Investors are selling software stocks due to fears that AI tools will allow individuals to create their own apps, potentially impacting software developers. This shift is transforming software from a product to something users make themselves. Productivity gains from new AI tools could lead to a consumer surplus. Investors should consider sectors like utilities and data centers for AI investment opportunities. Closed-end funds (CEFs) like Liberty All-Star Growth Fund (ASG) and BlackRock Technology and Private Equity Term Trust (BTX) offer high dividends and potential growth. ASG’s discount to net asset value provides an attractive entry point for investors.

The use of AI tools has raised productivity levels, with models performing tasks that would normally require hours of human labor. The debate now focuses on the extent to which AI will increase productivity. Investors should look beyond traditional tech stocks like NVIDIA and consider other sectors benefiting from AI advancements. Monthly dividend CEFs offer a reliable income stream with high yields. This presents an opportunity for investors to benefit from rising productivity across different sectors. The current market conditions allow investors to buy high-yielding funds trading at discounts, providing strong upside potential.

Read more at Nasdaq: Two 9% Dividends on Sale (Up to 17% Off). Thank the Software Selloff.