Investing: How To Win By Shorting Trends In AI
The AI revolution is likely to be at least as impactful as the industrial revolution. Yet, we’ve all experienced some of the ways in which it is not perfect yet. Or have doubted the success of some applications.
The shift to and takeover of artificial intelligence seems unstoppable. Too many parties have such a large interest in it, or fear of losing by not being in it, that it will continue to spread throughout our lives.
That does not mean AI’s trajectory will be without some significant corrections and reckonings. We are beginning to see challenges to AI being used in the legal space. Eventually we can expect the FTC to step up and raise some serious questions about the applications of AI in business, and the impact on consumers.
As the impacts deepen and broaden, it’s quite likely we’ll see more public pushback. Over eliminating so many things, damage done, and then the side effects of unemployment and defaults it will lead to.
Balancing Your Bets On AI
Many workers, executives, and entrepreneurs have consciously or unconsciously bet much of their financial wellbeing and future on AI.
That has become very concentrated. Perhaps to the point of being very financially risky.
As a tech worker, your paycheck, stock options, and 401k may all rely on your employer winning the AI race in their space, with no interruptions. The same applies to entrepreneurs, founders, and CEOs with AI in their businesses.
Even those not directly working in tech probably don’t realize how much of their paycheck, 401k, IRAs, and stock portfolios or even private equity investments are relying on AI. Including the performance of blue chip and traditional stocks, and AI driven trades in brokerage accounts. Even down to the banks you may have savings with.
You may love all of the AI apps and appliances you can get your hands on. Yet, it is never wise to put all of your eggs in one basket. Which is exactly what millions of people are unwittingly doing right now.
So, how do you balance that, reduce your risk, and sleep better knowing that your financial future is secure?
Affordable Housing
Whether there is an AI correction or it just continues to soar, we are walking into a period when it seems almost inevitable that we’ll see unemployment rates that are many times higher than ever before seen in our history.
Even if this is only for a short while until new government programs step in, or workers are reskilled for the new economy, it will mean an equally sharp rise in the demand for affordable housing.
Investing in multifamily apartments is a great way to ensure you win, no matter what happens.
Partnering Up To Acquire Distressed Assets
Current shifts are creating financial distress and defaults on debts. This includes new home communities and condominium projects that can be acquired at deep discounts, and reset to be profitable.
These opportunities can be invested in through real estate funds, partnerships, and syndications.
New And Returning Markets
Everything is cyclical. So, for a time we’ll see current economic trends and remote work push people to flock to live in new places in the south and southeast.
Though, corrections in pricing in timeless hubs in parts of California will bring people back too. There will be opportunities in both residential and commercial properties in these markets.
