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Ai Impact On Future Valuations Of Stocks

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Citrini Research has published a fictional piece on what the world could look like in 2028 if AI keeps improving and intelligence becomes infinitely abundant.

The core idea is that unemployment goes parabolic whilst business earnings and GDP remain elevated in a weird bull market.

Key Ideas:

  • AI massively boosts productivity, but replaces high-income white-collar workers who drive most consumer spending.
  • Companies save on salaries and reinvest it into more AI causing even more layoffs (death spiral).
  • “Ghost GDP”: output rises, but money stops circulating because machines don’t buy things.
  • AI agents also destroy middlemen (SaaS, brokers, payments, delivery apps) by removing friction and fees.
  • Falling incomes hit housing, credit, and private markets built on the assumption of stable professional jobs.
  • Result: a potential AI-driven economic spiral where technology wins but the consumer economy breaks.

Thoughts?

Link to article:
https://www.citriniresearch.com/p/2028gic

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