Bubble? What Bubble?
I got a friend who has turned into a Day Trader, buying and selling stocks, ebullient that in the past year or more, the Market is running wild, setting new record highs, making him even richer than he was before. The rich, maybe you’ve heard, are getting richer. Most of consumer spending isn’t spread across the nation’s demographics equally, it’s the result of spending by the wealthy. If you think they’re worried about the cost of groceries or the price of gas, you obviously aren’t in the 1%, maybe not even the 10%. Should have maybe taken out a second mortgage and tossed it into the S&P 500. Or better yet, any of the stocks hitched to the Artificial Intelligence bet.
Folks I know who are betting their farm on the AI wave think all stocks rise on an expanding bubble. The Dutch who paid thousands of guilders for rare bulbs thought the price of tulips had no ceiling, same as the banks who collateralized shaky mortgage loans, same as the investors of the Roaring 20’s who bought on 10% margins. I’m not envious of their profits — while there are profits — I just hate the collateral damage when the bubble bursts and the economy crashes.
What goes up, I tell my friend, inevitably comes down. But he doesn’t believe that old chestnut. AI is different, he claims, nothing like the tech bubble of the 90’s, totally impervious to the laws of gravity. Sure, I reply, and rare tulips still hold their value today.
Probably time to buy Trump meme crypto, if for no other reason than to hedge the bets.
Tags: AI Bubble, Sure Bet Stock Market, Tulip Bubble