Author: Jillian Turner

Just weeks after the 2024 Super Bowl, it’ll be time to put money on the line for March Madness. 

For 2023, Statista estimates about $15.5 billion was bet on March Madness games. Heading into March 2024, we don’t have estimates just yet, but we expect to see nearly $20 billion in Madness bets for the year. One of the stocks that could benefit from the games is DraftKings (DKNG), which has already been explosive this year.

For some history, DKNG ran from about $59 to $76 ahead of the 2021 games. In 2022, DKNG ran slightly higher before resuming its downtrend. Last year, it ran from about $18.50 to about $30 a share later in the year.

Analysts at Stifel also like DKNG, upgrading it to a buy rating with a price target of $45. The firm added, “The stock’s recent correction affords an attractive entry point, with the company’s market share headwinds easing,” as quoted by TheFly.com.

Another way to trade March Madness is with an ETF.

Look at the Roundhill Sports Betting & iGaming ETF (BETZ), for example. With an expense ratio of 0.75%, the $16 ETF offers diversification with Entain PLC, Flutter Entertainment, Penn Entertainment, DraftKings, Churchill Downs, MGM Resorts, and many more.  What’s nice about an ETF is that it offers greater exposure at less cost.

Or, you can invest in one of the many sponsors of March Madness, including Coca-Cola (KO).

With strong demand, dependable dividends, and incredible earnings growth, Coca-Cola may be one of the best stocks to consider, long-term.  Buffett, who drinks about five cans of Coke a day, agrees, once calling KO a “forever” stock.  Coca-Cola is also a dividend king, raising its dividend for the last 60+ years. It currently has a yield of 3.09%.

There’s a lot of chaos in the markets.

Consumer prices jumped more than expected, raising fears the Federal Reserve may not be able to aggressively cut rates this year. The U.S. just launched an attack on Iranian-backed Houthis, which could open another major front in the Middle East. Bitcoin-related trades are dropping on a sell-the-news reaction to Bitcoin ETFs. 

It’s enough to make any one nuts.

But remember, as it’s often said, “There’s always a bull market somewhere.”

One of those bull markets can be found in uranium stocks. Cameco (CCJ) is up about 10% on the day. Uranium Energy (UEC) is up 12% to $7.76. Energy Fuels (UUUU) is up 10%. Even NexGen (NXE) is up about 10% to $7.74 on the day thanks to major catalysts.

For one, “The world’s biggest miner of the nuclear fuel warned it may miss production targets for up to two years. The announcement by Kazatomprom is the latest sign uranium will be in short supply amid growing global demand for nuclear power,” as noted by Yahoo Finance.

Two, according to OilPrice.com: 

“The uranium market is only getting hotter, and continued tightness could push prices over $100, analysts from Bank of America and Berenberg Bank wrote in two separate notes.

BofA’s metals and mining team said tightness in uranium markets could extend well into 2025, indicating that prices could run higher through this year. The team of analysts has increased their uranium spot price price targets to $105 per pound in 2024 and $115 in 2025.”

Three, “Geopolitical uncertainty and concerns about the security of uranium supply continue to be the driving forces behind the ongoing uranium rally,” noted Jacob White, Sprott Asset Management ETF product manager, as quoted by ETFTrends.com. 

Four, “Miners are struggling to get enough uranium out of the ground. That is helping to push prices of the nuclear fuel to nearly 16-year highs,” they added. In addition, about 22 countries, including the U.S., Canada, the UK, and France just pledged to triple their nuclear capacity by 2050 at the 28th Annual UN Climate Change Conference. 

Those are all major catalysts that could send uranium stocks, like CCJ, UEC, UUU, and NXE to higher highs moving forward.

One of the best investment strategies involves the Dogs of the Dow.

Every January, you simply buy the top 10, most beaten down, high-yielding names on the Dow Jones, cash out by year-end, and repeat the process the following January. Throughout the year, investors can profit from price appreciation, and receive dividends from some of the top, down, but not out, names on the market.

