The Final Phase of the AI Boom Won’t Be in Stocks

The Federal Reserve is caught in a trap of its own making.

By law, the Fed has a dual mandate: To keep inflation around 2% per year and maintain sustainable levels of unemployment.

Right now, inflation is still running hot at 3%, while unemployment has climbed to 4.3% and is still rising.

That puts the Fed in a difficult spot.

If it cuts rates too soon to support the job market, it risks reigniting inflation. But if it keeps rates high to tame prices, it risks crushing employment.

It’s a classic no-win scenario – a monetary stalemate the Fed hasn’t faced in decades.

But what if the solution to this dilemma isn’t monetary at all? What if it’s technological?

Because while the Fed wrestles with this dilemma, something extraordinary is happening in real time – not in Washington, but in Silicon Valley.

Now, I want to give you fair warning. What I’m about to share will take you far outside your comfort zone. Your first instinct may be to dismiss it – and that’s perfectly natural.

But here’s what I can tell you: Whether it takes a week or a month, soon everyone will wake up to what I’m piecing together… And when they do, the markets will begin their next leg higher.

Once you understand it, you’ll see how to position yourself – not just to survive this shift, but to profit from what could be the greatest technological revolution in human history.

The Great Labor Shift Has Begun

Since the start of the year, we’ve seen a laundry list of companies replacing human workers with artificial intelligence (AI) technology.

In the past few months alone:

• UPS disclosed 48,000 job cuts for this year, mostly in management. That’s much higher than the 20,000 cuts it forecasted earlier this year.

• Intel said it expects to end the year with 24,500 fewer workers than last year.

• Amazon announced it would lay off 14,000 corporate workers. And the company plans to cut up to 30,000 jobs. That’s 10% of its white-collar workforce.

• Procter & Gamble released plans to cut 6% of its global workforce – about 7,000 jobs – over the next two years.

If it feels like the ground is shifting under your feet, you’re right.

We’re living through the greatest transformation of the labor market since the Industrial Revolution, and AI is the engine driving it.

According to the World Economic Forum, nearly 92 million jobs could disappear by 2030 due to AI and automation.

That number sounds terrifying – and it should.

But here’s what the headlines don’t tell you: The same report suggests AI will also create 170 million new jobs over the same period – mainly farmworkers, delivery drivers, construction workers, salespeople, and food processing workers.

Yes, the transition will be messy. Yes, people will lose work before new opportunities appear. But like every major technological shift before it, I believe this one ends with more prosperity – not less.

So if you’re worried that AI is coming for your job, take a deep breath. The same force that’s displacing old roles is about to unleash an entirely new economy.

And ironically… It’s this disruption that could hand the Fed exactly what it needs.

How AI Solves the Fed’s Dilemma

AI is driving massive efficiency gains across the corporate world. Large-cap companies that adopted AI early are seeing productivity surge.

Since OpenAI launched ChatGPT in 2022, productivity among S&P 500 firms has jumped 5.5%... While the Russell 2000 – which tracks smaller firms – has fallen 12.3%, according to a Wells Fargo strategy report.

That explains why the S&P 500 is up 74% since ChatGPT’s launch in 2022, while the Russell is up only 39%. This productivity boom isn’t just a statistic. It’s rewriting the economy in real time.

For instance, AI tractors are plowing and seeding farmland. A 10,000-acre farm in Illinois reports a 15% productivity jump since adopting them.

In Napa Valley, autonomous vineyard systems have cut costs by 85%.

And in logistics, companies like UPS and Amazon are now delivering the same number of packages with a fraction of their previous workforce.

When industries get more efficient, prices tend to fall. That’s not inflation – it’s deflation.

And that’s where things get interesting...

Deflation sounds good – lower prices, higher purchasing power – but in reality, it’s toxic for a debt-laden economy like ours.

