Reply to How to hedge against the coming Trump economic implosion?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I am 68, single and retired.   Have most of my money in Vanguard mutual funds. I will start taking social security at 70.

No pension, but an annuity that pays me $1700 a month. My condo is paid off, but I have a monthly fee.

49% of my retirement savings are in equity mutual funds. What do you think of that proportion? 🤔[/quote]Seems reasonable to me.  I'm more a risk taker, age 65 and about 90% in stocks vs fixed income.  But I have a bunch of dividend payers, my bond proxies.    SS is also an annuity, so you will have two annuity streams of income.   [/quote]

You do you but this doesn’t seem like a great idea.  The AI bubble is going to burst sooner or later.  For those who haven’t been paying attention or who have been gaslit by the AI hype that is predominating in the media and tech industry, pay attention to the numbers if you have invested your retirement or your kids’ college fund in this market.  We  are all loving the returns right now but what are they based on?  Certainly not earnings. Nvidia and the other members of the “Magnificent Seven” are driving the froth.   The bottom line is that 5 of the “Magnificent Seven” are spending hundreds of billions chasing AGI and they have yet to earn any meaningful returns from their AI investments.  Any!  Meanwhile while everything we have been promised about AGI taking over the world and transforming labor markets may come to pass, it hasn’t and latest iterations of ChatGPT have been total disappointments.  The Magnificent Seven make up almost 35% of the US Stock market value right now and the chip purchases from 5 of them make up almost 42% of Nvidia’s revenue!  Microsoft alone is spending almost HALF of its Capex on Nvidia chips.  Without showing any meaningful returns from this spend!  Sure sure this could all just be a very smart investment in our AI future, but what if it doesn’t pan out?  What if these companies realize that they are wasting billions chasing a dream of an AI business that just isn’t there.  Then what?  They cut their spend on Nvidia and the whole thing comes crashing down.  If you think this is insane you haven’t been paying attention.  People on the fringes of the tech sector are starting to speak out.  Look up a recent article in the New Yorker about how the promises of AI are falling short or read tech journalist Ed Zitron’s writings.  The numbers don’t lie.  https://www.wheresyoured.at/the-haters-gui/[/quote]

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