In 2023, for example:

• Verizon (VZ) – which has a current yield of 7.1% — fell from about $38 to $37.49
• Dow Inc. (DOW) – with a yield of 5.07% — jumped from $49.99 to $55.23
• Intel (INTC) – with a yield of 1% – ran from $26.72 to $50.39
• Walgreens (WBA) – with a yield of 7.22% – fell from about $37 to $26.60
• 3M (MMM) – with a yield of 5.47% – fell from about $120 to $109.69
• IBM (IBM) – with a yield of 4.05% – ran from $140 to $163.75
• Amgen (AMGN) – with a yield of 3.12% — ran from about $258 to $288.46
• Cisco (CSCO) – with a yield of 3.09% — jumped from about $47.48 to $50.48
• Chevron (CVX) – with a yield of 4.03% — fell from about $176 to $149.77
• JPMorgan Chase (JPM) – with a yield of 2.47% — ran from about $134 to $170.30

Six out of 10 isn’t bad at all. Plus, investors got to collect some great dividends. Now, as we head into New Year 2024, some of the top Dogs of the Dow to consider include:

• Walgreens Boots Alliance (WBA), which yields 7.22%
• Verizon (VZ), which yields 7.1%
• 3M (MMM), which yields 5.47%
• Dow (DOW), which yields 5.07%
• IBM (IBM), which yields 4.05%
• Chevron (CVX), which yields 4.03%
• Amgen (AMGN), which yields 3.12%
• Coca-Cola (KO), which yields 3.13%
• Cisco (CSCO), which yields 3.09%
• Johnson & Johnson (JNJ), which yields 3.04%

Another way to potentially profit from the Dogs of the Dow is by buying long-dated call options on each. Many will allow you to buy a call out to January 2025.

Or, investors can jump into a Dogs of the Dow-like ETF, with the Invesco Dow Jones Industrial Average Dividend ETF (DJD). With an expense ratio of 0.07%, the DJD ETF weighs its holdings according to the dividend. While the DJD was just as volatile as the markets were in 2023, it did see a respectable gain, running from about $42 in January 2023 to $46.10 today.

It’s just something to consider if you’re looking for opportunities in the market.

Keep an eye on cannabis stocks.

As we head into an election year, we may hear more potential legalization to help bolster votes. Two, we’re still waiting to see if the Drug Enforcement Administration reschedules cannabis as a Schedule III drug, significantly reducing restrictions. 

Three, President Biden just pardoned federal cannabis-related crimes, and also called on state governors to issue cannabis-related pardons at the state-level, too.  “Just as no one should be in a federal prison solely due to the use or possession of marijuana, no one should be in a local jail or state prison for that reason, either,” said the President, as quoted by USA Today.

And, according to Pew Research, “An overwhelming share of U.S. adults (88%) say either that marijuana should be legal for medical and recreational use by adults.”

To potentially profit, you can always pick up individual cannabis stocks.

Or, if you want to diversify with dozens of cannabis stocks, look at the ETFs, including:

Global X Cannabis ETF (POTX)

One way is to invest in the Global X Cannabis ETF (POTX).  With an expense ratio of 0.51%, the ETF invests in companies involved in the legal production, growth and distribution of cannabis and industrial hemp, as well as those involved in providing financial services to the cannabis industry, pharmaceutical applications of cannabis. 

Some of its top holdings include Tilray, Innovative Industries, Canopy Growth, AFC Gamma, Cronos Group, and Aurora Cannabis to name a few. 

Advisor Shares Pure US Cannabis ETF (MSOS)

There’s also the Advisor Shares Pure US Cannabis ETF (MSOS). With an expense ratio of 0.60%, the ETF was the first actively managed U.S.-listed ETF with dedicated cannabis exposure focusing exclusively on U.S. companies, including multi-state operators, as noted by Advisor Shares.  

ETFMG Alternative Harvest ETF (MJ)

Or, take a look at the ETFMG Alternative Harvest ETF (MJ). With an expense ratio of 0.75%, the ETF measures the performance of companies within the cannabis ecosystem benefitting from global medicinal and recreational cannabis legalization initiatives, as noted by ETFMG.com. Some of its top holdings include Tilray, SNDL, Cronos, and Canopy Growth.

Amazon Confirms $10B Internet Satellites Investment Push

Amazon’s business empire just got bigger with the e-commerce giant venturing into the internet-beaming business as part of a new $10 billion investment push. After launching its first internet satellites in October, the company has confirmed plans to use laser links to ensure they beam robust and reliable broadband coverage to its users. The push is part of the company’s bid to strengthen its edge in the highly competitive sector dominated by big careers, including Verizon and AT&T.

