When there are 4 or 5 companies worth over a trillion dollars each, and those companies combine for 60% of the volume and value of the S&P and NASDAQ, and they are all in on ai, well…
Things can actually go back, A LOT, if a collapse spreads to a broader society which is weakened by massive inequality and incompetent power elites fully in pillaging mode, were it becomes structural.
And don’t get me started on what happens to a nation that’s the dominant nation of an era, at the end of their Imperial period, which is where the US is at the moment.
It’s just very unlikely to happen in the lifetime of anybody (so people are prone to the falacy of thinking “this will never happen”), but definitelly happens as History shows us.
It’s not quite right to say those companies are “all in on AI” when their core businesses are still based on physical products and established services. These were already highly successful companies long before the AI boom. If their valuations are inflated because of the hype, a correction wouldn’t send them to zero - it would just bring their prices back in line with their actual underlying value.
But, nvidia (the largest by weight/volume/value on each of the indexes) would be almost nothing without the ai hype, and the loss of Chinese contracts will see it plunge regardless of a bubble.
Google, ms, and apple have added nothing of worth to their products while pumping billions to their ai surveillance bots.
All told, the value of the indexes will plummet like Wile E. Coyote when cartoon reality kicks in.
The bottom, however, will hit much harder than he ever felt.
When there are 4 or 5 companies worth over a trillion dollars each, and those companies combine for 60% of the volume and value of the S&P and NASDAQ, and they are all in on ai, well…
Buy ammo, I guess.
No, buy puts.
“The market can stay irrational longer than you can stay solvent”
Can you get money from a non existent economy?
Every market ever has crashed, but the world trudges on.
The world trudges, the wealthy trample over us.
Maybe their diet should change from caviar to lead.
Personally I’m more of the Mycenaean, let their places burn and make them taste bronze!
What to do with the casts when the molten bronze is poured down their throats?
I just want to jam a sword down their throats like the weird cousin of Vlad Types of Wallachia. What your describing is more Persian IMO.
IANAHistorian so I don’t know.
Either way works for me.
Remember the Dark Ages?
Things can actually go back, A LOT, if a collapse spreads to a broader society which is weakened by massive inequality and incompetent power elites fully in pillaging mode, were it becomes structural.
And don’t get me started on what happens to a nation that’s the dominant nation of an era, at the end of their Imperial period, which is where the US is at the moment.
It’s just very unlikely to happen in the lifetime of anybody (so people are prone to the falacy of thinking “this will never happen”), but definitelly happens as History shows us.
Will it get that bad? No idea.
Can it? Absolutelly.
Ancient dinosaurian proverb
As if “this time is different” isn’t.
It’s not quite right to say those companies are “all in on AI” when their core businesses are still based on physical products and established services. These were already highly successful companies long before the AI boom. If their valuations are inflated because of the hype, a correction wouldn’t send them to zero - it would just bring their prices back in line with their actual underlying value.
Fair.
But, nvidia (the largest by weight/volume/value on each of the indexes) would be almost nothing without the ai hype, and the loss of Chinese contracts will see it plunge regardless of a bubble.
Google, ms, and apple have added nothing of worth to their products while pumping billions to their ai surveillance bots.
All told, the value of the indexes will plummet like Wile E. Coyote when cartoon reality kicks in.
The bottom, however, will hit much harder than he ever felt.