Editor’s Note: Amid various market distractions, a significant economic transformation is unfolding.

Five years ago, my InvestorPlace colleague Eric Fry predicted a major economic shift he termed the “Technochasm.” This shift, he claimed, would divide the economy and the Stock market into two distinct groups.

On one side are companies and investors embracing rapid technological advancements; on the other are those caught unprepared, lagging behind.

Now, as we look at the current market landscape, it appears his predictions are becoming reality, and we anticipate an acceleration of this trend.

Over the upcoming three days, my colleagues Eric Fry and Luke Lango will join me to discuss these developments and how to prepare. This culminates in our important briefing on Thursday, March 27, at 10 a.m. Eastern, where we will reveal a groundbreaking AI announcement.

Click here to save your seat for this free event.

In the meantime, here are further insights from Eric.

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The American economy has long been characterized by two stark realities:

• One where wealth accumulation is bolstered by AI-driven Stock market gains and rising asset values.
• The other where lower-income Americans are increasingly left behind.

Recently, Jamie Dimon, CEO of JPMorgan Chase & Co. (JPM), cautioned that this disparity is deepening rapidly. Speaking at Adobe Inc.’s (ADBE) annual summit in Las Vegas, he noted that while the economy is experiencing a “soft landing,” it is increasingly turbulent for lower-income Americans.

“The bottom 20% of earners in the U.S. haven’t seen a pay raise in 25 years. They are living shorter lives, with inadequate schooling and unsafe neighborhoods,” he reported. In contrast, wealthier Americans have enjoyed decades of increasing Stock prices and property appreciation.

Dimon’s remarks underscore a critical reality: the wealth gap in America is widening at an alarming rate.

A report from the Congressional Budget Office, published in October 2024, indicates that the top 10% of wealthy Americans now control 60% of the nation’s wealth, while the poorer half holds merely 6%.

As inflation rises, geopolitical tensions grow, and trade tariffs threaten stability, this economic divide becomes more pronounced. Those not strategically positioned for this shift face growing risks.

In today’s discussion, we will explore the factors contributing to the expanding wealth gap, the role of AI in exacerbating this trend, and practical steps to secure your financial future.

The Shrinking Middle Class

Decades ago, America enjoyed relatively even wealth distribution and a strong middle class. Today, this middle class is not only shrinking but many are falling below the poverty line.

This significant socioeconomic transformation means a small portion of the population is controlling an ever-growing slice of national wealth. A 2014 study from the National Bureau of Economic Research revealed that wealth inequality reached levels unseen since the Great Depression by 2012.

Since the 1980s, the top 0.1% of households have seen their share of wealth soar from 7% to 22%. Meanwhile, in 1980, the richest 1% owned about 30% of the nation’s wealth, while the bottom 90% possessed only 24%.

While it would be ideal to believe this situation could rectify itself soon, the reality is different. To protect yourself against the forces fueling this wealth gap, proactive measures are imperative.

An often-overlooked force behind this issue is rooted in technology. Understanding this narrative is crucial for positioning your finances on the correct side of the divide.

For further details, click here.

Avoiding the Blockbuster Fate

In the spring of 2000, Reed Hastings pitched Blockbuster an innovative idea. He sought to sell his nascent company, Netflix Inc. (NFLX), for $50 million. At the time, Netflix allowed customers to rent films by mail, albeit struggling to become profitable.

Blockbuster rejected Hastings’ proposal outright.

Fast forward, Netflix secured alternative investments and evolved into a leading video streaming service, eventually undermining traditional rental brick-and-mortar outlets like Blockbuster.

By 2002, Netflix had fewer than 3 million subscribers—by late 2024, that number surged to 302 million, with a market valuation around $400 billion. Conversely, Blockbuster’s valuation stands at $0.

This narrative—of established businesses crumbling due to innovative upstarts—is a recurring theme. Consider how Uber Technologies Inc. (UBER) revolutionized the taxi industry, or how Amazon.com Inc. (AMZN) surged past traditional retailers.

The pace of these dramatic disruptions is expected to increase over the next decade, further widening the wealth gap.

It is this divide that my InvestorPlace colleagues and I refer to as the “Technochasm.”

Positioning yourself wisely on the right side of this divide could lead to substantial financial gain. Conversely, those left behind may face job losses and diminishing portfolio values.

This urgent transition toward new industries versus the decline of old ones is a result of accelerating technological advancement.

The advent of generative AI applications, such as ChatGPT in 2022, has significantly fueled this trend.

AI: The Catalyst of the Technochasm

AI is energizing the Technochasm.

Consider the implications…

• AI will…