In 2024, the Nasdaq saw impressive gains with Palantir rising 340.5%, Nvidia at 171.2%, and Broadcom at 107.7%. This surge has raised concerns over concentration risk, with the top 10 stocks in the S&P 500 accounting for 37.3% of the index’s value. As we navigate this Golden Age of technology, leveraging AI and advanced analytics is key for evaluating stocks amidst market volatility. Investors are encouraged to look beyond traditional metrics, employing tools like the Price-to-Sales ratio and Free Cash Flow growth. Technical analysis, including volatility metrics and charting, enhances trading strategies. Innovative AI platforms, such as Tiger Trade’s TigerAI and AlphaSense, facilitate deep analysis and market monitoring. However, caution is necessary; AI tools can misinterpret data, and relying solely on them poses significant risks including overvaluation and extreme market volatility. Investors should remain vigilant and consult expert financial advice before making decisions.
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