Join us for an exciting edition of Best Stocks Now as Bill Gundersen leads the charge in unraveling the layered story of China’s AI breakthrough and its market repercussions. From captivating discussions on the authenticity and potential hype surrounding China’s DeepSeek model to the impact on global AI market leaders, this episode encapsulates a riveting market landscape analysis. The dialogue captures the essence of market skittishness in response to overnight claims and brings into perspective the roles various stakeholders, from hedge funds to government restrictions, play in shaping investor sentiment. With almost 120 S&P companies preparing to report results,
He’s been seen on CNBC, the Fox News Channel, and the Fox Business Channel. His articles can be found on MarketWatch, Seeking Alpha, TheStreet.com, and many other places. He’s the author of the weekly Best Stocks Now newsletter and the inventor of the Best Stocks Now app. He’s president of Gundersen Capital Management. Here is professional money manager Bill Gundersen.
SPEAKER 04 :
And welcome to the Monday morning bloodbath edition of the Best Stocks Now show with professional money manager Bill Gunnarsson, president of Gunnarsson Capital Management. I’m here with Barry Kite. our chartered financial analyst, and I think it remains to be seen whether China’s claims about a new and improved AI that blows away US AI doesn’t require as much power. Is true or not? Because I have a little bit of, I’m a little bit on the skeptical side this morning. But the market is just like, wow, come up with this new version of AI. That means we’re not going to need the nuclear power. We’re not going to need all of the speed. We’re not going to need NVIDIA chips. They’ve come up with the holy grail on AI technology. And that’s the way the market is reacting right now. And that is sending the Dow down. The Dow’s not down that much. In fact, things are starting to come back here a little bit. I’m waiting for Jensen Wang to weigh in and others on this claim by China. But the NASDAQ is down now 2.78%. S&P down 1.6%. Dow down just 28 percentage points or 28 basis points right now. Meanwhile, over at the bond market, there is a flight to safety today. The 10-year is down 10%. Nine basis points to 4.54. So welcome to today’s Best Stocks Now with professional money manager Bill Gunderson. President of Gunderson Capital Management. Well, Barry, you never know what you’re going to wake up to. I did look at the futures last night, as I do every evening. Before I retired, I saw that they were down considerably, especially in the NASDAQ. I couldn’t really find any news. And then this morning, we wake up to this news that China… Deep Seek. Which has been known for scandals in the past. This one smells to me right now. I don’t have enough information. I’m going to let the big guys weigh in. Wedbush has already weighed in on this, but If their claims are true, they have a newer, better AI developed and financed by a hedge fund in China in one of their small provinces. by a guy we’ve never really heard of before. That’s why, you know, look, hey, they might have something over there that blows Altman away, that blows Jensen Wang away, that blows Elon Musk and all the other AI gurus out there. But that has really shocked the market this morning, and it’s the AI stocks that are getting bludgeoned. Okay, so.
SPEAKER 03 :
Yeah, and I think we start, right? I mean, I’m sure we’ll get into it, but kind of why, right, the reaction that we’re seeing? What is it? How is it developed in terms of what we know at this point?
SPEAKER 04 :
Has anybody really tested it, put it to the test yet? No.
SPEAKER 03 :
Right, and currently, as we sit right this minute, it’s like the most downloaded iPhone app currently. Yes, number one app. The difference is you still need all of the data centers and everything else because from what I hear, if you go to the app and try to access it, essentially it doesn’t work at the moment because they still need data centers. They need a bunch of computing power that they don’t have, particularly they can’t service this many users at one time, And to me, you know, okay, let’s just say it’s true. You can make an argument that you don’t need as many computer chips potentially, but you still need power. And when I look at CEG down, you know, 15% this morning, I’m like, you know, that part doesn’t – And how it’s built, right? The other thing is, you know, I always start with, and this is what you and Jeff this morning is, you know, the old adage that the U.S. innovates, China replicates, and Europe regulates, right?
SPEAKER 01 :
Yeah.
