Capitalogix

The Global Stock Market In One Chart

In 2021, we looked at the (then) $94 Trillion Global GDP. 

Today, I found a chart focusing on the $109 Trillion Global Stock Market.

While there are certainly still fears about recessions, downturns, and more, nonetheless, it's good to see some growth. To understand more about the market-cap-to-GDP ratio, check out this link. 

Unsurprisingly, the U.S. and China dominate the list, accounting for over 50% of the global market themselves. Even less surprisingly, emerging markets saw the most growth last year. 

Visual Capitalist points out that U.S. stocks have often outperformed other wealthy nations over the past several decades. 

If an investor put $100 in the S&P 500 in 1990, this investment would have grown to about $2,000 in 2023, or four-fold the returns earned in other developed countries.

The U.S. has been the leader in this space for as long as I can remember, but as emerging countries start to gain their footing, it's likely our percentage of the pie will decrease. Hopefully, the pie gets bigger as that happens. 

What do you think will happen?

Here Are Some Links For Your Weekly Reading - October 1st, 2023

Here are some of the posts that caught my eye recently. Hope you find something interesting.

Lighter Links:

• The Sphere's First Show Looks Like It Was a Mind-Blowing Spectacle. (TheVerge)
• How to Use ChatGPT's New Image Features. (Wired)
• Nvidia Outlines Jensen 'Huang's Law' of Computing. (Tom's Hardware)
• They Studied Dishonesty. Was Their Work a Lie? (NewYorker)
• Sam Altman Says AI Systems Will Automate Some Tasks But Also Lead to 'New and Much Better Jobs'. (Insider)

 

Trading Links:

• Money Mentor Trading Podcast – Sunny Harris Interviews Howard Getson. (Podcasters)
• ‘AI is Not a Writer:' Why the Writers' Strike Deal Matters Beyond Hollywood. (TheHustle)
• How to Copyright Your AI Creations. (HackerNoon)
• Elon Musk Says One of His Ventures Will Reach a $1 Trillion Market Cap by 2030. (TheStreet)
• A Top Economist Who Studies AI Says It Will Double Productivity in the Next Decade: ‘You Need to Embrace this Technology and Not Resist It'. (Fortune)

How To Build A Business 101

My son attended Russell Brunson's annual Clickfunnels conference.  They produce some of the most accessible marketing content we've found.

 

Me and Russell at the Cowboys V. Texans Game in 2016

When attending a conference, the main goal is to extract one key insight and an actionable item to boost your business ... even if you're well-versed in the subject.

After events, we conduct debriefing sessions to distill our most significant takeaways and get alignment.

This year's central theme was integrating disparate elements (in this case, "funnels") into a cohesive system and cyclical approach to drive sustainable growth.  Russell made a compelling point: many so-called "businesses" are really just a string of promotions.  According to his definition, a true business requires recurring revenue and continuity.

Aspiring entrepreneurs often impulsively shift from one idea or product to the next.  They hastily launch their ventures, make a modest profit, and swiftly move on to the next endeavor, trying to stay on top of trends.  Unfortunately, they neglect product development and fail to maintain their existing promotions in their haste to get to "next."  Consequently, their businesses become incredibly fragile, susceptible to external shocks such as the unexpected disruptions of events like COVID-19, sudden market crashes, or social media platform crackdowns, which can ultimately lead to their demise

Like most great lessons, it's fractal.  If you've been paying attention, you'll see how we've shared this idea before.  So, I want to tell the same story from those other perspectives. 

Selling Picks and Shovels

Most of us have heard the old adage about selling picks and shovels during the gold rush.

During a gold rush, many people rush to the goldfields to strike it rich by finding valuable gold nuggets.  However, most gold rush participants do not find gold.

 

Often, the people who make the most money are the ones selling picks and shovels (goods and services) to the speculators.  Said a different way, profits often flow to people who provide the systems and infrastructure that enable others to dream of a bigger and better future. 

It's not sexy, but it's reduced risk, consistent demand, and a long-term perspective.  When the mine dries up, you move on to the next mine and patiently stack your gold nuggets. 

And, there's a plethora of opportunity that isn't selling picks and shovels.  You can build temporary lodgings, open a bar, and of course, you can't forget the world's oldest profession ... trading. 

 

Leveraging AI

It's easy to compare the AI race to the gold rush, but it's much more than that.  Both the AI race and the gold rush generated significant hype and excitement.  In both cases, there's a sense of a potentially life-changing opportunity, which attracts a herd of energized early movers looking for their big break.  Just as gold prospecting was a risky and uncertain endeavor with no guarantee of success, the AI race is characterized by uncertainty and fear.  Many are afraid, not just of losing their jobs, but of how to best use the technology. 

