A Nikkei study found Alphabet, Microsoft, Amazon, Meta and Oracle carry $1.65tn in off-balance-sheet debt for AI, more than they report. It is all legal.
If the money would wipe out from the economy, that is less money for everyone. First round of bankruptcies will also wipe out contractors and debt issuers of the bancrupted companies, and so on.
Mass layoffs. People cannot afford restaurants, or car washes, more businesses out, more mass layoffs.
In 2001 tech bubble the money haven’t been lost. Virtual valuation dropped sharply. But the economy recovered in a year.
This is like 2008, money have been poured into concrete and silicon chips. They were spend, gone for good.
It will take a few good years to recover if the bubble would burst.
I bought some value etf to hedge it. There is some theory out there that so called factor investing is worth it. The real deal is of course to catch the bottom. But as we saw with Iran war and the market it all gets eventually priced in even though everything seemingly goes to shit from different directions. I’m not smart enough for this…
You really either ride it out or be OK with the chance of missing out on a few more years of a hot market. I’ve been expecting a big (sustained) correction since 2018 and even COVID couldn’t get it done.
If you need money soon, put it in something fully insulated, like a CD or HYSA if you need it even more liquid. If you need wealth in 10+ years, just ride it out. Keep putting that piece of your paycheck in the infinite money glitch machine.
What can people do to avoid getting caught by the bubble popping? Remove all tech stocks from their portfolio? What about indices like S&P500?
No, this is have enough canned food scenario.
If the money would wipe out from the economy, that is less money for everyone. First round of bankruptcies will also wipe out contractors and debt issuers of the bancrupted companies, and so on. Mass layoffs. People cannot afford restaurants, or car washes, more businesses out, more mass layoffs.
In 2001 tech bubble the money haven’t been lost. Virtual valuation dropped sharply. But the economy recovered in a year.
This is like 2008, money have been poured into concrete and silicon chips. They were spend, gone for good. It will take a few good years to recover if the bubble would burst.
I bought some value etf to hedge it. There is some theory out there that so called factor investing is worth it. The real deal is of course to catch the bottom. But as we saw with Iran war and the market it all gets eventually priced in even though everything seemingly goes to shit from different directions. I’m not smart enough for this…
You really either ride it out or be OK with the chance of missing out on a few more years of a hot market. I’ve been expecting a big (sustained) correction since 2018 and even COVID couldn’t get it done.
If you need money soon, put it in something fully insulated, like a CD or HYSA if you need it even more liquid. If you need wealth in 10+ years, just ride it out. Keep putting that piece of your paycheck in the infinite money glitch machine.
S&P 500 is fucked, I put a chunk in an all-world ex-US ETF