Comment by Nio1024
4 months ago
Gotta thank AI — it’s keeping my portfolio from collapsing, at least for now . But yeah, I totally see the point: AI investment might be one of the few things holding up the U.S. economy, and it doesn’t even have to fail spectacularly to cause trouble. Even a “slightly disappointing” AI wave could ripple across markets and policy.
Dont forget to factor in the 10% haircut the USD has taken since last November.
This might be a good time to reduce your exposure to the stock market?
I wonder what would be a good counter-investment if one thinks AI is in a bubble which is just about to burst.
Maybe consumer staples (Walmart, Pepsi etc.)? Dollar stores?
A diplomatic passport from a third-world country? ;-)
Seriously, if the stock market is going to plunge, Pepsi stock is also going to plunge. The simplest way to reduce your exposure to the stock market is to shift assets toward cash: sell shares, keep dollars, maybe in the money market rather than just as cash. Dollars are exposed to the risk of inflation (hyperinflation hasn't happened yet in the US but it's so common that https://en.wikipedia.org/wiki/Hyperinflation doesn't even attempt to list all historical episodes of hyperinflation, just dozens of notable ones) so investors commonly try to move to metals to balance that risk. Cryptocurrencies have emerged as an alternative, and they have the advantage of being more portable in emergency evacuation situations.
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AI is a massive bubble, nvidia invests in openai which buys nvidia chips, nvidia is just doing round-trip transactions