cut or Not Cut

On Wednesday afternoon, the Fed decided to hold interest rates steady at the 4.25% to 4.5% range. And as expected, the Fed forecasted two rate cuts this year in its dot plot, which is the same as last year. Interestingly, eight of the Federal Open Market Committee (FOMC) members only forecasted one key interest rate cut.

What’s different, though, is the outlook on inflation and economic growth. They’re expecting unemployment to be up 4.4% and for the economy to grow at an annualized pace of 1.7% instead of the previously anticipated 2.1%.

But the biggest question on everyone’s mind was how President Donald Trump’s tariffs have impacted inflation and what it says about the latest consumer sentiment. Thankfully, Fed Chair Jerome Powell addressed this during his press conference.

Powell stuck to the script and was largely dovish. One interesting comment was that he said that the University of Michigan showing a sharp increase in long-term inflation expectations was an “outlier.” Consistent with the FOMC statement, Powell said, “Inflation has started to move up… We think partly in response to tariffs. And there may be a delay in further progress over the course of this year.” However, he believes that any tariff inflation would likely be “transitory.”

While Powell said he thought the tariffs are probably a hurdle to keeping a lid on inflation, he reiterated that the Fed is prepared to respond if necessary.

“We think our policy is in a good place to react to what comes,” he said.

Why I Expect Four Key Interest Rate Cuts

The Fed may only be forecasting two key rate cuts this year, but I am anticipating four. The reality is we are in the beginning of a global interest rate collapse.

The European Central Bank (ECB) has already cut rates twice and the Bank of England (BOE) has cut once this year. Additionally, bond yields in China are below Japan’s 30-year bond. This is due to China having deflation, because of its large population decrease and overproducing on batteries, EVs and televisions.

You can’t have rates collapsing and have our yields not go down, and the Fed doesn’t like to fight market rates.

The truth is that the folks at the Fed aren’t looking more than a few months ahead.

Now, President Trump had a few choice words in response to the latest Fed decision.

But the fact is I think the President will get his way in the end. Because as global interest rates continue to collapse, this should force the Fed to cut more than what’s shown on the dot plot.

A Way to Profit No Matter What Happens…

I know that all of the recent chaos and volatility has a lot of investors feeling uncertain.

But I have been on record as saying that these tariffs are simply a tool for the Trump 2.0 administration. It’s the classic carrot and stick approach…

The ultimate goal is to create more onshoring – in other words, more jobs in America. 

In fact, I predict that the Trump 2.0 administration is going to spark a growth explosion without precedent.

That’s because Trump is all about business. He knows what the artificial intelligence industry needs to help it reach its true potential, and he’s going to make sure it gets it.

Trump 2.0 will slash regulations and dismantle roadblocks to AI development on an unprecedented scale.

This intersection of Trump 2.0’s pro-growth policies and the rapid advancement of AI is what I call the Trump/AI Convergence – and it’s creating an investment opportunity of a lifetime.

Now, I have the perfect strategy we can use to our advantage during this situation…

It’s a strategy that allows you to pull regular “income” from the market.

But it has nothing to do with waiting around for dividends or learning a complicated options strategy.

Instead, this trading strategy leverages my proven Stock Grader system (subscription required) to make repeatable realized gains… Actual money coming in every month that you can spend or save. That’s what has led us to “income” opportunities (based on an initial $7,500 investment) from partial sells on positions, like:

• $2,710 from Sitio Royalties Corp. (STR)
• $3,375 from CECO Environmental Corp. (CECO)
• $2,783 from Catalyst Pharmaceuticals, Inc. (CPRX)
• $7,135 from Builders FirstSource (BLDR)
• And more…

You can learn all about how I plan to use this strategy to profit from the Trump/AI Convergence in my brand-new presentation.

As an added bonus, you’ll learn how to gain access to an exclusive podcast where I give my outlook on how the Trump AI Convergence is unfolding, as well as my outlook for 2025.

Click here to learn more now.

Sincerely,

Louis Navellier

Editor, Market 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Catalyst Pharmaceuticals, Inc. (CPRX) and CECO Environmental Corp. (CECO)

Hello, Reader.

“The sky is the limit” is an encouraging way to say that anything is achievable. Possibilities are endless, so goals should be vast. There are, after all, no roadblocks among the clouds.

And while it’s a nice idiomatic sentiment, the phrase, which dates to a book from 1908, finds itself limited.

Especially when, 60 year later, NASA’s historic Apollo 11 mission sent man further than the sky… and on to the rocky surface of the moon. We discussed man’s historic first lunar steps – and the space stocks that subsequently shot into orbit– in Thursday’s Smart Money. (I see the phenomenon blasting off again… this time with AI stocks.)

