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Small-Scale Question Sunday for February 18, 2024

Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?

This is your opportunity to ask questions. No question too simple or too silly.

Culture war topics are accepted, and proposals for a better intro post are appreciated.

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How are you changing your investment/savings strategy as AI timelines get shorter? I’m still in my boring ol’ index funds but have decreased my savings rate down by 5-10%.

I know very little economics, but the popular sentiment seems to be that interest rates will get very high and raw capital will be incredibly important in a post-AGI world. Does this matter for the average person like me who just wants to be financially independent in his 40s?

I've been thinking about this a lot lately. I'm still working this out. Initially, I invested a bunch in Google because of the amount of data they have, but then started investing in other things like Microsoft, Nvidia, ASML, TSMC, and some energy and mining stocks. I've been trying to figure out who will benefit the most from AI. I started out thinking it would be the companies with the most data, but now I'm looking for ways to invest in electric utilities and the companies that will benefit from a huge investment in the electrical grid.

I'm also thinking that real interest rates will fall if there is an AI boom. My best idea is to buy low price-to-earnings ratio companies with lots of long term debt, but I'm not sure about this strategy.

The concern is that most asset prices will collapse if real interest rates rise unexpectedly, so I want investments that will be protected form that and ideally even profit from it.

My tech stock investments have done really well, but the price-to-earnings ratios are getting concerningly high and I'm not sure they'll actually be the ones to benefit the most. My energy stocks haven't done that well, but I'm going to hang onto them for now.

This might all be a wasted I'm worried the government is just going to confiscate everyone's wealth. I likely have a big inheritance coming in 20 or 30 years, and I'm wondering if maybe I should just find some country to live in that is friendly