So the government shut down again. Cue the dramatic music and cable news panic. But here’s the thing – Wall Street basically shrugged and went back to scrolling TikTok. Why? Because we’ve had over a dozen shutdowns since 1980, and stocks barely budge during these political theater performances.
The real story isn’t happening in Washington. It’s happening in your portfolio, and it’s a tale of two economies that couldn’t be more different if they tried.
The Great Economic Split
Picture this: AI companies are basically printing money while everyone else is fighting over scraps. Investment in AI and software jumped 30% in the first half of 2025. Meanwhile, everything else? A whopping 0.1% growth. That’s not a typo – it’s basically flatlining.
It’s like watching two different movies. In one, robots are taking over the world (in a good way), and in the other, people are struggling to find seasonal retail jobs because, well, robots are taking over the world.
The Numbers Don’t Lie
Here’s where it gets spicy. The job market just face-planted harder than a crypto influencer’s credibility. ADP expected 45,000 new jobs but instead we lost 32,000. That’s like expecting a high-five and getting slapped instead.
But while Main Street is struggling, Wall Street’s AI darlings are having a party. Compare the ProShares S&P 500 Ex-Technology ETF (basically everything that isn’t tech) with the ARK Autonomous Technology & Robotics ETF over the past year. The AI/robotics fund crushed it with 86% gains while non-tech managed a measly 12%.
That’s not just winning – that’s lapping the competition seven times over.
The Rich Get Richer (And More Automated)
Here’s the kicker: Americans with assets are living their best life while everyone else is pinching pennies. The top 10% of earners now account for nearly half of all U.S. spending – the highest since 1989. It’s like the economy decided to become a VIP club, and not everyone got the memo.
Meanwhile, seasonal hiring is at its lowest since 2009. Why? Companies are choosing automation over human workers. It’s more reliable, doesn’t call in sick, and never asks for a raise.
The Bottom Line
This isn’t just a temporary blip – it’s the new normal. The AI economy and the “everything else” economy are diverging faster than your high school friends after graduation. One’s becoming a tech billionaire, the other’s still trying to figure out what they want to do with their life.
So what’s an investor to do? Simple: stop fighting the trend and start riding it. The data is screaming that AI and automation aren’t just the future – they’re the present. And if you’re not positioned accordingly, you’re basically bringing a flip phone to a smartphone fight.
The government shutdown will end (they always do), but this economic transformation is just getting started. Choose your side wisely.