Editor’s Note: If you’re a regular Market 360 reader, you probably know I usually share my latest MarketBuzz YouTube video from the previous weekend on Mondays. But in light of today’s turbulent market activity, we’re doing something different today. Instead, I’m going to share the transcript of a Special Market Podcast that I sent to my premium readers earlier this afternoon.
Now, usually, my podcasts are reserved for my paid-up subscribers only. But given today’s selloff, I’m making an exception…
The market is in turmoil… with the NASDAQ, S&P 500, and DOW down around 11%, 7%, and 6% respectively over the past month…
No wonder the CEO here at InvestorPlace calls the 2020s the “Age of Chaos.” Indeed, it’s in full swing.
Now, the mainstream media is blaming President Trump’s destabilizing approach to tariffs, Ukraine and government staffing (among many other things) for keeping the world on the edge of its seat…
But in my Special Market Podcast today, I specifically address what’s really behind today’s selloff – tariff fears and worries that the AI Revolution is slowing down.
Folks, I want to assure you: This tariff business is overblown, and the AI Revolution is not slowing down.
Plus, I explain why we’re going to get a lot more than one rate cut this year, no matter what the Federal Reserve’s “dot plot” is trying to tell us. (This is news you want to know about.)
Finally, I address why I believe NVIDIA Corporation’s (NVDA) upcoming event dedicated to quantum computing (“Q-Day”) on March 20 will serve as the catalyst that turns this market around.
While you’ll definitely want to mark NVIDIA’s Q-Day on your calendar, you’ll also want to set some time aside for this Thursday, March 13, at 1 p.m. Eastern for my Next 50X NVIDIA Call summit. That’s when I’m hosting a full briefing on this monumental event – exactly one week before NVIDIA’s big “Q-Day.” Click here to reserve your spot now.
In the meantime, you can read the full transcript of today’s Special Market Podcast below….
What’s Behind the Turmoil in Today’s Market
This is Louis Navellier. It is Monday, March 10.
Okay, the NASDAQ got up on the wrong side of the bed. A lot of it has to do with a Bloomberg article that Apple Inc. (AAPL) is delaying its AI upgrades to its Siri system. And that is fueling the argument that the AI Revolution is slowing down.
AI Revolution and Tech Stocks
Folks, I want to assure you it’s not slowing down. Taiwan Semiconductor Manufacturing Company (TSM) just announced that their February chip sales were up 40.1%, that’s stunning. So, they’re busy.
We also have the NVIDIAAI Developers Conference coming up. That should really help shore up at least NVIDIA and some of its affiliates.
The problem we have is that those DeepSeek rumors keep persisting. Short sellers take a theme and they just sit there and manufacture fake article after fake article after fake article to perpetuate the argument. And the argument that American AI is going to slow down because DeepSeek has a better, more energy-efficient product, is false. It’s blatantly false – DeepSeek crashes all the time.
But this got the ball started and it’s still rolling. That’s why the tech sector has been decimated. But that’s where the earnings are. These are legal monopolies protected by the Trump administration. Notice they were all at his inauguration and paying for his parties and all that good stuff.
China’s Deflation and Tariffs
The tariffs have nothing to do with what’s happening in tech.
And the tariffs are not going to impact you because China just announced massive deflation. Everything – food, services, goods, doesn’t matter – they have deflation in China, it was announced. Prices trailing 12 months are down everywhere.
The problem we’ve got is their interest rates there, their 30-year bond yields are less than Japan’s, they’re going into this economic tailspin. They will be the next Japan and have zero to negative interest rates for 20 years.
Why am I so bearish on China? Demographics. They’re losing millions of people, they forgot to have kids, they don’t have immigration. Other countries that forget to have kids at least have immigration. China doesn’t have that. So, what a mess. And it’s run by President Xi, an authoritarian guy who got rid of a lot of his capable officials that used to run the economy. So right now, Xi is running everything.
That’s the first thing. That’s why you’re not going to see any impact from these higher tariffs on Chinese goods: we’ve got a strong dollar, they have a weak yuan, and there’s deflation in China.
Canada, Mexico, and USMCA
Item two: Canada and Mexico.
I’m sorry about the price of tequila going up from the tariff, I’m sorry about baby-back ribs going up in Canada because of the tariffs. I wouldn’t buy eggs from Canada; it’s 168% tariff. But as I mentioned on Fox News last week, this USMCA is the agreement Trump did in his first term with the auto industry to have a certain amount of North American content. The autos are in compliance with that, so there’s no tariffs on cars.
Can Trump modify USMCA? Absolutely. But Howard Lutnick, the commerce secretary, is relying on USMCA to avoid the tariffs on the auto industry. They don’t want to disturb that industry; it’s a big one. Bu there are other things they can mess with. You know, Canada has tariffs to protect their farm industry, on milk and dairy products, all kinds of things.
The other thing that is going on in Canada, they have a new leader. The guy who used to run the Bank of Canada and the Bank of England is now their Prime Minister, Mark Carney. He gave a very passionate speech and reminded us that Canada just beat us in hockey. But as tough as he can talk, the U.S. is 78% of the Canadian exports.
