Google’s parent company is now pushing toward a $3 trillion market cap, riding the AI wave.
Every major tech stock is up again.
Feels like the same story every tech cycle, big hype and bigger cash. Do you think this one’s different?
Fuck it, just valuate tech companies with quadrillions, or even quintillions. Why not? We’re already in the realm of fantasy.
Two things: when an article headline is phrased as a question, you can usually assume the answer is no.
Secondly, even if it is true, you still shouldn’t be changing your investment strategy. Trying to time the market is how people lose their savings. The smart approach to personal finance is setting things up so you don’t even need to pay attention to what the market’s doing. You have a strategy - and you stick to it.
The people who claim to have foresight about what’s going to happen are free to put their money where their mouth is and profit from it.
I’d suggest keeping 2 accounts if you want to play the market. One that’s stable for most of your investment money, and one to play around with.
It might be a bubble, but bubbles can last a long time. Here are some famous quotes to illustrate the problem:
“Markets can remain irrational a lot longer than you and I can remain solvent." – A. Gary Shilling, twice named Wall Street’s top economist.
“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” – Peter Lynch, American investor, mutual fund manager, author and philanthropist.
We know evaluations are high. We know that AI has not delivered on its promises at least not yet. Investor confidence remains high, but for how long? Nobody knows.
Personally, I think any correction will swiftly bounce because the government will print money to make sure there’s a speedy recovery. We have seen a push to boosting the economy through intensive money printing instead of allowing valuations to crash properly. The Fed loves to kick the can down the road more than anything.
It might be a bubble, but bubbles can last a long time. Here are some famous quotes to illustrate the problem:
“Markets can remain irrational a lot longer than you and I can remain solvent." – A. Gary Shilling, twice named Wall Street’s top economist. “Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” – Peter Lynch, American investor, mutual fund manager, author and philanthropist.We know evaluations are high. We know that AI has not delivered on its promises at least not yet. Investor confidence remains high, but for how long? Nobody knows.
Personally, I think any correction will swiftly bounce because the government will print money to make sure there’s a speedy recovery. We have seen a push to boosting the economy through intensive money printing instead of allowing valuations to crash properly. The Fed loves to kick the can down the road more than anything.
It’s a race to reach AGI first and if it isn’t real, the bubble’s got a long way left to grow i guess.
AGI is possible, the question is whether this bubble will reach it, or if it will arise out of the corpses after the crash.
I personally don’t think the current LLM tech will ever evolve into AGI, but it’s totally possible one of these companies will moonshot AGI off the side of one of their engineer’s desk accidentally.
The infrastructure that’s going to be left sitting around after the impending crash is going to make for some absolutely insanely cheap opportunities for some really smart (or lucky) groups of people to pull off the miracle and/or catastrophe that will be AGI.
