Sometimes, it feels like the world has gone insane... And the other week, I was on the frontlines of worldwide insanity as I tried to enjoy a first date.
I Went on a Date With AI
By John Evelius, junior analyst, Chaikin Analytics
Sometimes, it feels like the world has gone insane...
And the other week, I was on the front lines of worldwide insanity as I tried to enjoy a first date.
Things seemed to be going well. We were having a good conversation mixed with a few laughs.
But then I noticed something rather odd...
Every so often, she'd glance down at her phone on her lap. At first, I figured she was just checking the time or text messages.
But it kept happening. And when I looked closer, I saw exactly what was on her screen.
It was OpenAI's ChatGPT...
My date had the voice feature turned on, and it was listening to our entire conversation.
As we talked, the AI was feeding her things to say in real time – topics to bring up, questions to ask, ways to keep the conversation going.
Folks, I didn't know whether to just laugh it off or walk out.
But the more I thought about it afterward, the less funny it seemed.
Because what happened on that date is happening everywhere right now...
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What a Bad Date Taught Me About the Market
I always figured AI would change how we work. What I didn't expect was that it would change the way we talk and communicate.
But the data says I should have seen this months ago.
A recent survey from Elon University found that 27% of American adults now have social or emotional conversations with AI chatbots.
Another study found that 13% of adults have confided something to an AI that they've never told another soul.
At the same time, more than 40% of married Americans say they've turned to AI for relationship advice.
Many of them felt that the program understood their personal struggles better than their own spouses.
In other words, folks aren't just using AI to simply write e-mails or plan vacations anymore.
They're leaning on it to navigate their jobs and friendships, and – as I learned the hard way – even their love lives.
Now, you may find all this unsettling. Sitting across that table, I sure did.
But here at Chaikin Analytics, we've learned to separate how a trend makes us feel from what it means for our money.
And that's the real lesson I took from my strange night out...
Plenty of folks are calling for the AI boom to collapse.
They may turn out to be right about some stocks. Valuations can get ahead of themselves, and it's never a good idea to chase hype at any price. And circular financing leaves several companies vulnerable to collapse.
But here's what my experience drove home for me...
Don't confuse a possible pullback in AI stocks with a pullback in AI itself.
The technology isn't going anywhere. It's already woven into how millions of people work, think, and – apparently – date.
That kind of adoption just doesn't reverse. Once people build their daily lives around a tool, they rarely give it back.
So as investors, our job isn't to bet against AI.
Rather, we need to stay disciplined about which AI companies are actually worth owning and at what price.
The hype will come and go. Some stocks will crash, others will soar.
But the overall trend underneath it all – the one I watched play out over dinner – is only getting stronger.
As for the date?
Let's just say there won't be a second one. I'll take my chances with someone else before I try competing with a chatbot.
Good investing,
John Evelius
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
-1.07%
9
16
5
S&P 500
-1.77%
115
315
70
NASDAQ
-3.47%
24
58
16
Small Caps
-1.65%
405
1062
426
Bonds
+0.43%
Energy
+2.13%
30
19
3
— According to the Chaikin Power Bar, Small Cap stocks have become somewhat more Bearish than Large Cap stocks. Major indexes are all bullish.
* * * *
Sector Tracker
Sector movement over the last 5 days
Health Care
+3.12%
Materials
+2.79%
Utilities
+2.04%
Discretionary
+2.02%
Industrials
+1.69%
Real Estate
+1.41%
Staples
+1.31%
Financial
+1.09%
Energy
+1.00%
Information Technology
-2.03%
Communication
-5.32%
* * * *
Industry Focus
Pharmaceuticals
16
40
5
Over the past 6 months, the Pharmaceuticals subsector (XPH) has outperformed the S&P 500 by 7.32%. Its Power Bar ratio which measures future potential is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #6 of 21 subsectors and has moved up 6 slots over the past week.
Top Stocks
AMPH
Amphastar Pharmaceuticals, Inc.
ARVN
Arvinas, Inc.
EOLS
Evolus, Inc.
* * * *
Top Movers
Gainers
FDXF
+14.91%
REGN
+13.33%
GPN
+12.97%
GDDY
+10.72%
CSGP
+7.21%
Losers
RDDT
-29.22%
INTC
-28.58%
ILMN
-18.64%
SNDK
-13.47%
DDOG
-11.50%
* * * *
Earnings report
Earnings Surprises
KRG Kite Realty Group Trust
Q3
$0.06
Missed by $-0.02
REGN Regeneron Pharmaceuticals, Inc.
Q3
$20.07
Beat by $3.82
LEA Lear Corporation
Q3
$3.71
Beat by $0.39
USLM United States Lime & Minerals, Inc.
Q3
$1.32
Missed by $-0.16
EXC Exelon Corporation
Q3
$0.87
Beat by $0.08
* * * *
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