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How We Predicted The Decline of Stocks

HADE Investment Grade technology was meant to provide real time grading on individual stocks. It rates more than 5,000 stocks with machine learning algorithms and artificial intelligence. Currently, the maximum number of positive points a stock can receive is 156, and 97 negative points. However, that changes daily as our machine learns and better understands what metrics really correlate to future, and past, performance. 

Here is a good reference of how our investment grade technology works, with Nvidia Corporation (NASDAQ:NVDA). Here is another good reference showing the reliability of our machines in comparison to Wall Street analysts

What we have identified over the last six months is that our investment grade technology is not only a good reference for individual stocks, but also the broader market. 

Back in August, Applied Materials (NASDAQ:AMAT) was the highest rated stock in our platform. AMAT stock traded at $42 and had a great of 98. There were at least a dozen other stocks with a grade above 90, including Lam Research Corporation (NASDAQ:LRCX), which operates in the same space as Applied Materials. 

Over a three month stretch, both AMAT and LRCX stock rallied nearly 40%. 

On February 1, before the market sell-off, we noticed that just two stocks had a rating of 80 and fewer than 10 above 70. The collective average of stock grades during the market rally from August until February had declined roughly 25 points, despite a significant rally in equity prices. 

Today, there are only four stocks rated above 70, none above 80. This despite a new category that rewards 2 to 6 points for leadership and innovation to companies such as Tesla, Netflix, and Facebook. What does this mean?

If we look at how our investment grade technology accurately predicted the broader direction of stocks, one must conclude that stocks are not a good buy at this moment. 

Fact is stocks have rallied 75% over the last five years, and even more so over the last eight years. Despite the recent sell-off, stocks are still historically expensive, and our machines recognize this fact whereas human analysis often can not. Unfortunately, people can't see an overvalued market until it is too late. They are too busy making money. They don't want to sell and miss out on potential gains.

Yes, a 5% drop last week may seem like a good entry point. However, keep valuations in mind. They do matter, and fortunately, that is something our technology was able to spot, even though it wasn't designed too. 

With all that said, I will leave you wish one final note: Cryptocurrencies are in fact, undeniably better than stocks right now. Next week, I will explain why. Be sure to register and get email notifications from HadePlatform.com