The age of passive investing is now long gone.
Tech investors who had the easy job of buying and waiting to generate enormous returns are now under heavy scrutiny as a new age commences.
As expressed in this excellent piece, AI is now reaching the stage of creative destruction.
As the AI Bull trend began, almost everything remotely linked to Tech and Semiconductors was getting lifted in a hurry. Still, the funnel is reducing back towards the real winners and losers of the Revolution – And there will be many.
The Tech sector remained pushed by the new era of internet dominance across purchasing behaviors and new ways to interact between buyers and sellers – look at Airbnb and Uber, for example.
For example, individuals now use AI for a wide range of uses, including research, coding, writing emails, and more.
So logically, many of the Tech firms that specialize in these areas will now be useless middlemen.
So what are investors turning to? Value.
AI won’t replace potato fields (at least for now) or replace chemists, machine producers, etc.
Surely, it will assist and improve the efficiency of these traditional processes, but it definitely won’t replace the firms that provide what humanity needs to live.
In that regard, Farming, Healthcare, Consumer Defensives, Homes & Building, Railroads, etc., are seeing some new inflows, which are translating into the Dow Jones’ outperformance against the Nasdaq.
