Assuming that AGI will create major disruptions across industries, does diversification remain a valid "one size fits all, set and forget" safe strategy in this scenario?
As much as I am aware that ETFs "evolve" in that they are constantly changing which companies they track as companies come and go from the index, if we see a 'winner takes most/all' situation where the scalers' massive AI infrastructure spend pays off and they manage to automate intelligence for cognitive tasks/workflows, do you see it as possible/realistic that this event could destabilize or disrupt much of the broader economy?
Is it possible that we see a "hollowing out" of the broader economy in which broad indexes actually experience drag whilst core names benefitting from AGI grow massively or am I just lost in the sauce here?
Pretty sure there is historical precedent for this happening in previous huge revolutionary infrastructure buildouts.
TL;DR - will broad index drag mean that broad indexes like S&P 500 are less likely to outperform individual stocks in the 'AGI space' than they historically were in a situation where AGI actually pays off?/is (broad-market) diversification actually a good strategy if you anticipate major technological shifts/disruption in the near future?