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The Fed's first rate cut of 2024 lit a fire under beaten-down tech stocks. Sky-high valuations in cutting-edge AI like C3.AI and semiconductor players like Nvidia exploded higher on hopes that an extended easing cycle will amplify their bold future earnings projections.
Each successive rate cut lowers the discount rates applied to distant cash flows, providing crucial buoyancy for the high-multiple disruptors. With Treasury curves already inverted on recession fears, aggressive contrarians are piling in early to front-run a potential "reflation renaissance" trade reviving 2020's pandemic-era euphoria.
But risks remain that any Fed policy stumbles could pull the rug out quickly. These high-wire growth stories will need the central bank to stick an economic softening landing to maintain their lofty new-found valuations.
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He’s Discovered 160 Different 1,000% Winners. Unlock His Top 7 Picks for 2024 Now
Louis Navellier is one of the great growth investors of all time, with his picks including Apple in 1988… Microsoft in 1988… Amazon in 2003…and Google in 2005.
Now in this exclusive report he’s revealing his top seven picks to watch out for in 2024.