SPEAKER 03 :
And so what they used and how they built this model, they used an open source AI model, really trained it via Meta’s model, right? So what you’re doing is you’re building a model on top of another model. And essentially, they trained this model faster, which would mean you train it faster. You don’t need as much money to do it. And they’re saying that they didn’t use any NVIDIA chips. My guess is China has access to some NVIDIA chips if they want it. The thing is they’re not going to tell you they have them because they’re not supposed to have them. So there’s a lot of moving parts here. Well, yeah. Sometimes you can’t fight the tape. We can’t argue too much with it. When you look at the market, regardless of what we think or what anybody else thinks out there, the NASDAQ is down 2.65%. You know my skepticism on claims out of China.
SPEAKER 04 :
uh i’ve i’ve been burnt before and uh you know uh chinese coffee shops that were going to overtake starbucks and uh i i’ve just i’ve seen a lot of things that didn’t end up what was the solar company remember the solar company that was using the uh the uyghur labor remember it was uh golly there don’t even come to me there’s just a lot of funny business and This one, to me, just, you know, it’s kind of all of a sudden this unknown guy in a small province in China backed by a hedge fund. Who owns a hedge fund?
SPEAKER 03 :
He could be short some of these names.
SPEAKER 04 :
Yeah, he’s got the holy grail to AI. So the AI race is on. The next step in this thing is going to be to intense scrutiny. I saw one post on X this morning that they asked Deep Seek, who the current president of the United States is, and it came up with Joe Biden. As of July of last year, it’s still Joe Biden as the president. So let’s see how this plays out.
SPEAKER 03 :
And I heard if you ask it anything about the Chinese government or Xi itself, right, all you get is the Chinese propaganda answer.
SPEAKER 04 :
So, yes, count me a skeptic right now. And, you know, you can’t guard against overnight things in the market like this that seemingly come out of nowhere. Yes, we have some hedges against the NASDAQ. We have two times short the NASDAQ QID, which is doing very well today. And we have PSQ, but these are smaller positions. I use the analogy right now. They’re like a Los Angeles fire hydrant, you know, trying to put out a massive Palisades fire that is going through the AI sector this morning. They’re having very little effect, but at least they’re something. And, you know, this Friday fade that I saw, I think maybe the news started to leak on this thing. I did see a comment from somebody, and it might have been Google’s CEO, that does give it a little bit of credibility, China’s claims. He said this is something that we have to take very, very seriously. But it’s not unusual for even really smart people to be sucked into claims like this. Let’s just see how it plays out. And I think monitoring X today is going to be very important. I’m going to task Jeff Webster with that. I’m sure he’s listening. I want to monitor X today and see what Elon Musk has to say. They have not weighed in. I looked for their comments, and they haven’t weighed in yet. What Altman has to say, what Larry, the CEO of… of Oracle has to say, what Satya Nadella has to say from Microsoft and whatnot to see if these claims are real, if they can hold up to intense scrutiny that’s going to be placed on this. But suffice it to say, the AI race is a real one. I remember she saying that whoever has the most data wins. And, of course, they’ve got a lot of data. But who can crunch that data also wins.
SPEAKER 03 :
We’ve got folks giving them data every day via TikTok.
SPEAKER 04 :
Yes, and of course we’re placing, have they gotten around the prohibitions that we’ve placed on them from accessing a lot of these chips and whatnot? So this is a real moving story that we’ll continue to follow. Right now it’s causing extreme damage in the AI sector. You know, when stocks like NVIDIA are down 15%, 16%, Arista Networks is down 20%, the nuclear stocks are down 15%.
SPEAKER 03 :
Yeah, Constellation Energy. When I saw Constellation Energy today down 15%, that’s where I was like, okay, there’s a disconnect. There’s something not right here. Well, you may not need the chips to, you know, okay, let’s just say you don’t need these big fancy chips to train your model. Well, guess what? When we want to access the model and make it do stuff, you’ve got to have a data center and you’ve got to have energy.
