Microsoft is making a new move to control artificial intelligence
Controlling artificial intelligence
Please click here for a chart of Microsoft Corp (NASDAQ: MSFT)).
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Morning Pod is about the big picture, not an individual stock. An MSFT stock chart is used to illustrate this point. There are two dominant forces driving the stock market this year: market mechanics and artificial intelligence. Microsoft is the leader in artificial intelligence software and services. The chart shows MSFT stock falling on Friday. The decline in MSFT was due to the ouster of Sam Altman, CEO of OpenAI. OpenAI is the developer of ChatGPT. Microsoft is the largest investor in OpenAI. Microsoft’s AI initiatives center around ChatGPT. Altman was fired from OpenAI after losing the confidence of the board. Apparently, there was a culture clash at OpenAI. OpenAI is a non-profit organization with a for-profit arm. The clash has occurred between those who want to slow down and be more intentional in developing AI for the greater good and those who want to make money quickly from AI. OpenAI has appointed Emmett Shear as its new interim CEO. Cher was the co-founder and former CEO of the video game streaming service Twitch. Twitch is now owned by Amazon.com, Inc. (NASDAQ:AMZN). Scheer has been a proponent of slowing the development of artificial intelligence. Microsoft tried to bring Altman back as CEO of OpenAI but failed. And now Microsoft has hired Altman. Microsoft also hired former OpenAI head Greg Brockman. In analyzing the Arora report, Microsoft does not appear to have much of a choice. Altman and Brockman could have joined a competitor like Alphabet Inc Class C (NASDAQ: GOOG). On the surface, this seems like a good move by Microsoft in its quest to dominate AI. The chart shows that MSFT stock rose after Microsoft appointed Altman and Brockman. This is not good news for Alphabet and Amazon. For those who want to take their AI investing to the next level, there are several podcasts about AI in the Arora Ambassador Club. Last week, Microsoft announced two new semiconductor AI chips. Before his firing, Altman was reportedly trying to raise billions of dollars from investors in the Middle East to start a semiconductor company to compete with NVIDIA Corp (NASDAQ: NVDA). Nvidia will report its earnings after the close tomorrow. These earnings will be closely watched and may determine the next move for the entire stock market. A fortune will be made from artificial intelligence over the next seven years. It won’t be a straight line. Sometimes, it will be insidious. You will need expert guidance. There is no better source than the Arora Report. Please click here to see our hand-picked list of 18 AI stocks to watch. As an implementable element, the sum of the above is present in the protection scope, which achieves an optimal balance between the various cross-currents. Please scroll down to see the security bar. The Seven Great Money Streams
In early trade, cash flows were positive in Nvidia, Microsoft, Meta Platforms Inc (NASDAQ: META), Tesla Inc (NASDAQ: TSLA), and Apple Inc (NASDAQ: AAPL).
In early trade, money flows were negative in Alphabet and Amazon.
In early trading, flows are mixed in the SPDR S&P 500 ETF Trust (ARCA:SPY) and Invesco QQQ Trust Series 1 (NASDAQ: QQQ).
Momo Crowd and the smart money in stocks
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The most popular oil ETF is the US Oil ETF (ARCA:USO).
Bitcoin (CRYPTO: BTC) is range-limited.
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The protection squad and what it is doing now
It is important for investors to look forward and not in the rearview mirror.
Consider continuing to maintain good, long-term current positions. Depending on individual risk preferences, consider holding 🔒 cash or Treasuries or allocating it to short-term tactical trades; Short to medium term hedges of 🔒, and short term hedges of 🔒. This is a good way to protect yourself and participate in the uptrend at the same time.
You can define your protection ranges by adding cash to your hedges. The high range of protection is suitable for the elderly or conservatives. The lower range of protection is suitable for those who are younger or aggressive. If you do not hedge, your total cash level should be more than stated above but significantly less than cash plus hedging.
It is worth noting that you cannot take advantage of upcoming new opportunities if you do not have enough cash. When adjusting hedging levels, consider adjusting partial stop amounts for equity (non-ETF) positions; Consider using wider stops on the remaining lots as well as allowing more room for stocks with a high beta. Stocks with a high beta are those that move more than the market.
The traditional portfolio is 60/40
The inflation-adjusted probability-based risk reward does not favor a long-term strategic bond allocation at this time.
Those who want to stick with the traditional 60% allocation to stocks and 40% to bonds may consider focusing on high-quality bonds and bonds with a duration of seven years or less. Those who want to see sophistication in their investments may consider using bond ETFs as tactical rather than strategic positions at this time.
The Arora Report is known for its accurate calls. The Arora report correctly described the financial collapse of 2008, the beginning of the massive bull market in 2009, the Covid crash, the post-Covid bull market, and the bear market of 2022. Please click here to sign up for the free Generate Wealth Forever newsletter.
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