As a result, you see a sea of people adopting every new app they can find, all to continue treading water in their business. 

This occurs because people forget that AI is simply a tool – not the goal.  They get blinded by the bright shiny objects, those glitters of gold near the top, that they don't do the hard work to find the bigger nuggets below the ground.  All those tools are great, just like the promotions Russell mentioned.  However, they're often distractions from building or buying something custom to your needs and focused on your bigger future. 

To raise the stakes a bit, one of the biggest difference between the AI race and the gold rush, is the lasting impact.  While the gold rush did lead to some lasting economic and infrastructural changes in certain areas, the AI race is going to significantly transform entire industries, economies, and societies over the long term.

The Capitalogix Advantage: A Solid Platform For Success

In our office, we think of this idea as the difference between a capability, a prototype, a product, and a platform.  Building a platform (and a community) is how you become an institution and a game-changer.

When you start with that mindset, you can be the picks and shovels, you can be the hotels and hospitals, but you can also be the miner looking for the next big thing.  That's what Capitalogix does for ourselves and our joint venture partners. 

Continuity and recurring revenue create the bandwidth for innovation and ideation. 

We have developed a fault-tolerant infrastructure because we have experienced fires, floods, Internet failures, the Snowpocalypse, bad data, missing data, and human error … not to mention Trump Tweets or COVID-19.  That means our tools are built on a solid infrastructure supported by extensive experience. 

And, while we've pivoted since inception, our vision and our "why" haven't.  Joint ventures and new technologies are steps on our journey to our vision, not short-term promotions and distractions. 

It's a small distinction with a massive impact. 

When you're exploring the Wild West, whether it's in a gold rush, an AI boom, or in the world of e-commerce, your chances of success rise rapidly with a goal, a why, and a plan. 

Hope that helps.  

Industrial Automation: Back To Robots

We talk a lot about automation – but tend to focus on the less tangible robots.  Meaning, we talk about algorithms and AI, quantum computing, and how entrepreneurs can benefit from these new technologies.

However, a significant segment of automation is industrial (and often robotic process automation).  Henry Ford and the assembly line revolutionized the world when they took the time to make a car from over 12 hours to just over 90 minutes. 

It's interesting to think about more classic automation, and how different it is today from 1913 ... Of course, the level of machinery has grown exponentially, but so have the processes and the capabilities we expect.  I flashback to Kanban and Toyota and what that did not only for the automobile industry ... but for corporations and small businesses around the globe. 

Who's Winning the Robot Race?

 

MSCI via visualcapitalist 

Unsurprisingly, this is where China thrives.

In 2021, China installed more industrial robots than all other countries combined... Crazy.

Industrially, it's primarily automobiles and electronics that drive those numbers up.  Japan also makes massive investments in those two industries. 

Interestingly, America is more evenly distributed with metals, plastics, and food, each seeing over 10% allocation. 

Something To Think About 

One of the fears I often hear is that AI will take our jobs, and what do we do when that happens?  Here are my thoughts on that from a blog post called, Will Robots Take Your Job?

New industries are also creating new jobs.  With that said, recognize that people are increasingly resistant to doing the work we tend to automate.  That is part of why it got automated in the first place.  Another reason is that birth rates are dropping globally, and we always strive to do more with less. 

Think about countries like Japan - which rely heavily on manufacturing ... but are seeing their already small populations decline.  What do they do when their plants sit empty due to labor shortages?

Or, what about agriculture?  We've already seen an exodus of youth who don't want to be involved in farming due to the long hours and grueling work... How do you keep up with the production necessary to feed the world?

We often think about robotics as taking our jobs, but the reality underpinning today (and the paradigm that will drive the future) is that automation sustains industries. 

When labor can't keep up with demand, robotics fills the gap, whether it occurs in manufacturing, agriculture, or medicine.

As robotics get more capable, it won't be long before that's robotic surgeons are a normal part of a hospital's medical suite. 

The same is true for AI.  It will supplement gaps in countless industries. 

These technologies are coming to your industry.  It's inevitable.  If you fight it, you'll feel strife and stress about the changing workforce.  If you get ahead of it, you'll find endless opportunities to pursue your passions.  As society shifts, I hope we see an influx of entrepreneurs to help drive the next era of innovation. 

What do you think will happen?

P.S. Do you get my weekly round-up of links and thoughts on AI, exponential technologies, markets, and other interesting stuff?  Or my new AI-curated newsletter? I believe you'll find them useful and fun.  Happy to add you or anyone else you want to get it. Click here for the sign-up link.