Amazon Project Kuiper

Project Kuiper is an Amazon push that uses key speed-boosting technology to offer strong and reliable internet connections. In most cases, satellites used in beaming internet connections have limited coverage, which reduces their effectiveness. Amazon intends to bypass this challenge by leveraging laser links that can connect satellites, providing internet connections regardless of location.

The use of laser links to beam internet should allow Amazon to deliver internet connections in the middle of the ocean on a cruise ship, even if a spacecraft is not in the range of a ground station. The links could improve both the latency and speed of the connections. This will be made possible by laser-passing requests for an internet connection to a nearby satellite. Amazon has successfully tested the technology using optical inter-satellite links.

Amazon’s latest push is part of a drive that seeks to draw more customers into its robust ecosystem dominated by an e commerce platform and cloud computing services. The use of satellites on the internet should allow the company to keep hold of maritime or air customers as it can beam internet connection to any location. In return, it should be able to sell other services and products to them.

The tech giant intends to operate a constellation of over 3,000 satellites 9n the next few years as it seeks to be a big player in the sector. The company has already ordered 97 rocket launchers to be used in deploying the satellites in the first half of next year. In the long run, the company is ready to spend up to $10 billion to make Project Kuiper a success. Plans are underway to start testing the satellite network next year. Prototypes of the network have already shown that the threat can transmit data at 100 gigabits per second over a distance of 1,000km.

Cheaper Internet Connections

Nevertheless, Amazon is one of many companies to leverage satellites to offer internet connections. Elon Musk linked Space X’s Starlink, which already operates one of the largest constellations of satellites, to beam internet connection to various parts of the world. This is made possible by a network of about 5,000 satellites.

Amazon is banking on the expertise of former employees of Facebook to hit the ground running with its latest salvo of satellite internet connections. Facebook was one of the companies that had plans to offer cheap internet services using its satellites to keep people engaged in its social networking apps. However, it abandoned the plans after embarking on an aggressive restructuring plan that resulted in a shift of focus to the multi-billion advertising business.

Microsoft (MSFT) could see higher highs.

All thanks to the artificial intelligence boom, say analysts at Truist, which just initiated coverage with a buy rating, with a $600 price target. “Their early investments in artificial intelligence have positioned them to take a leadership position in what we view as the fastest growing multi-billion-dollar market in technology,” they said, as quoted by Barron’s.

“Though their early execution in the generative AI market has been impressive, we believe that MSFT is poised to deliver further upside to expectations as projects go into production.”

Even better, according to Next Move Strategy Consulting, the AI market – currently valued at about $100 billion – could grow twenty-fold by 2030 to more than $2 trillion. 

All while the technology massively disrupts everything about everything.

Plus, generative AI could add between $2.6 trillion and $4.4 trillion a year to the global economy. That’s according to a new McKinsey report, which also said it could have a significant impact across all industry sectors.  

Even Goldman Sachs says generative AI could drive a 7% (or almost $7 trillion) increase in global GDP and lift productivity growth by 1.5 percentage points over a 10-year period. 

In short, there’s a good deal of potential further upside for MSFT.

The tech giant last traded at $374.45, and could test $425, we believe, before the year is over.

The US economy is at an inflection point and at risk of plunging into recession. Those are sentiments echoed by strategists in the aftermath of the economy slowing down considerably in the first three months of the year. The Commerce Department reported that the Gross Domestic Product rose at an annualized pace of 1.1% in the first quarter, lower than the 2% that economists surveyed by the Dow Jones expected.

GDP Growth Slowdown

In the fourth quarter, the US GDP climbed 2.6%. A significant slowdown in GDP growth in Q1 is being attributed to a significant drop in private inventory investment. A decline in nonresidential fixed investment has also had an impact. The report showed that inventory slowdown took 2.26% points off the headline number.

The slowdown in GDP, which measures all goods and services produced, was also influenced by a significant increase in interest rates by the US Federal Reserve. The FED had no option but to aggressively hike interest rates in the race to tame inflation that had risen to four-decade highs of 9.2%

The increase has seen the benchmark rate average between 4.75% and 5%, something that is piling pressure on the economy. For starters, the increase has taken a significant toll on the economy as borrowing costs have increased significantly. Businesses and individuals are struggling to access cheap capital needed to stimulate activity. While inflation has dropped significantly to about 5%, it is still high despite the high-interest levels in play.

