Investment Expert Anticipates Decade-Long Bull Market Fueled By AI Revolution

James Demmert, Chief Investment Officer at Main Street Research, believes that the artificial intelligence (AI) revolution could trigger a bull market that could last almost a decade.

What Happened: Demmert credits the impressive stock market rally to the rise of generative AI. Indices such as the S&P 500 and Dow Jones Industrial Average have reached record highs this year, thanks to Wall Street’s enthusiasm for AI, reported Business Insider.

Demmert suggests that the stock surge is likely to continue, driven by increased productivity due to AI. He mentions the strength across sectors and capitalizations, indicating a new, AI-led bull market with the potential for long-term sustainability.

Despite warnings of a speculative bubble due to the AI investing frenzy, Demmert is optimistic about future catalysts for stocks in 2024, including a potential rate cut by the Federal Reserve amid cooling inflation.

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Demmert also praises the resilience of the U.S. economy, predicting a 2.7% GDP growth this quarter. He encourages investors to continue investing in stocks, asserting that the long-term fundamentals remain attractive.

Why It Matters: This isn’t the first time AI has been credited for a bullish market. Back in June, Wedbush analyst Daniel Ives referred to the AI transformation as an ‘Internet Moment,’ triggering a tech bull market. He also predicted a sector-wide rally in the second half of the year due to an $800 billion AI spending wave.

In November, Wedbush analysts predicted a new bull market for tech stocks in 2024, driven by increased spending on cloud and AI technology. Top tech giants like Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), Apple Inc. (NASDAQ: AAPL), and Microsoft Corp (NASDAQ:MSFT) were projected to lead this surge.

Financial institutions, including Bank of America, Deutsche Bank, and Fundstrat, also predict that stocks are set to hit new records in 2024, aligning with Demmert’s forecast.

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