Harry's Take October 23, 2024

AI Bubble Peak

Here’s a chart from Elliott Wave International that shows a very clear 5-wave pattern peak in AI stocks after a 2-year rally since the late 2022 lows. Bitcoin is the larger bubble also appearing to peak recently at $73,750 back in May, but this is the later stage bubble in the newer AI sector of technology. Both will obviously lead coming out of the likely crash of a lifetime ahead, that has been put off for 3-5 years further with even more massive stimulus since COVID, now creating an even more extended bubble since early 2009 into by far the longest bubble ever: 15.6 years. But AI is likely to become the stronger advance in this next wave up, likely into 2037 or so.

This is about as good a pattern as you get in Elliott Wave analysis including the longest and most extended 3rd wave in the middle. And recently a perfect a-b-c, 2-wave bounce from the 1-wave down thus far.

As with a number of charts shown in the last month that suggest a major reversal is near, this one needs to see more follow-through to the downside as well, with Bitcoin likely leading that this morning down 3.3% from its $69,247 peak after the close on October 20.

How can this possibly end well, especially with the tightening into July 2023 still yet to hit fully into early 2025?

Harry

[Sponsored] Escape the market madness with 7 stocks to buy and hold​
​
Every powerhouse name on this list is already a proven winner. You won't find any risky moonshots, startups, or unicorns. Just best-in-class blue chips you can hold for years to come.
​
​Get the complete list FREE for a limited time.​

​

Disclaimer: Copyright 2020 HS Dent Publishing LLC. These e-letters (the "E-letters") are created and authored by Harry Dent (the “Content Creator”) and are published and provided for informational purposes only. The information in the E-letters constitutes the Content Creator’s opinions. None of the information contained in the E-letters constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. The Content Creator is not advising and will not advise you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. To the extent that any of the information contained in the E-letters may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. From time to time, the Content Creators or their affiliates may hold positions or other interests in securities mentioned in the Newsletters and may trade for their own accounts on the information presented. The material in these Newsletters may not be reproduced, copied, or distributed without the express written permission of HS Dent Publishing, LLC.

​

Got a question or comment? You can reach us at info@hsdent.com.