FED Inflation and Recession Dilemma

Amid the high inflation levels, the personal consumption expenditures price index, another measure of inflation, was up in the first quarter to 4.2% against the 3.7% expected. The increase signifies that consumers continue spending much more on goods despite the significant price increase. The high spending signifies strong demand in the market even though the FED has been trying to increase interest rates to try and tame spending.

According to the chief economist at LPL Financial, Jeffrey Roach, the US economy is at an inflection point as consumer spending slowly softens. Consumers have been growing pessimistic about the state of the economy since the start of the year.

Attention now shifts towards the FED, which faces an uphill task in balancing between taming the high inflation and preventing the economy from tipping into recession. The increase in interest rates to 16-year highs has so far failed to pull inflation below the 2% recommended level. With inflation still high, the FED has no option but to continue hiking interest rates even though it could lead to a further economic slowdown.

Recession bells are sounding louder by the day amid the banking sector’s troubles. Silicon Valley Bank going under has once again underscored the fragility of the financial sector, something that could take a toll on the economy going forward. Moreover, the expected credit crunch amid the banking crisis could pile more pressure on the fragile economy.

Nevertheless, consumers can use their excess savings and purchasing power to shorten any possible economic contraction. In addition, a strong jobs market and a decline in the employment rate below 3.5% should further support the economy.

Jaguar Land Rover plans to electrify its fleet and exit the combustion engine car market in a few years. Taking note of the aggressive electrification in the auto industry, the company plans to invest $18.7 billion to ramp up the development of electric vehicles. The investment should accelerate the company’s plans as it looks to catch up with rivals that have already hit the ground running with a fleet of EVs.

Jaguar Land Rover EV Push

It is not the first time the company has set its sights on the EV space. Upon rising to the helm to become the company’s Chief Executive Officer in 2021, Thierry Bollore rolled out plans to expand the company’s footprint into the production of electric vehicles. At the time, the executive confirmed plans to ditch combustion engine cars in four years.

Confirming the multi-billion investment plan affirms the company’s focus on EVs, which remain hot prospects in the sector. In addition, the company intends to accelerate the development of autonomous driving features that should make its cars competitive in the sector.

Part of the $18.7 billion investment entails converting the company’s UK Halewood plant to focus on producing electric cars. The company is to repurpose the facility after the combustion engine models are phased out. It also plans to reduce and rationalize its non-manufacturing infrastructure as part of a cost-cutting drive. The Land Rover will have its first set of fully electric cars in 2024, with plans to have all Jaguars running on electric batteries by 2025

It is still unclear if Jaguar, owned by India’s Tata Motors, will hit the production targets given its limited experience in making electric vehicles. The company only has one electric vehicle model in a sector where its biggest competitors have already unleashed a fleet of EVs. The I Pace SUV is under construction in Austria by Magna International.

Stiff Competition

Jaguar Land Rover appears to be late into the party, as the likes of Tesla, General Motors, and BMW are ramping up production with a slew of EV models already in the market. In addition, the companies have gone the extra mile in setting up battery production facilities as they look to produce everything in-house. Some companies have also inked deals with mining companies as they look to secure Lithium supplies highly needed for the development of Lithium-ion batteries for powering EVs.

In the past, Jaguar Land Rover announced it might have to buy EV batteries for powering its cars in the UK to meet local content rules. The move may work to its disadvantage if the batteries in the country are expensive compared to other markets such as China. In addition, it might lack the competitive edge compared to other companies like Tesla that are producing their own batteries.

Nevertheless, the push to exit the combustion engine market underscores the seismic shift fueled by stricter emission rules in the UK and Europe. Governments in the region and worldwide are ramping up pressure against gasoline cars as they contribute a great deal to greenhouse gas emissions. Likewise, they have offered a series of incentives and other aid aimed at forcing automakers to make the big switch.

The fight for supremacy around generative artificial intelligence is heating up. While Google and Microsoft have dominated the spectacle with the launch of their AI-powered chatbots, billionaire investor Elon Musk has also set sights on the revolutionary technology. Concerned that companies are training their AI systems to be “politically correct,” Musk is starting a new AI initiative dubbed TruthGPT.

TruthGPT To Counter ChatGPT

TruthGPT will seek to rival ChatGPT, backed by Microsoft and the recently launched Google chatbot Baird. The launch is part of a policing drive as Musk aims to ensure the two chatbots don’t run a monopoly. The celebrity CEO fears that current AI systems will be misused and could be detrimental in the long run without any regulation.

