Google In `Terrible Bind' From Pulling AI Feature Under Pressure
Feb 28, 2024
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Google faces challenges with bias in AI tech, sparking controversy. Investors discuss electricity investments and US economy soft landing. Futuristic power demands and market shifts are explored. Transition to sustainable energy sources and AI stock investments are highlighted.
Google faces backlash for AI diversity efforts, highlighting challenges in bias reduction techniques.
Louis Navaleer advocates long-term investment in AI stocks with strong fundamentals and growth potential.
Navaleer emphasizes strategic investment approaches such as buying on dips post-earnings season and staying alert to market shifts.
Deep dives
AI Stocks Show Strong Sales Growth Amid Tech Boom
AI stocks like NVIDIA and Super Microcom show over 200% sales growth, backed by strong fundamentals. NVIDIA and Super Microcom have been long-term holdings in Louis Navaleer's portfolio, with Super Microcom's stock surging 189% this year. These companies are leading the hardware AI sector and trade at reasonable valuations, making them attractive investments.
Long-Term Vision and Investment Strategy Amid Market Environment
Louis Navaleer's investment strategy focuses on long-term vision, with a marathon-like approach to market cycles. Despite the current market greed, Navaleer emphasizes the importance of making subtle course corrections and staying invested in companies with strong fundamentals and growth potential. He maintains a diverse portfolio with a mix of global equity, fixed income, real estate, private equity, and infrastructure holdings.
Missed Opportunities and Market Analysis
Louis Navaleer acknowledges missing out on Meta due to its high beta nature and rapid stock surge driven by short covering. While Meta ranks high on quant criteria, Navaleer's fundamental analysis doesn't fully support investment. He also reflects on the challenges of predicting AI tech stock trends and remains cautious about valuations and market directions amidst rapid changes.
Investing Strategy Beyond Earnings Season and Focus on Energy Sector
Navaleer plans to buy stocks on dips post-earnings season, focusing on analyst upgrades and estimates. He emphasizes selling on strength and buying on dips during mean reversion periods. He expresses bullish views on the energy sector leading into September, anticipating a seasonal surge. However, he remains alert to potential market shifts based on macroeconomic and political factors, especially regarding energy stocks in relation to potential political shifts.
US Market Dynamics and Economic Factors Impacting Investment Decisions
Navaleer underscores the competitive dynamics among US states as a driver of economic prosperity, with a focus on business competition propelling growth. He notes the importance of strong demographics and state-level competitiveness driving American economic resilience. While acknowledging potential political influences, Navaleer prioritizes state-level dynamics and ongoing market competition in shaping his investment decisions.
Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg News Technology Reporter Davey Alba and Bloomberg Technology Co-Host Ed Ludlow discuss how Google tried using a technical fix to reduce bias in a feature that generates realistic-looking images of people. Instead, it set off a new diversity firestorm. Timothy Kramer, CEO of CNIC Funds, talks about investing in electricity with AMPD ETF. CalSTRS CIO Chris Ailman explains why he believes the US economy has made a soft landing. And we Drive to the Close with Louis Navellier Founder and CIO at Navellier & Associates. Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan.