Folks, we're bringing a huge addition to the Power Gauge you know and love...
We've spent years covering the ongoing AI megatrend. It has gone from science fiction to touching close to every aspect of our lives. The technology has developed rapidly and is continually getting better.
And now, we feel that it's the right time to harness the power of AI in our existing stock-rating system.
To be clear, AI is not going to replace the Power Gauge. And it isn't a substitute for the work our analysts here at Chaikin Analytics do.
Rather, this AI model is an evolution of our system. It aims to better help investors like you find the winners in the long term.
This is not as easy to do as you may think...
In fact, a famous 2016 study confirmed what I – and most institutional investors – already knew.
You see, it's not hard to pick a stock that does well over the course of a few months. And the Power Gauge makes this even easier... But it's unlikely that anyone will pick a stock that does well for decades on end.
When this study came out, it looked at every publicly traded stock between 1926 and 2016. And it found that only five of those stocks created 10% of the market's total wealth during that time.
In 2016, these stocks were ExxonMobil (XOM), Apple (AAPL), Microsoft (MSFT), General Electric, and IBM (IBM). It has been a decade since that study, and there are other giants commanding the market today.
But that wasn't the only part of this study that caught my attention...
Your Chance of Picking a Winning Stock Is Less Than 1%
In 2016, this study showed that the top 90 stocks carried the markets. These winners made up more than half of the market's total wealth creation.
That's 90 stocks out of more than 25,000.
As I said earlier, the study went well beyond the active stocks in 2016. It also included all of the delisted stocks since 1926. And at the time, the stock market's total wealth creation was nearly $35 trillion.
That means only 0.4% of stocks that have ever existed created more than $17 trillion in value.
Today, we can see this same pattern in the holdings of Invesco QQQ Trust (QQQ).
Its largest holding, Nvidia (NVDA), makes up 8% of QQQ. In addition, the top 10 stocks in QQQ make up about 47% of the fund's 102 holdings.
Put simply – your chance of picking a future winner today is incredibly low.
But that doesn't mean it's impossible...
Behind the scenes, my team at Chaikin Analytics worked to harness the next generation of technology to bring AI to the Power Gauge.
This new Power Gauge add-on will help us find tomorrow's winners today. And we're excited to share the details with you...
The Next Evolution of the Power Gauge Arrives June 24
Folks, I'm proud to share the first AI-powered addition to the Power Gauge with my readers.
This tool acts like a "time machine" of sorts. It lets you go "back in time" to see the DNA of the greatest stocks in market history.
I can't share too many details with you right now. But you should know this is the next step of our Power Gauge software.
Fortunately, you won't need to wait long to hear all about it.
At 10 a.m. Eastern time on June 24, I'm sharing how my colleague Joe Austin and I are preparing for the next big market event...
Every one of my readers needs to hear this urgent message. And we'll be discussing the details of our new Time Machine add-on to the Power Gauge – as well as how we'll be rolling out access.
Our event next week is entirely free to attend. All you need to do is sign up for the event in advance. You can do that by clicking right here.
I hope you'll join us for the next evolution of the Power Gauge.
Good investing,
Marc Chaikin