Therefore, TruthGPT will seek to keep the likes of Baird and ChatGPT in check. The launch of the new AI initiative comes on the heels of Musk signing a letter calling for a pause on advanced AI research. The letter, also signed by Apple co-founder Steve Wozniak raises serious questions over the development of systems that could compete against human intelligence.

Over the years, Musk has expressed concerns that unchecked technology could end up harming society rather than benefiting it. There have been instances where technology has superseded human intelligence, raising questions as to whether it will reach a point where humans would not be able to control it.

There is fear that technology could end up replacing humans in most jobs, including fulfilling ones, thus causing more harm than good. There is also growing fear that unchecked technology could trigger potential abuses and misinformation. Musk believes that current AI systems are being trained to be politically correct, which is just another way of saying untruthful things.

Musk has already started pushing for the regulation of AI technology to ensure the technology is not used badly or causes more trouble than good. He envisions a regulatory framework like the one that has kept the aerospace industry in check. A proper industry with well-defined rules on what AI systems can and cannot do, according to Musk, will be more beneficial to the human race.

Twitter Encryption

Meanwhile, Musk has also confirmed that intelligence services had significant access to Twitter prior to him completing the $44 billion acquisition. Additionally, in an interview with Fox News, Tucker Carlson confirmed being taken aback by the degree to which regulatory agencies could access people’s messages on the social networking platform given the lack of encryption.

In a bid to deter such practices in the future, Musk says they plan to unveil end-to-end encryption that will make it difficult for regulatory agencies to access people’s messages. As early as next month, the social networking platform will toggle the encryption mode. While Twitter has undergone significant structural changes following the takeover, Musk believes the platforms will still play a crucial role in the next US election.

The remarks come after Musk laid off nearly 80% of the company’s staff as part of a major restructuring. The layoffs came as Twitter sought to trim its expenditure amid a slowdown in the lucrative advertising business. Additionally, Musk says it’s become clear that it’s possible to run the company with far much fewer staff if one is not running a glorified activist organization.

Generative Artificial Intelligence is about to revolutionize the world of investing by making it easier for people to decipher various research reports and the market as a whole. OpenAI’s AI-powered tool ChatGPT interpreting US Federal Reserve statements has once against affirmed the important role the revolutionary technology would play in future.

ChatGPT For Financial Analysis

While quants or computer programs have long been used to interpret various financial reports, it’s the accuracy of ChatGPT that’s taking the world by storm. Moreover, the tool being able to interpret FED reports as either hawkish or dovish may as well have opened the door for its use in making crucial investment decisions in future.

In addition, ChatGPT has shown it has what it takes to interpret headlines and decide whether they are good or bad for a stock. The fact that the technology can predict stock prices should be a game changer in the market. It marks an important milestone in an era where the smallest news can significantly impact volatility levels in the equity markets.

ChatGPt accuracy in interpreting the big headline has also set the stage for the use of various AI generative technology to analyze tweets and speeches. Consequently, in a few months, the technology could be key in generating trading signals at a time when traders and institutions are looking for ways to gain an edge in the market.

Technology advancement is poised to open a new world of new information whereby people can make informed decisions much easier. The technology’s ability to go through huge chunks of data and text analysis and interpret would enhance decision-making. In addition, the tech should be more accessible to a broader community opening up the investment world even further.

However, ChatGPT prowess is not the first of its kind. Over the years hedge funds and other investment firms have relied on natural language processing to read and interpret texts like earning reports. The technology has also been used to gauge how popular a stock or financial instrument is popular on networking platforms.

AI Generative Investments

The accuracy of generative AI technologies to enhance what humans can do sets the technology apart from previous technologies. Thus, it is not surprising that tech giants led by Microsoft are ready to invest billions of dollars as they look to get hold of a product or invention that will change the human race for many years to come.

Their use in the financial markets would be a game changer on opening up a new era of possibilities and investment opportunities. One of the biggest challenges that investors have always faced is the inability to interpret and make use of news that keep breaking up by the second. The fact that AI generative technology can say whether it is good or bad depending on the underlying asset should enhance decisions making

The efficiency that chatbots like ChatGPT are likely to trigger is likely to cause a stir in the financial industry. Consequently, it does not surprise that hedge funds and other investment firms are already taking great interest in the technology, given its prospect of revolutionizing the investment world.