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I don’t make predictions. So what I’m going to say subsequent is NOT a prediction … it’s inevitable.
The Dow Jones Industrial Common will rise to 100,000 over the subsequent decade … if not sooner.
The motive force of this development will probably be synthetic intelligence (AI).
The disruption and innovation AI goes to unleash on the world is unprecedented.
Its influence will probably be larger on our lives and the lives of our youngsters than electrical energy was for our great-grandparents.
These varieties of giant strikes have occurred within the U.S. a number of instances earlier than…
The roaring ‘20s period produced a report variety of millionaires throughout its 10-year stretch.
The phone, radio, planes and automobiles … ushered in a interval of unprecedented productiveness.
And helped to drive the Dow Jones (DIJA) to soar over 497% from 1921 to 1929.
Historical past has proven that there have been two different durations when expertise remodeled the world and accelerated development within the economic system…
- 1995 —1999: In the course of the dot-com growth, the DJIA skilled important development. The 5-year compound annual development fee (CAGR) for the interval ending December 31, 1999, was roughly 25.2%.
- 2009 — 2013: Following the 2008 monetary disaster, as we moved in direction of digitization, the DJIA rebounded strongly. The 5-year CAGR for the interval ending December 31, 2013, was roughly 18.7%, simply shy of the 20% mark.
Proper now, we’re seeing this play out. And we’re solely within the first inning.
3 Sectors to Surge from AI
Each trade within the U.S. will profit from AI.
It can add billions and billions of {dollars} … on a yearly foundation to wealth creation. U.S. GDP for 2023 was greater than $27 trillion.
If AI will increase GDP by simply 5% … that might come to greater than $1 trillion!
In that context, my estimate of Dow 100,000 may be too low.
Digging a bit deeper, the financial influence will probably be felt extra deeply in these three industries:
AI Sector No. 1: Well being Care ($4.7 Trillion, 18% of GDP)
AI’s influence is already being seen in new drug discovery, personalised drugs, medical imaging evaluation and distant affected person monitoring.
HCA Healthcare (NYSE: HCA) is the biggest hospital chain within the U.S. It’s in our Alpha Investor portfolio and we’re up greater than 250%.
HCA not too long ago partnered with Google Cloud to make the most of AI, by bettering workflows for time-consuming duties like medical documentation. It will permit physicians and nurses to focus extra on affected person care.
The partnership has developed a system to robotically produce handoff studies between nurses.
The period of time and {dollars} this may save will probably be big. And people financial savings will fall to the corporate’s backside line.
AI Sector No. 2: Retail ($1.5 Trillion, 6% of GDP)
AI is already powering the retail sector with personalised suggestions, focused promoting, demand forecasting, and cashier-less shops.
An ideal instance is Walmart (NYSE: WMT).
Walmart is utilizing AI to enhance customer support.
The corporate makes use of a fine-tuned mannequin, together with OpenAI, that enables prospects to position voice orders from their smartphones and obtain prompts.
Within the retailer, you possibly can even “Ask Sam” — Walmart’s AI voice assistant to seek out out which aisle the orange juice is in. It will lead to a greater buyer expertise, increased gross sales and more cash falling to the underside line.
AI Sector No. 3: Manufacturing ($2.9 Trillion, 11% of GDP)
AI allows predictive upkeep, optimized manufacturing processes, high quality management and the event of latest supplies.
An ideal instance right here is Normal Electrical Firm (NYSE: GE).
It’s utilizing AI in lots of areas of its enterprise…
How one can Make investments Earlier than Dow Jones (DIJA) 100K
Generative AI alone goes so as to add:
- $150 — $260 billion to well being care yearly.
- $240 — $390 billion to retail yearly.
- $170 — $290 billion to manufacturing yearly.
For a complete of between half a trillion to at least one trillion {dollars} per yr!
And take into account … that is from simply three industries.
So you possibly can see why Dow 100,000 may be too low an estimate over the subsequent decade.
And I’m not saying to simply exit and purchase into the Dow Jones (DIJA). The large features will probably be created from the businesses main the AI disruption.
The truth is, a mysterious undertaking from two of Silicon Valley’s most secretive billionaires may simply soar 2,500% in worth within the coming years.
Then 5,000% over the subsequent decade.
However long run, this AI pioneer may develop into “The Subsequent Microsoft.”
For the small print, simply try the brand new video I made about it right here.
Regards,
Charles Mizrahi
Founder, Alpha Investor
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