Note from Ashley Cassell, Managing Editor, TradeSmith Daily: We've just published one of the most thought-provoking TradeSmith Daily interviews that Michael Salvatore has ever held with one of our experts (and there's plenty of competition there).
So, I'd like to continue the conversation today by bringing you the article below.
Our interviewee, Eric Fry of InvestorPlace, has the smartest take I've seen on AI – its next level, artificial general intelligence (AGI) – and, specifically, how to approach it in your portfolio.
He's also the first to admit that, when our technology changes so dramatically, the drawbacks can be equally dramatic – so it's all the more important to factor those into your plan.
Read on to see how Eric thinks you can "future-proof" your portfolio to the best of your ability given the AGI future.
And AGI undoubtedly is the future, no matter how sci-fi it sounds... as Eric's (exhaustive) research proves. |
The Road to AGI's Hazards (and How to Avoid Them) By ERIC FRY, EDITOR, THE SPECULATOR While Artificial General Intelligence (AGI) may be inevitable, no one knows who will be the first to achieve it. Many investors are trying to place their bets, thinking this will be a winner takes all scenario.
Taking that route on the Road to AGI, however, is full of hazards.
To employ another metaphor, the chance of picking the wrong horse in this race is simply too high.
That's why I continue to follow the "unintuitive" path of progress. And the first step on the Road to AGI is to understand just how unintuitive the road actually can be.
For instance, the biggest gains from the next few years may come from investing directly in AI technologies. However, once AI matures, it will continuously create and then destroy tech-centric businesses. A technology that facilitates early AI, for example, could become a victim of advanced AGI.
Instead, one of the best ways to invest in the eventuality of AGI is by getting in on the industries or assets that AI could never replace.
No matter how intelligent AI becomes, it will never morph into timberland. It will never sprout into a lemon tree or transform itself into an ocean freighter, platinum ingot, espresso bean, or stretch of sandy beach. A select few industries are so "future proof" that they deserve our attention... and a place in our portfolios. (I went much further in-depth on this investing approach during my recent research presentation, The Road to AGI Summit. You can click here now to watch it.) Let's dive in... The Road Less Traveled Investing in the industries or assets that AGI will never replace is a valuable and essential AI strategy. These are things that an AI-centric world will require, no matter how intelligent it becomes.
A short list of examples might include industries like... - Shipping
- Cosmetics
- Lumber
- Energy Generation and Storage
- Travel
- Sporting Goods
- Rail Transit
- Agriculture
These industries might not be completely future-proof from the onslaught of AI, but they are at least close to it.
To expand, AI will certainly create fleets of completely autonomous, self-piloting freighters at some point. AI might also overhaul the drivetrains and/or fuel sources that power these ships, but it will not replace the ships themselves or the need to transport bulk goods across the Seven Seas.
Similarly, AI will not eliminate the need for trains or planes. Neither will it end demand for lumber, wheat, or pineapples. And it will not curb the human desire to travel. For as long as the robots of the future allow us humans to travel, we will continue to do so.
Importantly, many future-proof industries not only offer protection from the destructive side of AI, but they could also benefit immensely from its creative side. In many of these old-school industries, new AI-enabled processes could boost their efficiency and fatten their profit margins.
Consider, for example, how AI might influence how people travel and enhance the overall travel experience... - Enhanced Planning and Convenience: AI can make travel planning more convenient and efficient by providing personalized recommendations, optimizing itineraries, and simplifying booking processes.
- Virtual and Augmented Reality: While AI-powered virtual and augmented reality experiences can offer a taste of travel and exploration from home, they are unlikely to replace the desire for real-world experiences. Instead, they might inspire people to visit new places they have "virtually" explored.
- Improved Safety and Security: AI can enhance safety and security measures in travel, making people feel more comfortable and secure when traveling.
- Personalized Experiences: By offering highly customized travel options, AI could tailor travel experiences to individual preferences, making trips more unique and enjoyable.
- Efficient Transportation: AI can improve the efficiency and convenience of transportation, through autonomous vehicles and optimized flight routes, making travel more accessible and appealing.
These AI-enabled enhancements will not only improve travel experiences, but also boost the profitability of travel and tourism companies, all else being equal.
Investing in indispensable, future-proof industries like shipping or travel might not deliver spectacular gains over the coming years, but they should provide more reliable gains. Join Me on The Road to AGI Right now, many analysts missing the forest for the trees, so to speak. They are making the mistake of grabbing flashy, and easy, tech picks. That's another hazard on the Road to AGI. However, by watching The Road to AGI Summit, you'll discover that there's a better way, if you simply dig a little deeper. That presentation has more of these kinds of creative, unintuitive investment ideas. It also has my No. 1 stock idea for The Road to AGI. So, make an effort to watch it while it's still online. Regards, Eric Fry
Editor, The Speculator |
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