The MAG 7 Dilemma -

In Case You Missed it, the MAG 7 (Magnificent 7 favorite stocks to own) consists of the following:

These giants each play a different role in what doom porn addicts claim to be the Biggest Bubble in History…readying for the Biggest Crash in history.

However, what the critics of these stocks fail to recognize is how (unlike the Dot Com bubble) these mega-cap stocks actually make money…Bigly.

And while this group is often associated with the AI boom, not all of them are exclusively “AI companies,” and their involvement varies significantly.

Example:

Heavy AI Infrastructure Investors – like Microsoft, Alphabet (Google), Amazon, and Meta – are making massive, multi-billion-dollar investments in the physical infrastructure (data centers, chips) that powers AI services.
They are spending heavily to be at the forefront of the AI revolution.
The AI “Enabler” is Nvidia.
And it is perhaps the purest AI play, as it designs the essential computer chips (GPUs) used to train and run advanced AI models.
Ironically (or NOT) its growth is directly tied to its peers’ massive spending.

But Apple has a different strategy.

It hasn’t joined the data center arms race to the same degree.

This has allowed it to avoid the heavy debt burden and negative cash flow concerns faced by some others, making it a standout performer at times.

Tesla uses AI for its self-driving technology and energy products, but its core business remains automotive manufacturing.

Tesla also stands out as the only company in the group not typically classified as a tech company, falling under the consumer discretionary sector.

A MAG 7 Crash?

Unlike most of the gloom and doomers, we don’t believe there will be a MAG7 crash any time in the near future.

But we do believe the more dangerous asset lurking in the shadows is the 30-Treasury which has become the Canary in the Coal Mine of a dying system.

At the same time, we are not telling you to bet the farm on the MAG 7 stocks.

Because despite all the panic over crossing the $40 Trillion debt threshold, what most people misunderstand is that when confidence in government falters, smart money moves from PUBLIC assets (like Sovereign Debt) to PRIVATE assets, including stocks, gold, real estate, etc.

We do, however, look for a short-term correction to pave the way for a Bear Trap * which will make most investors fight any rally thereafter.

(* From our Annoying Acronyms Column… BEAR TRAP = A Bear Trap is when investors get suckered into thinking that a rising market is going to crash. Traders panic sell, anticipating a bigger decline, but instead the trend reverses inflicting a lot of pain. There’s a lot of wailing and gnashing of teeth. Not unlike getting caught in one of those gnarly steel traps with extremely sharp teeth… Read more (HERE).

And as we are wont to say:

“The 1% Needs the 99% to be wrong in order for them to make fortunes at YOUR expense.”

On Wall Street, it’s called:

Wash!

Rinse!

Repeat!

Learn how to avoid these traps in our upcoming September newsletter (HERE).

And share this with a friend…especially if they are calling for another major crash in the market. They’ll thank YOU later.

In Case You Missed it, the MAG 7 (Magnificent 7 favorite stocks to own) consists of the following:

These giants each play a different role in what doom porn addicts claim to be the Biggest Bubble in History…readying for the Biggest Crash in history.

However, what the critics of these stocks fail to recognize is how (unlike the Dot Com bubble) these mega-cap stocks actually make money…Bigly.

And while this group is often associated with the AI boom, not all of them are exclusively “AI companies,” and their involvement varies significantly.

Example:

Heavy AI Infrastructure Investors – like Microsoft, Alphabet (Google), Amazon, and Meta – are making massive, multi-billion-dollar investments in the physical infrastructure (data centers, chips) that powers AI services.

They are spending heavily to be at the forefront of the AI revolution.

The AI “Enabler” is Nvidia.

And it is perhaps the purest AI play, as it designs the essential computer chips (GPUs) used to train and run advanced AI models.

Ironically (or NOT) its growth is directly tied to its peers’ massive spending.

But Apple has a different strategy.

It hasn’t joined the data center arms race to the same degree.

This has allowed it to avoid the heavy debt burden and negative cash flow concerns faced by some others, making it a standout performer at times.

Tesla uses AI for its self-driving technology and energy products, but its core business remains automotive manufacturing.

Tesla also stands out as the only company in the group not typically classified as a tech company, falling under the consumer discretionary sector.

A MAG 7 Crash?

Unlike most of the gloom and doomers, we don’t believe there will be a MAG7 crash any time in the near future.

But we do believe the more dangerous asset lurking in the shadows is the 30-Treasury which has become the Canary in the Coal Mine of a dying system.

At the same time, we are not telling you to bet the farm on the MAG 7 stocks.

Because despite all the panic over crossing the $40 Trillion debt threshold, what most people misunderstand is that when confidence in government falters, smart money moves from PUBLIC assets (like Sovereign Debt) to PRIVATE assets, including stocks, gold, real estate, etc.

We do, however, look for a short-term correction to pave the way for a Bear Trap * which will make most investors fight any rally thereafter.

And as we are wont to say:

“The 1% Needs the 99% to be wrong in order for them to make fortunes at YOUR expense.”

On Wall Street, it’s called:

Wash!

Rinse!

Repeat!

Learn how to avoid these traps in our upcoming September newsletter (HERE).

And share this with a friend…especially if they are calling for another major crash in the market. They’ll thank YOU later.

And tell them:

We’re Not Just About Finance

But we use finance to give you hope.

“And you shall know the truth, and the truth shall make you free.”

~John 8:32~

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