A Fun NFL Statistic, and an AI GM?

I love football.  As such, it is fun for me to watch the games.  But I also like the business of the game as well. 

Over time, I've become a fan of the league ... and how deliberate they are about building teams and developing players.

Last week, I got to give a series of talks to a high-level entrepreneur group called Breakthrough Mastermind.  Some of the other speakers included NFL Hall of Famer Mike Singletary and a starter on the league-leading Dallas Cowboys Defense, Osa Odighizuwa.  Here is a picture of us from the event. 

Let me know if you want a link to the actual presentations.  I talked about AI and how it frees you to be your best.  Osa spoke about what it takes to be a Pro, and Mike talked about teamwork and building teams.

It is Football Season.  And, if you know me, then you know I'm a Cowboys fan (despite being raised in Philly, with season tickets to the Eagles – and Boston, with season tickets to the Patriots).

So, the week one 40-0 victory over the NY Giants was fun to watch. 

It was even more fun after I saw some stats about this loss. 

According to ESPN Stats & Info:

• The 40-0 win was the largest shutout victory in Dallas's history.

• Dallas is the fifth team in NFL history to open their season with a 40-plus-point shutout on the road, and the first since the 1999 Steelers.

• The Cowboys are the first team in NFL history to open the season with a 40-plus-point shutout of a team that made the playoffs the previous season.

But feeding my occasional need for Schadenfreude ... the stats get worse for the Giants. 

In this game, they lost 40-0, got sacked seven times, to the Dallas Cowboys zero, they also lost the turnover margin 3-0, and had their opening drive field goal attempt blocked (and then returned for a touchdown), and their QB, Daniel Jones, then threw a pick-six. 

Supposedly, no team has done that in a single season - let alone a single game. 

via The Athletic

See, math can be fun!

Week Two was similar for the Cowboys against the NY Jets.  My friend and lifelong Jets fan, Brian Kurtz, attended and wrote this well-thought-out blog post on the experience.

And for some additional contrast and dynamic tension ... ponder this!

Jerry Jones Is Going to Live Forever.

As if the Cowboy's experience wasn't enough to bring people in, Jerry has now immortalized himself as the mirror from Sleeping Beauty, excuse me, I mean as a virtual AI screen at AT&T Stadium. 

It's a truly interactive experience where you can ask Jerry questions, and get responses in his voice - from an AI trained on the real Jerry Jones. 

NEW at #ATTStadium: Meet Jerry Jones – An Interactive Experience. Ask @dallascowboys' Owner Jerry Jones questions and get his responses generated by AI technology for a unique, interactive experience.

Learn More ➡️ https://t.co/JZYtOdLgj1 pic.twitter.com/b6V9AbZ8wj

— AT&T Stadium (@ATTStadium) September 7, 2023

And this is only the beginning. 

People joke that new technologies are always adopted by porn first, gambling second, and then the entertainment industry after.  These technologies have made their way to the NFL which means they are on their way to much broader adoption sooner than you might expect. 

We do live in exciting times! 

Here Are Some Links For Your Weekly Reading - September 24th, 2023

Here are some of the posts that caught my eye recently. Hope you find something interesting.

Lighter Links:

• Your AI Personal Assistant is Almost Here — Assuming You Actually Want It. (Vox)
• Why Your Boss is About to Inflict A.I. On You. (Slate)
• Are Crows Really that Clever? (Phys)
• We All Have False Memories. Here's How Yours are Made. (ScienceFocus)
• Your Unique Scent Reveals a Lot More About You Than You Might Think. (ScienceAlert)

 

Trading Links:

• Elon Musk is a ‘Wonderful Propagandist' Who Generated Money ‘Out of Thin Air' to Make Tesla Succeed, Says Billionaire Investor Jeremy Grantham. (Fortune)
• CFTC Properly and Wisely Rejects Sneaky Backdoor Proposal to Allow Gambling on Elections, Incentivizing Election Interference. (BetterMarkets)
• Mapped: The Migration of the World's Millionaires in 2023. (VisualCapitalist)
• China: A Superpower's Slump. (The Week)
• Copyright Dispute Escalates as New York Times Considers Legal Action Against OpenAI. (Cryptopolitan)

Staying Heart-Centered and Hungry In The Age Of AI with Les Brown

I belong to several executive and business leader peer groups—groups that double as advisory boards, counselor’s offices, and idea factories. They allow me to see, hear, and discuss things I don’t usually think about, talk about, or even notice.  

