Good Morning. This is the Investor Lookout with the daily digest to make you a smarter investor. (Keep an eye on the Lookout Watch to see how we’re doing!)

Here’s what we got today:

• 💸 Stock Market Boom To End In The Next Decade Says Goldman Sachs

• ☁️ Honeywell Partners With Google To Deploy AI Agents To The Industrial Sector

Stock Market Boom To End In The Next Decade Says Goldman Sachs

Goldman Sachs ($GS) analysts say we will lose the golden goose. Their analysts forecast a meager return of 3% annually from the S&P 500 in the next decade. It's a steep way down from the previous 13% annualized returns of the last decade. Lower returns are due to an "extremely high level of market concentration," especially by the top 10 biggest mega-cap tech stocks. Companies like Apple ($AAPL), Microsoft ($MSFT), Amazon ($AMZN), Nvidia ($NVDA), Alphabet ($GOOGL), and Meta ($META) weigh in at 36% of the entire index while driving much of the returns (46% relative to 36% for the complete index).

• The S&P 500 has a 72% chance of underperforming bonds and a 33% possibility of a return less than inflation in the next decade.

• Market concentration is nearly at the highest level in 100 years, increasing volatility risks.

Honeywell Partners With Google To Deploy AI Agents To The Industrial Sector

Honeywell ($HON) and Google ($GOOGL) are taking cloud computing to new heights. They partnered to integrate Google's AI agents into Honeywell's industrial operations. Built on Google Cloud's Vertex AI Search, the new AI-powered agent will help automate tasks and reduce project design cycles. The main goal is to reduce maintenance costs, increase productivity, and upskill employees. The collaboration addresses the labor and skills shortages in the industrial sector caused by retiring baby boomers.

• 82% of industrial AI leaders believe their companies are early adopters of AI. In practice, only 17% have launched their initial AI plans.

• Honeywell is exploring how to use Gemini Nano, an on-device LLM that can operate directly on scanners, sensors, and controllers for autonomous operations.

Markets

Hurricanes Helene and Milton make it challenging to know the state of the economy. The storms will affect reports on employment, inflation, growth, and other indicators, making it difficult for economists and policymakers to determine the trajectory of the U.S. economy. [Read]

Markets could fall even if Trump wins. Morgan Stanley's chief U.S. stock market strategist Mike Wilson explained that markets may be trying to front-run a Trump victory, which could lead to Wall Street disappointment if Kamala Harris wins. At the same time, "certain areas of the market may be vulnerable to a sell-the-news phenomenon if the upside is already priced amid heavy positioning," he said. [Read]

The threat of Chinese overcapacity looms over memory chips. Investors are worried that a massive production increase from China could derail the recovery of the memory chip market. The impact is small now, but big memory chip makers should still watch their backs. [Read]

Business

TikTok is helping creators manufacture their own products. TikTok has started linking manufacturers with creators to make goods to sell on its platform. The effort would enable influencers to sell custom products to their TikTok followers. [Read]

McDonald's distances itself from Donald Trump after his visit. The fast-food chain said it "does not endorse candidates for elected office." "We are not red or blue — we are golden." [Read]

Disney says it will appoint its next CEO in early 2026. Disney ($DIS) stated on Monday that former Morgan Stanley CEO James Gorman will be its new chairman. They also confirmed plans to replace CEO Bob Iger in early 2026. [Read]

Nvidia stock closed at a record high as Wall Street sees strong AI demand. Quartz

Wall Street’s rally cools as investors brace for big earnings week. Fortune

Boeing Starts Selling Off Pieces. Yahoo Finance

10-, 30-year Treasury yields end at highest since July. MarketWatch

Tesla Quietly Transfers $765 Million In Bitcoin. Yahoo Finance

The 4 words Tim Cook uses to defend Apple's late AI start. Quartz

Nigeria rejects Shell’s sale of $1.3bn onshore production unit. Financial Times

Trump sued by Central Park Five for defamation. CNBC

Meta releases AI model that can check other AI models' work. Investing.com

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.