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 following decade … if not sooner.
The driving force of this progress will likely be synthetic intelligence (AI).
The disruption and innovation AI goes to unleash on the world is unprecedented.
Its affect will likely be better on our lives and the lives of our youngsters than electrical energy was for our great-grandparents.
These sorts of big strikes have occurred within the U.S. a number of instances earlier than…
The roaring ‘20s period produced a document variety of millionaires throughout its 10-year stretch.
The phone, radio, planes and vehicles … 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 reworked the world and accelerated progress within the financial system…
- 1995 —1999: Through the dot-com growth, the DJIA skilled vital progress. The 5-year compound annual progress charge (CAGR) for the interval ending December 31, 1999, was roughly 25.2%.
- 2009 — 2013: Following the 2008 monetary disaster, as we moved in the 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 business within the U.S. will profit from AI.
It would 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 is likely to be too low.
Digging a bit deeper, the financial affect will likely be felt extra deeply in these three industries:
AI Sector No. 1: Well being Care ($4.7 Trillion, 18% of GDP)
AI’s affect is already being seen in new drug discovery, personalised medication, medical imaging evaluation and distant affected person monitoring.
HCA Healthcare (NYSE: HCA) is the most important hospital chain within the U.S. It’s in our Alpha Investor portfolio and we’re up greater than 250%.
HCA lately partnered with Google Cloud to make the most of AI, by enhancing workflows for time-consuming duties like medical documentation. This may enable physicians and nurses to focus extra on affected person care.
The partnership has developed a system to robotically produce handoff experiences between nurses.
The period of time and {dollars} this may save will likely be large. 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 awesome 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’ll be able to even “Ask Sam” — Walmart’s AI voice assistant to search out out which aisle the orange juice is in. This may lead to a greater buyer expertise, greater gross sales and extra money 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 recent supplies.
An awesome instance right here is Normal Electrical Firm (NYSE: GE).
It’s utilizing AI in lots of areas of its enterprise…
The way to 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 1 trillion {dollars} per 12 months!
And bear in mind … that is from simply three industries.
So you’ll be able to see why Dow 100,000 is likely to be too low an estimate over the following decade.
And I’m not saying to only exit and purchase into the Dow Jones (DIJA). The large features will likely be produced from the businesses main the AI disruption.
In actual fact, a mysterious venture from two of Silicon Valley’s most secretive billionaires might simply soar 2,500% in worth within the coming years.
Then 5,000% over the following decade.
However long run, this AI pioneer might grow to be “The Subsequent Microsoft.”
For the main points, simply take a look at the brand new video I made about it right here.
Regards,
Charles Mizrahi
Founder, Alpha Investor
