Circular Financing Arrangements, Mounting Risky Debt, and Increased Stock Market Exposure: The AI Bubble is Primed to Pop — Open Markets Institute
www.openmarketsinstitute.org
This report with Americans for Financial Reform is an urgent warning: it details how the money pouring into AI could spiral into an economy-wide crisis and lays out recommendations for policymakers on how to keep an AI crash from devastating ordinary people’s finances.
  • REDACTED@infosec.pubEnglish
    2·
    13 days ago

    If I’d get a dollar for each article that says AI bubble is about to pop, I could afford ram again

  • blitzen@lemmy.caEnglish
    1·
    13 days ago

    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?

    • dhork@lemmy.worldEnglish
      1·
      13 days ago

      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.