Traders and investors looking to central banks to solve the inflation problem of the world economy are looking in the wrong place. Instead, they should look at the spread of artificial intelligence (AI) systems. These systems could set the global economy into a virtuous cycle of higher growth, employment, and consumer as well as investment spending while lowering inflation and interest rates. It's an ideal environment for both stocks and bonds.
"The notion of a virtuous cycle—wherein improvements in one domain precipitate enhancements across others—is particularly salient," Patrick Fan, professor of business analytics at the University of Iowa's Tippie College of Business and an AI expert, told International Business Times.
