Oh no, my life savings (2 sticks of DDR5) will decrease in value.
No bailouts for these leeches
the AI
boombubble
Gen-X, having lived through 1987 (Black Monday), ~2000 Dot-Com Bubble burst , 2008 global financial meltdown, and the 2020 COVID-19 crash:
Us older millennials as well. We just don’t have the advantage of working in the booming 80s.
Neither did the vast majority of Gen-X. The cocaine 80’s is peak Boomer shit.
EDIT: I was born in 73. Started uni in 90. Let’s say you wanted to ride that mid 80’s wave, you should have been in the workforce by 84, that puts you born ~63. By the majority of lists, Gen-X starts on 65.
Yeah. I went to school with rich kids who were suddenly worried about whether daddy could pay for college after that 1987 crash.
Yeah, 1988-1996 was pretty bad. It was my computer hobby that saved my life. No idea where I’d be today had I not turned my side hustle into a career.
I guess I was “lucky” in that I was too poor to be directly impacted my the market back then. But I was young, energetic and at my peak looks-wise, so I can’t shit on that era too much.
Many kids had part time jobs in highschool. Plus that still directly impacted kids graduating into a good vs bad economy. Younger Gen x, sure. But it still benefits older and mid Gen x.
Most of us were coming of age in the 80s and working at a grocery store if at all.
i’m tired boss…
Same…same.
Whoa its updated and high res.
Think it might bounce back one more time?
Crashes usually include a few sharp rallys
It’s all funny money that never existed to begin with lol.
True, but as what happend in the dot com bubble, the middle and lower classes will pay. If you lived in a tech area during the bubble burst then, you’ll know how bad this is going to be worldwide.
So what to do if I suspect a bubble is coming? Sell my investment funds and keep fiat? Buy gold? Buy merchandise to sell later? Buy real estate?
I have no idea how to prepare.
Pay down short term debt.
Build emergency funds.
Unless you’re retiring in the next 5-10 years, it’s probably best to stand pat or shift some % out of large-cap funds to mid-caps. But the old adage usually holds true: “time in the market beats timing the market.” In other words, pulling it all out is way harder to get right than just leaving it in.
(Your choice- I am not a financial advisor)
Depends how wealthy you are. If you’re wealthy and even remotely intelligent this is where you make even more money. Wealthy people will diversify, they’ll sell some of their tech stocks and put it into anything not related to AI. Be it oil or manufacturing or agriculture etc. Then they liquidate those stocks (or loan against them, depending on how wealthy we’re talking about) to buy up tech stock when they’ve crashed. You then wait a few years and make money.
If you’re not wealthy enough to do that put your money into something stable, like bonds. If you want to be sure you won’t lose money (in the sense that the amount of money you put in won’t go below what you put in, it can still lose value due to inflation) your bank probably offers term deposits where you let your bank reserve your money for a few years and in return they guarantee something like a 2% annual return on your deposit.
And if you’re not wealthy enough to do that… You’re pretty much fucked. Learn to cook and enjoy cheap meals, start budgeting right now, forget enjoyment and hope you don’t get fired.
If you see risk being very high, make low risk investments: high yield savings accounts, CDs, bonds.
CDs? Damn I have a bunch of CDs with music, games. I’m gonna be rich.
On the real, I’ve heard the used CD market is making a massive comeback. There’s something to be said about physical media in the age of internet becoming more and more scary.
Isn’t it moreso Vinyl?
Bonds? Just not US bonds. Trump says he can take care of US debt with inflation, no problem.
My plan is just to cry.
Buy bonds
(Probably not US bonds)
Not financial advise but I personally decided to keep my money in MSCI World ex USA ETFand some gold + Stoxx 600. For now it seems my strategy is working. Will see where we go from here
Me neither, hold on for the ride?
Bullets and toilet paper. 📈
buy the dip (not financial advice)
OK I went to the store and bought some queso dip… Now what?
You got chips, too, right? … Right?
D’oh! I knew I was forgetting something!
Enjoy the show
Ohh absolutely, it was devastating to watch, and then to see corporations being bailed out because they were too big to fail. The big question is, is this really the start of a serious crash where the circle jerk of circular money pumped between 4-5 megacorps comes to an end, or do things really go crashing down from here. You need sanity to stabilize…the nuts have spun off the lugs that were holding the wheels of the economy to the hub…i think one wheel just wobbled a little…
There won’t be an AI bailout as with the auto industry and banking. AI hate is bipartisan and no national-level politician is dumb enough to throw public money at them. They’re not a huge employment/manufacturing concern like autos and they’re not the backbone of our financial system.
(And once again, I love your lug nut analogy, spot on!)
Greetings again 👋
Yah I agree, I don’t think it will be a traditional bailout like the auto industry though which was forgivable loans, I think it’ll likely come in the form of additional stock purchases by the US government, which is wild when you think about it.
They’re not a huge employment/manufacturing concern like autos and they’re not the backbone of our financial system.
No but they (AI companies and those claiming to be one including chip companies) directly influence the stock market, and this administration is having its day manipulating the hell out of it making a ton of money along the way. So if there is a way for the to make money on it, it will absolutely happen. Also the chip companies have national defense interests and so it’ a similar scenario as the DOD’s mission can not ever be hampered lol. The line must go up lol.
Ha! And thank you.
One sticking point, Trump can’t spend that kind of money and he’s about to lose the House and possibly the Senate.
We can only hope…but his family can spend it.
