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The fact that we’re talking about warning signs the bubble is about to burst indicates the bubble is not about to burst lol.
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But it feels like it’s about to pop! It really is hard to stay objective as predictors all seem to point one way.
What predictors do you mean? I’m genuinely curious
I don't think you're genuinely curious because the title of the article is literally "The warning signs the AI bubble is about to burst."
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Exactly—it's going to be the same this time. That's how bubbles do. What I'm trying to express is that when people say "AI is a bubble," the don't understand that AI will actually survive that bubble, even if many "AI companies" do not.
I don't think so. Most companies that went under in the 90's bubble are definitely not doing well today. Lycos? The stuff that survived was 99% stuff that didn't have to rely on the bubble to begin with. MS or Oracle were doing fine even with the bubble bursting because their core business was not relying on it. But if the AI bubble burst, the AI shops are gonna go bye bye.
Just because the bubble is going to burst does not mean the technology will go away. That didn't happen to the internet, and it won't happen to AI.
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The problem is it will create a broader economic problem in the markets. The top 10 holdings for VTI, the "easy button" investment option. Are: NVIDIA, Microsoft, Apple, Amazon, Facebook, Broadcom, Google, Tesla, Berkshire Hathaway. They represent a third of US market value, and 60% of them are heavily hooked into AI. A panic will be a decimation for NVIDIA, and that splash zone will be broad.
$RSP (equal weighted) solves that
I personally account for that in my planning. But many folks have their money in 401k funds in generic broad market securities -- often with high fees on top of it!
We’re on our way down to the through of disillusionment. See you on the other side.
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$RSP (equal weighted) solves that
Totally! You can also use something like VIG or VDADX if you're restricted in terms of offerings. I personally account for that in my planning. But many folks have their money in 401k funds in generic broad market securities -- often with high fees on top of it!
How is that? RSP and VIG look very different.
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Totally! You can also use something like VIG or VDADX if you're restricted in terms of offerings. I personally account for that in my planning. But many folks have their money in 401k funds in generic broad market securities -- often with high fees on top of it!
> You can also use something like VIG or VDADX if you're restricted in terms of offerings. How is that? RSP and VIG look very different.
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> You can also use something like VIG or VDADX if you're restricted in terms of offerings. How is that? RSP and VIG look very different.
VIG omits some of the high flier growth stocks that pay no dividend.
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VIG omits some of the high flier growth stocks that pay no dividend.
Ok so they sort of have something in common...but I'm not sure it's good advice to say one can be used to replace the other due to their very different overall strategies.
RSP definitely performs better and doesn’t shut you out of the growth stocks.