Extract Alpha from Financial Content

The post features a chart for Bitcoin (BTCUSD) showing its price movement, currently around $64,601.57, and indicates a recent decline. The chart also displays a moving average indicator.

A high-conviction investment idea is Ragaku, a Japanese x-ray company critical for AI chip manufacturing, but exercise caution as the stock has recently run up over 40%. Investors should purchase Ragaku stock directly on its native Japanese exchange through a global brokerage account, avoiding the illiquid ADR. Consider reducing exposure to high-valuation Software as a Service (SaaS) stocks, as their growth is threatened by cheaper AI-driven solutions. Look for buying opportunities in fundamentally strong companies like Amer Sports (AS) if the market unfairly punishes them for making positive long-term growth investments. Finally, anticipate extreme volatility for NVIDIA (NVDA) around its earnings, as high expectations make the stock vulnerable to any hint of cautious guidance.

Consider a "barbell" strategy by investing in both the Technology sector and the Commodities/Energy space to capture the full AI build-out. For technology exposure beyond mega-caps, look into the Invesco NASDAQ Next Gen 100 ETF (QQQJ), which holds the next tier of growth companies. On the energy side, solar company Nextracker (NXT) is a high-conviction idea to play the increasing power demands of data centers. The overall outlook for the Nasdaq is bullish, and any market corrections should be viewed as potential buying opportunities. The commodity portion of this strategy is expected to perform well over the next 3-4 quarters as the global manufacturing cycle improves.

The current underperformance of the Magnificent 7 stocks, driven by heavy AI investment, presents a significant long-term buying opportunity. This is viewed as a strong value trade because the market is mispricing the massive future returns from this AI infrastructure build-out. Investors should also consider rare earth metal companies outside of China to capitalize on the risk of China weaponizing its supply chain. As a hedge against rising geopolitical risk from trade disputes, precious metals like gold and silver may offer portfolio protection. Finally, shifting trade dynamics could create new investment opportunities in countries like Brazil, India, Canada, and Mexico.