By Charles Mizrahi, Banyan Hill Publishing, 2024-09-25
Artificial intelligence (AI) is going to propel the Dow Jones Industrial Average to 100,000 within the next decade — maybe even sooner.
That's not a prediction.
It's inevitable.
That's the only word that comes to mind.
AI will impact every U.S. industry, driving enormous wealth creation. It has the potential to add billions of dollars annually to the U.S. economy.
For context, the U.S. GDP in 2023 was over $27 trillion. If AI boosts GDP by just 5%, that's more than $1 trillion in added value.
Come to think of it … Dow 100K might actually be on the low side.
As AI continues to develop, its impact on the world economy will be massive. Some estimates suggest that by 2030, AI could contribute $15.7 trillion globally—that's almost the size of China's GDP.
So, here are three industries you should consider investing in now to ride the AI wave and capitalize on Dow 100K…
No. 1: Agriculture ($2.6 TRILLION)
AI can help with crop yield optimization, precision farming, and agricultural robots for harvesting and pest control.
My favorite agriculture company is the 186-year-old Deere & Company (NYSE: DE).
Deere is quickly becoming one of the world's leading robotics and AI companies.
In fact, in January 2023, Deere was the first agriculture technology company to present on the main stage at the Consumer Electronics Show (CES).
The company has more than 500,000 connected machines.
With their equipment connected to the cloud, customers can manage complex operations and ensure the health of their equipment, all with real-time data.
No. 2: Entertainment ($1.2 TRILLION)
AI is being used for personalized content recommendations, computer-generated imagery (CGI) in movies and creating immersive gaming experiences.
Imagine being able to have AI create a custom movie while you're at work.
It won't be long before that's a reality. You may even be able to include the likeness of a deceased actor.
I wouldn't want to be a Hollywood writer or executive right now.
AI programs could put a permanent dent in the multi-billion-dollar entertainment industry.
No. 3: Finance ($2 TRILLION)
AI is being used for fraud detection, risk assessment, algorithmic trading and customer service (chatbots).
Jamie Dimon — Chairman and CEO of JPMorgan Chase & Co. — just wrote about it.
Each year he addresses the most important issues facing JPMorgan — and this year, it was the impact of AI.
“We have grown our AI organization materially. It now includes more than 2,000 AI/machine learning experts and data scientists.”
But what caught my eye was how he described AI.
He wrote that it could possibly be “as transformational as some of the major technological inventions of the past several hundred years.”
How transformational? “Think the printing press, the steam engine, electricity, computing and the Internet, among others.”
That's why I've been positioning our Alpha portfolios to benefit from the growth in AI for the past few years.
And finance is an industry that will benefit greatly from AI.
Dow 100K is coming.
It's not a matter of if … but when.
And you don't need to buy into the Dow Jones (DIJA) to benefit from its rise…
The big gains will be made from the companies leading the AI disruption. You'd be wise to act accordingly.
Governor Mike Huckabee shared how conservatives can use AI for good in our new e-letter Prosperity Insider.
Regards,
Charles Mizrahi
Founder, Alpha Investor
