Ai-Ai-O

As many of you know, there are plenty of lessons to be learned in children’s books, stories and songs. The very subtle message of these books give children a way to see the good and the bad of life in an easy-to-understand message. The boy who cried wolf. Pinocchio. Most everything Dr. Seuss has written and so many more. As a grandfather of a 2-year-old I am rereading these classics to my grandson that I had read many years earlier to my children. History repeats itself.

This weekend while I was watching my grandson we read the book Old MacDonald for the five hundredth time. I sing the words enthusiastically as if it was the first time I have ever read it. Old MacDonald had a farm Ei-Ei-O. That is when my quarterly letter idea hit me!

The stock market is a lot like Old MacDonald’s farm. Except this year instead of it being Ei-Ei-O I have respectfully changed it to Ai-Ai-O. For anything related to the Ai (artificial intelligence) space has taken off leaving all the other animals/stocks on the farm behind. The broader market has severely underperformed as the world of Wall Street continues its focus on higher growth focused technology stocks. Let’s not forget that although currently the darlings of the fast money crowd, each animal/asset class has their time in the song. Funny how the pig is the first featured animal in Old MacDonald’s song. Similar to Ai stocks today. Lots of money being made (oink oink here) optimism that this will continue (oink oink there) and the common belief that investors will be smart enough to time this trade and pull out and save their gains (everywhere an oink oink). Ai-Ai-O.

I am a huge fan of technology making our lives more productive and firmly believe that technology is the fastest (albeit not best) way we can continue to grow as a society. Look what the internet has given us in the relatively few years since Al Gore invented it. 😊 Think of how much research we can do on our own as to disease, medicine, travel, academia, and financial advice. Much of this information we seek is biased as to the author or study that has written it, yet it gives us a chance to make up our own minds as to the validity of what we read. My simple question is this. If Ai truly becomes everything we want it to be, what cost will we pay? Jobs will be lost, original thought will be less of a skill than it is today, which is less than it was year’s ago, bias will be more prevalent based upon the programming of the search features, and my biggest concern as to what it does to the pedagogical way in which students learn and interact with their teachers/professors on a personal basis. I learned a great deal from former professors who taught the material in the syllabus vs the societal ideas of the day that had nothing to do with my chosen course. Again, I am pro technology and understanding all the risks and rewards that come with it. We have recently learned that the freedom of creativity and expression that comes with social media also has come with a cost. No doubt the continued focus on Ai will do the same.

So, when you look at the animals/stocks on your farm/portfolio remember that Old MacDonald was properly diversified with many different animals and it is our job at the High Net Worth Advisory Group to make sure your portfolio is diversified with many different asset classes. I now have the Old MacDonald song stuck in my head and truly apologize if do as well. If you do, please let it bring a smile to your face…….Ei-Ei-O!