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kg4jxt t1_ix5vhf3 wrote

"Most of the world isn't paying attention, yet" yeah right. Of course they're/we're paying attention! The thing is that AI is what is called "disruptive", so it is very difficult to predict how things will unfold. It makes sense that AI should be able to replace various kinds of human labor, and a company dependent on human labor (all of them), should earn greater profit if it can reduce labor cost. But that is not necessarily true: sometimes cutting labor simply forces product costs lower - something that used to be expensive suddenly becomes cheap. That is not actually a path to riches -- just ask AT&T/Ma-bell.

The other thing about disruptive technologies is that they sometimes disrupt whole economies. If you are investing in a range of companies that might benefit from the advent of AI, you have to recognize that many of those same companies will have missed timing (aka bad luck), and be decimated by an economic downturn as economic disruptions hit the broader market.

The way to invest now is the same way that has been prudent all my life:

  1. dollar-cost-average - don't try to time the market. instead get in slowly and get out slowly, buying and selling over a span of many months to secure the average price.
  2. buy-and-hold the market - buy a diverse portfolio and don't be scared away by short-term fluctuations. The broad market will tend upward as you envision (until climate change starts the great collapse in industrialized companies, after which market investments won't matter anymore).
  3. manage risk - set a target for equity holdings and buy and sell to maintain that target. For example if you decide 70% equity (stock) holdings is right, the invest accordingly. once or thrice a year, review: if the market is up, you are over target so sell some equity to restore your balance - invest the proceeds in bonds. If the market is down, stocks are on sale! Liquidate some bonds to buy stocks and restore your balance.
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kmtrp OP t1_ixczm37 wrote

>"Most of the world isn't paying attention, yet" yeah right. Of course they're/we're paying attention!

Most of the world is not. The most AI your average layperson knows is that it can draw pretty images. AGI, the singularity etc is not on their radar, at all.

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