When will AI bubble/ stock market take hit?

Investment Analysis Clubs Macro Economic Trends and Risks
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No one knows exactly when AI bubble will burst. While you are seeing headlines about circular investments, and the stocks making 10%, 20%, 30% moves, even ones with $100’s of billion market cap on funding or contract announcement, it is natural to feel concerned. However, keep in mind the following:

  • Market extremes go much further than you think on both directions
  • Fed just started cutting, and additional cuts are coming, i.e., easy money environment, which should fuel the bubble further
  • The market could very well melt-up between now and year-end

So when to run for covers???

  1. When $NVDA misses the earning/ revenue estimates or guides below market expectation, that is the day, you run for covers.
  2. If you are too worried, take some profits, buy some hedges. Both have problem like paying taxes, and hedges are expensive. But that’s the price you pay to sleep peacefully.
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