The Big Opportunities and Frightening Downsides of AI

AI is coming for your job.

Sounds like a scare tactic, right? But it’s becoming a reality.

Job loss used to be like Willy Loman in “Death of a Salesman.” You get older, and you get pushed out.

Next-generation job loss is becoming even more threatening.

We won’t be replaced by a younger, hungrier version of ourselves. Instead, we’ll be replaced by a machine that never gets tired, works for nothing, and can complete basic tasks 100 times faster than you ever could.

You might think that’s an exaggeration, but with the sudden surge in all things artificial intelligence, it’s already happening.

Wendy’s, the fast-food chain, teamed up with Google and plans to launch an AI chatbot to fully automate its drive-thrus. FreshAI – as the company is naming this new technology – can hold limited conversations with customers, answer frequently asked questions, and handle food orders. It can even process those orders through the cash register system.

Ikea announced that it would phase out call center employees and instead use an AI bot called Billie to answer customer questions. (Maybe new jobs will be created as companies come up with names for the AI.)

In 2023, Google started leveraging AI to automatically create ads that can change in real time based on user behavior – threatening the jobs of 30,000 employees that work in the company’s ad division.

Breakthrough innovations are often both rose and thorn. AI’s capabilities are mind blowing… and will become even more staggering when computer power (quantum computers) and advanced networking allow it to reach full potential. But the prospect of replacing people is clearly a thorn.

According to a 2023 survey from ResumeBuilder.com, 44% of companies say artificial intelligence will likely replace some employees this year, and 37% of companies said AI has already led to layoffs.

Is your job at risk? At the moment, it depends. A Tech.co study found the roles most likely to be replaced by AI are in supply chain optimization, legal research, financial analysis (yikes!), and predictive maintenance on fixed assets.

Even those in Hollywood are starting to worry that their likeness could be generated by AI, making huge profits for the studios but essentially putting actors almost out of work.

Source: Allison Saeng via Unsplash

The technology to simulate a real person already exists. AI “deepfakes” (digitally manipulated video that replaces one person’s likeness for another) are all over social media, and they are incredibly difficult to spot.

No less than Warren Buffett himself recently fell prey to this scam when his image and voice were replicated so well that even his own family was convinced it was him. The Berkshire Hathaway CEO is so concerned about the rise of AI that he warned about its danger at his annual shareholder meeting last weekend, saying “We let a genie out of the bottle when we developed nuclear weapons. AI is somewhat similar – it’s part way out of the bottle.”

Excitement and apprehension. Artificial intelligence is evolving so rapidly that we can’t keep up.

As AI explodes into the business world, machines will become more dominant and likely gobble up more of the labor force. It’s time to protect yourself the best way you can.

But How?

The best protection might just be betting on artificial intelligence itself… if you can’t beat ‘em, join ‘em.

Growing your wealth is the best way to protect your lifestyle, and accelerating those efforts now before AI takes more jobs is critical. I know that’s easier said than done. Picking winning stocks is a near impossible game. Only a handful of stocks account for all of stock market success.

This was proven by the impressive work of Professor Hendrik Bessembinder, who found only 4% of stocks account for all of the net gains of stocks above government bonds in the past 100 years.

To complicate matters even more, only 1% of stocks account for half of the entire net gain of stocks over bonds.

In other words, you need to be in the right 4% of stocks to supercharge your wealth. So how can we build our wealth in this emerging trend?

I devoted an immense amount of time, resources, energy, and money to solving this riddle. I had an up close and personal view of Big Money – the money that moves stocks – thanks to my years running a trading desk. I learned the secrets of Big Money and how to spot what it’s doing despite its best efforts to cover its tracks.

I talked to every investor I could find. I read every book I could find. And my own trial and error (there were plenty of errors) taught me even more.

When all was said and done, I boiled the answer down to three characteristics a stock must have to be a rare outperformer:

1. Superior fundamentals. This is the strength of the business. The company must grow sales and earnings, make a profit, manage debt, and other key factors.
2. Strong technicals. This is the strength of the stock. It should be trending higher, getting bought (on rising volume), and be among the leaders in its sector.
3. Big Money inflows. Institutions don’t play by the same rules as everyday investors. They deploy massive amounts of money that can really disrupt the marketplace for a stock. I designed my Quantum Edge system to “see” when Big Money buys massive amounts of stock, allowing us to ride the same wave.

When these three things align, your odds of picking those extremely rare outperformers go way up. Which means that over time, your odds of making a lot of money – and protecting yourself from this AI takeover – also go way up.

Using AI to Invest in AI

Over those 20 years, I created a system that harnessed the power of artificial intelligence long before AI became a thing by encoding what I learned from the best investors, what held up under intense back testing, and what I discovered on my own. 

My quantitative analysis system has a shockingly high win-rate and has managed to beat the S&P 500 by 7-to-1.

It’s already helped my Quantum Edge Pro subscribers secure gains of 250% from Super Micro Computer (SMCI) – a leader in the AI revolution. It’s currently above my buy-up-to price, but I’m watching for the right time to buy again, as it still ranks well in my system with superior fundamentals of 75. Its servers made for AI applications should also remain in strong demand.

Source: TradeSmith Finance and MAPsignals.com

Another incredible AI company is one you’ve probably heard of – Nvidia (NVDA). This chipmaker has surged more than 5X in just the past two years.

And it continues to score well in my system.

Source: TradeSmith Finance and MAPsignals.com

NVDA rates a buy with its Quantum Score of 81. I like NVDA and own it personally.

These are the kinds of stocks we’re looking for… and the kind that cushion your financial nest egg. My Quantum Edge system can help you prepare for potential AI takeover by investing in AI itself, as well as plenty of other big-time trends and companies.

I’m looking for more opportunities to invest in artificial intelligence companies with superior fundamentals, strong technicals, and Big Money buying in. Click here if you’d like to be notified when I recommend my next stock, and harness the power of AI for good to grow your wealth today.

Talk soon,

Jason Bodner
Editor, Jason Bodner’s Power Trends

P.S. Speaking of building wealth and systems… If you’re a trader, you need to see this.

Masters in Trading founder and veteran CBOE market maker Jonathan Rose just launched a cool new trading community. For a limited time, he’s accepting new members.

In addition to the world-class trading research and recommendations, joining Masters in Trading means being part of a like-minded community of other traders to help you along your journey.

Members receive access to the time-tested techniques that helped Jonathan Rose and his followers go 7 for 7 on a hot streak of trades that paid out 125% each, on average.

Jonathan recently talked about how he was able to accomplish this, why his experience as a market maker was so key, and how he built a community out of this discovery, in a special webinar earlier this week. Check it out here while it’s still available online.

Disclosure: On the date of publication, Jason Bodner held a position in Nvidia (NVDA), mentioned in this article.