Report says 'circular financing' shows AI bubble 'primed to pop'
cross-posted from: https://piefed.world/c/tech/p/1492252/report-says-circular-financing-shows-ai-bubble-primed-to-pop
https://www.openmarketsinstitute.org/publications/brace-for-impact-report-releaseOpen linkView original on piefed.world
15 replies
its like cyst, that will pop, but will fill up if you dont take out the root cause, the actual cyst bag.
Hey now, Musk has a name!
I’m not looking to profit from the collapse. Funny moves like shorting things isn’t my style. Neither is trying to time the market.
My question is what do I do with my retirement to avoid collapsing with it?
It depends on how close you are to retiring. If you are more than 10 years away, you are probably better off doing nothing differently. Look at the inevitable dip as a buying opportunity.
Even if you are close, you still need to be careful. Yes, the market is probably due for a 40% haircut at some point. But if it takes another 3 years to get there, then the market might increase more than that before then.
There are funds that track the entire S&P 500, but omit those 7 large Tech companies, and their performance has consistently lagged behind the whole index. If you thought years ago that the Tech sector would be do for a correction and backed out of those 7 companies while keeping the rest, you would be objectively worse off.
Buying a dip is still trying to time the market. If you have a view then you implement it, if you have no view then you'd probably dollar cost average into broad indices. I think you can look at your personal stake, what you can afford to lose with your horizon, and then make any necessary changes to limit the downside. Like you say, you might need to give up some possible gains.
Actually buying the dip is timing the market, not trying to. You really can't go wrong with that. It becomes an issue when you don't invest because you're waiting for the dip.
I'm largely staying out of the stock market, and what I invest I have invested in renewable energy. Most of my savings are in a high interest bank account. Once the economy collapses I plan on investing the money in (green) investment funds, not all at once but buying in gradually month by month while the economy is in panic. That way I don't gamble on any particular moment being the bottom, I just gamble that the economy will not be fucked forever. If it is we have bigger problems.
Sell high, buy low, basically. Except I'm not wealthy enough for the "sell high" part.
Participating in any of it feels dirty, but I'm not in a position to buy myself a house so I guess I have to do something with my savings.
You could do what the wealthy will do: wait until your neighbour is really struggling, buy their house for cheap, rent it back to them, and bribe local government to make it easier to evict them when they can't pay.
I'm considering moving much of my 401K to the emerging markets equity fund. Not much exposure to AI there.
Yes, but doesn't that create a taxable event?
The whole idea of a 401k is that it's not taxable until you pull stuff out on retirement. You an trade in and out of stuff with no tax implications.
You may have taught me the most important, valuable thing of the last two years. Thanks...Oof.
I've been waiting for the bubble to pop and thought I was stuck and could only allot new contributions. I need to do some rebalancing tomorrow.
Aka fraud
Depends on who wins the election
Yes, Democrats will punish them 😂