| WEEKLY ROUNDUP From Big Macs to Big Tech: How to Survive the Technochasm VIEW IN BROWSER Hello, Reader. McDonald’s Corp. (MCD) reported earnings last week, and Wall Street had one thing to say: “I’m lovin’ it.” The stock jumped about 3% on Wednesday after the fast food giant reported earnings. However, the company’s tone was cautious. And for one main reason: weakness among low-income consumers. As McDonald’s CEO Chris Kempczinski said… Reengaging the low-income consumer is critical, as they typically visit our restaurants more frequently than middle- and high-income consumers. This bifurcated consumer base is why we remain cautious about the overall near-term health of the U.S. consumer. My colleagues over at InvestorPlace Digest illustrate this “bifurcated consumer base” with a term we’ve used here at Smart Money in the past – the “Technochasm,” or the widening wealth gap driven by advancements in technology and AI. As InvestorPlace Digest’s Jeff Remsburg said recently… [McDonald’s] earnings report is a snapshot of the Technochasm in action. Yes, certain consumers are still spending. But for many – especially at the lower end of the income spectrum – the strain is becoming undeniable. Bottom line: When McDonald’s says it’s having to “reengage” its most loyal customers through cheaper meals, we should take notice. That’s a macro warning. Jeff goes on… This bifurcation – strength from higher earners, fragility among lower-income households – is becoming a recurring theme in earnings reports across industries. And it’s a valuable clue into the true health of the U.S. consumer. This is especially important in the wake of last Friday’s jobs report – the weakest in over a year – and Tuesday’s ISM data… There is evidence that higher-income consumers can spend enough to offset the tightening we’re seeing from lower-income households. As Jeff says, earlier this year, credit card data showed that upper-income households were spending regularly, particularly on experiences like travel, fine dining, and entertainment. But we’re starting to see signs of fatigue. Last week, Fortune reported that more than half (58%) of six-figure earners no longer feel financially successful, according to a recent report from Clarify Capital. And more than seven in 10 of these high earners are now shopping at discount grocery chains to save cash. As to the investment implications, Jeff says that there are a few ways we can take this. He offers four options… Invest in the companies at the forefront of the technologies that will continue to explode the Technochasm. Clearly, that’s AI. Focus on fundamentally superior companies that are growing their earnings, despite a broader consumer slowdown Trade companies successfully catering to lower-income Americans Refresh yourself on the valuations of every stock you own I’d like to focus on Jeff’s first proposed option: investing in AI companies at the forefront of the wealth divide. In fact, I believe a surge of dynamic, surprising companies are poised to grow more rapidly and powerfully than anything we’ve seen before. That is why, in a new broadcast, I’m sharing seven free “Sell This, Buy That” recommendations – complete with names and tickers. Among these ideas are one company to replace Amazon.com Inc. (AMZ), another to rival Tesla Inc. (TSLA), and a third to upset Nvidia Corp. (NVDA). These little-known stocks are poised to overtake these three reigning AI darlings. I believe you can use them to protect and multiply your money in these make-or-break markets. But, of course, the AI Revolution is an expansive one. So, I shared even more about where I’m looking in the artificial intelligence space here at Smart Money in this past week. Take a look below… | 
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