Be Wary of these “Hype Stocks”

Editor’s Note: Today, we’re sharing an insight from “market wizard” Larry Benedict. Larry has been a professional trader for decades. And he believes most investors are trading the AI trend the wrong way. But as Larry says, there is a “7-day AI blitz” headed for markets. And traders need to be aware. Read on…

In the first six months of this year, venture capitalists (VCs) infused more than $15 billion into generative AI companies across the world.

That’s roughly a 58% increase compared to a year earlier.

It’s not just VCs who are tossing money at this tech trend, either. The top five AI ETFs saw 35% growth on average in the first half of 2023.

The tech-heavy Nasdaq has risen as much as 45% as well.

And individual stocks have performed even better. Nvidia (NVDA) more than tripled in value during the first half of the year.

All this shows the breadth of the “AI boom” that’s taken hold.

And as traders, we need to pay attention to this trend… because it could hold the way for you to double your money – or more – in a short window coming up…

How to Pick an AI Winner

The AI boom has boosted many different stocks in 2023.

As I mentioned above, in the first half, NVDA has risen as much as 225%.

C3.ai (AI) has risen over 325%.

Palantir Technologies (PLTR) rose over 200%.

Symbotic (SYM) surged as much as 427%.

And the list goes on.

It may seem like you can buy any stock related to AI and simply ride it to the moon.

But the truth is, it’s not so simple.

Buzzfeed (BZFD) briefly jumped over 300% back in January based on a report saying it would partner with OpenAI to develop an AI article writer.

But the stock almost immediately dropped back down and is trading down -40% for the year.

Upstart Holdings (UPST) is still up around 129% if you were lucky enough to buy it at the start of the year.

But if you jumped on the trend more recently, it has plummeted nearly 60% since the start of August.

And even some well-known tech stocks that have benefited from the boom are slipping. Tesla (TSLA) has sunk around 18% since its mid-July peak.

That makes it tricky to know exactly how to play the AI boom.

This is only the beginning of AI truly showing us what it’s capable of. Advances and efficiencies in this tech will lead to more growth in the coming months and years.

So you don’t want to miss out on future gains…

But clearly, in the short term, some AI stocks are coming under pressure after their huge runups.

So what’s the best way to benefit from the AI trend right now?

The 7-Day AI Blitz

And with the AI boom going on, this blitz is handing us a great way to profit… using just one alternative AI play.

Some of my followers who’ve written in have made as much as a year’s salary during this kind of blitz.

For example, one trader wrote in saying he made a whopping $136,000 in profit. Another turned $6,706.80 into $23,393.20. And a third reader reported a $19,164 gain from a $1,587 starting position.

That’s with a trade turnaround time of just one week… and often in less than two days.

So I hope that shows you why you don’t want to miss out on this kind of opportunity…

It’s so important that I put together a 7-Day AI Blitz event to explain more about how to trade during this window… including my favorite way to play it.

I went live last night, but it’s not too late to watch the replay right here. I promise it will be worth your time. This blitz strategy is one of the most reliable money-making methods of my career.

Regards,

Larry Benedict
Editor, Trading With Larry Benedict