Imagine waking up two years from now, and the stock market has quietly tumbled 38%. Not because of a pandemic. Not because of reckless bank lending. But because artificial intelligence worked a little too well.

Welcome to the Relax to Rich Club ☕. As patient investors, our greatest edge is looking past tomorrow's headlines to see the hidden currents shaping the next decade.

Recently, two sharp market researchers, Citrini and Alap Shah, published a fascinating thought experiment. They asked a brilliant, unsettling question: What if our wildest bullish dreams about AI are completely right, but that exact success ends up being terrible for the broader economy?

They framed their research as a "macro memo" looking backward from the year 2028. Here is a deep dive into their scenario and why it matters for your wealth today.

For all of modern history, human intelligence has been the most valuable, scarce resource. Citrini and Shah point out that our entire financial system (from tax brackets to thirty-year mortgages) is built on the assumption that smart, skilled people will always command high salaries.

But what happens when machine intelligence becomes abundant and practically free?

In their 2028 scenario, AI agents do not just assist human workers. They replace them. A single server farm generates the output of thousands of highly paid professionals. Companies lay off these workers, see a massive surge in profits, and reinvest those savings into even more AI.

The researchers argue this creates a dangerous domino effect. The first casualties are software companies and middlemen.

Right now, massive businesses rely on human laziness (what economists call "friction"). Think of food delivery apps, travel booking sites, or expensive subscriptions you forget to cancel.

Citrini and Shah envision a world where personal AI agents run on your phone, constantly negotiating the cheapest prices, bypassing credit card fees, and canceling unused services in the background. Brand loyalty vanishes. Profit margins for these middleman companies collapse to zero.

The most crucial insight from their research involves the housing market.

Historically, high-earning white-collar workers drive the vast majority of consumer spending. They also hold the safest, prime mortgages.

If AI permanently replaces these specific roles, these professionals are forced into lower-paying jobs. They stop spending at restaurants. They stop buying cars. Eventually, they struggle with their mortgages. The researchers warn that a slow drain on these high earners could turn a simple technology shift into a system-wide financial crisis.

To be clear, Citrini and Shah are not predicting the end of the world. They are simply stress-testing the future. Technology will eventually find a new equilibrium. However, the transition could be incredibly messy.

As long-term investors, we must ensure our portfolios are not entirely dependent on the old rules of business. We need to ask ourselves if the companies we own can survive a world where software is practically free and consumer spending is severely strained.

What steps are you taking to protect your portfolio from massive technological shifts? Hit reply and let me know your strategy.

Stay patient, stay wealthy.