One of the best groups I’ve joined is the Genius Network.

Recently, they brought in a titan of self-development - Les Brown. Les has been a speaker for over 50 years, has spoken in front of crowds of 80,000, and has been lauded by too many names to count. His podcast has reached 2 Billion downloads. 

Not to mention how powerful his story is. From being adopted, to his school categorizing him as mentally challenged ... to being a member of the House of Representatives in Ohio, a radio and talk show host, and more. 

It was great to build a relationship with him over the course of the two days. 

Toward the end of the event, he was gracious enough to record a video with me. It’s short, but Les is very quick with his powerful quotes and nuggets of wisdom. We talk about staying heart-centered in an increasingly digital and distant world, how to work with A.I. instead of being afraid of it, and the power of hunger and purpose. 

Check it out. 

 

For more from Les, you can check him out at his website, or grab his newest book You’ve Got To Be Hungry. 

Here Are Some Links For Your Weekly Reading - September 17th, 2023

Here are some of the posts that caught my eye recently. Hope you find something interesting.Publish

Lighter Links:

• Oregon Launches Legal Psilocybin, Known as "Magic Mushrooms" Access to the Public. (CBS News)
• Coca-Cola Has Created a Futuristic Soft Drink Using Artificial Intelligence. (ManOfMany)
• Schadenfreude: A Psychologist Explains Why We Love to See Others Fail. (ScienceFocus)
• 'Dr. Google' Meets Its Match in Dr. ChatGPT. (NPR)
• 20 of the Most Thought-Provoking, Philosophical Science Fiction Books of All Time. (BookRiot)

 

Trading Links:

• Brevan Howard Predicts Digital Assets Boom. (HedgeWeek)
• SEC's Gensler May Face an Unbeatable Foe in Crypto. (TheDailyUpside)
• Howard Schultz Steps Down From Starbucks Board. (Wall Street Journal)
• Billionaire Ray Dalio Pushes for Return to Hedge Fund in Succession Clash. (NYT)
• Where is the Global Economy Heading in 2024? This is What Chief Economists Think. (WEForum)

Tikkun Olam & Kintsugi: Happy Rosh Hashanah

Yesterday, I celebrated the Jewish New Year - Rosh Hashanah - with my family and our friend Ben Hardy.

Ben joined us for services and lunch at one of our favorite local delis.

Next week is Yom Kippur, which is the Day of Atonement in the Jewish religion.

As part of the holiday, participants read a list of sins (available here), apologize for those committed, and ask for forgiveness.  Read the list ... much has changed, but apparently, human nature hasn’t.  

Even if you have managed to stay on the right side of the Ten Commandments and haven’t killed or stolen … you have most likely been frivolous, stubborn, hurtful, dismissive, or judgmental (I know I have …).  

To help mark the importance of the day, participants read a poem called the Unetaneh Tokef. Below is a brief excerpt that captures the spirit. 

Who will rest and who will wander, who will live in harmony and who will be harried, who will enjoy tranquillity and who will suffer, who will be impoverished and who will be enriched, who will be degraded and who will be exalted.

On one hand, you can read that and pray for Divine intervention (or perhaps favor), or you can recognize that we each have a choice about who we want to be, how we show up, and what we make things mean.  Your choices about these things have very real power to create the experience and environment you will live in during the next year.

As we shared our holiday with Ben, I started to think about what lessons from other cultures we could leverage in our interpretation of the day.  One concept came straight to mind ... the Japanese art of Kintsugi. In Kintsugi, the Japanese mend broken pottery by gilding the fractures with gold, silver, or platinum.  This treats the breaks and damage as an element that adds value and enhances the beauty of an object (preserving a part of its history) - rather than something that simply diminishes the object. 

This concept is an excellent reminder as we try to repair some of the breaks happening in the American culture war, and the damages of the isolation and death during COVID.  Our steps backward are just as much a part of our journey as our steps forward.  As you heal, it is also important to remember to heal the world around you as well.  In the Jewish faith, that concept is called Tikkun Olam. 

One of the themes of Yom Kippur is that you’re only ever one good deed from tipping the scale towards good for yourself and others.  As you recognize and repent for your sins, it’s important to appreciate the good you did (and do) as well. 

100 Days Left

There are just over 100 days before the start of 2024.  Many will spend those 100 days stressing about the upcoming elections, grumbling about how 2020 was mishandled, and pretending it’s the universe’s fault they didn’t accomplish what they set their mind to ... yet, 100 days is enough time to sprint, to make a change, and to end the year on a high note. 

There is plenty of time to make this your best year yet.  What can you do?  What will you do?

