Reply to $650 billion in annual revenue required to deliver 10% return on AI buildout investment, J.P. Morgan claims

Forum Index » Money and Finances

Reply to "$650 billion in annual revenue required to deliver 10% return on AI buildout investment, J.P. Morgan claims "

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]Here is what is happening in my opinion...

We are seeing more and more of these kind of articles....

Do you guys know why?

Because the same usual suspects have secretly taken short positions....

Does it sound familiar? It should

[/quote]

Maybe -- but they're not wrong. And yes, Michael Burry and other prominent investors have been open about shorting AI stocks, but that's an easy bet to make given their extreme valuations given that revenues/profits haven't yet caught up. What worries me is the composition of the S&P 500 -- over 1/3 is significantly tied to AI, yet people naively think it's a diversified portfolio and auto-invest their 401(k)s in ETFs tied to the S&P 500.

I think that valuations are precarious, and it will take very little to cause a broad-based sell-off in the markets. And since we've been in this K-shaped economy with the "haves" propping up consumer spending, my concern is that once the focus moves from the government spending shutdown and Fed rate decisions to valuations, the bottom will fall out as people head toward the exits.

Just call me Chicken Little![/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics