The Bank of England has warned that a bubble in artificial intelligence (AI) stocks threatens to spark a major market correction, posing a “material” danger to Britain’s economy.
The actual value vs. perceived value is so far out of whack it’s stunning. Y’all, we were in this path in September of 1929, and then October of 1929 hit.
I for one am looking forward to my fifth or sixth once in a lifetime economic collapse.
I heard there’s this funny little book, maybe a few more by the same author, that predicted capitalism would generate frequent collapses and that the time interval between them would become shorter… I wonder…
Obligatory Not Financial Advice, Just Describing My Own Plans
I’m actually planning around it.
I’m holding off on selling right now because we’re mere weeks away from the Christmas shopping season, and it may be that the increased consumer demand is enough to stave off the bubble bursting in the short-term. (Plus, with the stock market exploding in value this year, dividends and capital gains in December will be significant, but the massive short-term gains also make me exceedingly wary.)
But come January 1st, I’m taking profit and shifting most of my investments to cash. I’ll probably lose a little value in the short-term, but that’s better than losing my whole portfolio when the seven companies propping up the US economy are no longer able to do so. And, if it is as bad as I expect, it’ll mean having a lot of profits to reinvest at bargain basement prices post-crash.
Ah yes! The bank run strategy. Guaranteed to help the economy along.
Propping up an economic bubble isn’t helping the economy either.
I don’t need the bank of England to tell me that
It’s like the Fire Department sounding an alarm that there might be a possible fire in a house that has smoke pouring out of the windows and crazy people throwing gasoline on the walls.
Don’t punish the behaviour you want to see. It’s a good thing that they’re sounding the alarm.