What could you do to make the life of someone around you better?  Likewise, how can you let others know you’re thankful for them?

To reference a book by Ben Hardy (and Dan Sullivan), transformational change is often easier than incremental change (because you don’t have to drag the past forward).

So, what can you do that would trigger 10X results?   Will you?

I hope you all experience growth in your mental state, your relationships, and your businesses.  

Best wishes for a great day, and an even better year!

Sign Up For My New AI Newsletter

I'm launching a new newsletter - with a twist.  The newsletter will be fully automated and produced by an AI we are training to pick out the articles to highlight and share.

 

Don't Let the Past Get In the Way of the New.

Even though a lot of what I think and write about is innovation, exponential technologies, and automation ... until now, what we write and send has been the result of human effort rather than artificial intelligence or technology. 

Sure, portions of the process leverage technology ... but humans have written the vast majority of what you read here. 

It takes many hours a week.  Frankly, many more hours than you would guess!  

Still, I enjoy working on the Weekly Commentary and the list of links that I share.  It is a labor of love (or OCD?) that I have been producing for about twenty years!

If you aren't a subscriber yet, please click here to get it!

We currently send out two weekly e-mails.  The one that comes out on Fridays is a hand-curated list of links that I found interesting during the week.  The Sunday edition has two articles written by me and my son, Zach, along with a few more links. 

Deep down, I know that AI is now good enough to curate a high-quality list of articles in a more efficient, effective, and certain way than what I produce.

So, we are about a week away from launching this.

 

 

This is my John Henry Versus The Machine.

And I'll tell you what – I'm worried.

The new AI-generated newsletter is really good. 

 

Why Play a Losing Game? 

I know that I will lose ... But I also know that I will win.  And so will you!

This does not have to be an "either-or" decision.  This is a "both-and" decision.  Meaning ... I don't have to decide whether to stop producing by hand, in order to also produce with AI.

One of the challenges with AI is that the fitness function you choose significantly impacts the result you achieve.

If the purpose of the newsletter was only to produce a quality newsletter in less time, with less effort, and with greater certainty that readers engage ... then the result is inevitable.  The AI newsletter wins.

However, I didn't choose to produce the newsletter for the newsletter.  The newsletter is a natural result of my nature. I did the research because I wanted to do the research.

I am naturally curious and passionate about these things.  It's what I think about.  It's who I am ... and what I do.

The Weekly Commentary and Link List are strategic byproducts of something that I'm going to choose to do anyway,

 

AI Won't Replace the Real Magic.

One of my beliefs about AI is that you shouldn't use it to replace your Unique Ability.  In other words, don't try to automate, delegate,  or outsource something you are great at, if it gives you energy.  The goal is to magnify "magic," not replace it.  The goal is to spotlight and support those areas by taking away things that are frustrating, bothersome, distracting, or taking cycles away from something that would produce a greater result with less energy.

The point is, I can do both.  I will still do research because it gives me pleasure, knowledge, and a greater likelihood of continuing to learn and grow. I will continue to write and curate. 

Why?  Because it's also an important part of my thinking process.  I think when I speak.  I think when I write.  But more importantly, I think when I am preparing to speak or write.  I wouldn't be me if I didn't go through that process.  I also don't believe my ideas or opinions would continue evolving without the challenge and effort.

And I will also enjoy evolving new and different channels of communication.

Hopefully, we all benefit.

So, I hope you sign up for the new newsletter. We'll be sending out the first e-mail within the next week or two. 

As I've said, I love writing and researching.  I'm an innovator at heart. 

Many read my articles because of my commitment to AI, new technologies, and the future.  Most of my exploration has been centered on Capitalogix and our Amplified Intelligence Platform.  But there are a lot of exciting new use cases of AI, and I'm exploring many of those apps right now. 

For example, as you could have guessed, one such use that I'm excited about is AI-curated newsletters.  Many people I trust and respect have started using Daily.AI, including Peter Diamandis, Dan Sullivan, Joe Polish, and Chris Voss. It's clearly a successful modality. 

 

A Thousand Mile Journey Starts With a Single Step.

Hopefully, you are excited about the new newsletter and the value you will get from it.

I'm confident it will only improve – because it learns from what you value. 

To start, the newsletter will focus on these three topic areas: 

1. How to build a resilient business in a fast-changing world
2. The Psychology of technology & technology addiction
3. Business ethics and AI ethics in today's world. 

But that is just the starting point.  It is set up to consider the same type of offshoots as I normally would.  So, it will remain diverse and educational. 

Please sign up and let me know what you think about it.