So, the good news about Mr. Carney, he is a very professional fellow. He has never run for political office ever. He will be able to work with Howard Lutnick, and they will be able to negotiate and cooler heads will prevail.
So, we won’t have to worry about that. Although, they are going to have an election in Canada, and they could have a new Prime Minister. But Mr. Carney is a pretty competent fellow, although he replaced Justin Trudeau in the liberal party, again the guy is competent. So, we shall see what happens.
European Chaos and Recession Forecast
Europe has a lot going on. Germany was going to spend half a trillion euros on infrastructure and defense, and their rates skyrocketed. Anyway, the problem is they can’t put together a ruling coalition. You may remember when Germany had an election, they ignored the party that had the second biggest share of the votes, about 21% of the votes. So, they’re still working with Olaf Scholz’s party, the SPD, and they are trying to get help from the Green Party to form a ruling coalition, but the Greens don’t like their defense spending and all that stuff, so they’re in chaos.
Here’s the deal: the world’s in a recession. Mexico contracted in the fourth quarter, as did Britain, France and Germany. Germany’s been contracting for over two years. Asia’s a mess. Rates are collapsing around the globe. We’re going to have four rate cuts this year. I swear to God, I don’t care what the dot plot says, we’re going to have four cuts because things are collapsing.
U.S. Contraction and Recession Redefinition
And in America, we’re going to contract in the first quarter because they’re dumping goods in America – our trade deficit went up 34% in January, it’s going to soar in February – and they are dumping goods on us to try and beat tariffs. As a result, we are going to have to contract the first quarter. Then we will regroup, we will be growing in the second quarter and we’ll avoid a recession.
I do want to remind you that the Biden administration redefined what a recession was – they said that as long as it doesn’t affect unemployment, it’s not a recession. Cause in the Biden administration they did have two down GDP quarters. But Trump’s obviously going to not want a contracting economy. Obviously, there are going to be tax cuts and other things getting passed. They want to take the DOGE savings and give some of that back to consumers, so we’ll see.
Why I’m Excited About NVIDIA’s Quantum Day on March 20
Fascinating times, but I’m very comfortable and confident that we’ll grow and prosper. There are no analyst cuts on my stocks, and we just have to wait for good stocks to bounce. There is a very severe correction underway in NASDAQ, led by Apple.
Now, our main NASDAQ stock, or at least Magnificent Seven stock, is NVIDIA. NVIDIA has a developer’s conference that’s coming up in less than a week.
At the developers AI conference, it will end on what we call cloud computing and quantum computing. NVIDIA will probably be announcing some new alliances with some of the quantum cloud-computing providers because they held a contest to figure out who could have the best platform.
That is going to get some of those stocks excited, although none of those things earn money until they get going.
Tariffs, Onshoring, and Future Outlook
Fascinating times. The bottom line is the negative media is coming mostly from Europe, from countries that don’t like Trump and are openly hostile.
The “tit-for-tat” tariffs that Howard Lutnick wants to do is all designed to create onshoring into America because if they insist on keeping their tariffs higher than us, we will raise our tariffs. And if not, they have to lower theirs. It is just going to cause more companies to flee to America.
We already have $1.1 trillion announced in onshoring, that is all tech-related. TSM was the latest one, under a billion. You have Honda Motor Co., Ltd. (HMC) building its new hybrid Accord in Ohio instead of Mexico. You will have Trump trying to get the German auto companies to boost their production in America to circumvent tariffs.
It’s going to get interesting. It’s going to get very, very interesting. Trump is even willing to give their workers in Germany U.S. visas to come over here and work. Our electricity is a fourth of the cost it is in Germany. So, we have a huge advantage. Canada also has an advantage because they got a lot of that cheap hydroelectric, and that is why there is so much manufacturing in Ontario.
Otherwise, that’s kind of what’s going on here, folks. Sorry about the gyrations. Interest rates are falling, that’s good. Just hang on – I think the NVIDIA conference will help turn the whole market around. We do have CPI on Wednesday, PPI also shortly thereafter. Those reports should be pretty good and that might spark a market rally as well.
So, hang in there, I know this hurts a lot. It’s Louis Navellier.
How to Get in on My Next NVIDIA Call…
As I mentioned on the podcast, I predict a major turning point for the market will take place on Thursday, March 20.
That’s when I predict NVIDIA will announce a major move into the quantum computing space.
This is a big deal, folks.
My prediction is that NVIDIA will figure out a way to marry AI with quantum computing in a way no one has ever done before. We’re talking about the possibility of a new technological breakthrough that could affect industries worth a combined $46 trillion.
And while NVIDIA is still a solid “Buy” for long-term investors… if you really want to make big gains in the quantum computing space, you have to start looking at the “pure play” quantum companies that NVIDIA and other Big Tech companies are partnering with.
To learn more about that strategy, join me at my Next 50X NVIDIA Call. Again, it’s this Thursday, March 13, at 1 p.m. Eastern. (You can click here to reserve your spot now.)
My goal for this summit is to get you ahead of the crowd and ahead of the news outlets because by the time the crowd has heard about this, it will already be too late.
Sincerely,
Louis Navellier
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)