Investors are CRAZY about Big Tech stocks now

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Your host, Mike Anderson, will provide a step by step breakdown of how these winning trades were first identified and how they were timed. Understanding how these trades are made will help you to identify similar trends and have confidence in executing your own successful trades. Plus: Bring your ticker and we will use Trade Algo's proprietary algorithms to help you analyze that trade you've been thinking about. [JOIN OUR LIVE TRADING SESSION @ 6am PT / 9am ET!](~/AASl5QA~/RgRmVFnGP0SLaHR0cHM6Ly9iaXQubHkvVEFMaXZlRFM4P3V0bV9zb3VyY2U9S2xhdml5byZ1dG1fbWVkaXVtPWNhbXBhaWduJl9reD1USkZ4LTA2cmJ4eDZVYUpjX0xnX2ppclNiUTAyNDN3M1hQSXpxdkhoZHljR1c2VzVaWVFrWkw4SU9aWk9mQVRvLlc1cEFaV1cDc3BjQgpkb8bUcWSlkVHOUht0cmlzdHJhbWJhbGR3aW44N0BnbWFpbC5jb21YBAAEC1Y~) [Shadow] Hello investor, Want to know how crazy investors are about tech stocks? Especially Big Tech stocks. Let’s compare the Nasdaq 100 to another version of Nasdaq that removes the market-value weighting. In other words, the second version places equal weight for all stocks inside the index. Apple would have the same weight as Pepsi. That equal-weighted index would have trailed the standard Nasdaq 100 by 16%! How is it possible? Investors are pouring into Big Tech companies, such as Nvidia, Microsoft, Alphabet, Apple, and Meta. The inflow intensified as the hype surrounding AI exploded. But it is not 100% hype, though. Nvidia expects its sales to skyrocket this year – thanks to the demand for Nvidia’s AI chips. After Nvidia’s huge sales forecast, the top seven biggest tech stocks added a combined $454 billion in value in just five days. Believe it or not, these seven stocks have been up by a whopping 43% since January, pushing their price-earnings multiple up to 35. - “These are good companies. They’re not going bankrupt. But people are starting to pay exorbitant prices for them. It feels frenzy-ish,” said Michael Mullaney, director of global research for Boston Partners. “If the leadership was all crappy companies like we saw in 2000, it would be game over very shortly.” (Source: Bloomberg) Investors simply preferred these seven stocks when there is so much uncertainty in the economy. They are more likely to grow. Due to supply/demand, that makes Big Tech stocks much more valuable than the rest of the market. - “People gravitated for the seven names because we call them assured growth,” said Bill Harnisch, chief investment officer at Peconic Partners. - “I don’t feel we’re missing anything with the market. It’s just amazing what’s going on underneath the surface. And if this AI thing is what we all think it will be, there’ll be a lot of opportunities beyond Nvidia.” What will the Fed do next? Big Tech is dominating the stock market, but what about all other stocks? It depends a lot on the Federal Reserve. Higher rates typically slow down the economy. With the recent inflation data showing an acceleration, traders are betting that the central bank will do another rate hike within the next two meetings. - “Once a debt deal is done, markets will have to deal with the harsh reality that the Fed is going to kill this economy,” Ed Moya, senior market analyst at Oanda, wrote on Friday. “The end of tightening might not occur until the end of summer and that means we will probably get bigger rate cuts next year.” Ed Moya, senior market analyst at Oanda (Photo: CNBC) Invest In The Boom Of Infotainment Today’s Stock Pick: Visteon Corporation ([VC](~/AASl5QA~/RgRmVFnGP0SdaHR0cHM6Ly9kYXNoYm9hcmQudHJhZGVhbGdvLmNvbS9jb21wYW55L1ZDP3V0bV9zb3VyY2U9S2xhdml5byZ1dG1fbWVkaXVtPWNhbXBhaWduJl9reD1USkZ4LTA2cmJ4eDZVYUpjX0xnX2ppclNiUTAyNDN3M1hQSXpxdkhoZHljR1c2VzVaWVFrWkw4SU9aWk9mQVRvLlc1cEFaV1cDc3BjQgpkb8bUcWSlkVHOUht0cmlzdHJhbWJhbGR3aW44N0BnbWFpbC5jb21YBAAEC1Y~)) The competition in the auto industry is brutal. When Tesla entered the market, the game transformed to which company can offer the most appealing in-car experience. Elon Musk once said: - “…the goal for the infotainment system is to say what’s the most amount of fun you can have in a car. I don’t think other car companies really think about it that way.” As a result, it has become CRITICAL for automakers to offer an elite dashboard experience. Enter Visteon. It is the leader in cockpit electronic solutions for big-name brands like Ford, GM, and BMW. If you’ve seen a cool dashboard, it could be from Visteon’s product line. For example, check out its latest dashboard technology: (Photo: Visteon Corporation) This market will only continue to grow. Nearly 33% of its Q1 2023 cockpit electronics wins were for electric vehicles. Why is this important? Of course, this implies that Visteon will not “miss the turn” for the EV boom. (Source: Visteon Corporation) In the graph above, you can see that Visteon had $1.5 billion in new business wins. That was an incredible number! Last year, the company posted $3.7 billion in revenue. The growth roadmap is clear for this company. Visteon had several key launches in the third quarter, opening a new program with GM Heavy Duty trucks, Ford Ranger, and Honda e:NP1. This could deliver long-term sales growth because these models will continue to produce and sell over time. (Source: Visteon Corporation) High ROE business: Before the pandemic years, Visteon was running a high ROE business. (Perhaps one of the best metrics of a high-return stock.) The number climbed to above 20% before plummeting due to Covid and supply chain troubles. Now, the ROE has climbed back close to the 20% level. This shows that you can bank on Visteon continuing its high-return business for years to come. (Source: MacroTrends) Bottom line: Visteon is the leader in an essential accessory in virtually any car – a digital dashboard. It is the thing that automakers must offer to keep up with modern consumer demand. With Visteon’s recent wins with EV models, the company has a clear growth map from now on. 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