Is your job at risk because of AI?
That’s a question a lot of folks are asking themselves these days. The emergence of AI is very exciting; but it’s also very scary. AI systems can do a lot of things that humans currently do for work – packaging orders, cooking food, writing ads, making movies, and more.
And Goldman Sachs estimates that 300 million full-time jobs will be replaced by AI by 2030.
That’s a lot of jobs.
And the reality of AI stealing jobs scares most people.
But we think it should excite them.
That’s because AI will replace jobs, not workers.
Artificial intelligence will serve as a tool that will help workers be more efficient – and in return, earn more money for the same amount of work.
Restaurants won’t replace chefs with robots. They’ll use robots alongside chefs to make more food than you can imagine and faster than ever before. And as a result, you won’t ever have to wait long for even the freshest of food.
Media firms won’t replace script writers. They’ll use software alongside writers to create better scripts than ever before. And we’ll be able to consume more and better content than ever before.
Legal firms won’t replace lawyers. They’ll use AI alongside them to provide better defense/prosecution and help our justice system deliver better, more equitable, and fairer outcomes.
AI will boost the labor market. Not kill it.
Boosting the Labor Market
Just consider my own career.
In my industry, AI will entirely redefine the rules of investing. AI-powered quantitative trading strategies will become increasingly prevalent. And at the same time, human-powered discretionary investment strategies will begin to fall to the wayside.
That may lead some to think that human stock-pickers will be out of a job in a few years.
But we’re confident that isn’t true.
Instead, the best investors will use both quantitative and discretionary strategies.
They’ll use quant strategies for short-term trading because that’s where AI and big data shine brightest. That will allow them to dissect and analyze real-time price data much faster and more accurately than any human. And as a result, they’ll be able to provide stunningly accurate short-term price predictions.
Looking for a bunch of short-term wins in the stock market? Use a quant strategy.
And if you’re looking for long-term home run hits in the stock market, you have to rely on a discretionary strategy.
After all, what pushes a stock up 1,000% or 2,000% over the course of five to 10 years? Most of the time, consumer behavior.
Consumers fell in love with iPhones and bought them in droves year after year. And that powered Apple (AAPL) stock more than 1,150% higher over the past 10 years.
Consumers fell in love with Netflix’s streaming service and subscribed in droves, which propelled Netflix (NFLX) stock more than 1,110% higher over the past 10 years.
And the same is true for Amazon Prime. Consumers fell in love with the service and signed up for it in droves, which pushed Amazon (AMZN) stock more than 770% higher over the past 10 years.
Indeed, consumer behavior drives long-term price trajectory.
AI Can Power Quant Trading Strategies
AI can’t accurately forecast consumer behavior (yet). It can’t tell you if everyone will love the next iPhone, if they’ll sign up for a new social media app, or if they’ll watch a particular movie or TV show.
But a well-connected human with a good intuition can give you a pretty accurate forecast of those things.
Therefore, if you really want to make money in the stock market over the next few years, you need to start employing a dual investment strategy.
Use the best quantitative strategies for short-term profits and the best discretionary strategies for long-term profits. Rack up fast short-term wins with AI and data. Score huge long-term wins with good intuition (and some lucky guesses, too).
It’s the best of both worlds.
The Final Word
That’s why, today, I’m going to tell you about one of my favorite discretionary investment strategies right now: Investing in the company that started this whole AI Boom – OpenAI, the creator of ChatGPT.
OpenAI has done a lot since ChatGPT’s launch in November 2022. The company’s valuation has already doubled.
But this is just the start.
I truly believe OpenAI could be one of the world’s largest companies in the near future – if not the largest.
And that’s why you need to hear about a special loophole I discovered that will allow you to invest in OpenAI today.
This is your chance to invest in the next big thing.
Like investing in Apple in the 1980s or Amazon in the 1990s, this is an opportunity you can’t afford to miss.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