SPEAKER 04 :
Yes, okay, when we come back, I just want to give you a little bit more details on this news out of China and how it’s rattling Silicon Valley here today. And then, of course, we’ll get into just the normal stuff taking place. A lot of earnings on tap this week. I think Tesla reports on Wednesday. We’ll be right back. And welcome back here to the second quarter of today’s Best Stocks Now show. Well, the markets have come back a little, but the NASDAQ is still down almost 3%. The S&P is down 1.6%. But if you look inside that AI sector, it’s down big time. Many of those stocks are down 15%. 16% right now, which would include nuclear, which would include Arista Networks, which would include NVIDIA, Broadcom, anything AI is getting roughed up here today.
SPEAKER 03 :
Now, okay, let’s just take a look at… You’ve got Vistra Energy right now, I’m looking at down 23%. Yeah, that’s… I mean, really? I mean, yeah, that just doesn’t… It doesn’t compute in my book.
SPEAKER 04 :
Yes. Okay. Now, let’s just take a look at this here. Let’s see. Here’s the news on this deep seek. A Chinese artificial intelligence lab. Where have we heard about a Chinese lab before? This one is in a small province in China. Shook up Silicon Valley this week after its large language model. That’s an LLM. outperformed American AI leaders. Now, I don’t know who did the test and who tested the performance and who came up with the numbers. Turning the Chinese firm into a hero, defying American attempts to stop China’s high-tech ambitions. DeepSeek, now here’s the part where I get a little, you know, my antennas go up here. DeepSeek, solely funded by Chinese hedge fund High Flyer, revealed its R1 model on Monday. and detailed in a paper how LLMs, large language models, can be built on bootstrap budgets and improved without human supervision. Both DeepSeek and HighFlyer were founded by a hedge fund manager, Leng Wenfang, and are based in the Chinese city of Guangzhou. R1’s explosive launch has made Wang Feng the industry’s new face in China, with him being the only AI leader invited to a meeting of industry experts with China’s second most powerful leader, Li Guang. This guy’s right behind Xi. According to benchmarks posted on DeepSeek’s website, which you can go to, R1 outperformed models from American competitors like OpenAI, Meta, and Anthropic, who have spent billions of dollars on building their models. Apparently, this one has not had billions of dollars spent.
SPEAKER 03 :
They say it hasn’t. I heard skeptics saying there’s no telling. Maybe they didn’t include some R&D expense, right? Or maybe they just reduced, right? Maybe they were just straight out lying about how much they spent.
SPEAKER 04 :
DeepSeek’s RI is open source, similar to Meta’s Lama. However, OpenAI, which originally started as an open source company with the mission of benefiting all of humanity, has recently shifted to closed source.
SPEAKER 06 :
Mm-hmm.
SPEAKER 04 :
R.I.’ ‘s release has sparked a frenzied debate on whether well-funded U.S. companies can maintain their technical lead. Companies like OpenAI and Google DeepMind are behind many of the advancements in reasoning models. DeepSeek has also had to navigate U.S. semiconductor restrictions on China, which have cut off the country from accessing the world’s most powerful chips. including NVIDIA’s H100. The lab suggests that it has either found a way to work around these rules or that Washington’s sanctions have not been as effective as intended. Well, here’s the one that I guess… If you’re looking for credibility in this story, it comes from the CEO of Microsoft, which is why maybe you can’t discount this whole thing. Here’s what the CEO of Microsoft had to say. To see the DeepSeq new model, it’s super impressive in terms of both how they have really effectively done an open source model that does this interference time, computes, and is super compute efficient. That’s from Microsoft CEO Satya Nadella. He said that at the World Economic Forum on Wednesday.
SPEAKER 03 :
And that was last Wednesday, by the way. And, of course, now the market is reacting today.
SPEAKER 04 :
Why didn’t the market react when he said that? Right. He says we should take the development out of China very seriously. So anyways, that’s one opinion out there. Now, let’s take a look at what Wedbush Morgan, they say the deep seek freak out is a golden buying opportunity for tech stocks. The tell-off caused by the release of China’s DeepSeek R1 large language model and subsequent concerns over the cost of competing models from U.S. companies is likely going to be a golden opportunity, golden buying opportunity for investors, says Wedbush Securities. Well, you know what? I’m going to sit back and I’m going to let the scrutiny come down on this deep seek because they are going to put a microscope on this thing. And we’ll see if it can hold up to scrutiny like you’ve never seen before because of the impact it’s having on the U.S. markets.
