The 50% AI Software Crash: Why Wall Street Is Dead Wrong

In this week's Stansberry Investor Hour, Dan welcomes Bryan Beach back to the show. Bryan is the editor of Stansberry Venture Value and a senior analyst on Stansberry's Investment Advisory.

 

Bryan kicks things off by discussing the idea of passive investing and how it has changed the way the market is valuated. He says that folks are relentlessly buying the biggest stocks every time they invest in their retirement funds, and they don't even know it. This "irrational indifference" could result in such a high level of volatility that it leads to mass liquidation of stocks. Bryan then talks about Software as a Service ("SaaS") and why artificial intelligence ("AI") isn't going to kill the companies that focus on it. (0:00)

 

Next, Bryan does a deep dive into Salesforce (CRM) and its business model. Investors thought that AI was going to undermine the company and similar businesses because it offers better efficiency and can be cheaper. However, its software is so embedded in its customers' operations that they don't want to leave it, even if they aren't in love with it. Bryan says that "sticky" companies with models like that are ones you want to look at. (20:14)

 

Finally, Bryan shares the market sectors he's most interested in right now. He says investors should keep an eye on the conflict in the Middle East. This has created multiple energy investment opportunities in North America, especially in Canada. But in general, it pays to frequently brush up on what's going on in the world to see what new opportunities could arise. And contrary to what you might think, investing isn't an "either/or" matter. If you're focused on long-term investing, you can take advantage of volatility and make options trades. (33:37)