AI hate is bipartisan and no national-level politician is dumb enough to throw public money at them.
Trump loves him some AI bros, though. And could easily “justify” dumping shitloads of public money into them because using AI in the military (bad idea in the first place) makes AI a “national security priority”.
Trump can’t spend that kind of money. Despite Congress bowing to him, they still hold the power of the purse.
If they actually opt to use it. Which is a big fat fucking if.
Also, Trump might just steal it from somewhere. (Where has all that Venezuelan oil money gone?) And who’s going to stop him? The Supreme Court has already ruled that he can do basically anything he wants.
I hope you’re not excited for that to happen is what I’m saying. Even if you’re not American, you will feel this.
Ohh absolutely not excited at all. Its a pending shitshow…I didn’t vote for any of this and have already cast my vote to have all these idiots removed from office.
It was never even actual fiat currency. Just numbers in a computer somewhere.
Exactly, presumed value based upon future worth
and then will there be jobs?
You would assume so…but who knows. We have a wanna be dictator at the helm in the US that has the mental capacity of goldfish, so fiscal responsibility isn’t exactly this administrations forte!
I forsee layoffs instead of more jobs.
It is quite possible, the giant hiring spree during covid and immediately after was never going to last unfortunately. Maybe after the midterms things will change in a positive direction.
They are desperately trying to stave off the crash until Democrats have a majority so it can be blamed on the Democrats.
Ahh good point, it is certainly a method that works for them since they really don’t have much else to campaign on.
What a terrible insult to goldfish.
It is, but there is no reason to be coy about it.
But can you be koi about it?
Man, there is something really fishy about your question? Lol
No, the billionaires will continue to hoard.
If you can’t afford bread, you should just eat cake.
If you can’t afford bread, you should just eat
cakethe rich.
Burn it down… burn it down…
Damn, my retirement fund is gonna look like shit the next few years but It’s over 3 decades until I’m gonna touch that money so I guess I’m fine. Not sure I wanna try to time the market and put it all into bonds for the next 1-5 years until the actual burst shows up. (It’s 85% global index)
Good thing the majority of my regular savings is in bonds and high-yield saving accounts.
It’s only down like 1% from last week. I wouldn’t change anything unless you can’t sleep at night. Could have an AI bubble pop like 30% of the market but I would expect it to eventually recover. I personally prefer not to worry so don’t have much in stocks compared to most people who have retirement accounts
So should I withdraw whatever i have in technology index funds, while I have the gains?
No, hang on until it’s all worthless like geniuses did in 2008 listening to Cramer.
@P1nkman It depends. There is no universal answer.
About two months ago I read a very astute article about this circular, excessive financing in data centers and chips and thought, “here we go again.” Cashing out locks in your losses. That was my mistake in the last tech bubble. This one is set to be worse. This time around, I’m much more diversified and my personal answer is “no.” I moved about 10% of my tech funds into low-risk investments and the rest I will let ride. It may take years for recovery, but I can wait.
If you think you will need that money in the next few years, you might consider taking at least your profits now, maybe more. If your investments are in your retirement account then you also have to reckon your potential tax liability now versus later.
If you have a place to park it that will earn more or lose less, definitely. Putting into cash will lose at least 3% per year.
I’m thinking withdraw my gains, wait for the crash, buy in again? Damn, it’s a gamble…
Timing the market usually fails. Dollar cost averaging can give you a small advantage.
Assuming that AI follows a similar path as the .com boom… A lot of companies will go under leaving a few companies who will benefit greatly. It’s not that AI is going away. We’re just pruning the dead wood.
The AI bubble won’t be a typical dip. Some, maybe most, of these companies will be wiped out. No idea as to who crawls out the blast crater, but there will be survivors.
My uneducated and impoverished thought is cash will buy you real estate which is about to get really cheap, whereas any stock you buy today is going to have a severe crash very soon.
But most of my investments are in beans: i’ve got jars or black, red, garbanzos, kidney, and navy beans; also a variety of lentils.
Real estate has the potential to be cheap in 20 years as the baby boomers die leaving smaller generations to buy their larger number of homes.
Any kind of asset can be a good investment. If you have a place to store it, classic cars only go up in price and some of them are under 10K. Bonus: you get to drive them. I know someone whose 401k is mostly collectable guns (rare, 100+ years old guns). You just need to choose something with lasting value. Don’t repeat the Beanie Baby crash.
I’m still holding ono my Smurf collection! Some day they will be valuable!
I bought 30 AMD stocks for $13 a pop almost 10 years ago. Last month I sold 5 for $3200 (~$640 each) today they are about $500 each. Really wishing I had sold all of them.
Depends on your risk profile. But if you look at the growing capex and consecutive negative free cash flow of big tech, it is a sign of worry if you are only investing short term or you do swing trades.
In theory you could short Microsoft, NVidia, etc. but the market can stay irrational longer than you can stay solvent, so even though those stock prices are a crack fueled fever dream, betting against them is likely gonna be a trip to the poor house. I saw someone on here recommend some funds that are mostly large cap, traditional companies (read, not big tech) and some bond funds. I was going to research his recs today and see if it would make sense to move some money out of the S&P 500 index fund that I lean on way too much (of couse, it would have been better if I considered this a week ago 🤦🏾).
Lemme see if I can dig up that post…
Hopefully this link works, I’m using Voyager and haven’t figured out how to link posts https://lemmy.world/comment/26583022
i mean with alphabet alone we’re already half way there…
It all returns to nothing…