But now, nearly another 60 year later, even the moon is no longer the limit.

That is, if all goes according to Elon Musk’s cosmic ambitions.

In a post on X last weekend, Musk claimed that his Starship, the flagship spacecraft from SpaceX, is set to embark on a historic journey Mars by the end of 2026. This time, its passenger won’t be a typical astronaut, but Tesla Inc.’s (TSLA) AI-powered humanoid robot.

Meanwhile… Musk is expanding his reach into the U.S. government, serving as a senior advisor to President Donald Trump and as head of the cost- and jobs-cutting Department of Government Efficiency.

With his hands in both private industry and public policy, Musk’s moves now carry unprecedented weight.

So, in today’s Smart Money, let’s dive into how Musk’s ambitions have led to SpaceX’s plans to explore Mars…

And the opportunity these ambitions provide for investors.

Plus, I’ll point you toward another groundbreaking Musk innovation that also could deliver big gains, if you know where to look.

Let’s dive in…

Out of Science Fiction

Musk’s passion for Mars isn’t a new development.

Since 2001, he’s been advocating to bring humanity to the “fourth rock from the sun,” beginning with his involvement in the Mars Society, a space advocacy organization that promotes human exploration and settlement.

This long-standing dream became SpaceX’s mission: to establish a self-sustaining human presence on Mars, ultimately making humanity a multiplanetary species.

Galactic, colonial ambition? Check.

The infrastructure to carry it out? Also, check.

In 2010, SpaceX began missions for its Falcon 9 rocket – a reusable, two-stage rocket designed to safely transport people and payloads into Earth’s orbit and beyond. By reusing key rocket components, SpaceX dramatically reduced launch costs and has executed 447 successful missions to date.

The Dragon spacecraft, also flying since 2010, can transport up to seven passengers to and from Earth’s orbit. As the only current vehicle capable of returning large amounts of cargo from space and the first private spacecraft to carry humans to the International Space Station (ISS), Dragon recently brought astronauts Suni Williams and Butch Wilmore back home after their extended stay in space.

Starship represents SpaceX’s most advanced system yet. Designed to carry 100 people on interplanetary journeys, the vehicle will also support satellite delivery, lunar base development, and even Earth-based transportation. With an unmatched payload capacity and lower per-launch costs than current Falcon vehicles, Starship may revolutionize cargo and crew delivery across the solar system.

And Musk claims it will start with Optimus.

With plans to send humanoid robots now to Mars, Musk is one step – or perhaps light years – ahead of conventional thinking.

We know this from many of Musk’s previous achievements – from revolutionizing online payments with PayPal Holdings Inc. (PYPL) to transforming the automotive industry with Tesla.

His companies don’t just develop products…

They redefine entire industries.

SpaceX’s Explosive Growth

SpaceX has seen rapid growth, becoming America’s No.1 space exploration company, thanks to its collaboration with NASA. And Musk’s involvement with the U.S. government seems likely it will only continue.

If all goes according to plan, Musk could be sending humans to Mars in just five years.

And that’s not even the big opportunity with SpaceX.

The more immediate opportunity is Starlink, SpaceX’s broadband satellite network. By leveraging its revolutionary reusable rocket technology, SpaceX has already deployed 7,000 Starlink satellites, adding approximately 60 new units weekly and providing service across 114 countries.

Starlink now has 5 million users. And with 5.5 billion internet users worldwide, the growth potential is extraordinary. Last year alone, Starlink doubled its customer base.

In fact, this week, Starlink satellites were officially installed in the White House.

So, if you claim a “stake” in SpaceX today, you’d be getting on the ground floor of what could be a new internet giant.

With additional satellites going into space, I predict its service will keep getting better and cheaper, leading to massive gains in shares of SpaceX.

But here’s the challenge: SpaceX is a privately held company. Investing in it requires you to be wealthy… or have some serious Silicon Valley connections.

However, I’ve discovered a way for regular investors to claim a stake in this revolutionary company. I’ve compiled all the details in my new special report, How to Become Elon Musk’s Partner in SpaceX. You can learn how to access this report in my new free, special broadcast.

But of course with Musk, there’s always more…

He is working on another revolutionary project involving the race toward superintelligent AI – what I call “Apollo 2.0.”

So, love him or hate him, we’ve seen that Musk’s big ideas repeatedly translate into groundbreaking projects – and potential investment gains.

To learn more about the next generation of AI and Musk’s next breakthrough, click here.

Regards,

Eric Fry