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They stated that this boom has “many years to run,” as we are still in the early stages of AI.
The firm explained that it has “learned a great deal about this cycle over the past 20 years,” with humans still being “creatures of habit as are the machines and tech they invent.”
“At this juncture, it appears to us that we are in the early stages of AI, somewhere in the third, fourth or fifth inning, perhaps even the first inning,” wrote the firm.
They added that it is reminiscent of the early days of the transition from MS-DOS to Microsoft (NASDAQ:MSFT) Windows in the early 1990s.
“By our current estimation we surmise that AI technology is somewhere in the area of the early Windows years from 1992-1995 and that this secular bull and Super Boom has many years to run,” they wrote.
However, the firm cautioned that there will likely be at least one cyclical bear market and recession during this period, perhaps even as early as 2025 or 2026.
According to StockTradersAlmanac, the next target for the Dow is 62430 based on the Super Boom pattern, which was completed three times in the 20th century.
Overall, they feel the current secular bull market continues, with AI most likely being the next ‘paradigm-shifting, culturally enabling technology that propels the economy and market to new highs.’
“The market will not go straight up, there will still be pullbacks, corrections and even a mild bear along the way,” stated the firm.
“In the near-term we stand by our current cautious stance with modest weakness expected during the historically tepid ‘Worst Months’ as the market comes to terms with inflation, interest rates and a presidential election.”
