When you think of AI, you're probably not picturing smokestacks... After all, AI is the future of technology. It's not our industrial past.

Why AI Could Lead an Unexpected American 'Industrial Renaissance' By Vic Lederman, editorial director, Chaikin Analytics When you think of AI, you're probably not picturing smokestacks... After all, AI is the future of technology. It's not our industrial past. But the Federal Reserve sees things a little differently. And that's because of a quirk in how it measures total industrial production. Now, you probably know that after decades of big growth, American industrial production has stalled. In fact, total production has barely made new highs since 2008. Well, it might sound hard to believe... but AI could be about to change that. And as I'll explain, AI could lead an unexpected American "industrial renaissance"... Recommended Links: Here's What You Missed Last Week For the first time ever, Stansberry Research, Chaikin Analytics, and Altimetry have joined forces to announce a new lead analyst joining their ranks. You can't afford to miss this historic announcement, including this expert's newest market prediction and his No. 1 recommendation you MUST move your money into before the end of 2024. Click here to watch – before it goes offline. What Are These Billionaire Investors Afraid Of? Billionaires Warren Buffett, Stanley Druckenmiller, George Soros, and David Tepper have all sold off massive U.S. stock positions, including shares of Nvidia, Apple, and Bank of America. Billionaire Ray Dalio, who runs one of the world's most successful hedge funds, says, "Things are going to get worse for our economy." What are these billionaires so worried about? Click here to see why experts and insiders may be preparing for the biggest financial crisis of the past 200 years. To understand why, we need to start by looking at total industrial production. The chart below shows the Fed's measure of U.S. industrial output. And it's immediately obvious that we're not growing like we used to... So, what does AI have to do with this? Well, it comes down to electricity... You see, the Fed's definition of total industrial production includes manufacturing, mining, and electric and gas utilities. The utilities mention should catch your attention. AI consumes so much electricity that it's already a top target for environmentalists. And as the International Energy Agency ("IEA") noted in October...   In 2023, overall capital investment by Google, Microsoft and Amazon, which are industry leaders in AI adoption and data centre installation, was higher than that of the entire US oil and gas industry – totalling around 0.5% of US GDP. As the report continued, as part of the IEA's global energy and climate model...   Global aggregate electricity demand grows by 6,750 terawatt-hours (TWh) by 2030... equivalent to more than the combined demand from the United States and European Union today. Folks, that's about as extreme as it gets. The IEA anticipates that in about five years, the world will add another U.S. and European Union worth of energy demand. And a big chunk of that global energy increase will happen in the U.S. due to its AI and data-center buildout. That means the U.S. needs to build a lot of infrastructure. And that could lead to an industrial renaissance unlike anything we've seen since the 1950s. Put simply, the world is in a technology arms race. And it requires more electricity than humans have ever consumed before. Now, this won't be an immediate change. There is some slack in the system. The Fed also measures what it calls "capacity utilization." And once again, its definition includes manufacturing, mining, and electric and gas utilities. According to the Fed's most recent data, we're at roughly 77% capacity utilization. That might sound like a lot. But it's noticeably lower than where we were in the 1960s and 1970s. Take a look... With this chart, we see that America hasn't run at "full tilt" for a long time. And it tells us that there's still some wiggle room in the system. As the AI trend continues, we can expect that capacity utilization to creep up over time. And when it gets near the top, we'll likely see a "gold rush" in infrastructure construction. That means more power plants, distribution lines, and electrical equipment. It also means a steady, multiyear rise in U.S. power generation. So, it may seem weird at first to think of AI as related to industrial production... But when you stop to think about it, it makes sense. Electricity is part of our baseline measure for industrial production. And we know that AI is going to consume plenty of electricity. This is part of the reason why AI is such a massive trend to pay attention to. And it means the next American industrial renaissance could be closer than you think. Good investing, Vic Lederman Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 -0.35% 11 10 9 S&P 500 +0.19% 114 268 114 Nasdaq +0.89% 32 49 19 Small Caps +0.37% 589 964 355 Bonds +0.15% Consumer Discretionary +2.11% 17 27 6 — According to the Chaikin Power Bar, Small Cap stocks are somewhat Bullish. Major indexes are mixed. *  *  *  * Sector Tracker Sector movement over the last 5 days Discretionary +4.72% Information Technology +3.02% Communication +2.57% Staples -1.01% Financial -1.81% Health Care -2.12% Industrials -2.38% Real Estate -2.73% Materials -3.03% Utilities -3.91% Energy -4.69% *  *  *  * Industry Focus Health Care Equipment Services 8 35 19 Over the past 6 months, the Health Care Equipment subsector (XHE) has underperformed the S&P 500 by -7.67%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #15 of 21 subsectors. Indicative Stocks ZBH Zimmer Biomet Holdin NEOG Neogen Corporation COO The Cooper Companies *  *  *  * Top Movers Gainers LULU +15.89% HPE +10.62% ULTA +8.99% SMCI +6.78% PLTR +6.22% Losers UNH -5.07% COO -4.39% HAL -4.13% FANG -3.39% ES -3.02% *  *  *  * Earnings Report Reporting Today Rating Before Open After Close CASY, MDB ORCL, MTN, TOL No earnings reporting today. Earnings Surprises No significant Earnings Surprises in the Russell 3000. *  *  *  * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You're receiving this e-mail at STEVENMAGALLANES520.NIMS@BLOGGER.COM. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2024 Chaikin Analytics, LLC. All rights reserved. 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