SPEAKER 03 :
Jensen getting a little taste of his own medicine, I guess, after his quantum comments a couple of weeks back.
SPEAKER 04 :
Yeah, well, he’s one of the guys I want to see. Me too. I want to hear him weigh in on this. and definitely Altman, and definitely Oracle, and definitely Elon Musk. Let’s just sit back and let this play out. I’ve seen other claims like this from China that couldn’t hold up to scrutiny. Once they looked under the hood, it was a bunch of parts put together with duct tape, you know. So we’ll see how this all plays out. China’s Aurora Mobile soars over 200% after adding DeepSeek AI models. on their platform so you know this there’s a lot of buzz here all right now let’s take a look at the earnings week ahead and i’ll give an update on earnings season when we come back today we’ve had at&t does anybody really care it’s one of those dogs of the dow AT&T did have a good report, however, it’s up 6.3%, not bad. Maybe we should own AT&T and not the AI stocks, Barry. It’s doing a lot better. We’ve also had SoFi report with a not good report. Yeah, down 11%. Tomorrow we’re going to get Boeing, deeply troubled Boeing, Starbucks, General Motors, Lockheed Martin, Raytheon, Kimberly-Clark, SAP, SAP, and a few others, and then we’ll talk about who we’re going to get on Wednesday because that’s when tech starts to roar. We’ll be right back. This is Bill Gunderson. Thank you for tuning in to today’s Best Stocks Now, Best Inverse Funds Now show. I put several hours of research in during the wee hours of the morning each day to bring you the very best cutting-edge stories that I can. To get two free weeks of my newsletter, go to GundersonCapital.com. To talk to us about our fee-based only money management services, call us at 855-611-BEST. Now, back to the second half of the show.
SPEAKER 1 :
Call out the instigator because there’s something in the air.
SPEAKER 06 :
We’ve got to get together sooner or later.
SPEAKER 04 :
And welcome back here to the second half of Best Stocks, the Best Stocks Now show. I’m not seeing any of the heavyweights weighing in yet, Barry. The only one that weighed in was last Wednesday, Satya Nadella of Microsoft. And Microsoft will be reporting earnings on Wednesday. and three members of the Magnificent Seven will report, and I’m sure they’ll have plenty to say about this new threat from China.
SPEAKER 03 :
That’s what I think the best thing is in terms of this timing, right? I mean, you’re about to tell us how many companies are reporting this week, which is a lot. And I’m sure, obviously, if you’re an analyst on one of these calls, you’re going to be asking about DeepSeek.
SPEAKER 04 :
Yes, 120 S&P 500 companies are going to report this week, and three of the magnificent seven is what they call them now. Microsoft’s going to report on Wednesday. Meta, which is a major player, I mean, they announced on Friday massive plans for data centers in New York, covering much of Manhattan. Meta platforms, Tesla’s going to report. I’m waiting for Musk to weigh in. They have not, as far as I can tell, they haven’t made any comments yet on this news. Also reporting on Wednesday, IBM. I’m sure they’ll have something to say. ASM Lithography will have something to say. Lamb Research, another one. Service Now will be reporting on Wednesday. So Wednesday’s going to be a very, very critical day. Make sure you take your vitamins this week, Barry, those multivitamins.
SPEAKER 03 :
I’m walking around with a seatbelt.
SPEAKER 04 :
Have the Tums ready. Have the Excedrin ready. On Thursday, Apple’s going to report. Intel’s going to report. Visa, MasterCard. You know, these quarterly reports, they’re a lot of fun. I mean, they’re almost like the football playoffs, only they happen every three months, right?
SPEAKER 03 :
It’s like unwrapping a Christmas present in the morning, right, whenever it comes out.
