Better Than Nvidia
You may have noticed that when Nvidia (NDVA) announced its recent earnings, its stock rose 16% while Global Gambits recommendation Super Micro Computer (SMCI) went up 32%.
This is consistent with my view that Super Micro is a leveraged bet on artificial intelligence (AI), and I expect this will also be the case when Nvidia stock price moves the other way. Nvidia is now priced at an incredible 32 times trailing annual sales and has a larger market cap than Germany's entire blue-chip DAX index. Super Micro has already tripled in 2024 so consider taking partial profits. Remember, J.P. Morgan allegedly stated that he made his greatest profits by selling too soon.
In 2023 alone, overseas buyers poured $43 billion into Japanese shares. Adjusted for inflation, the Nikkei still is nearly 18% below the bubble's 1989 peak. And with Japanese households sitting on $8 trillion of cash which could move into the market, I recently added WisdomTree’s Japan Hedged Equity ETF (DXJ) as a Global Gambits ETF recommendation.
Bitcoin surged to an all-time high and the market widens. Please be careful with our Grayscale Bitcoin Trust (GBTC) ETF recommendation which is up 45% this month. Unlike fiat currencies which can be printed like paper, only 21 million bitcoins can ever exist.
Meanwhile, the dramatic changes in America’s and China’s economy continue apace and have implications for investors. At its peak, more than 100,000 people streamed in and out of the massive Rouge Ford Motor factory in Dearborn, Michigan. Now that is the total number of auto-related workers in all the Detroit metro area.
Apple (APPL) announced this week it is ending its effort to launch an electric vehicle (EV) after spending $10 billion over the last 10 years. Unbelievable.
A decade ago, Chinese used to flock to Hong Kong to shop for items not available on the mainland. Now Hong Kong residents increasingly jump across the border to the city of Shenzhen, where they stock up on cheaper frozen food, clothes, and furniture at stores such as Costco and Sam’s Club. One reason is that Chinese consumer price levels are declining while the Hong Kong dollar is strong.
We go today for paid members to Southeast Asia to revisit a previous 10X pick that has come back to earth giving us an excellent price entry point to capture growth in the region.