When prices fall, debt burdens rise in real terms. In other words, every dollar becomes more valuable because it can buy more “stuff.” This is the opposite of inflation, where the money buys less “stuff” over time.

When prices go down, households and companies spend less as they wait for prices to drop. This further slows economic growth, dragging down economic activity, which drags down tax receipts.

This makes the government’s debt burden even more difficult to bear.

This is deflation. That’s when the Fed steps in. To fight deflation, it lowers rates. Lowering borrowing rates spurs new investment and pushes money back into circulation.

We’ve seen this movie before, and we know how it ends.

During the Great Depression of the 1930s, prices collapsed, unemployment soared above 20%, and debt burdens crushed both consumers and businesses.

The Fed responded too late at first, but when it finally began cutting rates aggressively in the 1930s, the economy started to breathe again. Factories reopened. Credit flowed. The gears of the economy began turning once more.

We saw the same pattern play out during the Great Recession of 2008. When the housing market imploded and the financial system froze, the Fed slashed rates from 5.25% to nearly zero within a single year.

Those unprecedented rate cuts didn’t just stabilize the system; they set off one of the greatest bull markets in history – one that’s still running strong to this day.

From the March 2009 low through today, the S&P 500 has surged more than 900%, turning every $1 invested at the bottom into over $10 today.

That’s the playbook. And it’s about to be used again – this time, not to save a broken banking system — but to manage the deflationary wave created by AI.

AI’s productivity boom will push prices lower and margins higher – a paradox that looks good on paper but dangerous in practice. Once those price pressures start spreading, I believe the Fed will have no choice but to cut.

And when it does, liquidity will come flooding back into the system, igniting the next leg of this bull market.

A Hidden Liquidity Flood

Last week, the Fed cut rates by another 25 basis points – the second cut in two months.

Despite the back-to-back cuts, Chair Jerome Powell tried to sound cautious after the October 29 Fed meeting, insisting a December cut wasn’t “a foregone conclusion.”

Even if the Fed pauses in December, the real story isn’t about rate cuts… it’s about liquidity. That’s because Powell revealed last week that starting December 1, the Fed will begin pumping money into the system through a form of quantitative easing.

I won’t get into the details here. Daily editor Teeka Tiwari did a deep dive on this topic on Friday. (You can read the essay right here.)

Here’s what he had to say about it:

While most investors are staring at headlines about layoffs, the real story is AI driving deflation. If that happens, it will give the Fed cover to lower rates and flood the economy with liquidity. And history shows this is bullish for assets.

The Setup for a Generational Rally

So, why am I sharing all this with you today?

At Digital Asset Daily, our goal is to help position you in the most profitable trends outside the mainstream’s radar.

And right now, AI and the Fed are creating a setup that will be explosive for a small sector of digital assets. Here’s what I mean…

The Fed’s plan to start pumping stimulus into the economy on December 1 will be like adding rocket fuel to this bull market.

And the timing couldn’t be better…

Because on November 19, a powerful catalyst will trigger what Teeka calls “The Final Phase” of this AI bull market. But the next round of big gains will NOT come from Nvidia or the AI stocks everyone already owns.

Instead, we believe the biggest gains ahead will come from a small sector of altcoins sitting at the intersection of blockchain and AI technology.

To prepare you for this event, Teeka is holding a free strategy session at 8 p.m. ET on Wednesday, November 12.

During this briefing, he’ll reveal the full story behind the November 19 event… why it could rival the internet boom of the 1990s… and share details of six altcoins to own before the window closes – many of them trading for less than $1.

He’ll even give away the name of one of his top AI Coin picks completely free – no strings attached. (Teeka’s past free picks have averaged 784% peak gains.)

So circle November 12 on your calendar. Bring a notepad, your questions, and an open mind.

Because when the Fed opens the floodgates on December 1, those tiny AI coins trading for under $1 today could already be multiples higher.

Don’t Watch the Future Happen. Own It!

Houston Molnar