Summer is upon us, but the 24/7 news cycle never quits. And lately, the market-moving headlines came from Osaka, Japan, which hosted the G20 summit of world leaders — most notably, President Trump and Chinese President Xi.
Now that the two declared a slight “truce” in their trade war, we’re seeing stocks react positively. Whether or not you believe that Wall Street traders still “sell in May and go away,” nowadays it’s easy to stay tuned into events like the G20, even from the comfort of a waterfront mansion in the Hamptons.
And what they’d have seen is that President Trump has agreed to postpone the tariffs on $300 billion in Chinese goods, while President Xi has promised to purchase U.S. soybeans. It still remains to be seen how The Art of the Deal plays out here. But both sides have signaled their willingness to negotiate. That paved the way for a “big-league” market rally.
In its wake, stocks have been breaking out left and right. That’s especially true of the stocks we track at Growth Investor. On Wednesday alone, 16 of them hit new 52-week highs — from Mastercard (MA) to Lockheed Martin (LMT).
Big multinationals like that certainly stand to benefit from a positive resolution to the trade war. But that’s not all they have in common:
Both stocks met my ultimate criteria for a high-quality investment: the eight fundamental factors in my Portfolio Grader. Mastercard and Lockheed rate very highly in terms of sales, operating margins, earnings growth, and the ability to beat Wall Street forecasts.
Plus, both stocks achieved my highest Quantitative Grade, as you see here:
Fundamentals are important, but for long-term success, you also want to “follow the money,” and that’s what the Quantitative Grade lets us do. The more money that floods into a stock, the more momentum it has to rise.
Speaking of following the money…
I’ve identified another set of stocks that both meet my strict eight-point criteria AND take advantage of unstoppable tech tailwinds.
How the “Next Industrial Revolution” Will Look
Right now, scientists are developing the next generation of computing technology. And once it’s widely available, it’ll trigger what Forbes called the “Next Industrial Revolution.”
Computers have already made life easier and more efficient! However, there’s still a lot of room for human error. People trip over cords, spill their coffee…even fatigue can cause pretty significant setbacks in a computerized world. Plus, there’s just too much data for the human brain to analyze.
That’s why the second wave of computers will not only work with massive amounts of data, but they’ll interpret it themselves. And they’ll communicate and learn from each other. We need machine learning — artificial intelligence (AI) will take everything to a whole other level.
AI was first imagined by science-fiction writers like Isaac Asimov as a danger to society. But, to quote Facebook (FB) founder Mark Zuckerberg: “If you’re arguing against AI, then you’re arguing against safer cars that aren’t going to have accidents, and you’re arguing against being able to better diagnose people when they’re sick.” He makes a good point here.
Even in these early days of AI, computers are making extremely accurate predictions — picking up on patterns the human eye (and brain) cannot. Imagine what it can do when it’s more widely available.
In fact…it reminds me very much of the early days of personal computers (PCs), when entrepreneurs like Steve Jobs were just starting out. Tech breakthroughs were made — and fortunes won — virtually overnight.
Then and now, you’ll find “Intel inside” just about every PC in the world. And its stock price has gone up more than 11,000%!
I mention it because we have just this kind of opportunity today with artificial intelligence.
The AI “Master Key”
The investing strategy I’m using here is something I call finding the “Master Key.” Think of it like a single key that can unlock any door in a giant building.
Intel was the Master Key to the PC revolution. And here, the Master Key is the company that makes the “brain” that all AI software needs to function, spot patterns, and interpret data.
It’s known as the “Volta Chip” — and it’s what makes the AI revolution possible.
Some of the biggest players in elite investing circles have large stakes in the AI Master Key:
- Ron Baron, billionaire money manager with one of the biggest estates in the Hamptons.
- Ken Fisher, author of The Ten Roads to Riches and other bestsellers, who’s made the Forbes 400 Richest Americans list.
- Mario Gabelli, namesake of the Gabelli Funds, with a salary of $85 million for one year — Wall Street’s highest paid CEO.
None of them, however, are programmers…or any kind of tech guru. You don’t need to be an AI expert to take part. I’ll tell you everything you need to know, as well as my buy recommendation, in my special report, The A.I. Master Key, exclusively in Growth Investor. The stock is still under my buy limit price — so you’ll want to sign up now; that way, you can get in while you can still do so cheaply.