SPEAKER 04 :
Or lumps of coal, depending on the company.
SPEAKER 03 :
Chevron and Exxon. Did you see Apple, though? Did you see Apple was up? So this is the dynamic between AI names. It’s up 2.4%, and they’ve been behind in the AI space. So I guess if you can train models faster and easier, Apple’s like, well, thanks. We could use that a little bit because we’ve been behind the eight ball for really since this old AI thing started.
SPEAKER 04 :
Yeah, companies that are behind the eight ball seem to be rallying on this news that it doesn’t take billions of dollars. uh to train these uh ai uh models uh i like this one here’s my funny story of the day tunnel capital there he i’ve had uh i i’ve they sent you a message one time didn’t yes thank you and this and that and uh you know they had the uh well they came up with sark right which is inverse kathy woods how’s her fun doing today well You know, look, we’re getting clobbered today, so how’s our fund doing today? It’s a one-day phenomenon here. She’s down 3.34%, which is about in line with what the higher growth funds are doing today. They’re filing for an ETF, Tuttle is, that will track Congress’s stock picks.
SPEAKER 03 :
Yeah, track Pelosi, right?
SPEAKER 04 :
Maybe the symbol will be Nancy. I don’t know, but she’s been a pretty good… I’m sure she’s not having a good day today.
SPEAKER 03 :
They should pull for… Yeah, that’s a great symbol, by the way. N-A-N-C. That would be perfect.
SPEAKER 04 :
Well, you know what? They have filed for a symbol, and it’s N-P-E-L. So there you go. They are going to take advantage of Nancy Pelosi and form an ETF.
SPEAKER 03 :
Oh, you ready for what the NANC ETF is? There is an NANC ETF, and it’s called the Unusual Whales Subversive Democratic Trading ETF.
SPEAKER 04 :
Okay. All right. That’s a mouthful there. okay now let’s see we have uh let’s see google has not weighed in that’s another one that i would like to hear uh weighing in here on on all of this uh oh one thing i heard over the weekend i was talking to uh A guy, you know, we have a lot of people in our church that work for the biggest apartment builder in America. Yeah. Which is, give me the name real quick. Not Greystone.
SPEAKER 03 :
Greystar. Greystar. Yeah, Greystar.
SPEAKER 04 :
And, you know, shelter has been a big part of… The CPI component, right? Sure. Of negative impact. It’s been one of the drivers.
SPEAKER 1 :
40%.
SPEAKER 03 :
Rent. I think rents have been a 40% driver, I think, of CPI over the last handful of years.
SPEAKER 04 :
Well, from the mouth of two witnesses, I talked to two people very well connected, one with Graystar and another one in the M&A industry. saying that, you know what, rents are coming down, and they’re getting very nervous about that, the apartment builders and people that have investments in apartments. So that’s good news on the inflation front. You know, that could help with bringing rates down. And now I see this. You know, what I heard yesterday through the grapevine, through talking to people, This came out today that the U.S. Labor Department’s new tenant rent index, which leads inflation in the CPI, fell sharply on a year-over-year basis for the first time since 2010. And that could have something to do. We’re seeing a pretty big drop in interest rates today. Yes, it’s a flight to safety from nuclear and AI, but also this is very big news. I had no idea, but I knew about it before this news came out today. I should have bought the bond market two times X the tenure last night. It’s not insider information. It’s just people with boots on the ground, right?
SPEAKER 03 :
Yeah, and you talk about interest rates. Sneaky enough, we’ve got a Fed meeting that starts tomorrow, and we’ll get a Fed decision, likely a no decision on Wednesday. But yeah, we’ve got the Fed this week. We’ve got the PCE inflation on Friday. We’ve got weekly jobless claims as normal on Thursday, and then a plethora of earnings. Wow, man.
SPEAKER 04 :
And some deep seek.
SPEAKER 03 :
Yeah, and throw some deep seek on top of the fire.
