Weekly Newsletter from 03-07 Feb
The Trump tariff era started after the DEEPSEEK episode, our view on NVDA and AI area…
Dear Members,
Last week, the US tech world witnessed a roller coaster ride. Once the world learned that the Chinese AI company created disruptive technology at a very low cost, it created panic in US stocks as the US tech world is burning billions of dollars in a year. Yes, the tech field is unique, and this will keep happening as long as humans are on this planet. Winners and losers will quickly change; it will be like tech companies are on a horse race course.
I would like to see the technology and AI race focus on significantly innovating in healthcare and the discovery of medicine. In this year's book, we mentioned that AI will bring huge changes in healthcare and find new diseases and cures for each one. in 2023/24, the platform was set for the AI world, and now it is crucial that how we integrate this technology in all different areas. In 2025, I am more focused on AI companies, which focus on healthcare, cures, and the discovery of drugs. Yes, this is our theme, we all made a great amount of money in NVDA, AVGO, PLTR, and other companies that lay the platforms.
Yes, there is no doubt that Deepseek has spent more money than he said in his statement. Still, one thing is sure: AI could now be widely used by corporations in every area as models have become more cost-effective, and its cost will gradually go down, as has been happening in the last 35 years.
Now, another topic is geopolitics. Yes, AI and technology hardly get impacted, but businesses do because of taxes and tariffs, which we see becoming more aggressive during the Trump era. Saturday night, a Tariff will hit Canada, China, and Mexico, which will become effective from Tuesday night. China may not react aggressively, but Canada and Mexico may counter. Mexico and Canada, with a 25% tariff, but China, with a 10% tariff, may not have any impact because China has already devalued their currency. On the other hand, the Canadian dollar and the Mexican Peso have been falling dramatically, which may offset some of the losses for exporters.
Canadian and Chinese goods will be hit, and if these tariffs are implemented for the longer term without negotiation, Mexico and Canada will lose significantly. Many in the USA fear rising inflation in the short term, which is true, but in the longer term, productivity could rise in the US, which would be a blessing for the US. China won’t like to see the USA start building factories; otherwise, it will be the death of China.
When we talk about productivity in the current era, we are talking about the beginning of automation and the robotic era. This is one of the best times for this to happen, as AI is starting to enter every area, and robotics could play a major role in pushing the US to be the most powerful country on this planet by far, with less dependence on other countries in many areas.
Nothing happens overnight, and yes, there will be the cost of this, which the US may bear for the next few years, but after that, dramatic changes will come, and the US will start producing goods at a far lesser cost than other nations. I believe tariffs can be a blessing for the turnaround of the US economy as productivity could be soft here, although it may take some time. If export nations don’t move to make a deal with the USA on unfair trade practices going on with the USA, then they will be in big trouble in the medium to longer term.
AI, Robotics, and Automation bring smooth productivity and lower costs, which could add some percentage to the GDP. Yes, people are worried about fewer jobs, but humans are unique, and we will be able to find other ways to be effective. So far, in the last hundred years, productivity has become cost-effective due to engineering and automation, and we have witnessed efficiency improving in every area, from mining to steel plants, farming, banking transactions, to medical surgery. Yes, every area has improved dramatically, and a few things we are still struggling with are Travel. It still takes the same amount of time to fly from the USA to India; hardly anything has improved except passport scanning in the last 25 years, meaning that the civil aviation industry needs some serious competition. Only two companies (Boeing and Airbus) dominate this area.
If you wait three years, you will see dramatic changes in the aviation industry once Saturn moves into Aries.
Yes, I understand a little bit about economy, commerce, and finance because this was my subject in college, but since I added the wave of nature and astro cycle into this economy and finance, I felt like I got the master key to unlocking the future, by being able to easily go into the future and come back to the present and write about future to you what I saw. It is amazing if one can go into the future, touch everything, feel everything, have a vague picture, and go back to the present and write about it as an advisor. Studying economy and finance helped me understand the basis of economic fundamentals, but astro-cycle unlocked the picture of the future.
Last week, many large mega-cap stocks announced earnings, and the numbers seemed okay. This week, AMZN and GOOGLE will announce earnings, and both will announce good earnings. However, we have to remember that both are in the process of producing their own custom chips to take care of AI tasks. GOOGL is our top pick; it hit an all-time high on Friday.
Finally, NVDA will have a tough time in the short term, but the company will be able to quickly shift to cheaper chips if it really feels that these cheaper versions could create AI and complete tasks without any issues as smoothly as high-end chips. I will buy NVDA if it goes to $100, as NVDA will dominate the AI world with hardware and software.
There is no need to get overexcited about software stocks, as last week, many analysts recommended buying software stocks CRM, and NOW, and many others after Deepseek news. Indeed, innovative software companies will play a role, but NVDA could also play a more significant role in software along with their hardware. NVDA is down but not out.
On the other hand, we may see APPLE making a massive move in the second half of 2025; we don’t see Apple going below $200 or, in the worst case, $183, and we don’t see TSLA going below $383. AMZN and GOOGLE are making new highs; in fact, google is starting a new era.
Plan your strategy well, as S&P is warming up towards 12500 and NASDAQ towards 43000. S&P and NASDAQ have achieved every one of our predicted targets in the last 30 years, and I am sure these targets will also be fulfilled by 2029 or early 2030. Read our book “2025 Financial Predictions” very carefully; if what I am writing is accurate, then your capital will grow multifolds in the coming five years. Follow our mid-cap stock recommendations, as they may provide a five-to-ten-fold return. For the last 18 months, we recommended NVDA and PLTR; we said just buy these two stocks, and there is no need to invest in anything else, as PLTR would test $75 and NVDA $1500. Most of you remember that PLTR went up from $7.75 to $80.00 and NVDA from $280 to $1500. I don’t think any provided these targets in 2023 for both stocks and indexes. People were joking about my AI predictions, but now they feel they were on the wrong side. There is no if or but in our theory.
On the other India, politicians from both sides of India are too busy with religion and caste issues, and history has witnessed that those who create religious agendas for personal gains always take the country on the wrong path. I hope this won’t happen, and India will walk on a progressive path under Modi.
On the other hand, Bitcoin is behaving as predicted, and it looks like it is getting ready to hit $143000 very soon, and lower side it will hold $82000. Gold tested a new high last week, and now this week is crucial, so read the metals sections below carefully. Coffee hit an all-time high, and last week, it achieved our predicted higher side target of $381, and the Dollar bounced back from 107.00 as predicted.
Click the below link if you wish to subscribe to the complete weekly newsletter:
Here is this week’s weekly newsletter of metals, indexes, currencies, energy, grains, softs, bond, and crypto from the 3rd to the 7th of February 2025:
https://www.mahendraprophecy.com/weekly-newsletter-subscription.php
Thanks & God Bless
Mahendra Sharma