As S&P 500 reaches fresh highs, experts say generative artificial intelligence will create new investment opportunities

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The S&P 500 had a record close on Tuesday. While some investors may fear a pullback, experts say early generative artificial intelligence adopters hold…

While some investors may fear a pullback, experts say it would be wise to watch for companies that are ahead with adopting generative artificial intelligence.The index — which tracks the performance of around 500 of the largest U.S. company stocks — has jumped 53% since inflation peaked in 2022, experts noted during the"I absolutely feel better about equities than I have since … the financial crisis," said Savita Subramanian, head of U.S. equity strategy and U.S.

But while up to 5% guaranteed returns on cash may feel great, it's not necessarily keeping pace with inflation, said Garcia. That's a caution she explains to clients, she said.In 10 years or less, S&P 500 index companies will likely become more efficient and labor light, thanks to the effects of generative artificial intelligence, Subramanian said.

In the 1980s and 1990s, a similar productivity and efficiency story played out with the personal computer revolution, which prompted more automation across industries.

 

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