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 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.
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.