I asked Charles Mizrahi what’s the one mega trend I need in my portfolio in 2025.
His answer…
Well, keep reading below. We’ll share more on this mega trend over the next week.
Because it’s the No. 1 investment you need as we head into the New Year…
With a pro-business president in charge and a team of top business leaders and technology experts, big changes are on the way.
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Huckabee’s Poll of the Day What do you think will be the biggest mega trend of 2025? Click here to vote. |
Director, Prosperity Research
The Driving Force Behind Dow 100,000
Artificial intelligence (AI) is set to become the biggest mega trend of 2025 and beyond.
It has the potential to drive the Dow Jones Industrial Average to 100,000 within the next decade — possibly even sooner.
AI will transform every industry in the U.S., adding billions of dollars to wealth creation each year. In 2023, the U.S. GDP was over $27 trillion.
If AI boosts GDP by just 5%, that’s an additional $1 trillion annually.
In that light, my estimate of Dow 100,000 will be too conservative.
The global impact of AI will be even greater.
Some projections suggest AI could contribute $15.7 trillion to the world economy by 2030. To put that into perspective, that’s nearly the size of China’s entire GDP today.
As AI continues to grow, investors will have massive opportunities. Its influence on the global economy is undeniable.
AI is in an arms race, and no big tech company wants to be left behind. If they fall too far behind, it will be impossible to make up for lost ground.
Alphabet’s CEO, Sundar Pichai, said, ” The risk of under-investing is dramatically greater than the risk of over-investing.”
In fact, Alphabet, Microsoft, Amazon and Meta Platforms all said that the capital expenditure (capex) next year would be even higher.
The combined capex of the “Magnificent 7” — which includes the big tech companies already mentioned, as well as Apple, NVIDIA and Tesla — is $177 billion … and growing!
Bottom line: Companies are betting big on AI. And that’s great for investors.
Because Dow 100,000 will be here sooner because of the amazing growth of AI.
It’s not a matter of if … but when.
And you don’t need to buy into the Dow Jones (DIJA) to benefit from its rise.
The big gains will be made from the companies leading the AI disruption.
Regards,
Charles Mizrahi
Founder, Alpha Investor