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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]The top 7 tech companies accounted for about 1/3 of the stock market's growth in the last year.

I think those companies will see some downturn for sure. A lot of money went into AI, and I think it's plateaued in terms of use cases, but also the technology has gotten more efficient = needs fewer chips and hardware to acheive the same results as a year ago.

[/quote]

It’s not just that the Magnificent 7 hold a shocking disproportionate share of the overall value of the stock market.  It is that 6 of the 7 are spending the majority of their Capex buying Nvidia chips!  Microsoft alone spent 47% of its Capex last year buying Nvidia chips. Capex from 5 of the 7 make up almost 43% of Nvidia’s revenues.  And yet those 5 (Tesla, MSFT, Meta, Amazon and Alphabet have yet to make any real return on the billions they have invested in AI.  What if AI’s promise just never delivers (it hasn’t yet in terms of revenue generation).  The big purchasers are going to have to cut back soon, NVIdIA will crater and the bubble will pop spectacularly.  It’s entirely foreseeable at this point.  AI sounds like a massive disruptor but the truth is it has yet to generate meaningful revenue for any of the big spenders yet and it’s possible it never will.[/quote]

So are you selling off your index funds?  Shorting the market?  What’s the strategy to head off inflation?

[/quote]

Iaui.[/quote]

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