So, everyone's freaking out about an AI-fueled stock market bubble. Give me a break. Like we haven't seen this movie before. Dot-com, housing...now it's robots. The suits on Wall Street are practically drooling over Nvidia and Google stock, acting like AI is going to solve world hunger and do my taxes.
According to the "experts," the bubble won't burst until the Fed starts tightening. Ray Dalio says so. Fine. But let's be real, the Fed is about as predictable as a toddler with a crayon. And with Trump probably getting his cronies on the board, they'll be printing money like it's toilet paper. Billionaire investor Ray Dalio says there's one reason not to sell stocks, even if you're worried about an AI bubble
But here's the thing these geniuses are missing: It's not just about what the Fed does. It's about what the bond market thinks. If the Fed keeps rates low while Uncle Sam keeps spending like a drunken sailor, those long-term Treasury yields are gonna spike. And when that happens, kiss your AI dreams goodbye. It's like trying to build a skyscraper on a foundation of sand.
The IMF is already waving red flags, warning that the US debt is heading towards Greek-levels of disaster. Think about that for a second. Greece. Remember when their economy imploded? We're on the same path, apparently. So, yeah, keep buying those AI stocks...
And offcourse, there's the Magnificent Seven – Apple, Microsoft, Alphabet (Google), Amazon, Nvidia, Meta, and Tesla. These companies make up a crazy percentage of the S&P 500. It's like the whole US stock market is balanced on the backs of seven tech giants. If one of them sneezes, the whole thing collapses.
But wait, there's more! Remember COVID? The stock market tanked 34% in a heartbeat. Did the Fed tighten before that happened? Nope. And what about Trump's "liberation day" import tariffs? The market freaked out then too. The point is, the stock market today can be volatile, and there are plenty of "black swan" events that can trigger a crash, regardless of what the Fed is doing.
Speaking of Trump, let's not forget his Twitter account. One angry tweet about China, one ill-conceived trade war, and the whole thing could come crashing down. Honestly, I'm surprised more people aren't factoring presidential meltdowns into their investment strategies.
I mean, all this AI hype...OpenAI valued at half a trillion despite not turning a profit? Hundreds of billions poured into AI, accounting for half of US GDP growth? It's insane! It's like everyone's chugging Kool-Aid and ignoring the flashing warning signs.
Then again, maybe I'm the crazy one here. Maybe this AI revolution is for real. Maybe robots will save the world. But I doubt it.
It's a house of cards built on hype and cheap money. The "experts" are clueless. The Fed is a joke. And Trump is...well, Trump. Buckle up, folks. This ain't gonna end well.
