One of the Best Ways to Invest in AI Is Dont – InvestorPlace

Hello, Reader.

Investment trends come and go.

Their fleeting nature is a reminder that whats hot today may be forgotten tomorrow.

So, rather than succumbing to FOMO, or the fear of missing out, savvy investors often find value in embracing JOMO the joy of missing out. Or, I should say, not missing out entirely, but rather looking where others arent.

This perspective can lead to unique opportunities, particularly in the world of artificial intelligence. While AI isnt an investment trend thats likely to let up anytime soon and is one I will continue to follow I do believe that one of the best ways to invest in AI may be to invest in what it isnt.

In other words, invest in the industries or assets that AI could never replace. Not even the Artificial General Intelligence (AGI) that is on its way.

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.

So, in todays Smart Money, well explore my AI future-proof investing strategy and its potential for long-term success. Ill even reveal several specific sectors that could help secure and increase your wealth as we go further along the road to AGI.

Lets dive in

Admittedly, the biggest gains from the next few years will come from investing directly in technologies that either facilitate AI or benefit from it.

But this high-reward approach also entails relatively high risks, simply because the future capabilities of AI are a known unknown. They are difficult to specify or quantify at this stage.

Perhaps, for example, a technology that facilitates the early stages of AIs development could become a victim of AGIs later development. In other words, it is a certainty that AI will continuously create and destroy tech-centric businesses, as it grows and matures.

Therefore, I suspect a two-pronged approach to AI investing could deliver the optimal balance between risk and reward.

The first prong is to invest directly in the technologies or industries that seem likely to prosper in an increasingly AI-centric world. Many pharmaceutical and biotech companies would fall into this category. (Thats why I am keeping my eye on AGI, in which AI systems are trained to achieve true human-like intelligence. I will present my findings soon in my premium service, The Speculator, so watch out for an invitation to that.)

Investing directly in AI beneficiaries offers the greatest promise of capturing future 10-baggers and staying ahead of the creative-distraction curve. But we are unlikely to connect on every swing.

Thats why the second prong of my AI strategy is so valuable and essential.

This prong focuses on investing in the industries or assets that AI will never replace. 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

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 profit margins.

Consider, for example, how AI might influence how people travel and enhance the overall travel experience

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 than what many AI-focused tech stocks will deliver.

In fact, as continue along the road to AGI (as well be discussing in much greater detail soon at The Speculator), the worlds wealthiest investors have been moving their money out of the tech sector in whats being dubbed The Great Cash-Out.

If you have any money in the markets especially in tech stocks youll want to prepare for this coming exodus. Although JOMO has its place, this movement is one you wont want to miss out on.

So, check out this video from me for all the details.

Regards,

Eric Fry

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One of the Best Ways to Invest in AI Is Dont - InvestorPlace

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