SPEAKER 04 :
Well, I can tell you that so far, I mean, last week, 80% of the companies that reported beat their earnings. And we’re now looking for 12.7% growth in earnings versus the same comparable quarter last year. So we don’t have an earnings problem at all. What we have is a multiple problem in how much we’re paying for those earnings, which rose to 22.2. That’s been the high recently. And, you know, I said in my newsletter when that PE gets up in this range here, I showed the chart of the PE ratios over time. The market’s always had resistance there against that PE, saying, hey, hey, hey, this is too high. And we’ve seen sell-offs, and we’re seeing a sell-off today. It’s not really being driven, but it is. The high PE definitely is magnifying. People are nervous. Investors are nervous when there’s a P.E. that high, and it makes the markets more vulnerable to big sell-offs when news like this comes out of a small province in China from a lab and a hedge fund-funded laboratory that says they’ve found the holy grail to A.I., uh makes it very very nervous so anyways uh we’re going to get 120 companies the the the stock the best uh earnings performance i’ve seen so far or earnings report was from netflix netflix just had blowout earnings uh and uh you know 3m had a good report and abbott labs had a good report but this week When we see Meta, Microsoft, Tesla, Apple, MasterCard, Visa, that’s going to really, really set the tone here. It could be a big problem if one of these big AI stocks stumbles and doesn’t make their earnings estimates. In the meantime, did you know Donald Trump floated his own meme coin, two of them, him and Melania? I did not know this, but Coinbase CEO says that there’s a million, one million new tokens being generated weekly. How many of these tokens… are just worthless. What, 99% of them? So it’s making it very difficult for Coinbase. Which ones are they going to list? Which ones are they going to allow people to trade? If anything, to me, it points to the hysteria and the bubble that is being built in this whole crypto space. And I think it’s something that we definitely have to be nervous about. There is a biotech that is flying off the shelf here today. There’s a Stargate Healthcare AI-led biotech, two biotechs. And then we’ll look at underneath the surface a little bit of the market. I’m afraid to go down under the water today and take a look, but you got to do it. We’ll be right back.
SPEAKER 06 :
Gotta go where you want to go, do what you want to do, and win whoever you want to be. Gotta go where you want to go, do
SPEAKER 04 :
And back here to the final segment of today’s Best Docs Now show. Just looking on X here, I’m starting to see some cracks in the story coming out of China. DeepSeek has restricted registration, only allowing users who have a mainland China mobile phone number. That’s one. Then we’ve got a tech guy saying trying is believing. I just tried DeepSeek and it’s totally rubbish. It was a complete waste of time. Don’t let the whales steal your shares. You know, that’s another thing that happens. Somebody plants a story like this and they’re scooping up Vistra and Constellation Energy and Arista Network. on this big sell-off in tech. That’s the other possibility here. I smell a rat.
SPEAKER 03 :
Yeah, he does run a hedge fund. I mean, we had a subscriber email me earlier today, and we were kind of talking back and forth, and he mentioned he does run a hedge fund. Maybe he wanted to talk down the group because he’s short the group. Who knows?
SPEAKER 04 :
Yeah, it’s just I smell a rat. And unfortunately, it’s having a huge impact here on the markets.
SPEAKER 03 :
And as we know, I mean, the market, good or bad, the market, you know, overreacts. Always. It has more and more over the years, especially with program trading and just, you know, information moves infinitely faster than it used to. You can trade faster than you used to. You can trade year-round. There’s leverage products, all kinds of stuff. Point is, you know, good or bad news the market overreacts in one direction or the other and it’ll be interesting to see where this you know kind of sits down like i said i’m just glad we’ve got We get to hear from some of these big CEOs here in, what, in a day or two?
SPEAKER 04 :
Well, Scrooge is going to come down on this thing here big time. Someone also tweeted here, if DeepSeek supposedly owns 50,000 NVIDIA H100 chips, why is NVIDIA stock down over 12%? Let me see if there’s any buying coming into NVIDIA here. Not yet. Nope, not seeing any buying at all. It’s still selling off.
