In the midst of the stock market chaos, I focus on one thing: to find cross-generational investment opportunities. Why? Because history shows that the best time to invest in emerging tech megatrends is during a market crash like the one in 2022.
For example, the best time to invest in computer stocks was after the 1987 Flash Crash. That left promising computer stocks like Microsoft (MSFT) traded for less than 20 cents a share (split-adjusted).
The best time to invest in internet stocks was after the dot-com bubble burst in 2000. That left promising internet stocks like Amazon (AMZN) traded for about 30 cents a share (split-adjusted).
The best time to invest in smartphone stocks was after the 2008 financial crisis left smartphone stocks behind Apple (AAPL) Trading for less than $3 per share (split-adjusted).
And the best time to invest in EV stocks was after the 2020 COVID crash. That left EV stocks like Tesla (TSLA) traded for about $25 per share (split-adjusted).
This pattern is clear. Every time the stock market crashes, a group of rising tech stocks are trading at massive discounts. Investors who buy at these prices will make fortunes over the next few years.
So, which group of emerging tech stocks are the best buys during the 2022 stock market crisis? I would like to make the case for AI stocks.
The need is urgent
I strongly believe that AI and automation technologies will play a role one of the greatest technological paradigm shifts of our lives. And based on my research, that shift will mostly happen in the 2020s.
That means over the next decade we will transition from a human-driven world to a robot-driven world. Meanwhile, our society and the global economy will be changed forever.
Like many before it, this technological megatrend is being driven by a convergence of the world’s need for automation technologies and the proliferation of engineers capable of building them.
Let’s talk about the “need” part first.
In short, the world needs to fix inflation. and The ubiquitous adoption of automation technologies is the only way to permanently suppress inflation.
The inflation problem consists of two parts. The demand for goods and services is too high and the supply of these goods and services is too low.
The Fed can solve the first part by raising interest rates, choking off consumer spending and suppressing economic demand.
But raising interest rates will not solve the supply side of the inflation problem. The only way to fix this is for companies to figure out how to make more products and services. But to do that in a human-driven world takes more work. That requires companies to hire more workers, which means more wages, more consumer income, more spending, and more economic demand.
In other words, the current “solution” to fixing the supply side of the inflation equation will actually exacerbate the demand side of the problem. And therefore it will not permanently solve the inflation situation.
We need another solution. We don’t need an inflationary human-driven solution – we need a disinflationary, automated solution.
The disinflationary solution
Let’s run through the same scenario as above but in an automated world.
A company needs to make more products. It uses a range of automation technologies – both software and hardware – to make it.
These technologies have a high upfront installation fee but very low recurring costs afterwards. Net impact on annual operating costs? Tiny.
But these technologies don’t sleep, don’t stamp or go on vacation. They are always working to make more products. Net impact on output? Huge boost.
The overall result – the firm can make many more products at a slightly higher marginal cost. Supply increases without generating more economic demand.
Automation is the panacea for our current inflation problem.
Businesses are beginning to realize this. Therefore, from 2022, they will turn to automation technologies. And so the multi-trillion-dollar automation economy is born.
Automation technologies have arrived
As far as performance is concerned, automation technologies have developed rapidly in recent years. You are now in a position to create meaningful real value – and at the perfect time!
For example, Walmart (WMT) is in the process of automating all of its warehouses with an end-to-end robotic system. It unpacks, sorts, stores and packs incoming and outgoing packages using a combination of robotic arms and autonomous mini-vehicles.
That’s after Amazon has already automated all of its warehouses with its own robot system. And indeed, it has recently acquired both i robot (robot vacuum cleaner) and Cloostermans (Warehouse Robotics Company), just months after unveiling its first-ever home robot.
Amazon is clearly making a big push for home robotics. Soon we will see the use of robots to automate household chores like lawn mowing, pool cleaning and more.
In the restaurant world, fast-casual chains like chipotle (CMG), wing zoneand white lock use robots to prepare food. Other chains like chillies use them to serve tables. The robot takeover in the restaurant world is here!
It has also arrived in retail. Robots and autonomous vehicles are being used to restock grocery store shelves, clean aisles and deliver orders.
And the automation revolution has also taken hold in the media and entertainment world. Have you seen those ads that say, “This ad was probably written by a robot”? Or those drawings created by DALL-E, the AI that generates images from queries? Have you heard of… jasperthe AI typewriter?
Recently a new AI chatbot – ChatGPT – took the world by storm. It’s a super version of Siri that can write full research papers, articles, essays, and more in just minutes.
The automation being used around the world today is incredibly impressive.
But it’s just the tip of the iceberg. Experts predict that by 2026 90% of all online content is produced by AI.
Oh, I’ll let my case rest. The world today simply doesn’t need automation technologies – it also has technologies that it can easily use today. That’s a powerful combination.
The final word on the automation boom
Despite the challenges facing the market in 2023, including the possibility of a recession, Louis Navellier, Eric Fry and I see exciting opportunities on the horizon. Every stock market crash is an opportunity — an opportunity to buy the “next big thing” in the stock market dirt cheap while everyone else worries about short-term problems that will pass (they always do).
In the 1980s, the “next big thing” was the computer. In the 1990s, it was the internet. It was smartphones in the 2000s and electric vehicles in the 2010s.
And now, in the 2020s, the time has come automation.
The time to make a big bet on automation stocks is now. They’re dirt cheap, trading for just a few dollars… But they’re absolutely going to skyrocket over the next decade as robots and software engulf the world.
Automation isn’t the only megatrend I see promising in…
I’ll be sharing my findings and predictions with respected analysts Louis Navellier and Eric Fry at the Early Warning Summit 2023. Join us Tuesday at 4 p.m. Eastern to learn more about the growth potential in the energy sector and where to find the best profit opportunities in the market.
This is possible with our guide be successful no matter how the market turns.
At the time of publication, Luke Lango had no position (either directly or indirectly) in any of the securities mentioned in this article.