The Turmoil Ahead
In two weeks, millions of Americans will head to the polls for what we already know will be a contentious election. As of this writing, betting markets give Donald Trump a 60% chance of winning the White House and a 40% probability of Kamala Harris coming out ahead.
Immediate Concerns
Many pundits have homed in on the immediate concerns. It’s clear that Team Trump will contest the election results if their nominee loses, setting the market up for an incredible bout of volatility. Democrats might attempt the same in the opposite situation, given how close some swing-state races are.
The First Problem: Deficit Spending
- Extend the 2017 Tax Cuts and Jobs Act
- Eliminate taxes on tipped wages
- Maintain Social Security spending at current levels
- Reduce taxes on the middle class
The trouble, of course, is that all these “goodies” must be paid back eventually. Since 2016, the U.S. government has spent roughly $1.52 for every $1 raised in taxes, which has driven up America’s debt-to-GDP ratio to 124%. Both sides are now pitching plans that will blow up this situation.
The Second Problem: Unbridled Artificial Intelligence
Neither political party seems particularly interested in regulating AI or protecting the jobs the technology will eventually replace. AI capabilities now are advancing so quickly that it could overtake human intelligence as soon as the end of the decade. By 2030, 30% of all work in America will be done by AI. Companies like Intuit Inc. (INTU) are working on software to automate accounting, while others like Symbotic Inc. (SYM) are creating robots that can handle warehouse operations.
Get Ahead While You Still Can
Deficit spending and AGI set the stage for a disastrous outcome. Millions of Americans may lose their jobs to AI over the coming years, right as social safety nets are being cut. Even retirees should be concerned. Social Security operates on a “pay-as-you-go” scheme, where taxes on current workers are transferred to retired recipients.
The Age of Chaos
As my colleague InvestorPlace Senior Analyst Louis Navellier says, the Age of Chaos is about to enter warp speed in America. There’s still some time to get ahead. Both political candidates are promising to run the U.S. economy hot over the next several years, and AI is still largely a force that helps people, rather than replaces them.
On Tuesday, October 29, at 7 p.m. Eastern Time, Louis will be introducing a quantitative tool that thrives in chaos and will help you navigate volatile markets. You’ll want to be sure to get ahead while you still can. Click here to reserve your spot now.
Regards, Thomas Yeung, Markets Analyst, InvestorPlace
About Thomas Yeung
Thomas Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.