SPEAKER 03 :
Yeah, and this is part of the story and why the market’s doing this. I mean, it’s more of a long-duration story. In other words, these CapEx budgets for 2025, right, these folks are going to, Microsoft, all these big players, they’re buying NVIDIA chips in 2025. The question is, how long does that persist, 2026? What do 2026 earnings look like? What do 2027 earnings look like? And if there’s any change in that story in terms of demand or how long that cycle is going to last, then, of course, that’s going to affect valuations. But right now, we’re talking about this particular story potentially affecting 2026 and 2027 earnings, not really this year’s earnings.
SPEAKER 04 :
Exactly. So, well, you know, it’s an interesting story. We take it a day at a time. We take it a stock at a time. Gives us some good content to talk about. It doesn’t feel great when you’re looking at the tape here. There’s nothing you can do. Just let it play out. Here’s your big winner of the day, Akerotherapeutics, A-K-R-O. is up 107%, announcing good top-line results from a Phase IIb study of efruxifermin. Efruxifermin in patients with compensated cirrhosis due to metabolic dysfunction. Well, that has to do with the liver for sure, MASH, M-A-S-H. But that stock’s up 100%. Now, as you look at the S&P 500, the biggest winner is AT&T, up 5.5%. Salesforce is having a good day. Salesforce is up 3.8%. But now here’s the center of this Chinese story. Arista is down 17.6%. NVIDIA is down 13.2%. Broadcom is down 13.1%. NRG is down 13.1%. Digital Reality Trust, which is a REIT that owns data centers, So the theory is they’re not going to need as many data centers, which is kind of baffling to me. Why the data center stocks would be down today. DLR is down 11.9. Micron is down 9.8. Oracle is down 8.1. Super microcomputer is down 8%. Very, very unusual that we’re seeing this kind of reaction and selling. You know, usually there’s layers of investors. The first layer is the hot money. It’s the money that has been, you know, what do they call it? The carry trade where they borrow money from Japan at very low interest rates and turn around and invest in AI. That’s hot money. And hot money is always scared money. It’s nervous money.
SPEAKER 03 :
And leveraged money.
SPEAKER 04 :
And leveraged money. That’s the other piece, yeah. Workday is having a good day. It’s up 3.8% in the NASDAQ. Apple is up 2.2%, but then you look at the down stocks in the NASDAQ, and it’s the same group. Cadence is another one down 6.6%. ASM is down 6.2%. Well, I’m ready to go tackle the day, and I do it one stock at a time. Try to use a good sense and make out of this story where I think it’s at. I think we need to hear some of the bigwigs weigh in on this story before we do anything radical. But I think the story’s going to start to unwind here. There may be something down deep in the kernel of it, but I think a lot of the layers on the outside are going to start to come unwound. as people really scrutinize this thing. Anyways, the four-week trial, we’re still offering it. We have had just a plethora of people. They’re going to want a little bit of guidance through the day on a day like this. We’ve locked in some big profits. Try to limit losses on the downside. We’ve done pretty good with all of our portfolios. Yes, we’re taking on a little water today. Anybody who’s in growth is taking on some water today. But we’ve got a lot of skepticism right now about this whole story.
SPEAKER 03 :
It could create some opportunities.
SPEAKER 04 :
It could create opportunity. That’s what I’ve got to look at. I kind of wait to see the buying come back in. How do I see that? You know, I see it in the high-low charts. When you look at a chart, it shows you the low for the day and the high for the day. Right now, we’re trading at the lows for the day on Nvidia. Now, when that little thing starts to come back up and trade off of those lows, that means that the tide could be turning around. So that’s another key to it all. That’s why you’ve got to be vigilant. All right, to get a four-free-week trial, go to GundersenCapital.com to talk to us about money management. Set up an appointment at 855-611-BEST. 855-611-BEST. Have a great day, everybody.
SPEAKER 01 :
This show is not a solicitation to buy or sell any securities. Bill Gunderson or clients of Gunderson Capital Management may have long or short positions in stocks mentioned during the show. Past performance is not indicative of future performance. Gunderson Capital Management is a fee-based registered investment advisory firm. All accounts are held at Charles Schwab. Schwab is a member of SIPC and FINRA.
